Hospitality Property Fund (HPF), the JSE-listed real estate-investment trust that invests solely in hotel properties, has become the latest company to sign up to the Tourism Enterprise Partnership’s (TEP) Enterprise & Supplier Development Solutions (ESDS).

ESDS is the programme developed by TEP to help tourism and hospitality sector operators meet the requirements of the enterprise and supplier development (ESD) component of the new BEE codes that came into effect on 1 May 2015.

In the new codes, ESD, ownership and skills development are considered priority elements that measured entities have to comply with for their scorecard. ESD alone counts for 40 points on the scorecard.

Dr Salifou Siddo, TEP chief executive says: ‘Under the generic new BEE codes, a measured entity will have to invest 3% of their profit after tax into providing support to black-owned SMME beneficiaries. An SMME must be at least 51% black-owned in order to qualify as an enterprise development or a supplier development beneficiary. Because ESD is a priority element, companies will have to comply with it in order to avoid being downgraded one level.’

Hospitality Property Fund has selected Martiens Scheepers Conservation (Pty) LTD, also known as MCON, a small enterprise located in Grabouw in the Western Cape, as the first beneficiary of the partnership with TEP.

MCON’s business is largely related to bush-clearing services provided to the Arabella Hotel and Spa. The business is owned and managed by Scheepers and his daughter Abigail Scheepers, who is responsible for administration and record keeping.

MCON employs seven permanent workers and about five temporary workers from the local communities of Grabouw, Kleinmond and Elgin.

In addition to bush-clearing services, MCON derives a secondary income stream from the bush-clearing by-products of wood chips, firewood and poles used for fencing.

‘The management of Arabella Hotel and Spa has supported MCON in a variety of ways over the last few years. With the advent of the new BEE codes, we decided that it was time to bring on board an enterprise development specialist who will take over and provide the technical support and mentorship needed to fast track and grow MCON much further. The Tourism Enterprise Partnership enjoys a good track record and reputation in this regard, and we look forward to working with them to assist the SMMEs in our procurement value chain,’ says Ashleigh Christie, HR development manager at HPF.

Dr Siddo concludes: ‘By signing up to TEP’s ESDS, MCON will benefit from TEP’s tried and tested small enterprise development methodology, which provides hands-on, step-by-step support and guidance to acquire the skills and know-how required to grow the business and access new markets.’

18 June 2015