The Amended Tourism Sector Code

Mariska Harding is a Technical Signatory and Verification Manager at Authentic Rating

Solutions; a SANAS accredited verification agency. She completed her BCom Law, LLB,

LLM - General Private Law - Dip Aipsa degree at the University of Pretoria. Following

five years of practising law, Mariska shifted her career focus to B-BBEE. With a good

understanding of legislative law and in-depth knowledge of all the Codes, she has

successfully overseen the verification process of organisations of all sizes, across most

sectors. Mariska has a keen interest in training and development, which has encouraged

her to share her technical knowledge and vast expertise with her clients and peers alike.

Did you know?

One in every 22 South Africans are employed in the Tourism Sector. According to research released by the World Travel & Tourism Council (WTTC),

travel and tourism were forecast to contribute more to the South African economy in 2018 than any other year. These findings indicate that the sector

contributed R424.5bn to the overall South African economy in 2018; about 3% more than in 2017. That same year, it was estimated that 1.5 million

people were employed in the sector, which translates to 9.5% of South Africa’s total workforce, with a prediction of 2.1m jobs in 2028. The sector

contributes 9% towards South Africa’s GDP, taking into account all direct, indirect and induced benefits1

. The Amended Tourism Sector Code was

published in the Gazette #39430 on 20th November 2015 and has since been effective across the sector.

What is the Scope of Application?

If an organisation generates more than 50% of their annual turnover from any of the following tourism services, the Tourism Sector Code is applicable

as the measurement criteria

Like the Generic Codes, The Tourism Sector Code has five elements. These include three Priority Elements, namely Ownership, Skills Development,

as well as Enterprise and Supplier Development. Both Sub-minimum requirements and the Discounting Principle apply.

What are the qualification thresholds?

● For an EME: an annual turnover of less than R5m;

● For a QSE: an annual turnover of more than R5m but less than R45m; and

● For a Large Enterprise: an annual turnover of more than R45m.

What are the features of the Tourism

Scorecard?

Ownership

> Compliance Targets for Voting Rights and Economic Interest for

‘Black’ People and ‘Black’ Women are set at 30% and

15% respectively.

> The target for ‘Black’ New Entrants is 10%.

Management Control

> Like the Generic Codes, EAP targets are applicable; however, the

calculation differs in this sector code.

> Bonus Points for employees with disabilities are available for

achieving 1% over and above the compliance target.

Skills Development

The Skills Development target is 6% of the Leviable Amount, but is

limited to any three of the following sub-sectors:

> Accommodation;

> Hospitality and Related Services; and

> Travel and Related Services.

Learnerships, apprenticeships and internships are 3.5% and 3%

respectively for employed and unemployed people. The target is higher

than the those laid out in the Generic Codes.

Enterprise and Supplier Development

> This element incorporates Enterprise Development, Supplier

Development and Preferential Procurement.

> The target for Qualifying Supplier Development donations is set

at 3% Net Profit After Tax (NPAT).

> The Enterprise Development target is 0.5% NPAT with a

sector-specific requirement.

Socio-Economic Development

A Bonus Point is available in return for being a registered as a Tomsa

Levy Collector. The levy collection initiative is administered by the

Tourism Business Council of South Africa (TBCA). It aims to raise

additional funds for marketing South Africa as a preferred tourist

destination.

The levy is charged to the customer on their invoice, but does not constitute a tax for the tourism business. The levy varies across the sub-sectors as outlined below:

What are the benefits of being a Levy

Contributor?

> Qualifies members for B-BBEE points as allocated in the sector code;

> Eligibility for discounted rates when participating in industry trade

shows such as the Annual Meetings Africa or Tourism Indaba;

> Special discounts for tourism grading fees;

> The platform to promote products and services through the various

South African Tourism (SAT) online platforms;

> Notice of dates when international road shows and trade shows

attended by SAT take place to support sector participation;

> Quarterly and annual feedback on SAT’s marketing initiatives;

> Preference to TOMSA levy contributors for grading when SAT selects

products for sponsored familiarisation trips;

> Bi-annual updates on industry performance, through the TBCSA

Tourism Business Index;

> An opportunity for election to the TOMSA board;

> An invitation to attend industry networking events;

> TOMSA levy contributors are deemed as preferred suppliers where

possible by SAT and the National Department of Tourism; and

> SAT training and marketing briefs to enable contributors to

prepare for participation in trade shows that SAT participates in,

like Meetings Africa and the Tourism Indaba.