State of Skills 03 September 2012 Presented by: Mike Tsotetsi

2. State of Skills 03 September 2012 Presented by: Mike Tsotetsi

3. Sector Scope • The DHET utilises the SIC to determine the jurisdiction of a SETA. SIC describes the employer’s core business and therefore describes who the stakeholders of each SETA are • The SETA Landscape Process for NSDS III places 62 SIC codes in CATHSSETA’s scope • CATHSSETA has clustered or grouped the SIC codes in its scope into logical areas of overlap or similarity of business focus that collectively make up a sub-sector • These sub-sectors are Arts, Culture and Heritage; Conservation, Gaming & Lotteries; Hospitality; Sport, Recreation and Fitness and Tourism and Travel Services

4. Sector Scope cont’d... • The Travel and Tourism Services sub-sector consists of inbound and outbound tour operators, safaris and sightseeing bus tours and trip operators, inbound international flights, travel agencies, renting of land transport equipment, event and conference management, the operation and management of convention centres, tourist information centres, car hire and tourism authorities as well tourist guides including adventure, mountain, river and tourist. • Whilst the Hospitality sub-sector comprises hotels, motels, boatels and inns that are either registered or not registered with the SA Tourism Board, guest houses and guest farms, bed and breakfasts, management and operation of game lodges, caravan parks & camping sites, restaurants and tearooms with or without liquor licenses, fast food establishments, take away restaurants, caterers and catering services, timesharing and bioscope cafes.

5. Inflow of Resources There is a declining supply of skills to the industry: • Tertiary training programmes are not providing graduates with appropriate skills • There are not enough graduates for certain job types • The industry values experience more than qualifications The industry is not able to attract the right profile of people: • Students enter the industry with misconceptions • This is not an industry that attracts educated people from historically disadvantaged backgrounds The tourism industry has difficulty retaining resources: • Tourism competes against other industries for its resources and is not competitive enough in drawing and retaining resources • Several employees are leaving the industry in search of better working conditions

6. Outflow of Resources • The tourism industry has difficulty retaining resources: • Tourism competes against other industries for its resources and is not competitive enough in drawing and retaining resources • Several employees are leaving the industry in search of better working conditions

7. Demand for Skills • There is a skills shortage in the tourism industry • There are several positions which are difficult to fill • The skills shortage differs by geography • HIV is placing increasing strain on existing workforce

8. Is there Skills Development Improvement? • The industry is not prepared to pay more for people with the right qualifications and this is the reason for the high levels of in-house training and perceived poor salaries

9. Is the Situation Worse? • The experience of shortages in skilled human resources (in certain sub-sectors and geographies) is likely to intensify as tourism demand grows. • There is a general sense that the industry lacks clear leadership on the issue of skills development and training • Some parts of industry complain about the deficiencies of graduates emerging from the formal training institutions and cited the weak linkages between industry and the training institutions as a major contributory factor • In many cases, industry has begun to conduct in-house training to compensate for these deficiencies – these are regarded as ad hoc and seen as a “band-aid” solution to much more deeper problems • Levy is viewed historically more as a “tax” and a barrier than facilitating of growth • The ability of organizations to meet employment equity targets, particularly in management ranks, is a major challenge for organizations

10. Employer Profile

11. Employee Profile

12. Supply of Skills Education Profile

13. Misalignment • Despite industry’s lament around the shortage of resources, the skills problem is generally not regarded as one that is central to the competitiveness of the industry • Many of the middle and senior level managers, do not have a formal academic background, but relied instead on their experience and learning on the job. There is a strong belief that this model is still appropriate

14. Skills Gaps Appear to be Specific • Tour operators report no major skills gaps, with some reporting a degree of difficulty in attracting management-level skills • Hospitality is area with the most visible skills gap – focused mainly in the managerial echelons. The attribute this to a past dependence on ex-pat skills who have now departed • Hospitality businesses in areas outside of the major cities and tourism centres report particular difficulty in finding skilled managers • All enterprises interviewed report difficulty in recruiting skilled black professionals and managers

15. Nature of the Skills Gaps • Specific Skills Deficiencies • Practical know-how • Language skills, i.e. needed to communication with tourists • Literacy – basic reading and writing ability for unskilled workers • Inability to retain and attract quality resources • Specific Hierarchical Deficiencies • Positional: Managerial skills • Geographic: Access to personnel • Attributes Deficiencies • Experience • Passion and enthusiasm • Personal interaction ability • Equity Issues • Transformation gap • Reliance on foreign nationals to provide skills missing in South Africans

16. Drivers of the Gap • Inability of the stakeholders to define the skill set required to succeed in this industry • Inappropriately designed and poorly reactive education system • Inappropriate hiring practices of the industry that reinforce the skills shortage • Restrictive entry requirements • Too much emphasis on practical experience • Positioning of the industry as job creator • Attracts a sub-set of people who are looking for a job and not necessarily interested in a career • Inappropriate incentive and reward systems • Business model • Structure of the industry • Family-run business • SA legacy • Poor perceptions around the attractiveness of the industry (particularly for PDI candidates)