Tourism is a growing industry in South Africa and it is considered an excellent source of income and employment. This can indeed be the case provided that you have the personality, knowledge and determination to succeed.
That said, starting a tourism business is perhaps not as straight-forward as one would think. There are several regulations and requirements governing the sector. Entrepreneurs should make sure that they are informed about these before setting up a business.
There is no fixed office working hours in the tourism industry, especially if you are dealing with international clients. Most of the time you may be working very early in the morning or late at night, so an entrepreneur venturing into the tourism industry has to take a lot of different aspects into consideration. Choosing a business that fits the local market and finding funding for it are very important aspects of establishing the right platform for your business venture to run smoothly.
The following instructions should guide you through the process of starting up a tourism business.
First you need an idea of what the business is going to be. This stage requires a quick feasibility study to help you decide whether to take the idea further in more detail. The idea should be practical and achievable. Selling tour packages to the moon is not feasible (at the moment).
Research the market to learn whether there is a local need for your business, so you can focus on that area. If not, you will need to rely heavily on the internet to promote and obtain consumers. Identify who your target market is and ask them if they would consider supporting your business idea. Ask them what kind of products and services they want. Knowing what to expect from the market will help you better prepare your tourism business before you start. Gather information: browse the internet, read newspapers, visit your local tourist information centre, and speak to some tourists (local and/or foreign).
At this stage you should put your ideas on paper. A business plan consists of a skeleton for your business. If you are writing the plan as a personal guide, include details on how you plan on developing the business (location, advertising, employees) and roughly calculate how much money you need to start. Having a day-to-day plan of action is also important, especially if you have no previous experience with running a tourism business.
Check with your local municipality about regulations, licensing, fire safety and other laws regarding a new tourism business. Some permits may be required even if you run your business from home, so it's important for you to start the research as early as possible.
Determine what type of products and services you will offer. You need to decide whether you will provide local transport and tours, group packages or ticket reservations.
Find funding. Even if you have the capital to start your own tourism business, it makes sense to look for financial support. Investing all your savings may not be the smartest move, especially if there are other options available.
In the next edition of African Entrepreneur, we’ll look at the content of a business plan – an essential document for obtaining finance as well as a guideline for you to follow when setting up your tourism business. |
