SA’s tourism boom meets Budget 2026

THE tourism industry in South Africa entered 2026 at an all-time high.

- SHIREEN ERAMAN and RAEESA KADER

EVERY 13 international arrivals, on average, create one job somewhere in the economy, say the writers.

(Independent Newspapers Archives)

Patricia de Lille, the Minister of Tourism, announced last month that the nation received 10,48 million foreign visitors in 2025, setting a record that exceeded even pre-pandemic numbers and represented a 17,6% increase over 2024.Every 13 international arrivals, on average, create one job somewhere in the economy. Against this backdrop of genuine momentum, Finance Minister Enoch Godongwana tabled the 2026 national Budget. For an industry as tax-sensitive and consumer-dependent as tourism, the Budget carries implications that go well beyond the Department of Tourism's own allocation.

The Department of Tourism's approximately R2,6 billion budget, set against a sector that contributed an estimated R241 billion to GDP in 2024, represents a return on public investment of well over 90 times.

Put differently, the government is getting an extraordinary economic return from a relatively modest departmental investment, which also raises the question of whether the allocation is commensurate with the sector's growth potential.

Tourism falls under the broader economic development budget, which receives R283,9 billion in 2026/27, the fastest-growing spending category at 5,8% per year.

A significant portion goes toward energy, transport, roads and logistics, all of which directly shape the visitor experience.

Most notably, load-shedding, which hurt hotel occupancies, raised costs for operators and damaged South Africa's reputation abroad, appears to be receding.