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For immediate release, Monday 23rd May 2005
DOING BUSINESS DIFFERENTLY IN TOURISM
'Tourism companies can do business differently, benefiting both themselves and the local economy' according to the results of a three year pilot project.
Different ways in which leading tourism companies have been developing linkages with local communities and small businesses over the last three years were presented at a tourism workshop, hosted by the Development Bank of Southern Africa and organized by the Tourism Business Council of South Africa on May 20th.
At Spier Village (a 155 room hotel in Stellenbosch), procurement policy has been revised and the company has assisted new micro entrepreneurs to enter their supply chain.
Wilderness Safaris, operator of 50 lodges in Southern Africa, reported on its partnerships with community trusts in Maputaland, and a range of spin-off enterprises that have developed.
Sun City has helped 2 new enterprises to get going, which will supply personalised glasses and hand-made cards to the resorts. All three were pilot partners in a programme to pilot 'pro-poor' linkages in tourism.
'These initiatives demonstrate how companies are not just relying on philanthropic donations, but are using their core business competencies to make a local impact. They are operating their procurement, their guest excursions, their corporate gifting, or their overall investment in ways that deliver commercial objectives as well as local benefits,' commented Caroline Ashley, UK Coordinator of the Pro-Poor Tourism programme
Local benefits are evident. At Spier, a new laundry was helped to get going in August 2004. Klein Begin Laundry has already expanded twice, and has created 5 full-time and 3 part-time jobs, all for formerly unemployed people. The total value of contracts given to eight new suppliers under the initiative is already over half a million Rand, with more contracts in the pipeline.
If Spier can shift 10% of its R44 million procurement budget to small local pdi suppliers, the injection to the local economy will exceed its annual philanthropic spend on local projects.
At Rocktail Bay lodge, the community partnership goes beyond the equity share of the community trust. New linkages include a successful 'Community Tour' for guests, and collaboration on airstrip clearing and local security. A second partnership lodge is about to be built nearby. 'Here's a project that is starting to have some meaningful impact on these communities,' commented Malcolm McCulloch on Rocktail Bay.
Success at Rocktail Bay was contrasted with Ndumo Lodge, which was also a Wilderness Safaris lodge based on community partnership. The lodge has ceased operation. Low occupancies and on-going battles with the conservation authority meant it simply wasn't viable.
The local linkages were created with facilitation and assistance from 'Pro Poor Tourism Pilots in Southern Africa' - a three year programme which is just concluding, supported by the Business Linkages Challenge Fund of the UK's DFID. 'The programme was designed to help companies develop strategies that delivered local impact and made business sense', explained Clive Poultney, South African Progamme Coordinator. 'And the experience has shown that this can be done!'
Benefits to companies include enhanced brand, stronger local support and 'social licence to operate', higher staff morale, and improved products for guests. The companies also benefit from recognition of their efforts by others - whether from tourism awards, Fair Trade Certification, or procurement from Government.
Top Tips for other companies doing business differently are to appoint a 'champion' to drive the process, ensure management and staff buy-in, find a staff member or facilitator who time for the leg-work, and find the right community partners. Most importantly, they must focus on linkages that complement their business objectives, and get practical -learn by doing and convince by demonstration.
Such tips are being turned into a 'How to…' series for companies interested in developing products, procurement and partnerships with more local input. As the new Tourism BEE Scorecard gives scores for enterprise development, BEE procurement, and community initiatives, the tips are likely to be useful to many.
'It's great to learn from practical experience of others' was a common response from workshop participants, drawn from the industry, government, donor, and technical agencies. 'It was so nice to know I'm not the only one trying this; and not the only one facing challenges' said one participant, echoed by several others.
Ends
Further information
Contacts:
Adrienne Harris, TBCSA, 012 654 7525. Adrienne@tbcsa.org.za
Caroline Ashley, Overseas Development Institute and PPT Pilots: Monday 23rd
May on 082 858 5088. From Tuesday 21st : +44 7947 691911. c.ashley@odi.org.uk
Clive Poultney: Mboza Tourism and PPT Pilots: 082 491 0062; pptsa@iafrica.org.za
Gareth Haysom, PPT facilitator (Western Cape): 082 782 9955; duffhaysom@mweb.co.za
Further programme information: www.pptpilots.org.za.
The workshop report on the experience of Spier, Wilderness Safaris,
Sun City and others is at: www.pptpilots.org.za/ppt_workshop/ppt_report/workshop_ppt_pilots_report.pdf
(564kb)
Facilitation of local linkages is continuing via Business Linkages in Tourism, a new unit hosted by TBCSA. bizlink@tbcsa.org.za
The 'How to….' Series of tips for companies on local procurement, partnerships and cultural products will be available in September. Further information from c.ashley@odi.org.uk
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