SATSA Tourism Business Incubator Programme is reviving South Africa’s tourism industry, one small business at a time

Many small businesses are still struggling to navigate the challenges that come with the tourism industry because they don’t have the same resources and skills as the bigger players. “Even though we’d been running businesses for some time, we never had a deep understanding of the skills needed to manage a business professionally. It was just a question of survival for us and chasing profits,” explains Selby Nkosi, co-owner of King’s Manufactures Holdings.

Not to mention, a number of travel and tourism businesses in South Africa are still struggling to recover from the effects of the COVID-19 pandemic. While the sector directly contributed 3,5% to GDP in 2022, it was still below the 2019 pre-pandemic contribution of 3,7%. There has been a resurgence in employment after the pandemic too, but this is still below the pre-pandemic high of 777,686 too. 

Incubators play a crucial role in bridging this recovery gap by providing targeted support, resources, and strategic guidance. In 2022, Sigma International partnered with the Southern Africa Tourism Services Association (SATSA) to empower emerging tourism entrepreneurs. Through the SATSA Tourism Business Incubator programme, Sigma offers enterprise and supplier development services, as well as round-the-clock business support. 

A catalyst for the tourism industry

This holistic approach ensures sustainable growth and profitability for the incubates while providing funders with valuable B-BBEE verification collateral. City Lodge Hotels has achieved a level 4 B-BBEE score because of its partnership with SATSA’s Tourism Incubator Programme. 

“It can be challenging trying to run hotels while mentoring new entrepreneurs as they become part of our industry, said Lindiwe Sangweni-Siddo (COO of City Lodge Hotels) during SATSA’s “This is Us” Conference 2024. “It can become quite cumbersome in terms of the additional work.” 

She explained that she was delighted when introduced to Sigma International in 2022, who presented a solution to this problem without compromising the future of the industry. “In the last couple of years, City Lodge has been able to become more focused while still bringing in unique local suppliers and empowering them. We are incredibly proud of our association with the SATSA incubator programme and the impactful work of companies like Sigma International. 

“I hope the rest of our colleagues in our sector will realise the value-add proposition on offer!"

Small business support comes in all shapes and sizes

In its first year, SATSA secured R5,5 million in enterprise and supplier development funding from the incubator programme’s various partners and sponsors (including Airlink, Bidvest Travel Services, City Lodge Hotels, Europcar, New Frontiers and Protea Marriott). 

Three participants increased their monthly turnover by over R750,000 and 20 new jobs were created.

For some, the programme has provided financial support: “The SAICA master classes have taught me about accounting and budgeting, and I’m also gaining other new business skills, like how to craft business plans and how to gain market access,” explains participant Karabo Sepharatla from Camping Khapela.

For others, the impact was more tangible: “I received a new sewing machine, a brand-new compressor, a laptop and a generator so that we can operate during load-shedding,” recalls participant Anna Ramokoka from Morake Décor. “The programme has changed my life and when I think about it, I get emotional.” 

Asmara Coffee’s Nobuhle Magwentshu says being part of the SATSA Tourism Business Incubator programme has given the business a new lease on life. “The business is now able to hire good candidates, and I feel comfortable that we’ll meet our overhead costs and that we can plan for future growth prospects as a result of this contract.”

The programme not only develops the companies, but also connects them with the relevant partners to make their businesses sustainable in the long term. “Now I am being guided by people who have already travelled this road, and the progress I have made since being able to join the programme would have taken me years to accomplish, especially working on my own,” explains Kleinbooi’s Andile Franco.

It includes Zoom Couch sessions and Fireside Chats with experts like successful entrepreneur Robbie Brozin (Co-Founder of Nando’s) or Craig Drysdale (Director of Sales and Marketing at Inspirations Travel and Tours) to name a few. “I call them my mini-board, because they’re always there for me,” programme participant Siya Sigcau from Organic Matters adds. “SATSA and Sigma International’s support has been phenomenal and they’re so keen to see me succeed.”

Creating opportunities through incubation

To date, the SATSA Tourism Business Incubator Programme has taken in almost 120 participants. Sigma International CEO Akash Singh emphasised the impact this has on the tourism industry during the SATSA “This is Us” Conference in August 2024, saying: “There will be no tourism if the economy doesn't succeed. We need to create jobs at a much deeper level if we want to change the economy.”

City Lodge Hotels has helped 19 enterprises graduate in the two years that it has been part of the programme, and has brought eight of those onboard as suppliers to the group. Both Siya and Nobuhle are part of the group’s new suppliers – with Organic Matters already servicing all 56 hotels across the country. 

“This is what makes me excited about our industry, because it’s not about being the first, it’s about opening the circle up to everyone – there’s more than enough to go around,” says Lindiwe. “But, we need to be more intentional about it and more focussed on what it means to transform our sector – like developing small companies into big tourism players. If everyone gets involved, the industry can contribute significantly to the country’s GDP and job creation again like it did before the pandemic.” 

Don’t do it alone, apply for SATSA’s Tourism Business Incubator Programme now. Email cleo@sigmaintl.co.za to apply or find out more. 

Watch the Integrated Transformation session from the SATSA 2024 Conference here​.

Read more about the SATSA Tourism Incubator Programme here.

Call for Expressions of Interest to SMMEs for the SATSA Business Incubator Year 3 (2024 – 2025)