TEP Power of One

2014

Limpopo

© 2009 Tourism Enterprise Partnership. All Rights Reserved

TEP OVERVIEW

• Non Profit Company

• Flagship public private partnership

• One of the longest standing and most successful enterprise development partners for small tourism businesses in South Africa

• Facilitating the growth, development and sustainability of small tourism businesses

• Offering a number of services that provide hands-on, step-by-step support and guidance and ultimately improves the tourism business’ product quality, operational efficiency and market reach

OBJECTIVES

1. Job Creation through Enterprise Support - To improve the performance and increase the profitability of SMMEs by focussing on skills and product development, quality assurance and access to finance thereby actively supporting the creation of new jobs and maintenance of existing jobs.

2. Transformation - To increase the participation of black tourism enterprises by focussing on skills development, enterprise development and market access for enterprises that are predominantly black-owned.

3. Sustainability through Market Access - To increase market access for SMMEs, thereby actively supporting the creation of new jobs and maintenance of existing jobs through increased turnover in excess of inflation.

4. TEP Impact and Sustainability – To actively source programme and grant funding and provide fee-generating services to the tourism sector as to enhance the impact and sustainability of TEP.

ACHIEVEMENTS

Managed investment volumes of over R550m since 2000

National footprint with representation in all 9 provinces

Contributed to revenue increase of R6,4 billion since its inception

Facilitated the creation of approximately 75,000 job opportunities country wide

Trained 24,000 and mentored 422 small tourism businesses

Client base of over 4,100 tourism SMME’s (Category 1 and 2) include accommodation, car hire, travel agencies, entertainment, conference centres, restaurants, tour operators, activities, attractions, storytellers, artists, performers, lifestyle products and museums, all combining to form the social and heritage product network of South Africa

FUNDERS & BOARD MEMEBERS

FUNDERS

Funding for TEP’s tourism SMME’s development interventions is provided by the National Department of Tourism as well as the private sector who, after the winding up of Business Trust in September 2011, continue to invest in TEP through its Enterprise Development Portfolio (EDP).

BOARD MEMBERS

TEP’s Board of Directors consists of individuals from large and small public and private organisations, representing tourism as well as other industry sectors.

• Upon registration with TEP, the tourism SMME provides baseline information on the number of full time and part time employees, as well as annual turnover.

• Once the SMME has received assistance from TEP, they are required to provide monthly progress reports to indicate current employment and turnover figures.

• TEP’s targets of job opportunities created and turnover increased are based on incremental growth figures from baseline on both employees and turnover.

• TEP is audited by PriceWaterhouseCoopers and SizweNtsalubaGobodo.

REPORTING METHODOLOGY

TEP 2013/2014 STRATEGY

The driving force behind the new strategy (SIR):

• Sustainability• Impact • Relevance

Cost to become a TEP Member:

• Based on international best practice with regards to enterprise development cost sharing, TEP charges an annual administration fee of R600, and a commitment fee of 10% per service used

Success:

• Since 1 April 2013 more than 670 clients have committed to TEP through paying the administration fee

TEP PRODUCTS & SERVICES

BENEFITS OF BELONGING TO TEP

Registered TEP clients, having paid the annual administration fee, gain access to: • A source of relevant and up to date industry information• A network of like minded business owners and entrepreneurs • Discounted services such as skills development and market access • TEP’s Business Development Fund, which can assist with up to 50% cost

sharing of approved business services. This is a fund that can assist with up to 50% cost sharing of certain business services that meet impact and job growth criteria

Approval of service use is based on impact and relevance with regards to addressing identified business needs, growth and job creation.

ACTIVITIES – TRAINING INTERVENTIONS

• Expedia Training – Latest booking trends within the tourism industry (client’s preferences and tools); (26 clients)

• E-commerce Training – (partner: Dept. of Communication). The use of electronic networks to exchange information, products, services and payments for commercial and communication purposes between individuals (consumers) and businesses, between businesses themselves, between individuals themselves, within government or between the public and government and, last, between business and government ” (18 clients)

• New innovations – Chipkins Baking Solutions (New ways to change an ordinary breakfast into a WOW experience for clients). (43 clients)

ACTIVITIES –MENTORSHIP

5 Limpopo clients benefitted from this very intense mentorship programme.

These clients ranged from travel agents, luxury accommodation, lodge and hunting lodge.

Positive feedback received from these mentees.

5 establishments benefitted from this intervention.

• TEP, in partnership with Cathsseta, launched a new 12 months learnership programme in July 2013

• A learnership is a structured learning process to gain theoretical knowledge and practical skills in the workplace, leading to a qualification registered on the National Qualifications Framework

• It is a work-based learning programme, directly related to an occupation and combines learning with practical work experience Learners have to attend classes to complete the classroom-based learning, and also complete on-the-job training in the workplace

• An important aspect of a learnership is the support and guidance of learners, hence the role of workplace mentors for learners were introduced to ensure workplace learning is achieved and recorded

• Those entering the learnership will not be charged for any training or assessment fees

NEW INITIATIVES - LEARNERSHIP

LEARNERSHIP - SELECTION CRITERIA

• One employee per business allowed - NOT the Business Owner (Mentor)• Employed and in a supervisory / management position • Between the ages of 18 and 35• Have certified copies of their Matric Certificate with a pass in Mathematics

and English • Have certified copies of their South Africa ID document• Have commitment from the Organisation / Business to allow the employee

to attend classroom training and assessment (for this learnership, approximately 3 days per month as we plan to roll the project out with approximately 18 physical contact days).

• Employees/ Learners to sign a Declaration of Commitment to commit to self-study, completion of assignments as specified in the project plan and employers commit to ensuring that the workplace logbook is kept up to date. Employer involvement in this process will be of utmost importance due to the practical nature of this qualification.

• Completion of a Numeracy and Literacy test is required on the day of registration (± 1hour )

VALUE ADD BENEFITS – COST SAVING

In the continuing tough economic climate, cost savings on essential services can make a big difference to the bottom line. This, coupled with increased market access, supports small businesses to achieve greater profitability and ultimately sustainability, transformation and job creation – TEP’s main objectives

TEP has partnered with: • Sky Tiv Promark (STP) Insurance Brokers and ETANA Insurance

Offering 15% discount on tailor-made tourism insurance products

TEP hopes to soon unveil more partnerships, offering discounted services such as: • Legal assistance,• Website maintenance and hosting, • Marketing (advertising) • Printing• Etc.

VALUE ADD BENEFITS – MARKET ACCESS

As a lack of market access continues to be one of the greatest barriers to small business development, especially in the tourism industry with its established distribution channels and networks, TEP is actively pursuing greater market access opportunities for its client base, using the same economy of scale method.

TEP has partnered with: • Shanduka Black Umbrellas

Offering free listing on the Shanduka Blackpages to all its black owned tourism clients

TEP hopes to soon unveil more partnerships, offering listings on similar procurement portals

NEW HIDDEN TREASURES STRATEGY

In 2010 TEP launched a market access initiative called South African Hidden Treasures, a grouping of over 100 unique and exciting cultural, heritage and adventure tourism products, offering visitors the opportunity to experience activities and places that authentically represent the stories and people of South Africa’s past and present. Over the past few years the Hidden Treasures brand has gained good traction both locally and internationally.

NEW HIDDEN TREASURES STRATEGY

TEP is opening up applications for new members to join the brand free of charge. As the brand continues to grow and the benefits become even more tangible, a membership fee will be introduced.

The criteria for becoming a Hidden Treasure includes:• Being a fee-paying registered member of TEP• Having a unique heritage, social, cultural or adventure selling proposition• Being a legal tourism SMME• Proving excellent customer service • Adhering to high quality standards

Benefits of belonging to the Hidden Treasures brand are inclusions in:• Marketing collateral• Hidden Treasures website • TEP’s marketing and public relations activities both domestically and

internationally

www.TOUCHSOUTHAFRICA.co.za

• New clients registered - Target 10 - Actual Registrations 23

• Value of Transactions - Budget R23m as at Dec 13 reached R47m

• Training of establishments – Budget 237 as at Dec 13 we have trained 405 establishments

• Mentorship - Target 5 – actual 5

SOME OF OUR ACHIEVEMENTS IN THE LIMPOPO

Thank you

© 2009 Tourism Enterprise Partnership. All Rights Reserved

TEP co-funded by: TEP an initiative of: