Environmental Engineering Reference
In-Depth Information
time and resources innovating a procurement reform process, the adoption of
similar techniques by others can be easier. Of course the data capture tool needs
to be adapted on a company-by-company basis to reflect specific priorities, but
there are lessons and tools that other companies can gain from Spier.
Our knowledge of the development impact of this procurement shift is still
limited to some micro cases, such as the laundry. The need for a better under-
standing of the pro-poor flows from supply chains, and from changes in supply
chains, was highlighted in the international overview at the start, and the case
remains. Nevertheless, the laundry example illustrates just how considerable the
development impact can be, when one contract of around US$20,000 leads to a
fourfold increase in financial flows to poor households. The case for both further
action and further assessment of local economic impacts of the tourism supply
chain remains strong.
Notes
1
These two sets of literature are outlined in more detail in Mitchell and Ashley, 2007,
as are the examples below which are briefly mentioned here.
2
This impact is also expressed as the ratio multiplier being around 1.6-2.2. However,
ratio multipliers are readily confused with the quite different Keynesian or output
multiplier (Lejarajja and Walkenhorst, 2006), which are invariably less than one.
Thus the multiplier shorthand is confusing rather than convenient.
3
A number of sources indicate that food and beverage purchases constitute about
one-third of hotel expenditure and the great majority of this supply chain is supplied
by domestic resources (Christie, 2006; SRI, 1997; Torres, 2003). Economic assess-
ment based on 1992 data in Tanzania, estimates that half of the total employment
impact of tourism is in the staple foods sector (Kweka et al, 2003). In Senegal, 35%
of local inputs used by tourism are agricultural and food products (Christie and
Crompton, 2003).
4
Application of the code depends on the size of the organization; although the size
related delineation is still under debate within the tourism industry. The Codes of
Good practice define a qualifying Small Enterprise (QSE) as a business that has a
turnover of less than R35 million but more than R5 million. A QSE has to complete
only four of the seven categories, each of which account for 25% of the score.Thus if
a QSE chooses to be scored on procurement, this would account for 25% of its score,
and the same applies to enterprise development. Businesses with a turnover of less
than R5 million are termed Exempt Micro Enterprises (EMEs) and do not need to
participate in BBBEE.
5
At the average 2002 exchange rate of ZAR10.53 to S$1. Other US$ amounts below
are based on the exchange rate of ZAR7.226 to US$1, the current rate on 5
September 2007, unless otherwise noted.
6
Black Economic Empowerment and Broad Based Black Economic Empowerment
initiatives were, at the time of the survey, of particular importance, with many suppli-
ers uncertain as to how to proceed and how the market in general would respond to
this. It must be stated that there was resistance to this. By 2007 most of the scepticism
had been resolved, particularly with the publishing of the Codes of Good Practice by
the DTI.
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