Responsible
Tourism - South Africa
Economic Responsibility
What Is The Issue?
From how you recruit and pay employees, to your purchasing behavior and business relationships, your economic practices will have a substantial impact on the local economy.
As a responsible tourism operator, you should try to minimize the revenue that “leaks” out of your local area. Employing and purchasing locally and setting up business relationships with local people will help to create employment, stimulate entrepreneurial activity, increase investment in infrastructure and boost the overall standard of living in your region.
Local communities who have a vested interest in a tourism operation will actively seek to sustain it and contribute to a positive tourism experience. Supporting local economic growth is therefore key to long-term success.
What Can You Do?
Employment
Recruit and employ staff transparently, aiming to create a diverse workforce in terms of gender, ethnicity, age and disability. Clearly describe how positions are advertised, the criteria for selecting new staff and your human resources policies.
Set targets to increase the number of local people you employ and the percentage of your wage bill going to local residents (e.g. 50% of the wage bill going to people living within 50 km of your enterprise, with a 5% increase per annum).
Provide appropriate skills training programs for your staff.
Draw up a community labor agreement with local representatives, setting out targets for employment and skills training.
Pay above the minimum wages for your area and link wages to positions and experience.
Provide staff with incentives and bonuses linked to performance or service levels.
Who’s Doing It?
Phinda Private Game Reserve employs 250 people, of whom 80% are local. The reserve provides direct benefits to some 10% of the surrounding community.
Shangana Cultural Village has created over 100 jobs, most of which give value to cultural skills. A rigorous training program has enabled members of the local community to fill 80% of management positions.
Purchasing
Set targets for the percentage of services and products you buy from local enterprises (e.g. 15% of services and products sourced from enterprises located within 50km, increasing by 5% per year for 3 years).
Set a target for the proportion of locally made furniture, crafts, clothing and other goods that you buy. Assist local producers to achieve the quality and quantity you need.
Encourage guests to buy locally made goods. Set up a craft sales area, which showcases local products.
Create contracts with local entrepreneurs who provide good service.
Buy your basic supplies locally or enable local store owners to buy products for you. Encourage local suppliers to provide handcrafted packaging for soaps, menus, courtesy gifts etc.
Pay fair prices for goods and services sourced locally. Try to establish the time taken and the cost of materials to help local entrepreneurs arrive at a price, which exceeds their costs.
Apply fair practices when marking up goods and explain how your markups are applied.
Product Development
Provide visits to local places of interest, such as shebeens, restaurants and homes. Market local festivals and visits to nearby markets. Offer guests traditional food, cultural events and opportunities to buy locally made arts and crafts.
Help local enterprises source credit and seed capital by putting them in touch with SMME support agencies. Consider providing micro-loans to local enterprises you work with.
Let local craft producers know about the range, size, weight and style of crafts that would be attractive to your visitors. Provide craft suppliers with feedback from clients.
Market local products in your brochures and on your website. Put tour operators and foreign businesses in direct contact with local producers.
Who’s Doing It?
Umngazi River Bungalows on the Wild Coast buys 70% of fresh fruit and vegetables from local producers and provides advice and information support to suppliers.
Shangana Cultural Village in Mpumalanga supports 20 micro-enterprises involved in building, maintenance, supply of fruit and vegetables and curio production. Shangana provides technical assistance and feedback on what tourists are looking for.
Amadiba Adventures Horse and Hiking Trail on the Wild Coast pays local tour guides, caterers, cleaners and tent owners a sum per tourist per day. Horses are sourced from different villages, allowing revenue to be spread around the area.
Jan Harmsgat Country House near Swellendam contracts with a local Community Craft Initiative, ‘SWD Alive’, to print T-shirts and make tablecloths, gowns, writing cards, wrapping paper and garden furniture.
Fair Trade in Tourism South Africa (FTTSA)
An independent initiative of the IUCN (World Conservation Union), FTTSA promotes tourism businesses that are committed to fair share, democracy, respect, reliability, transparency and sustainability. FTTSA conducts independent assessments and awards an annual Trademark to tourism businesses that comply with these six principles and related criteria. (http://www.fairtourismsa.org.za/)
Linkages and Partnerships
Joint ventures, partnerships and other business linkages can be used to promote community-based tourism initiatives.
Whether you engage in formal contractual partnerships or more simple operating business agreements, the principle is to pool skills and resources.
Ensure that shares in a joint venture are matched by an input of land, lease rights, expertise, labor, joint management or capital. Document the investment made and respective shareholding.
In any business agreement, be careful to document all parties’ rights and responsibilities, and specify communication networks.
Seek advice from agencies with experience in structuring tourism business agreements. Also seek legal advice to ensure professional contractual agreements are drawn up – detailing the sharing of risk and profits, as well as dividends, management fees and preferential loans.
Community Training and Capacity Building
Assist local entrepreneurs to prepare business plans and funding proposals.
Link local communities or entrepreneurs with SMME support agencies that can help with skills training and capacity building.
Help coordinate or fund training program to develop local business skills.
Who’s Doing It?
The kwa Mqobela community is a business partner in Rocktail Bay Lodge with a share in both the lodge owning and lodge operating companies. Dividends are paid to a community trust and have been used to finance developments at two village schools, improve roads and fund a number of educational bursaries.
Khumbula Zulu Craft is endorsed by Tourvest Holdings, which has given it a shareholding in its airport outlets. Dividends go towards craft development.
KZN Wildlife has trained 18 local enterprises, ranging in size from 1-10 employees, in tendering, calculating fuel costs, estimating hours, and invoicing. Local SMME's are contracted for jobs including grass cutting and general maintenance.
Sandton Holiday Inn has an agreement with an in sourced enterprise to clean rooms. The hotel provides uniforms, cleaning equipment, meals and transport for the employees.
Support Agencies
Khula Enterprise Finance Ltd. facilitates loan and equity capital to SMMEs through Retail Financial Intermediaries, provides assistance in developing business plans and mentorship to improve the success of the business. (http://www.khula.org.za/)
Ntsika Enterprise Promotion Agency provides a promotion and support service to SMMEs. (http://www.ntsika.org.za/)
Tourism Enterprise Program (TEP) is part of the Business Trust and facilitates the growth of small enterprises. (http://www.dti.gov.za/)
Community Public Private Partnership (CPPP) operates a finance scheme to assist communities to prepare business plans. (http://www.dti.gov.za/)
|