Amended Tourism BBBEE Code in Force

Department of Tourism

An Amended Tourism Broad-Based Black Economic Empowerment (BBBEE) Sector Code is now in force.

Published in Government Gazette 39430, the sector code aligns the previous Tourism BBBEE code with the amended generic codes of good practice that came into force in May 2015.

The tourism sector acknowledges that it needs to become more globally competitive and to include more black people within its ranks.

The code applies to many entities within the tourism sector including hotels, bed and breakfasts, guest houses, game lodges, conference venues, tour operators, travel agents and car rental companies.

According to the code, only revenue will be considered when determining eligibility as an exempted micro-enterprise, a qualifying small enterprise or a large enterprise. An exception is when subsidiaries are involved in the evaluation.

The trade and industry department, in an earlier statement, indicated that the code deviated from the generic codes in order to cater for the unique features of the sector.

The following thresholds will apply to the tourism sector:

•    Exempted Micro Enterprise - total revenue of less than R 5 million per annum (R 10 million in the Generic Codes);
•    Qualifying Small Enterprise - total revenue of between R 5 million and R 45 million per annum (between R 10 – R50 million in the Generic Codes); and
•    Large Enterprise - total revenue of over R 45 million per annum (above R 50 million in the Generic Codes).

The rationale behind the unique thresholds is to ensure that as many entities as possible are involved in the transformation agenda.

The code came into effect on 20 November 2015.

Sabinet Cape Town Office