Tourism Gets R2.54bn Boost as Infrastructure Projects Expand

The Minister said the department would also hand over several tourism infrastructure projects completed through government investment during the current reporting period.

Tourism Minister Patricia de Lille says the South African government is strengthening its commitment to the country's tourism industry through continued investment in infrastructure, with the sector expected to play an increasingly important role in economic growth and job creation. Presenting the Department of Tourism's 2026/27 Budget Vote in Cape Town on Wednesday, the Minister outlined plans to expand tourism infrastructure, attract private investment and encourage more South Africans to travel within the country.

The Department of Tourism has been allocated R2.54 billion for the 2026/27 financial year, funding initiatives that include infrastructure development, destination promotion and programmes aimed at supporting businesses operating in the tourism sector. De Lille said the investment reflects government's confidence in tourism as a key contributor to the country's economy and a source of employment across urban and rural communities.

Infrastructure investment remains a key priority

De Lille revealed that 22 tourism infrastructure projects submitted by both public and private sector organisations are currently undergoing assessment to determine whether they are ready for investment. The screening process is intended to identify projects that can move quickly into implementation while delivering economic benefits to surrounding communities.

The Minister said the department would also hand over several tourism infrastructure projects completed through government investment during the current reporting period. She highlighted the success of last year's Tourism Infrastructure Investment Summit, where eight bankable projects with a combined value of approximately R1 billion were presented to potential investors. Building on that momentum, submissions have now opened for the second edition of the summit, which will take place in Gauteng on 30 September and 1 October 2026.

According to De Lille, continued interest from private investors demonstrates growing confidence in South Africa's tourism sector and its long-term growth prospects. She described private investment as an important signal that businesses see value in expanding tourism facilities and services across the country.

The Minister said stronger collaboration between government and the private sector will remain essential in developing new tourism products, improving infrastructure and increasing the sector's contribution to economic development.

Tourism continues to support jobs and economic growth

Tourism remains one of South Africa's important economic sectors, contributing significantly to employment and national output.

According to Statistics South Africa's Tourism Satellite Account, the industry supported more than 954,000 direct jobs during 2024 and contributed 4.9 per cent of the country's Gross Domestic Product (GDP). The Minister noted that tourism outperformed several major sectors, including agriculture, utilities and construction, highlighting its growing importance to the national economy.

She said these figures reinforce the value of continued investment in tourism infrastructure and destination development, particularly at a time when government is seeking to stimulate economic growth and create sustainable employment opportunities.

De Lille added that tourism generates benefits beyond the hospitality industry by supporting transport services, accommodation providers, restaurants, cultural attractions, small businesses and local communities that rely on visitor spending.

The department believes that expanding tourism infrastructure and attracting additional investment will further strengthen these economic linkages while creating new opportunities across the country.

Domestic tourism drives growth across more provinces

The Minister described domestic tourism as the foundation of a resilient tourism industry, noting that travel by South Africans plays a critical role in supporting businesses throughout the year.

One of the department's flagship initiatives, the Sho't Left Travel Week campaign, encourages South Africans to explore destinations within the country by offering discounted travel packages. During the previous campaign, tourism businesses provided 719 special offers, helping stimulate travel demand while supporting operators across all nine provinces.

De Lille revealed that in 2025, South Africans undertook 44.7 million overnight trips, generating approximately R111.6 billion in tourism revenue. She said the figures demonstrate the continued importance of domestic travellers in sustaining the sector.

The Minister also highlighted encouraging growth in provinces that have traditionally received fewer visitors. The Northern Cape recorded the strongest increase, with overnight trips rising by 58.4 per cent to reach 1.9 million. The North West followed with 34 per cent growth, welcoming 4.2 million overnight trips.

According to De Lille, the strong performance in these provinces shows that coordinated efforts between national government, provincial administrations, municipalities and the private sector are helping to spread tourism opportunities beyond South Africa's traditional destinations.

She said continued investment in infrastructure, destination development and domestic tourism promotion will remain central to the department's strategy as it works to strengthen the industry's contribution to economic growth, employment and regional development.

With a R2.54 billion budget for the new financial year and a growing pipeline of tourism infrastructure projects, the Department of Tourism aims to create a more competitive, inclusive and sustainable tourism sector that benefits businesses, workers and communities across South Africa while positioning the country for long-term growth.