Abstract
M.Phil.
Orientation: For a long time, much scholarly research and writing have focused on the
hospitality management side of the hotel industry, with limited consideration of the so-called
hard business core of the hotel industry. This highlights the need to reveal some of the
aspects that put hotels on par with other forms of hard business, especially in the context of
developing economies such as that of South Africa. This appears to have limited many people
in venturing into this industry, notably black entrepreneurs, who have made inroads into other
economic sectors. Considering the segregated development history of South Africa, black
entrepreneurs are often found at the bottom of the tourism business ownership pyramid,
especially in the accommodation industry, which includes the capital-intensive business of
investment in and the management of hotels. In this study, the word black is used in
accordance with the definition contained in the South African government’s Broad-based
Black Economic Empowerment Act, meaning African, Coloured, and Indian persons.
However, in view of the exclusion from economic participation of black people under the
apartheid regime, the study focused on gathering evidence on the lack of capital investment
by black African and Coloured persons in the hotel industry in South Africa.
Research purpose: The aim of the study was to determine the reasons for the little capital
investment by black entrepreneurs with investible capital in the hotel industry in South
Africa. The investigation was done by engaging a selection of key leaders and executives
who were directly and indirectly involved in the hotel industry. By engaging these leaders
and executives to share their own experiences and impressions on the research topic, I was
able to learn about and deepen my understanding of the various elements preventing black
entrepreneurs from getting involved in the hotel industry.
Motivation for the study: The relevance of this study is founded in the hotel industry being
one of the four capital-intensive industries within the tourism sector, as well as the most
visible representation of tourism as an economic sector. This industry is globally recognised
as a significant contributor to job creation, capital investment, and national pride of any
tourist destination. According to my research, no study on investment barriers to investment
by black entrepreneurs in the South African hotel industry has been conducted. This study
breaks new ground in terms of expanding research about the hotel industry and the
participation of black entrepreneurs in the industry, to, ultimately create new pathways to
attract black-owned capital to the South African hotel industry...