Own­er­ship shift sweeps through SA travel sec­tor

The New Age (Northern Cape) - - BUSINESS - busi­ness@the­newage.co.za

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.

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