The Tourism Enterprise Partnership (TEP) is developing a new database of tourism suppliers with a view to enable tourism businesses to easily comply with the amended B-BBEE codes, which come into effect from the beginning of May next year.
TEP Chief Executive, Dr Salifou Siddo, told Tourism Update that TEP would offer companies enterprise and supplier development (ESD) services that would help these businesses comply with the requirement to invest in the development of suppliers from which they procured goods and services. “We are looking to position TEP as the one-stop shop for enterprise and supply development in the tourism industry,” says Siddo.
Siddo explains that, under the new codes, businesses will be required to invest 2% of their nett profit after tax into developing an SMME from which they procure goods and services. This is in addition to investing 1% on enterprise development. The requirement is also punitive and companies can drop a level on their B-BBEE if they do not comply. ESD will account for 40 points on the new B-BBEE scorecard.
To help tourism businesses meet this challenge, Siddo says, TEP is developing a database of tourism suppliers, or indirect tourism businesses. Ten categories of tourism suppliers have been identified by TEP for this database, including linen providers, fruit and vegetable suppliers, garden services and dairy products. At present, the database consists of 75 tourism supplier SMMEs that are 51% black-owned, as per the preferential procurement requirements listed in the codes.
TEP will provide solutions that enable businesses to procure from the SMMEs and to also invest in the development of these SMMEs. TEP will use this investment to develop these SMMEs through a mentorship programme as well as the provision of skills development and business support.
“Businesses will have access at every point to find out exactly how much of their budget has been spent and to what effect,” says Siddo. He adds that TEP will provide tourism businesses with detailed reports that are externally audited.
As a qualified agency that has been developing SMMEs for the last 14 years, Siddo says TEP will be able to offer ESD solutions that have targets and are measured and audited. He adds that TEP has the required project management skills, understands the needs of SMMEs and has proved itself in addressing those needs. In the most recent financial year, TEP supported 920 small tourism businesses, which collectively created 4 040 new jobs and increased their turnover by R850.5 million.