Compliance of tourism SMME accommodation establishments in the Mangaung Metropolitan Municipality

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Ntsane, Ramahetlane John
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University of the Free State
Since the global economy has experienced a decline in economic activity over the past few years due to the outbreak of the Covid-19 pandemic which negatively impacted on the lives and livelihoods of people across the world, it was important to intervene via research to assist the tourism accommodation sector. Globally, governments had to devise contingency measures to resuscitate economic activity. In RSA, President Ramaphosa highlighted that one of the key interventions that can revive the economy is to support the tourism Industry which has potential to create jobs due to its labour-intensive nature of its operations and its interconnectedness with other sectors. Because the tourism industry suffered great loss during lockdown (since March 2020), the South African Government introduced relief funds for SMMEs including SMMEs in the tourism Industry, specifically the accommodation subsector which consists of guesthouses, lodges, B&Bs, and hotels, amongst others. However, most establishments could not secure the relief funds due to the difficulty of complying with various legislations. Hence, this study investigated the compliance of SMMEs (aligned to tax, labour, and B-BBEE legislation, as well as company registration) as Tourism Accommodation Establishments in the Mangaung Metropolitan Municipality. A quantitative study was undertaken to elicit data via survey questionnaires which were disseminated electronically via email, together with conducting face-to-face interviews. After data collection and analysis, the findings indicated that there was poor monitoring and evaluation from the Government's side which highlighted the disconnect in communication platforms between SMMEs and Government agencies. It was concluded that there was a need for regular and accurate information dissemination, intensive training, and better networking between entrepreneurs and Government agencies. Recommendations included the improvement of communication lines by exploiting the opportunities available on the 4th IR's digital platforms, and Government agencies earnest involvement and commitment to conduct more effective mentorship and coaching, ongoing training, and relevant information sessions to connect with SMMEs by promoting the DDM model.
Dissertation (MDS (Development Studies))--University of the Free State, 2022
Accommodation, compliance, DDM model, information dissemination, SMMEs, tourism