Parliament, Tuesday, 4 August 2026 – The Portfolio Committee on Tourism today received briefings from the Department of Tourism and the Development Bank of Southern Africa (DBSA) on the implementation of tourism infrastructure projects and measures to stimulate investment through the Tourism Investment Facilitation Programme.
The committee was informed that the DBSA has been responsible for implementing 71 tourism infrastructure projects on behalf of the Department of Tourism. Of these, 54 projects have achieved practical completion, 30 have reached close-out stage, and infrastructure valued at approximately R885 million has been delivered.
The programme has created 1,323 employment opportunities and benefited 299 SMMEs and subcontractors. Committee Chairperson Ms Ronalda Nalumango said the committee welcomes the contribution of tourism infrastructure to job creation and support for small businesses, particularly in the current economic climate.
Members of the committee noted that despite the progress, a number of projects continue to face implementation challenges, including poor contractor performance, budget pressures, vandalism, delays in municipal services, community-related disputes and additional work that were not adequately anticipated during planning.
The committee emphasised that these challenges must be addressed decisively to ensure that completed facilities are functional, sustainable and able to deliver tangible socio-economic benefits to communities.
The committee heard that three infrastructure projects remain under construction in the 2026/27 financial year: Platfontein Lodge in the Northern Cape, Manyane Lodge in the North West and Muzi Pan in KwaZulu-Natal. The DBSA reaffirmed its commitment to completing these projects within approved implementation timelines.
The committee, however, raised concerns over underspending and it stressed that the DBSA must ensure that available funds are used effectively before the end of the Memorandum of Understanding (MoU) with the Department on 31 March 2027.
The committee also received an update on the Tourism Investment Facilitation Programme, which aims to attract investment into tourism infrastructure and tourism-related enterprises. The department reported that calls for investment-ready projects were issued to provinces, metropolitan municipalities and the private sector, with the objective of advancing inclusive growth, job creation, poverty reduction and sustainable tourism development.
The committee heard that twenty-eight project submissions have been received for the 2026 investment pipeline from provincial governments, metropolitan municipalities and private sector entities. These projects are undergoing screening, assessment and due diligence ahead of possible showcasing to investors.
The committee also heard that preparations are underway for the second South African Tourism Investment Summit, scheduled to take place in Johannesburg from 30 September to 1 October 2026. The summit is expected to connect domestic and international investors with tourism project owners, government, and development finance institutions, while positioning South Africa as a competitive tourism investment destination.
The committee urged the Minister and the Director-General to review the decision to place the implementation of infrastructure projects on hold, noting the Minister’s indication that budget is available. The committee also reiterated its previous recommendation that the department should prioritise fewer but larger and more impactful community-based tourism infrastructure projects, rather than spreading resources thinly across many smaller initiatives. It further recommended that the department and DBSA explore mechanisms for the DBSA to use its own funding, where appropriate, to implement projects for which planning and designs have already been completed.
Members expressed concern about the condition and use of certain completed projects, including Lookout Hill in Khayelitsha in the Western Cape where the committee had conducted oversight.
The committee further noted that delays linked to unresolved community issues, such as those affecting Numbi Gate and Mdhluli Lodge in Limpopo, point to inadequate stakeholder consultation at project inception. It also highlighted poor contractor performance and increases in project scope including matters observed during oversight at the Vredefort Dome, as examples of weaknesses in planning and contract management.
The committee commended the DBSA for supporting the department through the Programme Implementation Unit and urged it to appoint the outstanding Tourism Specialist capacity referred to during the meeting.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TOURISM, MS RONALDA NALUMANGO.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Sureshinee Govender (Ms)
Cell: 081 704 1109
Email: sugovender@parliament.gov.za
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