Welcome to the Zulu Kingdom, KwaZulu-Natal

How To Establish A Community Tourism and Information Office

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DEFINITION

Note that legislation now requires all businesses providing services to tourists be registered with the provincial tourism authority, Tourism KwaZulu-Natal. Kindly contact Tourism KZN if you are not sure whether registration is mandatory or optional for your business, as well as information on how to register.

A Community Tourism Office is a community-owned and managed office for the promotion of member organizations (other tourism establishments) and the provision of information to tourists. The concept of community-based organisations is advocated by the White Paper on the Development and Promotion of Tourism in South Africa (1996).

LAND AND PLANNING ISSUES

Space and Infrastructure

Discuss with TKZN whether you have enough space to cope with the type of activities you have in mind.

Office infrastructure in needed including access to telephones, fax and electricity. A computer with an internet connection is advised.

Parking

Your Local or District municipality can advise on the parking requirements for your type of activity.

Amenity Value

An attractive or appealing tourism office environment may be created with posters and maps (these are available from KZNTA, SA Tourism, etc.) and will be supported by being located in attractive, clean and well-kept surroundings.

Accessibility / Roads

Ensure that your site is easy to get to for the general public, and easily found. Also ensure that is is accessible by private and public transport.

The Local Municipality has controls for the erection of any signs. If new access onto streets is needed, the local Municipality will usually construct them at the cost of the developer. Permission must be obtained from the Department of Transport to construct new access points onto main roads outside the Local Municipal areas.

LEGAL REQUIREMENTS

Land Use Zoning

Approach the Local Municipality to establish whether the Town Planning Scheme permits the activity on the site you have chosen.

The establishment of a new enterprise in which the present use is substantially changed may require a scoping report (a report outlining likely environmental impacts) to be prepared in terms of the National Environmental Management Act (107 of 1998). The Provincial Department of Agriculture and Environmental Affairs should be consulted in this regard as well as for information on any changes in legislation.

Licensing and Registration

Approach the District Municipality to register your enterprise. Seek to have the annual levy waived because of the purpose of the enterprise.

Regulations and by-Laws

Approach your Local municipality for guidelines on fire risk to ensure that you have adequate fire control equipment and arrangements and to ensure that your plans comply with their regulations on water, electricity, sewerage, noise, etc.

Other Legal Requirements

If you wish to erect a road sign in the road reserve area (as distinct from on your own property) advertising your business then you need approval from:

Department of Transport in the case of national roads the Facility Signs Committee in the Provincial Department of Transport in the case of secondary roads; the Local Municipal Engineer in the case of local roads within a Local Municipality area.

Also see the How To brochure on Outdoor Signage in this series.

Policy

TKZN and the Department of Economic Development and Tourism should be consulted for updates on policy.

BUSINESS ISSUES

Structure of Your Enterprise

Since your operation will be servicing a number of member organizations it may be advisable to register as a Community Trust or a Section 21 Company.

Chambers of Commerce are a good contact through which to obtain details of organisations that can give advice on the structuring of your enterprise. Advice may also be obtained from business Advice Centres

Membership

Your office should prepare a Constitution which sets out its exact purpose together with likely membership, including tourism businesses such as B&Bs, eating houses, tour operators, craft manufacturers etc. These types of enterprises should have the opportunity to become members, so that their tourism services can be advertised through the office. Membership should be encouraged from all sectors of society.

Managing Your Enterprise

Management of your enterprise will involve:

being clear on who are the managers and what their responsibilities are; having a staff structure with clear job descriptions; a decision on the types and packaging of services; bookkeeping and accounting; arrangement of VAT and taxes; record-keeping for your own records, for advertising reasons and for tax purposes; taking and managing bookings from clients; employment and labour conditions which includes employment equity, labour unions, and conditions of employment; training of staff: it is vitally important that staff are trained in customer care and to be professionals in their field; and insurance cover which includes both security and public liability.

Chambers of Commerce are a good contact through which to obtain details of organisations that can give advice on the management of your enterprise.

Marketing and Advertising

Marketing and advertising may be done through a variety of media such as through brochures, internet, television and word of mouth. TKZN should be approached to enter your enterprise into their tourism assets database for the Province which provides freely available information on tourism facilities. The District Municipality has a copy of the same database.

Any brochures produced to advertise your establishment should include an easily readable map.

Voluntary Requirements

TKZN and the District Municipality, in consultation with CTOs, are developing a set of minimum and recommended standards for CTOs in the Province. CTOs that meet these standards will be provided with an accreditation plaque with the logos of TKZN and its District Municipality. This will enhance the reputation of the CTO in the eyes of the public. There are both prerequisites and recommendations for qualifying as an accredited CTO.

The prerequisites are as follows:

good visibility of road signs and of the centre itself; the office should be open to the public for 5.5 days per week and during the lunch hour; access to a telephone and fax; the centre should display an after hours illuminated information board; the centre should provide accurate and timely information; local information provided should be extensive, while regional and provincial information may be more general; staff should have specialised local knowledge; the centre should have ablution facilities; there should be a display illustrating the services provided by the centre; and the enterprise should have the permission of the local or District Municipality to operate.

The recommended criteria are as follows: the centre should be open on public holidays and on Sundays; access to email and a web site and the TKZN tourism database; the centre should provide general information of the national level; staff should be multilingual, staff should dress in uniforms; access to adequate parking for cars and buses; access to public telephones; and access to audio and video equipment. TKZN and the District Municipality would carry out an evaluation of the accredited CTOs on an annual basis.

Membership of the South African Community Tourism Association (SACTA) is recommended to ensure that minimum standards are adhered to. Membership involves application to SACTA which has certain criteria which must be followed in order to be approved.

Membership of the Southern Africa Tourism Services Association (SATSA) may be advisable to ensure that minimum standards are adnered to. Membership of SATSA can be used as a marketing tool and provices tourists with an assurance that certain standards are being maintained. The requirements for membership of SATSA are available from the SATSA website: www.satsa.com or requests for application forms should be addressed to:

The Chapter Secretary of SATSA c/o Gooderson Leisure Corporation P.O. Box 10305 Marine Parade, 4056

SATSA represents the private sector organizations which service the incoming Southern African tourism industry. Membership includes airlines, coach operators, accommodation establishments, vehicle hire companies, attractions, conference organisers, and related marketing organisations.

You must have a registered Private Limited Company ((Pty) Ltd Co) or a registered Close Corporation (CC). Sole Proprietors are not eligible for membership.

There is a joining fee of R627.00. The annual subscription for Chapter membership is R1368.00. The annual subscription for National membership is R2736.00. The subscriptions are in addition to the entrance fee.

Sources of Information

A useful source of information on similar organizations which may be useful in helping to set up a CTO is TKZN website (www.zulu.org.za). TKZN also has a resource centre which may be used to obtain information.

FINANCIAL ISSUES

<Sources of Finance

Finance for your proposed enterprise may be obtained from various sources. Since your enterprise is aimed at community support you may be able to obtain start-up funding from the District Municipality or from other donors. Advice may be sought from TKZN on prospective donors.

Once established, much of your funding will come from membership fees, and therefore funding from donors should be on a decreasing scale until you are able to be self- financed.

Other financial sources may be in the form of loan finance, or state subsidy.

Sources of loan finance include: the District Municipality

Business Partners Limited Ithala Development Finance Corporation Limited Industrial Development Corporation (IDC) Development Bank of Southern Africa (DBSA) Joint Venture Financing Commercial banks.

TKZN may be approached for advice on potential funders.

Business Plan

Loan organisations normally require a comprehensive business Plan to be prepared in applying for a loan. Such a Business Plan should include: business analysis; financial forecasts; based on rational assumptions and experience; budgeting guidelines; schedules determining the amount and kind of finance most appropriate for the enterprise; details on proposed financing sources; allowance for a decreasing need for funding as the enterprise becomes self-financing; and useful information about the planned enterprise which will aid decision making by the loan organisation.

More details on the required content of business Plans may be obtained from: commercial banks, Business Partners Limited, and Ithala Bank.

Advice on business planning may be obtained from:

the Tourist Information Service Division of TKZN Business Advice centres The Department of Arts, Culture and Tourism. Financial Record Keeping Good record keeping systems provide information for managing finances. The key items in record keeping include Original records e.g. sales slips, receipts, invoices. Journals which record the details of every transaction in chronological order e.g. the cash book Ledger where information obtained from journals is made more useable, Trial balance is a list of all ledger balances taken out to prepare financial statements; Financial statements: Income statement Balance sheet

The minimum requirements for a small business operation are:

Cash book Cash Control Systems Assets Register Debtors Record Creditors Record. Budgeting

Budgets are based on past experience current state of affairs and future expectations. budgets will help provide an estimate of financial requirements in the execution of plans in the operation. Kinds of budgets include: Sales budget: a forecast of expected monthly income; Materials budget: expected purchases;

Labour budget: expected remunerations and numbers of workers;

Capital budget: expected fixed assets expenditure e.g. machinery, land etc;

Cash budget: expected working capital requirements over a specific period.

LIST OF USEFUL CONTACTS

Business Advice Centres Durban: 031-309 5432 Pietermaritzburg: 033- 345 4604

Business Partners Limited Durban: 031-266 7130 Richards Bay: 035-789 7301

Department of Arts, Culture and Tourism 031-309 7559

Ithala Development Finance Corporation Limited 031-907 8911

Tourism KwaZulu-Natal (TKZN) 031-366 7500

South African Tourism (SA Tourism) Head Office Johannesburg: 011-895 3000

Southern Africa Tourist Services Association (SATSA) 031-261 2525

Department of Trade and Industry 012-322 7677

Provincial Planning and Development Commission 033-395 3066

South African Community Tourism Association 033-330 6192

Department of Local Government & Housing Durban Regional Office 031-204 1771 Pietermaritzburg Regional Office 033-395 2111 Ulundi Regional Office 035 - 874 2783

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