Black economic empowerment and local economic development in the accommodation sector : the case of Clarens, in the Free State Province

Abstract

In South Africa, the tourism industry has been identified as one of the key drivers for economic development and transformation of the country. Although South Africa joined the world tourism stage since democracy, the country still contends with issues linked to apartheid, such as poverty, inequality and transformation. More specific and related to this study is the transformation of the tourism industry. In this regard, an overwhelming majority of tourism enterprises are still under the ownership of the White minority. With the post-apartheid transition, the national government recognized that the unequal ownership structure within the tourism sector (as with most of the other economic sectors) needed to be addressed through a programme of transformation. Hence, the transformation programme introduced to counter the current dominance of the economic sector was called Black Economic Empowerment (BEE), followed by Broad-Based Black Economic Empowerment (B-BBEE); the programme aimed at redressing inequalities that were linked to the legacy of apartheid.

The study employed both qualitative and quantitative data collection methods. A semi-structured questionnaire was used to gather in-depth information from respondents, based on their accommodation establishment. The data collected from the responses were analysed using Microsoft Excel.

This study revealed that the accommodation sector is struggling to keep up with the 2014 transformation target of thirty percent. Incidentally, transformation as noted by the National Department of Tourism, within the industry currently stands at less than 3 percent and will struggle to meet the amended target of thirty percent in respect of the transformation targets set for 2017. Although the government has introduced many initiatives to promote Black participation within the accommodation sector, transformation has remained stagnant and Black ownership of accommodation establishments is almost non-existent.

The study results have found that there are no Black business that operate within the CBD of Clarens and that businesses that operate in Clarens even though wholly White-owned, are indeed compliant with the Tourism BEE charter in spite of the results noting that no transformation has taken place. This is due to the issue of automatic compliance afforded to businesses based on their annual turnover.