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BEE and tourism

Tenk LoubserThe long-awaited Tourism Sector Code on black economic empowerment has been effective since 22 May 2009. It applies to all accommodation, hospitality, travel and related businesses including guesthouses, game lodges, bed and breakfast and backpackers’ establishments, restaurants, professional caterers and tourist guides.

In terms of the generic codes, only tourism enterprises with a minimum turnover of R5 million have to comply with these codes. However, in the Tourism Sector Code this threshold has been reduced to R2,5 million, ensuring that a significant number of enterprises doing business in the tourism industry now needs to comply with the Code.

The Qualifying Small Business Scorecard applies to all tourism businesses with a turnover between R2,5 million and R35 million. Should a business in this category be scored in terms of the Code, it may select any four of the following seven elements for inclusion in its scorecard:

  • ownership,
  • management and control,
  • employment equity,
  • skills development,
  • preferential procurement,
  • enterprise development,
  • socio-economic development contributions.

The elements all carry an equal weight of 25%. Under Ownership, bonus points are allocated for the involvement of black women in an enterprise and for the involvement of black participants in an employee-ownership scheme. Under Management and Control, black women in top management positions will earn the business bonus points.

For more information, contact Tenk Loubser at Exceed, tel. 021 882 8140 or e-mail tenk@exceed.co.za.

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