The Development Impacts of Tourism Supply Chains: Increasing Impact on Poverty and Decreasing Our Ignorance - Responsible Tourism: Critical Issues for Conservation and Development - page 122

Table 6.6 Comparison of net benefits of the Enterprise Development laundry
compared to an existing contract

Laundry 1 Enterprise Saving to Spier in year 1

development laundry ZAR US$

Costs and savings to Spier in Year 1
Annual spend by
Spier (ZAR) a 472,000 270,000 202,000 26,933

Set-up cost - 75,000 - -

Sundry costs - 10,000 - -

Total year 1 cost 472,000 355,000 117,000 15,600

Earnings into the community per year Net community gain

ZAR US$

Jobs b 2 7 - -

Salary avg per person
per month c 1700 2000 - -

Months 12 12 - -

Local earnings
ZAR 40,800 168,000 121,200 2400
Local earnings, US$ 5,440 22,400 16,960
Notes: a The cost to Spier for the ED laundry is based on actual payments made over 12 months for the finan-
cial year ending 2006. Costs to Spier for Laundry 1 are what Spier would have spent for a year if it had
continued with Laundry 1, based on the per item costs at which Laundry 1 was contracted during the first 4
months of the restaurant, when Spier was using Laundry 1, multiplied by the volume of items laundered by the
ED laundry over the following year.
b Number of employees includes 2 part-time, 4 full-time employees and 1 owner.
c Salary per month is an average for all staff: full-time, part-time and owner (owner is a black male).

business could also adhere to other Spier standards and criteria, thus dispelling
some myths and resistance.
Although no supplier was eliminated in the process, Spier was able to identify
areas where the supply of a specific service could be divided between a number of
'enterprise development' suppliers, as was the case with the laundry project (see
Ashley et al, 2005). A new black owned enterprise, employing formerly
unemployed women, was able to take up a new laundry contract for a new restau-
rant on the Spier site. Spier assisted with capital costs and premises at the start,
and assisted the operator to meet the service standards required.
Table 6.6 compares the benefit to Spier and to the local economy of the enter-
prise development laundry compared to the benefits of giving the new restaurant
contract to existing Cape Town-based laundry suppliers. It shows very clearly the
financial gain to both Spier and local incomes.
Benefits to the community from the Enterprise Development laundry are
more than four times the benefits from a traditional laundry, because of a higher
number of local employees. The fact that the owner is also a member of the
community contributes to the high total wage flow. This reflects a very different