Parliament, Tuesday, 13 October 2026 – The Portfolio Committee on Tourism has highlighted a R201 million underspend in the Department of Tourism’s 2025/26 budget while emphasising that budget performance must be measured not only by expenditure levels but also by the tangible benefits delivered to the tourism sector.
The Committee today considered and adopted the Department’s Budgetary Review and Recommendations Report. The Department of Tourism spent R2.23 billion, or 91.7%, of its R2.43 billion allocation for 2025/26, leaving approximately R201 million, or 8.3%, unspent.
The largest variance was in Programme 3: Destination Development, which spent R210.6 million of its R331.1 million budget, leaving R120.5 million unspent. The Working for Tourism programme accounted for R97.5 million of this variance. Delayed procurement for skills and Expanded Public Works Programme projects, slow infrastructure delivery, scope disputes, due diligence delays, and vacant funded posts contributed to the underspending.
Programme 1: Administration spent R330.7 million of its R364.0 million budget, while Programme 4: Tourism Sector Support Services spent R295.6 million of its R331.6 million budget. Underspending in enterprise development, tourism safety and funded posts may limit support to small businesses, communities and job seekers. Although 1,500 Tourism Monitors were trained, only 711 were placed, and the planned migration of the Tourism Equity Fund was not completed.
The Committee nevertheless recognised significant achievements. The Department attained 98.3% of its annual targets, retained a clean audit, and had no material findings on selected performance indicators or legislative compliance. Programme 2: Tourism Research, Policy and International Relations achieved all 14 targets and spent 99.2% of its R1.41 billion budget.
The Chairperson of the Committee, Ms Ronalda Nalumango, stressed that high expenditure alone does not prove effective delivery, while strong reported performance must be supported by evidence of lasting impact. Future oversight will focus on whether spending improves infrastructure, destination development, enterprise growth, transformation, visitor safety and employment.
The Committee called for stronger procurement and project planning, earlier appointment of service providers, faster filling of critical vacancies, clear accountability for milestones, and quarterly reporting linking expenditure to outputs and beneficiaries.
The Committee will continue to hold the Department and South African Tourism accountable for ensuring that public funds produce visible improvements in the tourism economy and expanded opportunities for communities, workers and enterprises.
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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