Ownership shift sweeps through SA travel sector
SOUTH Africa’s travel sector is experiencing a paradigm shift from being white-owned to strong holdings by black people, a study by Grant Thornton and the Association of Southern African Travel Agents (Asata).
According to the findings, the country’s travel sector has moved at a greater speed compare to other sectors from being a largely white-owned and managed sector to one that has made significant strides to achieve meaningful transformation across all levels in businesses and across all business sizes.
“We are extremely encouraged by the report’s findings that indicate travel enterprises have largely achieved excellent scores on their tourism B-BBEE scorecards.
“While the positive results have exceeded our expectations, we recognise that further transformation is still required for the travel industry to be reflective of South Africa’s racial demographics,” Otto de Vries, CEO of Asata, said.
Vries said the study revealed that the travel sector is dominated by black enterprises, which is indicative of the important role the industry plays in creating and supporting small and micro businesses.
Among the highlights revealed in the B-BBEE Report is that irrespective of size, more than 55% of all travel enterprises with a BBBEE certificate have achieved a B-BBEE status at Level 1 or 2.
Further, on average, all travel enterprises have 40% black and 25% black female ownership, and that large enterprises have achieved the tourism B-BBEE scorecard target for black women across all levels of management.
The B-BBEE study forms part of a wider investigation into the state and size of South Africa’s travel sector, the results of which will be released later this year.