Tourism has always been South Africa’s sleeping giant. In a global economy that’s shifting faster than ever, it remains one of our strongest assets, contributing about 8.8% of our GDP, and supporting about 1.7-million jobs last year alone.
It brings in foreign currency, sparks development in smaller towns and rural communities, offers crucial opportunities for unskilled labour, and puts us on the world map (for the right reasons). Yet, despite all these pluses, too many of our small and medium enterprises (SMEs) remain on the sidelines, unable to fully harness the opportunities that come with a growing global appetite for African travel.
This reality struck me again at the Tourism Investment Forum Africa, where leaders from across the continent gathered to discuss investment in the sector. The message was clear: South Africa may boast breathtaking landscapes, diverse cultures, and world-class attractions, but unless our SMEs are empowered to compete, we risk being overtaken by proactive destinations that are moving with greater urgency.
The good news is that visitor numbers are climbing back to pre-pandemic levels. The Western Cape and Kruger National Park are shining examples of this rebound, attracting international arrivals and creating jobs in hospitality, logistics, and services. Remarkably, this growth is happening despite South Africa’s high crime rates, which are often exaggerated in foreign media.
One reason why tourists still want to come here is the relatively weaker value of the rand compared to hard currencies like the British pound, US dollar and euro. In this regard, South Africa is one of the best bang-for-your-buck destinations in the world.
The benefits are far from evenly spread though. Smaller provinces with equal potential remain underdeveloped and under-promoted. So, how do we move these areas from potential to performance?
The truth is that tourism cannot flourish on beauty alone. Behind every memorable trip is an invisible backbone — infrastructure. From ports and airports to logistics, energy, internet, and roads, these are the systems that make visitors’ experiences seamless and allow businesses to scale.
The KwaZulu Natal premier Thami Ntuli highlighted the province’s recent progress in clearing port backlogs and opening the province for business. It was an encouraging example of what can be achieved when urgency meets execution, but this shouldn’t be the exception. It should be the standard.
Perhaps the most striking gap is the technology divide. In today’s travel economy, if you’re not online, you’re invisible, yet many tourism SMEs still struggle to adopt even the most basic ICT tools.
This digital lag is holding us back from global visibility, while other African countries are ahead of the game:
- In Kenya, for example, even small safari lodges and community-run tours are listed on global booking platforms like booking.com and Airbnb.
- Rwanda has invested heavily in digital systems that allow SMEs to plug into regional booking and payment networks, making it easier for tourists to find and trust their services.
- Morocco too has positioned its SMEs on integrated e-commerce and tourism platforms, ensuring that everything and anything can be booked online.
These countries show that digital adoption isn’t a nice-to-have but the defining price of entry and survival. South Africa’s competition is catching up, and fast. We cannot rely too heavily on our reputation asAfrica’s premier destination, while others are acting and winning.
It’s time to wake up, roll out the red carpet, and let our SMEs show the world what South Africa really has to offer
In a competitive global tourism market, it’s not enough to rely on past glory. Execution is what matters. Tourism is a network industry, and this is where SMEs can really prove their worth.
After all, a small guesthouse in Limpopo won’t flourish on its own. It needs links to regional attractions, transport services, online platforms, and cross-border collaborations. Plugging into this value chain can help SMEs multiply impact beyond what any single business could achieve alone.
Yet, before SMEs can link into those value chains, they need to survive the gauntlet of compliance. Too many smaller businesses are shut out of opportunities because they cannot meet regulatory requirements designed with larger corporates in mind. Streamlining compliance for SMEs, without compromising standards, should be part of any serious tourism regrowth agenda.
Tourism could be South Africa’s trump card, but only if we give SMEs the tools to play at the same table as their global peers. To borrow a line from The Lion King: it’s time for us to stop sleeping in the pride lands. It’s time to wake up, roll out the red carpet, and let our SMEs show the world what South Africa really has to offer.
• Mtwentwe AGA(SA) is MD of Vantage Advisory, and host of the SAICABiz Impact Podcast
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