The government is banking on private-public partnerships to unlock R1bn in investments in bankable projects in the tourism sector, tourism minister Patricia de Lille said on Wednesday.
She said the government had overhauled public-private partnership (PPP) regulations to attract private capital into infrastructure projects ranging from luxury resorts to iconic visitor attractions.
The revised National Treasury regulation 16, in effect since June, allows for a wider range of financing tools — including blended finance, crowdfunding and design & build — to operate partnerships.
The new regulations streamline processes and widen financing models for infrastructure. Included in these reforms are that projects below R2bn no longer need dual Treasury approvals, cutting execution delays, the formalisation of a dedicated partnerships advisory unit within the Government Technical Advisory Centre (GTAC), and the permission for national departments to now establish their own public-private units.
Other measures include tighter fiscal oversight, clearer governance procedures for contract changes and a framework for unsolicited proposals, which is expected to encourage private sector innovation.
“While PPPs are one option, the amendments introduced by the Treasury allow investors to provide us with innovative financing models. With the right mix, we can build infrastructure, create jobs and uplift communities, all at once,” De Lille said at the Tourism Investment Summit on Wednesday.
“Tourism contributes at least 8.5% to SA’s GDP. In July alone, SA welcomed more than 880,000 visitors, which is a 26% increase compared with last year.”
The eight projects presented include Mpumalanga’s God’s Window Skywalk, which required R200m, and the Hole in the Wall Resort in the Eastern Cape, which needed R141m. The pipeline represents a fraction of what De Lille described as a “rich and growing” portfolio of shovel-ready opportunities.
Key Points:
- The government aims to unlock R1bn in tourism investments via public-private partnerships (PPP).
- New PPP regulations allow for blended finance, crowdfunding, and design & build models.
- Projects under R2bn no longer need dual Treasury approval, speeding up execution.
- National departments can now establish their own PPP units.
- Key tourism projects include the God’s Window Skywalk and Hole in the Wall Resort.
- Tourism contributes 8.5% to SA’s GDP, with over 880,000 visitors in July 2025.
“The private sector is already showing confidence. Just yesterday [Tuesday], I witnessed the unveiling of the V&A Waterfront’s R20bn Granger Bay precinct development. On the other side of the country, in KwaZulu-Natal, ClubMed is building a multibillion-rand resort along our Indian Ocean coastline.”
By end-September the government will introduce an electronic travel authorisation system to digitise short-stay visas. Major sports events — including a potential Formula 1 Grand Prix at Kyalami, LIV Golf at Steyn City and the 2027 ICC Cricket World Cup — are being positioned as magnets for high-value tourism, De Lille said.
The minister’s remarks follow the release of the UN’s “Tourism Doing Business: Investing in SA Guidelines”, which notes that SA’s tourism investment profile is characterised by a diverse range of source markets. The US has led with 10 projects, followed by the UK with seven.
“The presence of emerging players such as India, Nigeria and the Czech Republic, albeit on a smaller scale, also suggests a gradual diversification of the investor base, which could be nurtured through targeted promotion and facilitation mechanisms,” the report reads.
• Business Day's coverage of the 2025 Tourism Investment Summit was conducted with the assistance of SA Tourism.
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