A SIMPLE SOLUTION TO JOB CREATION

EXPECTED OUTCOMES Introduction to the background & history of TEP - Overview - Products and Services how TEP creates Jobs - New Operating Context Introduction to TEP s Enterprise Development Portfolio Explain how companies can get involved in tourism SMME development and contribute to job and wealth creation in South Africa

OVERVIEW OF TEP - BACKGROUND & HISTORY Tourism Enterprise Programme was launched by Business Trust in July 2000 Department of Environmental Affairs and Tourism joined as co-funder in 2003 Due to its success and to ensure sustainability for the long term support of enterprise development it was decided to institutionalize the programme The institutionalization process was completed and the Tourism Enterprise Partnership (TEP) was officially launched as a Section 21 (Not for Profit) Company on 1 April 2008

OVERVIEW OF TEP - VISION, MISSION, VALUES To be the premier tourism small business development partner in South Africa To facilitate the growth, development and sustainability of tourism enterprises to become internationally competitive Inspirational leadership Exceeding expectations Total quality delivery Entrepreneurial spirit Responsible tourism focus

OVERVIEW OF TEP - BOARD MEMBERS

1. Quality OVERVIEW OF TEP - TEP STRATEGIC MODEL 2. Sustainability Market Access Brand Exposure Channel Identification Selection Quality Packaged Products Product Development Skills Development Business Development Quality Assurance Access to Finance Facilitation and Funding 3. Job Creation 4. Transformation

OVERVIEW OF TEP - SMALL TOURISM BUSINESSES Province Total Eastern Cape 390 Free State 338 Gauteng 884 KwaZulu-Natal 1072 Limpopo 302 Mpumalanga 444 Northern Cape 155 North West 197 Western Cape 460 Total 4242 197 338 884 302 444 1.072 155 390 460

PRODUCTS & SERVICES - TEP GRADUATION MODEL Hidden Treasures Tourism Leadership Mentorship / Business Skills Learning Networks Business Skills Training Measurement of Job Creation Baseline reading on registration Once assisted SMME provides monthly turnover and employment figures TEP counts the incremental growth from baseline TEP Toolkit Workshops Customer First Training Tourism Awareness Training BSM, Needs Analysis, Development Plan, Business Advice, BDF

PRODUCTS & SERVICES - BUSINESS DEVELOPMENT FUND

OVERVIEW OF TEP - CHANGING OPERATING CONTEXT Business Trust will be wound up by September 2011 After 10 years of existence: - 450m invested - Over 4000 enterprises assisted - 64 000 jobs created - R5 billion turnover generated TEP received corporate funding through Business Trust Need to design strategies to respond to the changes in the operating context

DIRECT PARTNERSHIP WITH GOVERNMENT TEP has been recognized as a successful project by Government Government is therefore committed to providing funding to ensure continuity TEP to raise its own funding to match that of the NDT President Jacob Zuma, in his 2011 SONA, identified tourism as a target sector for job creation 225 000 jobs by 2020 TEP is expected to contribute to making this happen

CORPORATE FUNDRAISING THROUGH EDP In response to its changing context, TEP developed the Enterprise Development Portfolio (EDP) as a vehicle for public private partnership EDP allows upfront allocation of BEE points upon investment TEP s EDP is accredited by Empowerdex and audited by PWC EDP has hassle-free administration and accurate reporting of fund deployment Lower chance of project failure as TEP is a highly experienced SMME development agency EDP offers great brand enhancement potential association with a winning brand

WHY PARTNER WITH TEP Proven as one of the most successful development programmes in South Africa National footprint and direct contact with over 4000 small tourism businesses Tried and tested processes, programmes and systems ensuring meaningful and sustainable development Managed investments of more than R450million since the year 2000 Assisted SMMEs to conclude in excess of R5billion in turnover Facilitated the creation of some 64,000 jobs Mentored 231 SMMEs

CONTRIBUTORS TO DATE Corporate Donor Government Standard Bank Eastern Cape Development Corporation National Department of Tourism Thebe Group MySchool Department of Communication Rennies City Lodge DBSA SATSA Provincial Tourism Authorities Provincial Tourism Departments Provincial Municipalities Local Municipalities SEDA City of Johannesburg

THE TEP PLEDGE Established large tourism businesses pledged to contribute to TEP s enterprise development interventions that will result in: An improvement in the performance of small tourism businesses, resulting in job creation in both urban and rural areas An increase in the participation of black enterprises in the tourism industry The advancement of entrepreneurial skills Direct market access for small tourism products The stimulation of innovative and demand driven small business product development for long-term viability

HOW CAN YOU GET INVOLVED Invest general Enterprise Development funding Provide loans at preferential rates Taking equity in TEP registered small tourism businesses Commission specific tourism projects Procure from TEP registered small tourism products Provide mentorship and share knowledge Provide infrastructure for TEP programmes i.e. venues for training

IN CLOSING Investment Measurement Reporting Contact Details Ms Fathima Haffejee, EDP Coordinator Tourism Enterprise Partnership 3 rd Floor, Travel House 6 Hood Avenue, Rosebank Tel: 011 880 3790 E-mail: fathimah@tep.co.za