South Africa: Tourism budget proposes $134mln for 2025/26
Speaking in Parliament, Minister de Lille highlighted the budget's alignment with the Government of National Unity's Programme of Action, aimed at driving inclusive economic growth, reducing poverty, and building a capable state. She emphasised the importance of tourism as a key economic driver, referencing its central role in the National Development Plan and the Tourism Sector Master Plan.
Budget highlights
• R1.3bn allocated to SA Tourism, the Department's main entity.
• R331m dedicated to destination development, primarily funding the Working for Tourism Programme.
• R331m earmarked for Tourism Sector Support Services, covering incentive schemes such as the Green Tourism Incentive Programme (GTIP), Market Access Programme, Tourism Grading programme, and Tourism Transformation Fund (TTF).
Addressing oversight and improving governance
Minister de Lille outlined the department's response to Portfolio Committee concerns, including:
• Finalising the Tourism Amendment Bill to address short-term rentals, grading enforcement, and governance.
• Reviewing outdated strategies on heritage and cultural tourism, domestic growth, rural tourism, service excellence, and climate change.
• Strengthening fund management with clear deliverables, 60-day approval targets, and consequence management.
• Implementing a Community Tourism Aftercare programme offering post-handover support to community lodges.
• Enhancing digital transformation through a Digital Maturity Roadmap, real-time tourism dashboards, and mobile tools.
• Applying a Sector Risk and Mitigation Plan focusing on climate change, health, safety, and governance.
• Increasing transparency via quarterly public dashboards on EPWP placements, fund disbursements, and risk metrics.
Tourism performance and economic impact
The Minister reflected on the sector's strong performance in 2024/25:
• International visitor arrivals reached a peak of 9.1 million.
• Domestic overnight travel increased to 40 million trips from 37.7 million the previous year.
• International tourists contributed R92.8bn in foreign direct spend.
• Domestic tourism grew by 7.6% to R133.1bn.
• 76% of the budget was directed to growth-and-jobs initiatives, with 40% procurement from SMMEs and 40% from women-owned businesses.
• The Green Tourism Incentive Programme retrofitted 103 properties.
• Support was given to 266 SMMEs at global trade shows via the Market Access Support Programme.
• R144m was spent to train and deploy 2,305 Tourism Monitors.
• Major policy achievements included completing the Tourism Master Plan, Tourism White Paper, and Tourism Route Development Marketing Plan.
• The Trusted Tour Operator Scheme, in collaboration with Home Affairs, welcomed the first Chinese and Indian travellers via digital visas.
Tourism growth partnership plan
The department introduced the Tourism Growth Partnership Plan with five pillars to drive sustainable sector growth by 2030:
1. Ease of access – visa reform, air and road connectivity
2. Coordinated destination marketing – covering international, continental, domestic, and MICE markets
3. Tourist safety and security – awareness and crisis management
4. Tourism product development – infrastructure and immersive experiences
5. Job creation – youth employment acceleration and skills development
An upcoming Execution Lab will engage sector leaders to implement these goals.
Marketing and product development initiatives
The flagship 'South Africa Awaits – Come Find Your Joy!' campaign reached seven key markets, boosting website traffic by 35% and generating 1.2 million digital engagements. Domestic campaigns like 'Sho't Left/Travel Week' saw a 9% increase in provincial travel and supported 914 new jobs.
The Department plans to spend R20m marketing National Domestic Tourism and has commissioned new tracking surveys to gain real-time visitor insights.
Efforts continue to maintain Africa's position as a leading hub for Meetings, Incentives, Conferences, and Exhibitions (MICE), aiming to increase exhibitor diversity by 15% for Meetings Africa and Travel Indaba 2026-2028.
Tourism product development will receive R95m for the maintenance and enhancement of Department-owned sites, community tourism lodges, and branded routes in villages and townships. The department will host its first Tourism Investment Conference in Cape Town in September 2025.
Minister de Lille reaffirmed the government's commitment to leveraging legislative, operational, and strategic interventions to strengthen tourism, remove barriers, and embed innovation. The sector is positioned as a catalyst for a resilient and inclusive South African economy.
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