presentation to the tourism portfolio committee of parliament · 2015. 3. 2. · presentation to...
TRANSCRIPT
Presentation
to the Tourism
Portfolio Committee of
Parliament
27 February 2015
SUCCESSFULLY
DEVELOPING
ENTREPRENEURS
FOR OVER A DECADE
The Faces of Job Creation
Ntwanano Tours Sertorio Mshthola
Employing 5
Cresco Tours Lucille Cremen
Employing 5
Roots Restaurant Reggie Makhetha
Employing 6
Supporting tourism entrepreneurs to develop product, improve quality, access markets, increase turnover and create new jobs
Aahaah Shuttles Zandile Dhlamini
Employing 2
Usisi Designs Stella Pretorius Employing 65
Mutariko Arts Godfrey Dupwa Employing 10
Zulu-lulu Stuart Tompkins
Employing 8
Reatswelela Nkele Motsoaledi
Employing 10
Robert and Sons Rob Chimungwa
Employing 5
Vuwa Safaris Stan Mufamadi
Employing 5
Nutting House Ethel Shongwe Employing 20
The Orchards Salome Tshungu
Employing 13
Ingwenya Wires Enock Ngwenya
Employing 2
Villa Anne Thandie Sibande
Employing 6
Linga Longa Nelly Mashinini
Employing 6
Boi Travelling Mich Boikanyou
Employing 5
African Link Bunny Bhoola Employing 16
Matopos Lodge Amos Mdluli Employing 10
Kay 2ze Gee Kagiso Legobe Employing 8
Kuhle Tours Sindi Mshengu Employing 16
Matsamo Park Dudu Ngomane Employing 35
Bo Kaap Kombuis Yusuf Larney Employing 10
Linsy Paradise Linsy Maseme Employing 2
Mpu Performing Art Sifiso Hlatshwayo
Employing 5
Ilios Travel Mohamed Baba
Employing 73
NK Charters Esa Yacoob
Employing 23
Mankwe Safaris Bernard Marobe
Employing 18
The Faces of Job Creation
Accelerating growth and transforming the economy to create decent work and sustainable livelihoods
Rita Moyo Age: 50
Office Cleaner 2 Years
Rampai Age: 39 Guide
3 Years
Gladys Age: 58
Office Admin 1 Year
Eva Tourism Trainee
Age: 19 Oct & Nov 2013
Dumi Driver
Age: 41 2,5 Years
Ngale Rehlapane Age: 29
Kitchen Manager 4 Years
Hlulani Siweya Age: 25
Manager 1 Year
Tinny Mbara Age: 28
Receptionist 1 Year
Mpho Maphelela Age: 30
Receptionist 1 Year
Portia Thole Age: 30
Ceramasist 2 Years
Mashudu Age: 29 Director 5 Years
Fortune Mokgehl Age: 29
Manager 5 Years
Nelsy Mnisi Age: 28
Ops Manager 1 Year
Johannah Mvalo Age: 49 Cleaner Jul 2009
Tauriq Ederies Age: 29
Kiosk Operator Aug 2011
Kendall Wilson Age: 25
Ops Manager Jan 2009
Janine Wilson Age: 36
Supervisor 1 Year
Mariette Apollis Age 25
Waitress 2 Years
Nurahn Galant Age: 25
Reservations 3 Years
Bukiwe Mangqan Age: 29
Reservations 3 Years
Abdurach Galant Age: 21
Operations 2 Years
Alistair St. Clair Age: 30
Ops Manager 1,5 Year
Eunice Lugalo, Manager Age: 53 3 Years
Julia Solms Assist. Manager
Age: 34 1 Year
Sylvia Ruiters, Manager Age: 47 6 Years
Angie Muchekeni Housekeeper
Age: 26 2 Years
Sewela Kgatla Age: 24
Consultant 1 Year
National Footprint
Board of Directors
The Faces of Job Creation
Overview
o Non Profit Company
o Flagship public private partnership
o One of the longest standing and most successful
enterprise development partners for small tourism
businesses in South Africa
o Our mandate is to facilitate the growth, development
and sustainability of small tourism businesses
o We offer a number of interventions that provide
hands-on, step-by-step support and guidance to small
tourism businesses
Notable achievements
o Enterprise and Supplier Development Programmes (EDP and ESDS) which
increases private sector contributions while also facilitating the integration of
SMMEs into large corporate value chains
o Well established practice of cost sharing partnerships with provincial tourism
authorities and departments for greater economic impact
o Third party project management initiatives that contribute to TEP and the
national priorities
o increase in skills via the Cathsseta Learnership Programme
o Responsible Tourism via the Fair Trade in Tourism (FTT) certification programme
o Access to Financial support via the Ikwezi Tourism Facility, a partnership initiative with the
Small Enterprise Finance Agency (sefa)
o SSETA accreditation for new venture creation
Service Offering
Impact since inception in 2000
o More than R550m invested in tourism SMME development
o Contributed to the generation of over R7 billion
o Supported the creation of over 80,000 jobs
o Trained over 25,000 SMME operators and employees
o Mentored over 450 small tourism businesses
o Client base of over 3,000 SMMEs spread across all sectors of the tourism
industry
Up to 31 December 2014 - Audited
Demographic Segmentation
As at 31 December 2014
Total Size of TEP Database = 4 100
o Rural Enterprises = 2 365 (58%)
o HDE Enterprises = 2 789 (68%)
o Youth-Owned Enterprises = 540 (13%)
o Women-Owned Enterprises = 1 910 (47%)
Achievements (Target Delivery) for 2013-2014
SMMEs Registered and Paid 920 186%
Enterprises Assessed (DNA) 179 100%
Funding Contracts (BDF) 633 100%
Individuals Trained 3 285 100%
Enterprise Mentorships 119 158%
Market Access Support 977 100%
Jobs Created by Supported SMMEs 4 040 101%
Increase in Turnover by supported SMMEs(Rm) R850.5 258%
Period – 1 April 2013 to 31 March 2014
Business registration and DNAs
Business
Registration and
Support
Development
Needs Assessment
(DNA)
179 DNAs were completed
920 new business registrations for paid members were achieved
Period – 1 April 2013 to 31 March 2014
Access to Finance - BDF
Business Development
Fund (BDF)
469 enterprises received BDF grants
126 of these enterprises were rural
339 of these enterprises were HDEs
Segmentation by type of support of the 633 grant funding provided
Period – 1 April 2013 to 31 March 2014
Access to Finance - ikwezi Tourism Facility
o Access to finance has been the missing link in TEP’s
work
o TEP has been looking for ways to address this
challenge
o sefa (Small Enterprise Finance Agency) on the other hand have been looking
for ways of mitigating the inherent risk in providing financing to small
businesses
o The idea of a mutually beneficial partnership between sefa and TEP was
thus born and conceptualised into
o The ikwezi Tourism Facility was launched at the Tourism Indaba
www.ikwezifacility.co.za
Access to Finance - ikwezi Tourism Facility
o The ikwezi Tourism Facility – ikwezi or ITF for short - is a
R50m revolving financing facility available exclusively to
TEP registered clients
o ikwezi provides financing ranging from R10 000 to R5m
o Repayment terms range from 3 months to 5 years
o Interest rates charged range from 10.60% to 12.60%, substantially lower than
commercial banks
o TEP clients may approach ikwezi for Bridging Finance, Capital equipment
finance, and business expansion finance
o TEP will perform the technical due diligence of applications
o Sefa will perform the credit vetting component of applications
www.ikwezifacility.co.za
Skills Development
Mentorship Programmes
Training Workshops
Learnerships
• Assessment and matching
• 6 months mentorship
• Growth Plan
• 263 learnerships implemented for CATTHSETA
• 156 had maintained the pace as at year-end (59%)
Access to Markets
• Emerging Tourism Entrepreneur of the
Year Award (ETEYA)
• Rennies Red Stamp
• SIPPO European Trade Mission
• Advertising and PR
• Events and Exhibitions • Indaba • Getaway Show • WTM • WTM Brazil • Vakantiebeurs – Netherlands • ITB • New York Travel/Tourism Fair • Miami Boat Show
Access to Information
• An information portal for the tourism trade
• Based on Wikipedia concept
www.wikitourism.co.za
Comparative Assessment
The Small Business Project (SBP)
An independent 3-Year Longitudinal Study
SBP Results - Comparative Assessment
Impact of TEP services – Most impactful services according to survey participants
SBP Results - Comparative Assessment
Feedback from participants on Barriers to Employment:
SBP Results - Comparative Assessment
Fundraising and Partnerships
The TEP-NDT Partnership
o As a reminder TEP was established and funded by Business Trust from 200 to 2004
o NDT (then DEAT) became a funding partner on a 50% / 50% basis from 2004
o NDT has given notice that when the current 50/50 partnership expires on 31 March
2016, they may not be inclined to renew as the Tourism Incentive Programme (TIP) may
become operational and SMME development may be done in-house by NDT itself
o As TEP we are eagerly waiting to see the details of the TIP and how our SMMEs could
access the programme to grow their businesses and create the much needed jobs.
Challenges and Opportunities
CASH REVENUES 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
ACTUAL ACTUAL ACTUAL ACTUAL BUDGET FORECAST BUDGET
TOTAL CASH INCOME 61 480 316 53 780 580 49 140 162 45 161 214 32 644 788 33 115 714 27 000 000
National Dept of Tourism (NDT)
52 097 000 20 000 000 20 000 000 25 000 000 25 000 000 25 000 000 13 500 000
IMPACT 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Jobs created by supported SMMEs
6 527 4 791 5 095 4 901 4 040 3 600 (tbc)
NOTE: All the above values refer to cash only in the income stream and does not include any in-
kind contributions that were received over the years. Therefore the balance of private sector
contributions was derived from non-cash support which is not recorded above.
In Conclusion
o TEP has established a solid reputation as a credible tourism SMME development agency
o The challenging question of resource mobilisation remains a VEXING subject and we are
convinced that with more resources we can do much more
o However, the unfortunate irony is that when the Tourism Incentive Programme is
launched next year, it is not really clear what it envisages for TEP in spite of the fact that
we have 15 years of successful experience in tourism SMME development (10 years with
NDT)
o TEP is in the process of reinventing its business model to identify new opportunities to
mobilise funding to support its SMME development work
o We appreciate the support that we have received from NDT, and the Portfolio
Committee to date, and we are looking forward to the future with confidence that TEP
will continue to play a prominent role in tourism SMME development in our country
Thank You