Page 24 - IDC

10 CITY PRESS, 6 MARCH, 2016

The IDC’s

tourism book

A Total Businesses

PROJECT IN number of owned by
businesses:
women
PARTNERSHIP 60 Total Total female-
owned
WITH THE black-owned businesses:
businesses:
14
9
IDC Where the businesses are:

Gauteng
Number of businesses: 16
Investment value:
R393 815 586
Jobs created and saved: 617
Siphiwe Ngcobo does what it takes to win SMART CHOICE The entrance to the iLawu Inn in Pietermaritzburg PHOTOS: TEBOGO LETSIE
From blacklisted Free State

Number of businesses: 2
Investment value:
R5 537 000
Jobs created and saved: 34

to boutique hotel North West
Number of businesses: 5
Investment value:
R64 835 843
Jobs created and saved: 209

Limpopo
PADDY HARPER
paddy.harper@citypress.co.za Number of businesses: 4
Investment value:
iphiwe Ngcobo, the owner and boss man of R215 163 100
the iLawu Hospitality Group, could easily pass Jobs created and saved: 517
as one of the KwaZulu-Natal Midlands hotel
and guesthouse chain’s more than 100 full-
time employees.
S Ngcobo (36) is dressed the same as the KwaZulu-Natal
front-of-house staff at the iLawu Inn, the group’s three-star Number of businesses: 5
hotel in the Pietermaritzburg central business district. Investment value:
He’s wearing a golf shirt with the company logo, and R153 600 000
chinos. There’s no suit and tie, no assistant in tow. Jobs created and saved: 528
Ngcobo is not much older than most of his youthful
team, or the 40-odd hospitality industry trainees iLawu
takes on every year for experiential training at its five hotels
and guesthouses, and in its catering and events divisions. Mpumalanga
An Italian-trained mechanical engineer, Ngcobo started Number of businesses: 4
his hospitality career in 2009 when he bought an eight- Investment value:
bedroom bed and breakfast establishment in the PAMPER PARLOUR Guests can spoil themselves at the BEDTIME The iLawu Inn in Pietermaritzburg is part of R42 178 665
Pietermaritzburg suburb of Scottsville after selling several iLawu Inn in Pietermaritzburg the iLawu Hospitality Group Jobs created and saved: 118
residential plots.
Ngcobo, who has been running small businesses since his
student days, had bought the land with a payout he Young, ambitious and hospitable Eastern Cape
received from Hulamin, where he had worked as an
engineer and moonlighted with a tuck shop operating out Number of businesses: 3
of a shipping container. Investment value:
“I was living in my grandmother’s garage and didn’t have PADDY HARPER Street in Pietermaritzburg’s central business district. “I R124 600 000
expenses. There were vacant sites in the area and I decided paddy.harper@citypress.co.za am amazed at how much I have grown professionally Jobs created and saved: 118
to buy them to invest in property, and to have the joy of and as a person. I used to be so shy. I could hardly
holding a title deed in my hand. Lungile Maphumulo, a tourism management graduate talk to people. There has been a lot done here to help
“A developer approached me wanting to buy the land from Durban’s Lamontville township, joined the iLawu develop me. Doing this job has done so much good for
and I agreed. I used the money to buy a house in Scottsville Hospitality Group eight months ago. my self-confidence. I love this. Northern Cape
to turn into a bed and breakfast.” She had no idea that she would become the group’s “I had no idea I could go so far so quickly. There’s a Number of businesses: 2
Inspired by the level of service he had received in the general manager before her next birthday. lot of work and not a lot of free time. iLawu has Investment value:
hospitality industry in Italy as a student, Ngcobo’s plan was Maphumulo (27) moved to iLawu in become my family. I love this job.” R35 900 000
to provide local accommodation at an international July as a reservations officer from the Mabongi Mthethwa (38), the owner of Jobs created and saved: 169
standard and to take up the challenge of entering an Hampshire Hotel in Ballito, where she Ekhaya Beauty Professionals, a spa
industry which was largely untransformed. had worked since qualifying four years operating out of the iLawu Inn, is
“I saw the need for a quality service with value for earlier. equally upbeat about the operation.
money in Pietermaritzburg, the idea of providing 24 hours Within two months, her work ethic, “This place is brilliant,” says the UK- Western Cape
reception, Wi-Fi, the sort of things you don’t find in the ideas and attention to detail had trained Mthethwa who moved her Number of businesses: 8
local bed and breakfast and guesthouse market.” impressed owner Siphiwe Ngcobo and beauty business into the hotel three Investment value:
Ngcobo, who was blacklisted after losing his job, says his his management team, to the extent years ago on a five-year lease. “It’s a R228 760 000
first foray into the market was difficult. The red tape of the that she was promoted to sales and great venue, classy and the perfect place Jobs created and saved: 797
commercial banks and state development institutions such marketing manager for the group. Her to work in the centre of town. This is
as the Industrial Development Corporation (IDC) hampers rise within the KwaZulu-Midlands the busiest road in Pietermaritzburg and
new operators, he says. hospitality group didn’t stop there. Last a very safe, secure venue. Business is Uganda Ethiopia
“I found that institutions which claimed to be assisting week Maphumulo was promoted to very good here.” Number of Number of
black entrepreneurs through development finance had so general manager. Operations manager Thami Ndlovu and Mthethwa, who employs three beauty businesses: 3 businesses: 1
much red tape attached to their processes that they end up “I still have to get a new badge,” she general manager Lungile Maphumulo therapists and a hair dresser, picks up Investment value: Investment value:
failing to help the people they need to help.” laughs, pointing to the metal marketing manager’s good business from hotel residents wanting their nails
At first Ngcobo pitched in as “cleaner, night clerk, cook name tag on her crisp white shirt. “I’m still getting and hair done or a full-body massage. R403 096 471 R61 500 000
and receptionist”, and he slept in his car on the nights used to it.” “When I do things, I like to do them right. iLawu is
when his eight rooms were occupied. Maphumulo is already in the thick of things in her the same. The relationship is good for both of us. We
“When there were vacancies, I would sleep in one of the new post. She has overall responsibility for the group’s give the hotel clients and they refer their people to us.
guest rooms and then be up before everybody else to get five properties – a guesthouse, and two boutique hotels It works for everybody.”
things ready for them. When the place was full, I would in Pietermaritzburg and two boutique hotels in Another young go-getter at the group is its operations
sleep in the car, freshen up and get ready for them. Those Newcastle – and its catering and events divisions. manager Thami Ndlovu (35), who joined five years ago
were tough days.” “Working in this group is great,” says Maphumulo in after spending a number of years as a beverage
Since then, the group has grown at a dramatic rate. an interview at the iLawu Inn in Chief Albert Luthuli supplier working with Ngcobo.
iLawu now owns a 20-room boutique hotel in Prestbury,
the Ilawu Inn, a 21-room luxury guest lodge in Newcastle
and another property nearby that is being funded through Opening doors for black-owned enterprises
a R4.5 million loan from the IDC.
iLawu also runs an events and catering division that
provides catering for private sector companies and
government departments alongside parties, weddings and MOSEKETSI MPETA year on the 2014 numbers, with Stats SA showing
other functions. news@citypress.co.za phenomenal growth in tourist numbers from interesting
Ngcobo is massively vigilant about iLawu’s brand. places – 135% more visitors arrived from China, followed Ghana
“We pay a lot of attention to maintaining our image and The department of tourism is developing guidelines to by Singapore (51%), Saudi Arabia (57.7%), Mexico (24%) Number of
to getting ourselves out there. We have reworked our logo, I promote greater participation in the industry by black- and even Greece (18.5%). While those numbers are businesses: 3
think six times, to refine it to where we want it. owned enterprises through the Amended Tourism dwarfed by the 54 608 tourists from the United Investment value:
“We ensure that there is that visibility, that there is guest Broad-Based BEE Sector Code. Kingdom, the increases indicate a shift. R169 968 140
feedback. We’re constantly refining our systems, testing Releasing the amended codes in January, Tourism The tourism value chain contributes 9% of our gross
what works and what doesn’t work.” Minister Derek Hanekom said that in 2010 only one in domestic product, supports more than 1.4 million jobs
The Pietermaritzburg-born entrepreneur and his team are four large tourism enterprises was black owned, and OPINION and affects a number of supporting industries, from
constantly researching the market, travelling abroad to a mere 12% of large enterprises had 50% black repre- goods to transportation and general services. Nigeria
compare service standards and attending industry sentation at board, directorship or management level. The Industrial Development Corporation (IDC) has Number of
conferences to stay up to date with new technology, trends Given this poor performance in transformation, the identified tourism and hospitality as the sectors that businesses: 1
and developments in the industry. department has also identified the role small enterprises can support employment and economic growth. But we Investment value:
“We would rather spend money on research and ensure can play in bringing about greater participation by black- believe better results lie in supporting tourist activities that R88 527 639
that when we invest, it pays off. owned businesses. supplement the country’s accommodation facilities. Not
“Before we started in Newcastle, I would travel there and The weak rand will not always be as favourable to global only do such attractions enrich the tourism experience,
stay over to get a feel of the place and find out who the visitors, but while it is, it provides an opportunity not only they also open up the industry to new operators.
travellers were and what it was they were looking for.” to show the country’s unique experiences, but to broaden A diversified tourism sector – not only in attractions and Zimbabwe Mozambique
Ngcobo and some of his managers have recently returned economic participation in the sector. activities but also in ownership – will be a stronger sector. Number of Number of
from Spain, where they “had a holiday while studying the While commodities decline, tourism is becoming a While the IDC is well placed to support viable business businesses: 1 businesses: 2
industry”. significant driver of economic growth that can leverage the ventures, all industry players must use the opportunity to Investment value: Investment value:
He believes that iLawu will continue to grow. And later country’s alternative natural resources: wildlife and natural build consensus around their long-term potential.
this year, his management team is heading for Zanzibar, beauty across all provinces. Mpeta is head of Tourism and R30 978 000 R252 928 682
where they will develop the group’s strategic plan for 2020. Foreign visitor arrivals were up 6% in December last Light Manufacturing at the IDC THEUNS KRUGER, Graphics24