Public-private partnerships (PPPs) took centre stage at the inaugural G20 Tourism Investment Summit in Cape Town this week, where infrastructure projects valued at R1bn were unveiled.
Eight infrastructure projects were highlighted, including God’s Window Skywalk in Mpumalanga, which is seeking a R200m investment, and the Hole in the Wall Resort in the Eastern Cape, which wants R141m.
UN Tourism secretary-general Zurab Pololikashvili told the meeting: “South Africa is a country which combines natural and cultural richness with world-class infrastructure, a resilient financial system and a welcoming investment climate.”
According to UN Tourism, South African start-ups attracted more than $39m (about R678m) in venture capital between 2019 and 2024, accounting for more than half of the continent’s total investment in tourism solutions.
The global tourism body reported that international arrivals in South Africa in 2024 reached 8.9-million, up 5% from 2023, while domestic trips grew to 46.8-million, a 19.5% increase from the previous year. South Africa is:
- the third-largest African destination by arrivals, accounting for 12% of the continent’s total;
- the second-largest by receipts at $6bn, representing roughly 15% of total earnings; and
- the fifth fastest-growing African destination in the first quarter of 2025.
UN Tourism executive director Natalia Bayona emphasised the importance of partnerships in driving investment.
“Bringing together the private and the public is not only correct, it is the only way to survive. Tourism is tourism thanks to the power of the private and the public sectors” she said, and the two needed to be co-ordinated and aligned.
Bayona said UN Tourism's goal in South Africa went beyond simply building infrastructure. It was about “what’s next behind the scenes, or how you can strengthen collaboration so that you create mid-term, long-term ambition with investors”, which she said would bolster development across the country.
Too many promising deals fail not because of financing, but because of implementation gaps
— Ramsay Rankoussi, Radisson Hotel Group’s regional chief development officer
Pololikashvili announced the awarding of 100 Online Academy scholarships aimed at empowering young Africans who aspire to accredited tourism sector qualifications.
Bayona said the scholarships covered certification from top universities across the globe, supported by the UN Tourism Online Academy, which offers courses for those starting their careers or looking to advance in tourism and hospitality.
Tourism minister Patricia de Lille said “for tourism to thrive, young people must have the skills the sector needs”. She said tourism in South Africa is undervalued, and people don't realise the contribution it makes made to the economy.
Ramsay Rankoussi, Radisson Hotel Group’s regional chief development officer, said the meeting came at a time when the gap between capital availability and successful project implementation across diverse African markets remained a challenge.
“Investors are ready to deploy capital, but the real challenge lies in executing projects that are both scalable and locally relevant. Too many promising deals fail not because of financing, but because of implementation gaps,” he said.
Rankoussi told Business Times that to unlock the R1bn in planned investments, the country should “cultivate authentic partnerships that extend far beyond contract signatures. This involves maintaining open dialogue with all stakeholders, demonstrating consistent commitment over time and developing a nuanced understanding of local business cultures”.
Public-private partnerships (PPPs), he said, were central to driving tourism investment across Africa. “But for these partnerships to truly work, they must be built on more than just transactional agreements. There needs to be an institutionalisation of trust between public and private stakeholders, which means engaging in transparent, ongoing dialogue and understanding each other's objectives.”
Recent National Treasury regulations around PPPs had enabled a wider range of financing models to attract investment, according to de Lille.
She announced that before the end of the month the department of home affairs would roll out an electronic travel authorisation system. “This will digitalise and automate all short-stay visas, enabling secure and seamless travel for tourists across the globe.”
This follows the department's implementation of the Trusted Tourism Operator Scheme, which saw an additional 25,024 tourists from India and China visit South Africa in the first half of the year.
One PPP highlighted by the minister to increase travel to less-visited provinces in South Africa was the Sho't Left campaign. It is currently offering more than 650 deals to travellers, with discounts of up to 50% on holidays across all provinces.
Addressing issues related to her dissolution of the South African Tourism board, De Lille said she respected the board members' right to take legal action to challenge it, and that her office had filed papers last Friday to oppose their action. She refused to comment further, saying the matter was before the courts.
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