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.  The B-BBEE Act No. 53 of 2003 as amended by Act No. 46 of 2013 promotes the achievement of the constitutional right to equality, increase broad-based and effective participation of black people in the economy and promote a higher growth rate, increased employment and more equitable income distribution. Section 6 (6.2) and (6.3) of the B-BBEE Regulations provide for establishment and registration of Sector Charter Councils as Non-Profit Organisations (NPOs).

The Tourism Transformation Council of South Africa is an authority responsible for providing guidance on sector specific matter, overseeing 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. The Council was created as a result of the gazetting of the Tourism B-BBEE Sector Code on 22 May 2009 by the Minister of Trade and Industry in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Act No.53 of 2003. The Tourism B-BBEE Sector Code was further amended in November 2015 in terms of the amended B-BBEE Act No. 46 of 2013.