Tourism Sector Skills Audit & Tourism Sector Human Resource Development Strategy: National Department of Tourism briefing

Tourism

22 November 2017
Chairperson: Ms B Ngcobo (ANC)
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Meeting Summary

The National Department of Tourism (NDT) and the Human Sciences Research Council (HSRC) briefed the Committee on the Tourism Sector Skills Audit and the Tourism Sector Human Resource Development (TSHRD) Strategy.

The overall purpose was to do a skills audit in the tourism sector and then to come up with a comprehensive TSHRD Strategy through a consultative and participatory process for the period 2016 – 2026. Amongst the objectives was to identify specific workforce skills needs and gaps in the tourism sector. The NDT commissioned the HSRC to facilitate the Tourism Human Resource Skills Audit and TSHRD Strategy Development. The TSHRD review process had been multi-pronged, multi-dimensional and consultative. The scope of work for the development of the Skills Audit Report and the TSHRD Strategy included a review of the 2008 TSHRD Strategy and an audit of the industry landscape. There was a whole range of data collection methods which included both qualitative and quantitative methods and a number of provincial workshops. The two project deliverables were the Tourism Industry Skills Audit Report and the Tourism Human Resource Development Strategy for Tourism in SA Report. Some challenges with respect the TSHRD Strategy was the diversity of stakeholders in the tourism sector in terms of who belonged to the sector, difficulty in securing participation of key public and private tourism firms, as well as securing participation of stakeholders. The Committee was provided with a comprehensive overview of the skills audit findings as a way of contextualising the TSHRD Strategy. The briefing continued with insight into the TSHRD Strategy for SA (2016-2016).The intention was to have an appropriately skilled workforce offering, excellent visitor experience and contributing to the inclusive growth of the tourism economy in SA. Detail was provided on the TSHRD Strategy implementation plan and the monitoring and evaluation framework. Some projects that the NDT was already implementing in response to the TSHRD Strategy was the Chefs Training Programme, Executive Women Development Programme, SMME Incubator Programme, Local Government Induction and Capacity Development Programme and Tourism Monitors.

Members asked whether the NDT had the capacity to deal with things that had been measured. Before the economy could be transformed human capacity needed to be transformed. The NDT was asked whether its employees were transformed to the extent that they understood what the agenda of government was. Members were concerned about efforts on tourism that was lacking at government level. Efforts on tourism were nowhere where it should be. Tourism was not topmost on the agenda of municipalities. The NDT was asked what the cost of the study was. Was value for money obtained? Members asked why the planned TSHRD Strategy awareness workshop in the Northern Cape had not taken place. The NDT was asked to which provinces besides the pilot in the Gauteng Province the Tourism Monitors Programme would be rolled out to. If the NDT intended to do language training, which languages were targeted? Members supported efforts on Executive Women Development. Members however felt that the NDT needed to partner with industry on it. In this way more women could be reached. Members were shocked that the tourism sector had not done Recognition of Prior Learning (RPL) earlier on. Were there Memoranda of Understanding (MOUs) in place with the Department of Basic Education and the Department of Higher Education and Training? The NDT needed to work with both Departments. It was all good and well that people were trained but the question was whether trained people were absorbed into jobs. Members felt it important for trained persons to either be absorbed into jobs or to start their own businesses. Members found it depressing that the findings showed that there was a large skills shortage in the tourism sector. The survey done had attempted to be qualitative but unfortunately ended up being a great deal of bureaucratic speak. The survey was light on actual figures. There was no hard data presented. Members also did not have a sense of how things were to be done. Members felt that it was not only up to government structures to create jobs; private sector too had to play a facilitative role. The briefing had spoken about challenges encountered on researching data. In as much as efforts were being made to mitigate the challenges the challenges still remained. Members observed that perhaps the survey done was skewed. Members felt that transformation imperatives needed to be strengthened given that figures for blacks in managerial and professional positions were low. Of further concern was the fact that the number of black employers in the sector had decreased. Could this drop be due to the slump in domestic tourism? Members said that figures and detail was needed on what skills were needed, what skills there were and what the percentage shortfall was. The Committee was unable to get a sense of what percentage of skills were lacking. The NDT was asked whether on the job training had been considered. Training by hotels was far better than training done by government. Perhaps a costing could be done. A public-private partnership could help. Members would have liked to have seen a plan with an end point in sight. Timeframes needed to be set. Time orientated actions with outcomes in mind were needed. A more businesslike approach was needed. The Committee asked that figures and detail be provided to it by the following week. Assurances were given to the Committee that a comprehensive document containing figures and detail was available and that it would be forwarded to the Committee. 

Meeting report

The delegation from the National Department of Tourism (NDT) comprised of Ms Morongoe Ramphele, Deputy Director General: Tourism Sector Support Services, Ms Bulelwa Seti, Chief Director: Tourism Sector Human Resource Development and Mr Lulamile Stuurman, Deputy Director: Governance and Institutional Coordination.

The Human Sciences Research Council (HSRC) was represented by Mr Stewart Ngandu, Chief Researcher HSRC Head Office Pretoria, and Dr Irma Booysen,s Senior Research Manager HSRC Cape Town

National Department of Tourism (NDT) & Human Sciences Research Council (HSRC) on Tourism Sector Skills Audit and Tourism Sector Human Resource Development (TSHRD) Strategy
The briefing was shared between Ms Ramphele, Mr Ngandu and Ms Seti.

The Tourism industry has been recognised as having significant growth potential (5.4% employment growth annually). It contributes to economic growth and employment creation. Growth potential could be harnessed to a much greater extent if certain conditions are met. Hindering this growth potential are factors such global competitiveness, excellent visitor experience, and safety and security. All of these factors are to a varying extent influenced by the quality of human resource development in the industry.

The overall purpose was to do a skills audit in the tourism sector and then to come up with a comprehensive TSHRD Strategy through a consultative and participatory process for the period 2016 – 2026. Amongst the objectives was to identify specific workforce skills needs and gaps in the tourism sector. The NDT commissioned the HSRC to facilitate the Tourism Human Resource Skills Audit and TSHRD Strategy Development. The TSHRD review process was multi-pronged, multi-dimensional and consultative. The scope of work for the development of the Skills Audit Report and the TSHRD Strategy included a review of the 2008 TSHRD Strategy and an audit of the industry landscape. There was a whole range of data collection methods which included both qualitative and quantitative methods and a number of provincial workshops. For example on the training needs assessment/skills audit 137 firms had been enrolled against a target of 170. A total of 2 019 employees had completed the survey. A number of stakeholder engagements were conducted to review the findings and to endorse the Strategy in a series of provincial and national workshops. The two project deliverables were the Tourism Industry Skills Audit Report and the Tourism Human Resource Development Strategy for Tourism in SA Report.  Some challenges with respect the TSHRD Strategy was the diversity of stakeholders in the tourism sector in terms of who belonged to the sector, difficulty in securing participation of key public and private tourism firms, as well as securing participation of stakeholders.

The Committee was provided with a comprehensive overview of the skills audit findings as a way of contextualising the TSHRD Strategy. On structural factors, there was a lack of mobility in the workforce as persons stayed in one post for 10-19 years. On work-based skills, there is a critical skills gap for managers with 1 218 employees requiring this skill. On education and training, there were no minimum entry requirements for Tourism Industry Educators at Technical and Vocational Education and Training (TVET) level. There were also limited entry requirements for Department of Basic Education tourism industry educators. On addressing niche groups in the industry, Small Medium and Micro Enterprises (SMMEs) made up 90% of the industry. The top five most needed skills for SMMEs were customer service skills, leadership skills, communication skills, generic management skills and financial management skills.

The briefing continued with insight into the TSHRD Strategy for SA (2016-2016).The intention was to have an appropriately skilled workforce offering, excellent visitor experience and contributing to the inclusive growth of the tourism economy in SA. The guiding principles for the implementation of the TSHRD Strategy was to have a demand driven training and skills development approach, to uphold norms and standards, the professionalization of critical occupations, transformation and up-skilling.

Detail was provided on the TSHRD Strategy implementation plan and the monitoring and evaluation framework. Some projects that the NDT was already implementing in response to the TSHRD Strategy was the Chefs Training Programme, Executive Women Development Programme, SMME Incubator Programme, Local Government Induction and Capacity Development Programme and Tourism Monitors.
 
Discussion
Mr S Bekwa (ANC) noted that the research that had been done was done correctly. The next step was to see things get implemented. The NDT was asked whether it had the capacity to deal with things that had been measured. Before the economy could be transformed human capacity needed to be transformed. He asked whether NDT’s employees were transformed to the extent that they understood what the agenda of government was. He was concerned about efforts at local government level. It would seem as if efforts at local government level on tourism were nowhere where it should be. Tourism was not topmost on the agenda of municipalities. Where were awareness campaigns at local government level taking place? It surely was not reaching the people at grassroots level. 

Ms Ramphele on capacity building at local government level said that the NDT had started off with providing information to municipalities which showed potential for growth. Some of the efforts were bearing fruit. The University of Pretoria together with the NDT had provided training to councillors, officials etc. It was understood that tourism was a concurrent function. However tourism and local economic development was not high on the list of priorities of municipalities.

The Chairperson asked what the role of the South African Local Government Association (SALGA) on the tourism training for councillors and managers were.

Ms Ramphele responded that SALGA had to provide capacity across local government. SALGA had a facilitating role to see to it that capacity building was done. SALGA had been taken on board. On collaboration, she said that the NDT sometimes did things which it was not supposed to do but due to gaps that emerged it had to do what was needed. The Department of Higher Education and Training was happy to partner with the NDT. The intention was to put a Memorandum of Understanding (MOU) in place to prevent fragmentation. 

Ms P Adams (ANC) asked what the cost of the study was. Was there value for money obtained? Addressing the HSRC she said that she had contacted its offices and had requested certain documents. An HSRC employee had assured her that she would get back to her. She was still waiting. She was doing her Master’s Degree on the role of local government in tourism. She had wished for the HSRC to provide her with a hard copy of the Literature Review. On slide 50 reference was made to strategy awareness campaign workshops. If it had been done in the North West Province why was it not done in the Northern Cape Province as was planned? She asked what the outcome of the workshop in the North West Province was. She asked if anything had been implemented. Slide 48 spoke about tourism monitors and how successful it was in the Gauteng Province. She asked to which provinces it would be rolled out. If the intention was to do language training she asked which languages were targeted. The profile of tourists needed to be considered when it came to language training. She supported efforts on Executive Women Development. She felt that the NDT needed to partner with the industry on it. In this way more women could be reached. She said that she was shocked that the tourism sector had not done Recognition of Prior Learning (RPL) earlier on. It was mostly school trained persons that worked in the hospitality sector. What were the efforts on RPL? Were there Memoranda of Understanding (MOUs) in place with the Departments of Basic Education and Higher Education and Training? The NDT needed to work with both Departments. If 100 Small Micro and Medium Enterprises (SMMEs) had been recruited, how were they recruited. Greater clarity over the training needs assessment was requested. She asked how the media and communications strategy was done.

Mr Ngandu said that he had tried to call Ms Adams back on her cellphone after she had made contact with the HSRC’s information services. Her request was noted and a copy of the Literature Review would be sent to her. He said that SMMEs had been recruited at the 2015 Tourism Indaba. On its media and communications strategy there were brochures, marketing materials and emails that were sent. The training needs assessment was emailed to 20 000 firms.

Ms Ramphele stated that the NDT was supposed to have a meeting in the Northern Cape on 16 November 2017 but it had to be postponed at the instance of the Province. The rescheduled date was 25 January 2018. Collaboration was needed as things needed to move forward. On the outcomes of the workshop in the North West Province she said that the NDT would look at it. A consolidated report would be compiled covering all the provinces. Awareness was not only for provinces but also for industry associations. The NDT did enter into partnerships. The pilot on tourism monitors had started in October 2017. The success of the pilot had not yet been measured. Tourism monitors would be rolled out to other provinces as well. On language training it was being done for tour guides at attractions where certain foreigners frequented. For instance Germans tend to flock to Mapungubwe. The language strategy also indicated that English too was considered a foreign language. On executive development of women, she pointed out that there was a shortage of black women on the boards of establishments. The NDT had told establishments to identify women in its organisation that had potential. Two such companies were the Hilton Hotel Group and Avis Car Rental. The NDT undertook to train 20 women and the establishment was encouraged to sponsor 20 women as well. The Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority (CATHSETA) offered the training.

Ms Seti, on RPLs and possible MOUs, said that it was important to have MOUs with both the Department of Basic Education and the Department of Higher Education and Training. There were lots of issues to deal with and a great deal of skills development needed to happen. The NDT had considered various models of the RPL and had engaged with the Department of Higher Education and Training. Stakeholders like the Cape Peninsula University of Technology (CPUT) had been consulted over the various RPL models. All the models would not necessarily work. 

Ms E Masehela (ANC) pointed out that according to the study that there were 14 235 people below Adult Basic Education and Training (ABET) level. She asked what percentage was this figure from the total number. She asked whether persons who were trained ie chefs were absorbed into jobs. She felt it important for trained persons to be absorbed into jobs or to start their own businesses. The NDT was asked whether it was supported by establishments when it came to training. She was aware that in service training was taking place.

Ms Seti, on figures relating to ABET, said that the comprehensive document would speak to it. The comprehensive document would have the figure for the total population of the industry. There was around 14 000 people that needed ABET. People should not only be trained to get jobs, they should be trained to become entrepreneurs as well. The training covered elements of financial management and business management. She could not guarantee that at present everyone was absorbed into the industry. There were those who were absorbed into establishments but the rest were not hence the need for entrepreneurial development. In service training and on the job training was taking place. On the job training was critical. A coordination mechanism was needed in order to understand what was happening at training academies in huge organisations.  

Mr G Krumbock (DA) found it depressing that the findings showed that there was a large skills shortage in the sector. The survey done had attempted to be qualitative but unfortunately ended up being a great deal of bureaucratic speak. The survey was light on actual numbers. What he had gotten out of the survey was that there were skills shortages, consultation had taken place and that there was intent to implement instruments. What he did not get was the sense of how. Not much was said. It was not up to government structures to create jobs. Various stakeholders should be consulted with. It was a given that SMMEs were the main driver of jobs in the sector with the assistance of the NDT and CATHSETA. Private sector should play a facilitating role to create jobs. He pointed out that there was no hard data on slide 12. Mention was only made about roundtable talks and workshops etc. It was more about people exchanging ideas. He said that the trend continued into slides 13 and 14. On the Training Needs Assessment, figures were that 137 firms had been enrolled and that 2019 employees had completed the survey. For instance on the 137 firms nothing was said about the balance of demographics or the balance as per province. Was enough research done in the industry? To him it seemed as if there had been a great deal of talking amongst government. The bulk of what he saw in the presentation seemed to be skewed in a certain direction. Slide 17 spoke to challenges encountered on researching data, one was difficulty of participation. The intention was to seek to mitigate challenges but they nevertheless remained a concern. Was a significant risk being seen? In the same slide the last bullet it would seem as if the survey was skewed. Referring to slide 19 he said that transformation imperatives needed to be strengthened. In managerial and professional positions the figures for blacks were low.

Mr Krumbock said the hospitality sector also showed a decrease in employers. He asked whether this was due to the drop in domestic tourism figures. International arrival figures were increasing but domestic tourism was decreasing. On slide 20 the figures on computer literacy showed huge shortages. The concern that he had was that nowhere was it stated how many shortages there were. He said that figures should have been provided on what amount of people was needed in a sector, what amount there currently was and what the percentage shortfall was. How huge was the shortfall on computer literacy? He said that the Committee was unable to get a sense of what percentage of skills was lacking. He continued that the presentation also set out a list of actions that needed to take place. He felt it truly to be a wish list. The Committee had to be provided with figures on what was needed, what the shortage was and what was going to be done about it. He was aware that problems existed but the issue was that problems needed to be quantified. As things were he had no idea what the critically short skills were. He asked whether on the job training had been considered with the support of the NDT of course. He felt that hotels would do a much better job at training chefs than government. Perhaps a costing could be done. A public-private partnership would help. He would have like to have seen a plan with an end point in sight. Timeframes should also be set. Time orientated actions with outcomes in mind were needed. A more businesslike approach was needed.     

The Chairperson agreed with Mr Krumbock that she had no notion of what the figures were. She asked that figures be provided to the Committee by the following week.

Mr Ngandu responded that the Committee seemed not to be on the same page on what was done. The exercise had been a skills audit. The focus had been on employees in the sector. Employment creation was important but was not part of the exercise. A training needs assessment was at the heart of the strategy. He said that there were a huge amount of figures available on the training needs assessment. There were pie charts and figures etc. Data from contributors like the CATHSETA, the Department of Basic Education and Statistics SA was factored into the report. The HSRC contrasted its data with that of the CATHSETA. If figures and charts had been presented then the presentation would have been much longer than the allotted time given. The presentation provided was an abridged version. He noted that an additional small booklet had been handed out which gave context to the numbers in the sector. Figures and detail was there. He added that there were ratios which spoke to the magnitude of the problem.

Mr Krumbock accepted the explanation given. He asked that the comprehensive document containing figures etc be emailed to him and the Committee even if it was 100 pages.

Ms Ramphele assured the Committee that all documents would be sent to it. 

The meeting was adjourned.
 

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