Environmental Engineering Reference
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enterprise earnings were small, although increasing a little over time with a
programme of supplier support. Non-wage earnings were generally only consid-
erable where there was a community joint venture in place, or a substantial
corporate social responsibility programme (Relly, 2004: see Chapter 12 for more
details).
Another question is whether the supply chain is proportionately more or less
pro-poor than core tourism activities. That is, is the percentage of total economic
activity that benefits the poor the same? It is clear that there is no single answer to
this question either. Assessments in The Gambia (Mitchell and Faal, 2007) and
Luang Prabang (Ashley, 2006) provide examples where indirect impacts appear
to be more pro-poor, at least compared to the narrowly defined accommodation
and transport tourism sector. The share of accommodation revenue that reaches
the poor is low (often around 6-7 per cent of hotel or lodge turnover), and
accrues mainly through direct employment of unskilled and semi-skilled staff by
hotels and lodges. The share of the income from the food chain that reaches the
poor is higher (around 20-45 per cent accruing mainly through the supply of
fresh food. However, the reverse can also be true. An innovative CGE analysis in
Brazil concluded that the poor mainly benefit from the direct jobs in tourism -
rather than the indirect impacts (Blake et al, 2008). Blake et al (2008) found that
low income households earn more than other households from direct earnings,
whereas indirect earnings are highly significant for high income households.
What approaches exist to boost incomes of the poor
from supply chains?
South Africa seems to be the only country where a standardized and formalized
approach to encouraging tourism companies to adjust their procurement exists -
in this context it is, of course, part of the wider commitment to Broad Based Black
Economic Empowerment (BBBEE). BBBEE is based on addressing racial
inequalities, rather than focusing specifically on the poor, and is a specific
response to the apartheid legacy which largely excluded black businesses and
entrepreneurs from the mainstream economy.
The Tourism Black Economic Empowerment (BEE) Charter (DEAT, 2005)
provides the overall framework and principles for Broad Based BEE within
tourism. Its primary objective is to empower black South Africans within the
tourism industry and to make the tourism sector more accessible, relevant and
beneficial to black South Africans. Despite the fact that South Africa experienced
its first democratic elections in 1994, there has been only a marginal change in
control at both the economic level and the management level. The tourism indus-
try remains predominantly white controlled. This can also be said for most other
industries. It is for this reason that the government has facilitated the process of
Industry Transformation Charters. These Charters are driven by the Department
of Trade and Industry (DTI) Codes of Good Practice. The Tourism Charter and
Scorecard are currently being revised in order to align with the DTI Codes of
Good Practice (DTI, 2007) which were laid out in early 2007. All sector charters
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