Budget 2025: What the tourism sector wants

The tourism and hospitality sectors hope that Minister of Finance Enoch Godongwana’s budget speech on Wednesday will address key structural challenges hindering growth in these sectors.

Tourism and hospitality contributed an estimated 8.2% to the country’s GDP in 2023. However, Alan Campbell, Sales and Marketing Director at ANEW Hotels & Resorts, believes there is still more to be done by the government to enable greater economic contribution.

“Tourism is not just a sector, it is a driver of social upliftment, a creator of jobs and foreign exchange earnings, yet heading towards the budget speech, we hope that the positive focus areas highlighted at Sona will materialise in the minister of finance’s address,” says Campbell.

ALSO READ: Budget 2025: We need economic growth and jobs please

Importance of the tourism sector

He adds that President Cyril Ramaphosa emphasised during the State of The Nation Address (Sona) the importance of tourism to the country’s economic recovery, as it employs approximately 1.5 million people.

“The disconnect between the sector’s recognised potential and the strategic use of resources highlights an urgent need for a more focused, actionable approach.

“Suppose tourism is truly a foundation for South Africa’s economic recovery. In that case, it requires verbal support, concrete investment, strategic planning, and a clear mandate for entities like SA Tourism.”

Government’s role in empowering tourism

Campbell says the government must empower organisations like SA Tourism with the budget, infrastructure and political will to execute ambitious growth plans.

“Equally, there is a need for greater accountability and efficiency to ensure that allocated funds are utilised effectively.”

ALSO READ: Budget 2025: What business wants from the minister of finance

Tourism can create jobs

He notes that there is an urgent need to create job opportunities for young people entering the workforce.

“Tourism presents a unique opportunity for large-scale employment across various skill levels. However, without strategic investment, this potential will remain untapped.

“Other African nations are already outpacing South Africa in seizing these opportunities, making it imperative for the country to become more competitive in this space.”

Infrastructure investment

Campbell says the R940 billion for infrastructure investment committed by the president is great news. However, it questions whether the focus will be on the areas that require significant tourism support. 

“Unreliable transport systems, poorly maintained roads and limited connectivity in rural areas continue to frustrate tourists and operators, disproportionately impacting small businesses and community-based tourism initiatives in underdeveloped regions like Mpumalanga, Limpopo and the Northern Cape.

“These regions, with their rich cultural and natural attractions, hold significant tourism potential, and a portion of the budget should be allocated to improving critical infrastructure such as roads, airports, and public transport systems.”

ALSO READ: Budget 2025: What it will hold for ordinary South Africans

Collaboration needed

Campbell adds that collaboration between the public and private sectors requires significant attention.

He acknowledges that smaller-scale partnerships have shown promise, but there has been limited progress on large-scale initiatives.

“Rejuvenation plans for the Durban CBD fuelled by private sector involvement hint at what could be achieved with a more strategic approach.

“SA Tourism and government entities must actively engage private stakeholders to co-develop a robust tourism strategy, leveraging shared resources and expertise to create jobs and drive economic growth.”

Tourism on a global scale

“In 2024, competitors like Kenya and Morocco outpaced us with digital marketing campaigns targeting high-value travellers.

“The government must increase funding for South African Tourism to execute dynamic global campaigns, particularly in emerging markets such as China, India, and the Middle East while also focusing on regional travel from neighbouring countries.”

Campbell says the tourism and hospitality sectors have repeatedly proven their resilience but that resilience alone is not enough to drive growth.

“The 2025 Budget must demonstrate bold action, with allocations that address systemic challenges and catalyse new opportunities.

“The right budgetary support in 2025 could be the turning point that ensures tourism and hospitality flourish.”

NOW READ: Budget 2025: will it offer hope or any surprises?