Sigma International and Southern Africa Tourism Services Association Drive Growth and Opportunity in Tourism Sector

Thursday, April 4, 2024

Sigma International and SATSA are celebrating a significant milestone as they enter the second year of their partnership within the SATSA Tourism Business Incubator. This collaboration, which began in May 2022, has proven to be a catalyst for growth and opportunity, combining the expertise of both organizations to support outstanding entrepreneurs, startups, and small businesses in the dynamic tourism industry.

During its inaugural year, the program achieved notable success, securing R5.5 million in funding for enterprise and supplier development. This substantial financial support resulted in a remarkable increase in the monthly turnover of the top three participants by over R750,000, and the creation of more than 20 new jobs.

Sigma International’s CEO and co-founder, Akash Singh, shared the programme’s impressive accomplishments, “Over 1,000 ‘needs-based’ business support interventions were conducted, including the creation of 21 websites and the completion of 40 sets of management accounts for our incubatees. Furthermore, we’ve invested R480,000 in essential tools and equipment to enhance operations. With the unwavering support of our first-year funders, we’re poised to elevate these successes to new heights in year two.”

David Frost, SATSA CEO, reflected on the programme’s impact, “With transformation at the core of our organisation, the Tourism Business Incubator is an effective programme for us to lead by example and create a ripple effect throughout our industry. We’re thrilled with the programme’s success in its first year, facilitating nearly R6 million in funding, boosting incubatee revenues, and supporting job creation. The enthusiastic industry support fuels our motivation, and we eagerly anticipate building on this momentum.”

The Blueprint for Success Program

The incubation program is dedicated to fostering the development of small businesses predominantly owned by individuals of Black heritage. It achieves this by engaging the tourism sector to sponsor and endorse outstanding enterprises. Customized business assessments and targeted interventions are implemented to facilitate the success of these businesses. Additionally, mentorship is provided in areas such as business management, marketing, and financial acumen, following Sigma International’s ISO 9001:2015 certified framework. This comprehensive strategy not only ensures the sustainable growth and profitability of the participants but also furnishes funders with significant B-BBEE verification assets.

“The commitment of SATSA members to the incubation programme not only fosters job retention and skill development but also empowers local communities through business growth and industry transformation,” Singh added.

Key industry leaders such as City Lodge Hotel Group, Protea Hotels by Marriott, BidTravel, and others have played a crucial role in providing funding for the initial group of incubator startups. Their collaborative initiative highlights a unified vision aimed at driving transformation and fostering economic growth in the tourism industry.

Nine incubatees attended and exhibited at an industry General Managers’ Lunch event, themed Diverse Suppliers – Collective Success, hosted at City Lodge Hotel Fourways, on 26 March 2024. COO of City Lodge Hotels, Lindiwe Sangweni Siddo, and Director of Operations, Tony Balabanoff, highlighted the structured, impactful approach of the SATSA Tourism Business Incubator in driving transformation and achieving significant milestones in a relatively short period. Says Siddo “We’ve been really successful this past year with 17 candidates coming through the incubation process. Having a third party, Sigma International, who does all the heavy lifting and handholding, and who was our proxy in terms of places we couldn’t reach, was the best decision we ever made.”

Balabanoff echoes her sentiment, explaining that while they have always been committed to the journey of transformation, it was challenging to get the momentum going. “The SATSA Tourism Business Incubator really gave it structure. We’ve achieved a lot in a very short time due to having a framework and somebody helping us to drive this process. I’m thrilled that we’ve gone down this road.”

With 32 incubatees completing year one and 43 already onboarded for year two, there is great potential for further growth. “We are delighted that the broader industry and other associations, such as ASATA and FEDHASA, have answered the call and commenced similar journeys with Sigma International Business Incubators,” says Frost. “In this way more incubatees can be onboarded, and the impact of the programme boosted across the tourism value chain with linkages for procurement across funders.”

The collaboration between Sigma International and SATSA is a stellar demonstration of industry teamwork, creativity, and advancement. A campaign highlighting the achievements of this program is about to kick off, with updates accessible through all SATSA platforms. This heralds a fresh era of empowerment and growth within Southern Africa’s tourism sector.

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