WHILE there has been significant progress in Black Economic Empowerment (BEE) among large listed and unlisted tourism companies, considerable challenges still exist when it comes to small and medium sized enterprises, which make up more than 90% of the sector. This was the message of Environmental Affairs and Tourism, Minister, Marthinus van Schalkwyk, to the second annual Tourism BEE Conference held at the Cape Town International Convention Centre (CTICC) on Friday. He called on all in the industry to play their part to help the sector reach its transformation objectives. “We must not only strive to achieve this as a responsible industry, but also because it makes sense from a business and growth perspective and will help secure the future of the industry for all,” he said. The Minister commended the progress made by large businesses. “What I am impressed about is that these interests represented by the white industry have really come to the table because they realise the sooner the industry is owned by everybody the better for everyone.”

He highlighted the following BEE deals: · In March 2008 the JSE-listed City Lodge Family of Hotels concluded an R485m broad-based (BBBEE) transaction with its stakeholders, including its employees, the University of Johannesburg’s School of Tourism and Hospitality and black-controlled investment company Vuwa Investments. The major beneficiaries of the deal are the Group’s own staff and tourism and hospitality students. · In April 2008, Guma Tourism made an R2bn bid for Tourvest. Together with Old Mutual, the Industrial Development Corporation and some of the Tourvest managers, Guma will hold the controlling 51% stake once the transaction has been completed. · In August 2007, the Mineworkers Investment Company (MIC) led a consortium which included Peermont management, individual promoters and community trusts in a deal that resulted in an 83% black ownership of Peermont. The R7,3bn transaction made Peermont the most empowered gaming and hospitality company in South Africa.  Meanwhile, the Minister said overall foreign arrivals increased by 7,6% from January to May this year totalling almost 4m visitors. “I don’t need a crystal ball in order to confidently forecast that we will exceed our target of 10m foreign arrivals by 2010,” he said.