POLICY MANDATE

According to Section 217(3) (b) of the Constitution of the Republic of South Africa, the country should develop a national legislation to prescribe a framework within which there will be protection or advancement of persons, or categories of persons disadvantaged by unfair discrimination. The framework would be a mechanism to redress the effects of the apartheid era during which race was used to control access to South Africa’s productive resources and skills.

The current South African economy still excludes the vast majority of people from ownership of productive assets and possession of advanced skills resulting into the economy performing below its potential. Unless further steps are taken to increase effective participation of the majority of South Africans in the economy, the stability and prosperity of the economy in the future may be undermined to the detriment of all South Africans irrespective of race. 

In 2009, Government introduced the National Development Plan (NDP) which aims to eliminate poverty and reduce inequality by 2030. The NDP offers a long-term vision, defines a desired destination and identifies the role upon which different sectors of society need to play in reaching that vision. Furthermore, the NDP identifies tourism as a sector with potential to generate foreign direct investment, significant export earnings, growing an inclusive economy and building capabilities and reduce inequality. The Tourism B-BBEE Sector Code is one of the mechanisms designed to reduce inequality in the tourism sector and the Council is a body established to monitor and provide guidance in the implementation of the Code.  

LEGISLATIVE MANDATE

 The B-BBEE Amendment Act No. 46 of 2013 (the Act) is an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increase in the number of black people that manage, own and control the country’s economy, as well as significant decrease in income inequalities. The Act establishes a legislative framework to issue codes of good practice, publishes transformation charters and provides for establishment and registration of Sector Charter Councils as NPOs.

In line with the Act, the tourism sector gazetted a charter in 2005. The charter expresses the commitment of all stakeholders in the tourism sector to the empowerment and transformation of the sector, and its commitment to working collectively to ensure that the opportunities and benefits of the tourism sector are also extended to black people. The Charter formed the basis for the development of the Tourism B-BBEE Sector Code of 2009 as amended in 2015.

As a Section 9 (1) Code, the tourism sector through the TTCSA is required to monitor and report annual progress achieved towards the agreed compliance targets under Ownership, Management control, Enterprise and Supplier development, Skills development and Socio-economic development elements.

Section 6 (6.2) and (6.3) of the B-BBEE Regulations provide for establishment and registration of Sector Charter Councils as NPOs. The main responsibility of the Sector Charter Council is to provide guidance on sector specific matters affecting B-BBEE in entities within the sector. Accordingly, the Tourism Transformation Council of South Africa was registered as an NPO responsible for providing guidance and monitoring the implementation of the Amended Tourism B-BBEE Sector Code, which is the legal and mandatory empowerment measurement tool for the tourism sector.

STRATEGIC OBJECTIVES

  The strategic objectives of the Tourism Transformation Council of South Africa are as follows:

• To advance the objectives of the Broad-Based Black Economic Empowerment Act No.53 of 2003 as amended (B-BBEE Act);

• To facilitate implementation of the framework and principles upon which the Amended Tourism B-BBEE Sector Code was developed;

• To represent a partnership program as outlined in government’s strategy for Broad-Based Black Economic Empowerment; and

• To provide the basis for the sector’s engagement with other stakeholders including government and the private sector, labour and civil society.

STRATEGIC FUNCTIONS

• In accordance with the B-BBEE regulations (Statement 003 as amended), the Council is entrusted with the following responsibilities:

• Advising the Minister of Tourism on issues relating to tourism Broad-Based Black Economic Empowerment in the tourism sector;

• Monitoring and overseeing implementation of the Amended Tourism B-BBEE Sector Code across the private and public sector value chain;

• Addressing inequalities in the tourism sector, by unlocking potential of the emerging enterprises and enhance the sector’s growth;

• Providing guidance on transformation and empowerment program in the tourism sector;

• Conducting awareness sessions on tourism B-BBEE in the public and private sectors;

• Providing annual reports to the Minister of Tourism, Minister of Trade and Industry and Competition and the B-BBEE Advisory Council on the state of transformation and empowerment in the tourism sector.