The business of tourism

South African Tourism's Strategic Research Unit has established that tourism is one of the largest industries in South Africa and shows significant growth potential. In 2006, Tourism contributed 8,3% to the country's gross domestic product (GDP) and is projected to rise to 12% by 2014. With South Africa becoming a destination of choice for sporting and cultural events, including the up-coming Soccer World Cup in 2010, a wide range of opportunities exist for entrepreneurs in the travel and tourism industry.

There is a common misconception that the tourism industry is mainly associated with providing accommodation to tourists visiting our country, such as guesthouses, lodges, bed n breakfasts, hotels, camping sites, etc. However, accommodation is just one of the sectors that make up the tourism industry. In this article we explore the various sectors which entrepreneurs can capitalise on, if they are considering their own tourism business.

The tourism industry comprises many segments, including:

Transport

Cabinet has approved the Public Transport Action Plan which supplements the Public Transport Strategy. It maps out the initial development of high-quality integrated rapid public transport networks in 2010 World Cup Host Cities. These networks comprise an integrated package of rapid rail, taxi and metered taxis. The strategy is expected to improve public transport services for over half of the country's population.

The transport sector deals with transporting tourists (both domestic and international). This can be done in and around South Africa by, e.g. airlines, shuttles, trains, buses, ships, taxis, etc. With this strategy in place, a host opportunity now exists for entrepreneurs in the transport sector. An amount of R9 billion has been allocated to improve public transport infrastructure. Projects to be improved include:

• Public transport links and facilities
• Public transport interchange facilities
• Rail infrastructure and system upgrades
• Inter-modal facilities
• Information technology (IT) infrastructure and systems
• Non-motorised transport (NMT) infrastructure
• Airport-city accommodation and stadium links

If your business involves transporting tourists, certain licences are essential, both in terms of vehicle and driver requirements.

Apart from the usual vehicle requirements, i.e., roadworthy certificates, registration and licensing, you need a Road Transportation Permit (also known as a Public Operating Licence) for your vehicle(s) before you may transport passengers for reward. 

Operating licences are valid for a maximum of five years and are issued by your local transportation board. Drivers of vehicle that transport paying passengers also need a Public Driving Permit (PDP).

Travel Agents

The main function of the travel agent is to sell the temporary use of transport (air, rail, road and water), accommodation, tours and other associated services. They sell or arrange trip or tours for customers. A travel agent is a licensed travel product retailer that provides travel information, reservations and other forms of assistance to consumers, companies and groups in making travel arrangements.

As a travel agent you can offer a wealth of information and experience to tourists.Travel agents can assist tourists with flights to and from South Africa and her neighbouring countries, as well as special package tours, day trips, transportation and any other travel needs they might have.

Tour Operator

A tour operator is an individual or organisation in the business of (bulk) buying, and subsequently bundling, the various components make up a package holiday, for sale via a travel agent or direct to the consumer.

The tour operator is a person that owns a business which transports paying tourists on scheduled itineraries and make arrangements for their clients in terms of accommodation, transport and excursions. These businesses often own vehicles to transport tourists and the owners of these enterprises often accompany tour parties.

There are three categories of tour operators: in-bound tour operators: provide services mainly for foreign visitors to South Africa; out-bound tour operators: provide services to clients in South Africa wishing to travel to destinations outside the country; local tour operators: provide services to domestic clients for tours within South Africa.

Tour Operators provide tailor-made tour packages and daily excursions of the region being visited. Whether you are a seasoned traveller to South Africa or visiting for the first time, enjoy the diversity of this region with the security, convenience, flexibility and knowledge that these professional companies offer.

The KwaZulu-Natal's Tourism Authority site contains useful information on the requirements for such a business. Click here: How to Establish a Tour Operating Business

Tour Guide

In a country such as South Africa, where transport is not so easily accessible for tourists, an opportunity for tour guides exists to get tourists around to various tourist destinations.

A tour guide is any qualified person who, for monetary or other reward, accompanies people who are travelling through visiting any place within the country and furnishes those people with information or comments regarding the places or objects visited.

Registered South African Tour Guides provide personal attention and the experience and knowledge of South Africa that only a native can offer. Tourists can opt to see well-known South African tourist attractions or visit "off the beaten track" locations, which will allow you to experience the "real" South Africa while sampling local hospitality and avoiding a lot of the tourists.

If you would like to be contracted or employed as a tour guide by a company, close corporation or tour operator, you must be registered with the Tourist Guide Registration Office of the Department of Economic Development and Tourism in your province. You can register whether you are new to the industry or if you are a guide whose registration has lapsed. Before you can register, you must complete tourist guide training, through an accredited training organisation.

Hospitality (accommodation and food and beverages)

This sector deals with provision of accommodation, e.g. bed and breakfast, guesthouse, self-catering, youth back-packer hostels, motel, hotel, etc. If you open or run an accommodation establishment, restaurant, coffee shop, pub, tavern or shebeen where food is served, you must have a valid business or trade licence.

This permits you to carry out a particular activity in a certain area, and ensures that your business and the premises meet all of the building, public safety and health requirements. Trading without a licence is a punishable offence.

As a tourism business specialising in the hospitality industry, there are various regulations which the business owner needs to comply with. To learn more about compliance in the hospitality industry, click on the link.

MICE (Meetings, Incentives, Conference and Events)

The acronym MICE stands for (Meetings Incentives Conferences Exhibitions / Events) and is defined as the gathering of people in the most succinct and acceptable manner worldwide. The MICE industry is often overlooked, but as South Africa is becoming more renowned in the international arena, the need for this kind of business in tourism is becoming more essential.

The primary objective of this sector is to arrange and/or host meetings and other events such as exhibitions. Tea and lunch can be arranged for delegates attending the meeting.  

For more information on this sector visit the MICE Club: http://www.miceclub.co.za/ .

Tourist attractions

With an array of destinations to visit, there is much for tourists to see and do. Tourists can visit South Africa's attractions that can be seen on day excursions with the added benefit of the experience and knowledge of a registered guide. There is a select group of professional guides who can also arrange various adventure, leisure and sporting activities, including wine tasting tours, hot-air ballooning, diving with great white sharks; elephant back safaris and game viewing. The options are endless and can be tailored to your personal interests and budget.

Tourist attractions involve the places or objects that tourists visit e.g. Table Mountain, museums, Cango Caves, etc.

Putting all of the above components together constitute a tourism product which can be marketed internationally, thus creating a great tourism business for the small business owner.

Trade Associations and Tourism Organisations

To help entrepreneurs get off their feet and to provide insight into the industry are various organisations and associations which look after the interests of small businesses. These organisations also regulate the tourism industry and how it is operated.

Association for South African Travel Agents

The association for South African Travel Agents (ASATA) was formed on 4 September 1956. Its founders created a representative forum in the industry to promote professional service with security for both members and their clients. Their emphasis is on free trade without violating rules and regulations. Accordingly a Constitution and Code of Conduct self-regulates the industry and provide the consumer with protection and peace of mind.

Over 500 travel agents, wholesalers and tour operators are members of ASATA. ASATA also has nearly 200 Associate Partners, which include companies such as airlines, hotels, car rental companies and other suppliers and industry partners.

By dealing with an ASATA member you are assured of professional service.
Should you have a complaint, ASATA will investigate it on your behalf and will recommend a course of action. ASATA's mandate allows us to handle complaints pertaining to ASATA members only, so it's worth your while to use an ASATA Member.

For more information visit: http://www.asata.co.za/

Department of Environmental Affairs and Tourism

The vision of the Department of Environmental Affairs and Tourism (DEAT) is to lead environmental management and tourism in the interests of sustainable development and to contribute to the improvement of the quality of life of all South Africans.

The mission of DEAT is to be a prosperous and equitable society living in harmony with our natural resources. To lead sustainable development of our environment and tourism for a better life for all, through:

• Creating conditions for sustainable tourism growth and development for the benefit of all South Africans.
• Promoting the conservation and sustainable utilisation of our natural resources to enhance economic growth.
• Protecting and improving the quality and safety of the environment.
• Promoting a global sustainable development agenda.
• Transformation

For more information visit: http://www.environment.gov.za/

Fair Trade in Tourism South Africa

Fair Trade in Tourism South Africa (FTTSA) is an independent project of IUCN (World Conservation Union) South Africa that seeks to facilitate improved access to tourism markets for structurally disadvantaged tourism enterprises.

Qualifying businesses will be able to use the FTTSA Trademark as a marketing tool. The Trademark is an independent symbol of fairness in the tourism industry. It is awarded to tourism establishments that meet stringent criteria.

Fair Trade in Tourism South Africa encourages and publicises fair and responsible business practice by South African tourism establishments. They also encourage:

• Fair wages and working conditions, fair operations, purchasing and distribution of benefits.
• Ethical business practice
• Respect for human rights, culture and the environment

For more information visit: http://www.fairtourismsa.org.za/

National Accommodation Association of South Africa

The National Accommodation Association of South Africa (NAA-SA) is a national association that brings together all local and provincial accommodation associations. NAA-SA membership assures those looking for accommodation in smaller establishments that they can expect quality, reputable service and value for money - and recourse if this is not the case.

For more information visit: http://www.naa.co.za/

South African Association for the Conference Industry

The South African Association for the Conference Industry (SAACI) is dedicated to maintaining and improving the standards of efficiency and professionalism for the conference industry in southern Africa.

For more information visit: http://www.saaci.co.za/

Southern Africa Tourism Services Association

Southern Africa Tourism Services Association (SATSA) is a non-profit member driven association, representing the major role players and principles including airlines, coach operators, tour operators, accommodation establishments, vehicle-hire companies, attractions, conference organisers and related marketing organisations.

SATSA operates on the standards of credibility, stability and integrity. Not only is SATSA of benefit to businesses within the industry, in successfully aligning with an association of such a high calibre, it is also extremely useful to tourists wishing to experience tourism at its best. By doing business with a SATSA accredited member, people are able to achieve peace of mind and a guarantee that they are receiving the best possible services within the tourism industry.

For more information visit: http://www.satsa.com/

South African Tourism

South African Tourism (SAT) is the official international marketing organisation for the marketing of South Africa as a tourist destination. SAT participates in travel shows, presents workshops for members of the travel trade, produces a variety of promotional material and initiates and co-ordinates marketing campaigns to create a positive climate for the effective marketing of South Africa's many excellent tourism products.

For more information visit: http://www.southafrica.net/

Tourism Enterprise Programme

The TEP is a public-private partnership between the Department of Environmental Affairs and Tourism and the Business Trust. The TEP facilitates the growth of tourism SMMEs, often by establishing links between SMMEs and larger customers.

The development of SMMEs is a high-priority issue for the Tourism Branch, not just to increase capacity in the tourism sector, but also to distribute the benefits of tourism and contribute towards national poverty-alleviation goals.

For more information visit: http://www.tep.co.za/

Tourism Business Council of South Africa

The Tourism Business Council of South Africa is the umbrella organisation representing the tourism business sector involved in tourism. Its primary purpose is to engage with all stakeholders in developing macro strategies that create an enabling environment for tourism development.

It ensures that through comprehensive, united and effective representation at national level, the appropriate macro strategies are adopted. These strategies require the development and maintenance of an environment in which international and local tourism will prosper, as a national priority, and in which the business sector will be able to achieve successful growth and development, while ensuring the protection of our natural and cultural heritage.

For more information visit: http://www.tbcsa.travel/

Tourism Grading Council of South Africa
The Tourism Grading Council of South Africa was established with purpose of the Grading Council is to create a star grading system which leads to an overall improvement and maintenance of standards, service and quality across all areas of the tourism industry.

The Tourism Grading Council of South Africa was established in September 2000 by the Minister of Environmental Affairs and Tourism.

The TGCSA:

• is representative of the entire tourism industry performs a vital role in ensuring that a standard of quality;
• is achieved across all the services and facilities offered by the South African tourism industry.

For more information visit: http://www.tourismgrading.co.za/

Tourism, Hospitality and Sport Education and Training Authority

The Tourism, Hospitality and Sport Education and Training Authority (THETA) is the Sector Education and Training Authority (SETA) established under the Skills Development Act (No 97 of 1998) for the Tourism Hospitality and Sport Economic Sector.

To achieve its objectives, theta must carry out a range of functions and duties. Its operations are focused on:

• performing its statutory obligations, and
• providing excellent, responsive skills development services to the industry sector in general and its constituent employers and employees in particular.

In terms of its constitution, theta aims to:

• develop the skills of workers in the sector;
• increase the levels of investment in education and training in the tourism and hospitality sector;
• encourage employers in the sector to train their employees, provide opportunities for work experience and employ new staff;
• encourage workers to participate in learnership and other training programmes;
• improve the employment prospects of disadvantaged people;
• ensure the quality of education and training in and for the sector workplaces;
• assist work seekers to find work and employers to find qualified employees;
• encourage providers to deliver education and training in and for the sector workplaces;
• cooperate with the South African Qualifications Authority

For more information visit: http://www.theta.org.za/

Restaurant Association of South Africa

RASA is a non-profit organisation that was formed in 2004 to act in the interest of the South African restaurateur and to ensure that there is a lobby and a voice to speak on his/her behalf.

The sole purpose of RASA is to represent; develop; educate and ensure sustainability for the restaurant industry. RASA is the port of call by government for all consultations relating to the restaurant industry and includes the transformation of the industry through job creation, skills development and capacity building.

RASA is the information and communications hub that introduces and maintain ethical business and employment practices and introduces compliance to a regulatory framework.

For more information visit: http://www.restaurant.org.za/

Federated Hospitality Association of South Africa

The role of FEDHASA is to ensure a sustainable and profitable business environment for the South African Hospitality Industry.

The Federated Hospitality Association of South Africa, (FEDHASA) a member driven organisation, is registered as a section 21 Company, and functions both as a Trade Association and an Employers' Association.

In its role as a Trade Association, FEDHASA represents member interests on most recognised public and private sector economic, business and environmental forums. Close ties with organisations such as South African Tourism, the Tourism Business Council of South Africa, the Department of Environmental Affairs, the Department of Forestry & Water Affairs and many others, ensure member participation and input at the highest possible levels.

For more information visit: http://www.fedhasa.co.za/