Tourism Sector Code Salient Points

Original publish date – Fri, 18 Sep 2009 07:21:01 +0000, patience

The Tourism sector code is based on the Codes of Good practice, however it has some differing weighting points, targets and definitions. The Exempt Micro Enterprises have a reduced threshold of R2.5 million and not R5 million. They enjoy automatic BEE level 4 and those, which have more than 50% black ownership, are elevated to a Level 3. The Qualifying Small Enterprise (QSE) threshold is between R2.5 million and R35 million, whilst the Generic threshold is above R35 million. The Tourism sector code has a two-phased approach, points and targets for 2012 and 2017

The main acclamation of the Tourism sector code is the prominence of skills development, which we believe should be the foundation that will spearhead Broad Based Black Economic Empowerment. The sector certainly took heed of Zuma’s emphasis on training and skills development as the cornerstone of transformation in the country. The skills development element now has 20 points, which is the highest on the scorecard until 2012. The sector code recognises the skills shortage in the country and that all the other elements of Broad Based Black Economic Empowerment can easily be achieved if the nation has skilled employees.

The reduction on the ownership element weight and targets affirms the need to shift focus from the ownership element to other elements of true empowerment. Ownership targets for the period up to 2012 for both QSEs and Generics was reduced from 25% to 21% and ownership fulfillment, net value and the bonus points were removed. The weighting points dropped from 28 to 25 for QSEs and from 23 to15 for Generic Companies. However there was a regression on the preferential procurement element, which was reduced from 20 to 15 points and Enterprise development, which was slightly reduced from 15 to 14 points.

Socio-economic Development points increased from 5 to 8 and included two additional indicators. A drive towards the inclusion into the mainstream economy of the black unemployed school leavers without work experience was included. Enterprises in the sector are encouraged to employ black new recruits with no prior work experience and the target is 10% of all new recruits. Furthermore if the enterprise is a TOMSA (Tourism Marketing South Africa) levy collector it earns 3 additional points.

EconoBEE assist companies to understand the B-BBEE codes and to produce and improve their scorecards through workshops, EconoBEE V3 Scorecard software and BEE managed services.


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