The (Tourism) draft codes of good practice were published in the government gazette for public comment over the next two months.
"These codes are even more stringent than the already burdensome generic B-BBEE codes, creating additional hurdles which will negatively affect the tourism industry’s ability to create jobs," Mr Hill-Lewis said.
The industry is facing a slump in tourism, ostensibly brought about by the change in visa regulations that requires prospective visitors to SA to apply in person at the office of an embassy. Also, tourists accompanied by minors must be in possession of an unabridged birth certificate when travelling to SA.
Mr Davies, however, defended the sector-specific thresholds, saying they would "ensure that many enterprises ... contribute towards transformation, which will not be the case if the sector was using the amended generic codes".
In terms of the gazetted proposals, the exempted micro-enterprises must generate a total annual revenue of less than R5m, compared with the R10m threshold in the generic codes; qualifying small enterprises must make a total revenue of between R5m and R45m, lower than the R10m–R50m bracket in the generic codes; and exempt large enterprises must make a total annual revenue of more than R45m, lower than the R50m threshold in the generic codes.
The black ownership requirement is also higher in the tourism code and is set at 30% +1 vote, rather than the 25% +1 vote in the generic codes.
Mr Davies said this target "will ensure an increase in transferring economic assets to and mainstreaming of black people in the sector".
Another measure aimed at creating more opportunities for emerging black-owned enterprises is the target for supplier development, which is set at 3% of net profit after tax (npat) compared with the 2% of npat in the generic codes.
Mr Davies said the implementation of supplier development by established businesses in the sector "will lead to job creation and overall growth in the sector".
The amended tourism sector code also allocates more points for the procurement from suppliers that are at least 51% black owned. The weighting points allocated to this, are 12 in order to incentivise support for black-owned enterprises.
Mr Hill-Lewis rejected Mr Davies’s arguments in favour of the proposed codes for the tourism sector. "The DA firmly believes government’s focus must be on empowering and advancing those who are left out of the economy and trapped in unemployment. These codes, however, do the opposite and further benefit the enriched by stifling growth and entry into the industry," he said.
"The tourism industry constitutes 9% of our gross domestic product and employs 1.5-million South Africans. Its growth and success is vital to growing our economy and creating jobs for the 36% of South Africans who cannot find work."
via www.bdlive.co.za
Why is the tourism industry the first to publish their code. I think it's because tourism includes gambling. Gambling is big bucks and you need licences to operate casinos. And you need a level 2 to retain that licence. Zungurisation.
There are a number of significant issues that this article covers. Things like Malusi's tourism stifling immigration policy, increased thresholds (ownership 30.1%, ED and SD now 3.5% of NPAT) et al. The big issue here is that we can submit comments to until our PCs plutz but they are going to be ignored. I know that the DTI wants all sectors to mimic their racially skewed policies and that is not to be negotiated.
I agree with the DA here, these codes will stifle job opportunities and growth. But what we need to do now is allow market forces to dictate what policies are reasonable and implementable. You do have to feel for the gambling industry - they need a level 2 to retain their gaming licences. And this government has shown how they will push a very narrow empowerment agenda ahead of the economy's requirements.
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