South Africa’s latest tourism budget has landed - and it comes with a R2.434 billion mandate to do things differently, and do them better. Tabled in Parliament on Tuesday by Minister Patricia de Lille, the 2025/26 Tourism Budget Vote promises to rewire tourism for transformation—a far cry from the current state of play in countries like the United States, where Brand USA is facing significant budget cuts under Trump 2.0.
But money alone won’t fix tourism’s most pressing challenges. The real question is this: How do we build a tourism economy that works for everyone?
With Cape Town positioned as both a flagship destination and host of South Africa’s first Tourism Investment Conference in September, the city will play a pivotal role in shaping the future, from budget delivery to global influence.
A budget with a mission: Don’t repeat the past
The message from the national government is clear: inclusive growth, not business as usual. “We must stop repeating the same actions and expecting different results,” said De Lille in her address, framing the budget as a reset, not just a spend.
Shaped by the new Government of National Unity, the department’s action plan is structured around destination marketing, tourist safety and security, visa and ease of access, product development and job creation.
Big-ticket allocations include:
- R1.3 billion for South African Tourism to stimulate demand
- R662 million for destination development and support programmes - spanning SMME funding, green retrofits, tourism grading, transformation, and skills development
Also on the table are improved fund management, performance-linked contracts with consequence management for missed goals, real-time digital dashboards, and stronger oversight—all in a bid to close the loop between planning and delivery.
Tourism's comeback - but can it transform?
The numbers point towards a rebound in 2024 as local travel remains a bedrock:
- 9.1 million international visitors
- 40 million domestic trips
- R92.8 billion in foreign direct spend
- R133.1 billion in domestic tourism contributions
But as De Lille pointed out, growth on its own isn’t enough. Tourism must be a turbo-charger for inclusive growth, jobs, and community upliftment.
Cape Town’s role: Futures thinking meets government strategy
Alongside its upcoming role as host of the Tourism Investment Conference, the city is also home to one of the sector’s most forward-looking institutions: Cape Town Tourism (CTT).
Its Futures 2039 report explores multiple paths for tourism in the city, including the most recent 'Good Hood' scenario, where neighbourhood pride and local ownership sit at the centre of the visitor experience.
“Good Hood is not a fairy tale,” writes CTT CEO Enver Duminy. “It’s a balancing act."
He goes further: “When we celebrate our neighbourhoods, do we truly protect them — or unintentionally open the door for outsiders to take over?”
That tension - between authentic celebration and creeping gentrification - is one he says Cape Town must navigate with care. And while it is a vision that aligns with national goals around inclusive growth - turning strategy into lived reality is another story.
The challenge now is less about imagining better futures and more about doing the hard work to achieve them: shifting power, protecting communities, and holding both public and private partners accountable.
Budgets, foresight, G20 leadership: Now what?
As host of the G20 Presidency, South Africa is also leading the G20 Tourism Working Group, where four key priorities are on the table:
- Inclusive innovation and AI
- Fair and accessible investment
- Improved air connectivity (especially within Africa)
- Community-led, climate-smart tourism development
Deputy Minister Maggie Sotyu recently launched a G20 Tourism Community Outreach Programme in the Northern Cape — connecting policy with practice by engaging directly with small businesses, creatives, and community leaders.
It’s part of a growing shift: taking global goals and rooting them in on-the-ground realities.
When you align R2.4 billion in national spending, a global platform, and sharp local foresight, the stakes become clear: this could be a defining moment for tourism in South Africa — and Cape Town is at the centre of it.
What that looks like in practice, according to the tabled budget:
- R95 million allocated for upgrades to government-owned tourism sites
- 25 new community lodges and tourism routes in development
- 105 MICE bids supported — including 10 events in townships and small towns
- A push for digitally enabled, climate-conscious tourism infrastructure
Even fast-tracked projects like the Robben Island upgrades tie into the broader G20 moment — not just a tidy-up for VIPs, but an investment in long-term access and visitor experience.
Defining success: Will tourism work with neighbourhoods, not just in them?
If this budget cycle is to succeed, it can’t just be about plans and platforms. It has to deliver real outcomes for underrepresented communities, SMMEs, youth, and the future of Cape Town’s culture-rich, economically diverse tourism landscape.
Minister de Lille says we can’t afford to repeat the mistakes of the past. If that’s true, then building a resilient, people-first tourism economy means backing partnerships that are transparent, place-based, and locally led — not just internationally branded.
Because this moment isn’t just about growing tourism, it’s about getting it right.