1. Possessing the necessary skills: Skilling for success of the Tourism economy. Presentation by Darryn von Maltitz University of Johannesburg 16 October 2007

2. Skills in context Complex issue because tourism as an economic sector is multi-faceted 1990-1993 1994-1999 2000-2003 2004-2007 The early 1990s was a period when tourism and sport was not a priority for the government in power South Africa’s first democratic elections heralded a change for the country’s tourism industry – the industry is set for growth HITB drives skills development initiatives, industry contributes voluntarily. The groundwork is laid for skills development, but the lack of skills in the tourism sector is identified as dire Theta is established – combining tourism and sport for the first time, the Tourism Learnership Project is rolled out with mixed success, In 2004, the GCR identifies skills as an issue that may be a constraint to growth in the sector. 2006, DEAT and THETA commission a national skills audit 2007 – DTI national industrial policy includes finalisation of the tourism SSP in its action plan

3. Challenges Lack of dataFragmentationTHETA Training provision Sector dominated by SMME’s

4. 4 To undertake a Skills Audit and identify priority skills needs within the Sector which culminates in a strategic report that: Informs DEAT’s strategic planning for skills development in the sector Assists Theta in refining its Sector Skills Plan Provides insight for partners/ stakeholders to develop an implementation strategy to support skills development Travel & Tourism Conservation & Tourist Guiding Hospitality Gaming and Lotteries Sport, Recreation and Fitness Project objectives The Sector

5. 5 Research conducted in March and April 2007 Review of Secondary Data Methodology Structured in-depth questionnaires Included Theta levy payers, Theta registered non-levy payers and non- Theta registered organisations Randomly selected Across 9 provinces Across the sector Statistically valid 1 238 Employer Interviews Structured in-depth questionnaires Randomly selected Included Theta ETQA, FET and HET providers 65 Training Provider Interviews Open-ended discussion Purposefully selected Included representatives of private sector, public sector, unions and associations 49 High-level Interviews Open-ended facilitated discussion Included youth, persons with disabilities, co-operatives and community based organisations and unionised officials 9 Focus Groups Presentation of research findings Discussion and debate Included training providers and Theta stakeholders 2 Validation Workshops

6. RESEARCH HIGHLIGHTS

7. 7 Unions, government and development agencies generally feel that employers in this sector: –Do not capacitate staff –Exhibit dubious employment practices and –Provide little recognition of the upliftment of black women and black staff Employers and industry believe that: –Companies do invest significantly in training and capacitation, albeit that it is unaccredited and not ETQA aligned training –The current THETA/ SETA and SAQA requirements and structures discourage training and skills development Stakeholders have conflicting opinions of each other

8. Estimated size of the industry Sector Size Sub-SectorEstimated Number of Employers Estimated Number of Employees Hospitality28 000290 000 Travel and Tourism6 20028 000 Gaming and Lotteries74010 000 Sport, Recreation and Fitness3 30020 000 Conservation and Tourist Guiding3 50030 000 TOTAL41 740378 000 Refers to only those organisations listed on one or more databases Excludes an unknown number of ‘unlisted’ SMMEs Hospitality is the largest sub-sector – with 67% of the employers and 77% of the employees

9. SMME Dominance SMMEs Sub-SectorPercentage SMMEs in the Sub- Sector Hospitality97% Travel and Tourism97% Conservation and Tourist Guiding 89% SMME = organisation that employs less than 50 full-time employees Many SMMEs are owner managed

10. Employee profile and qualifications Sub-Sector% Black Employees [1] [1] % black senior managers % < NQF 1% NQF 2-4% NQF 5-8 Hospitality72%40%54%28%18% Travel and Tourism 58%45%7%18%74% Conservation and Tourist Guiding 74%20%28%50%22%

11. 11 Source: Theta/ DoE Accredited training providers are typically small (<50 employees) and located in Gauteng There is limited training provision available outside the major cities There are a large number of hospitality training providers (mainly located in the main cities) Training provider profile Training Provider Universe Universities FETs THETA/SETA Universe=432 providers % % %

12. 12 Constraints to effective training provision Lack of experienced trainers Pass rates used to measure effectiveness Policy and legislation Poor quality school leavers Many providers do not produce work ready individuals Lack of supply and demand analysis Theta does not provide guidance to the sector Formalized relationships between industry and providers is lacking

13. Future skill requirements (3 year period) HOSPITALITY Cook, Chef24 100 Waiter/ress23 500 Cleaner15 000 Reservations/Operations Director/ Manager/ Assistant Manager/ Supervisor 8 000 Cashier7 800 Travel and Tourism Travel Consultant/ Reservation Agent 3 150 Bookkeeper900 Reservations/ Operations Director 800 Tour Operator600 Supervisor450

14. Criteria for employee recruitment Hospitality Junior Staff – Experience Mid-level staff – Experience Senior staff - Experience Travel and Tourism Junior Staff – Matric Mid-level Staff – Matric Senior Staff – Qualification/ diploma Conservation and Tourist Guiding Junior Staff – Experience Mid-level staff – Experience Senior staff - Experience Employers complain that graduates do not have experience

15. Recommendations Improve collaboration * Inter-governmental * Govt, labour, business Develop a customer service programme Train more black managers Establish work experience programmes for young people Review the state of training in the sector Develop a THETA turn around strategy

16. Conclusion Skills are not the only challenge facing the sector – there are many others – transportation, safety and security, enterprise development etc We are a tourist destination at the tip of Africa, and we need to begin to ask ourselves whether skills is in fact a priority and just how important is it for us to get this right?