UPDATED YESTERDAY AFTERNOON (February 19) —In an unprecedented move, the 2025 Budget Speech has been postponed to allow all political parties in the Government of National Unity to reach a consensus on specific critical issues. The Speech will be tabled on March 12. 

Minister of Finance Enoch Godongwana will deliver the 2025 Budget Speech in the National Assembly this afternoon (Wednesday, February 19).

During the Budget Speech, the finance minister indicates the allocation of financial resources to the national government’s priorities outlined by President Cyril Ramaphosa in the State of the Nation Address (on February 6 this year).

Godongwana will outline all the financial, economic and social commitments government will prioritise in its planned expenditure.

Tourism Update asked several industry leaders to share their Budget wish lists ahead of the speech.

Tshifhiwa Tshivhengwa, CEO of the Tourism Business Council of South Africa (TBCSA), said: “Following the President’s recognition of tourism as one of the key drivers of economic growth, we hope to see the Budget allocate funding to projects that will not only benefit our sector but also contribute to broader economic recovery.”

‘Modern, responsive visa regime’

He said a key priority for the TBCSA is investment in a modern, responsive visa regime that leverages technology to streamline processes and enhance South Africa’s competitiveness as a destination.

“Additionally, we urge the government to prioritise public infrastructure improvements that support tourism, such as roads and public spaces that create a welcoming environment, especially as we prepare to host an influx of visitors for the G20.

“Strategic investment in these areas will strengthen the tourism sector’s ability to drive job creation and economic development.”

Alan Campbell, Sales and Marketing Director for ANEW Hotels & Resorts, said the hospitality group welcomes Ramaphosa’s commitment to allocating R940 billion (€48.9 billion) to infrastructure investment but he is concerned that focus may not be on the areas that require significant tourism support.

“Unreliable transport systems, poorly maintained roads and limited connectivity in rural areas continue to frustrate tourists and operators; disproportionately impacting small businesses and community-based tourism initiatives in underdeveloped regions like Mpumalanga, Limpopo and the Northern Cape.”

Campbell said these regions have rich cultural and natural attractions with significant tourism potential so a portion of the Budget should prioritise “improving critical infrastructure such as roads, airports and public transport systems”.

‘Destination marketing’

Campbell would also like to see increased funding for destination marketing. “Globally, tourism marketing budgets are increasing yet South Africa’s spend on destination marketing remains relatively stagnant.

“In 2024, competitors like Kenya and Morocco outpaced us with digital marketing campaigns targeting high-value travellers.

“Government must increase funding for South African Tourism to execute dynamic global campaigns, particularly in emerging markets such as China, India and the Middle East while focusing on regional travel from neighbouring countries.”

Campbell said the tourism and hospitality sectors have proven their resilience time and again but resilience alone is not enough to drive growth.

“The 2025 Budget must demonstrate bold action with allocations that address systemic challenges and catalyse new opportunities. The right budgetary support in 2025 could be the turning point that ensures tourism and hospitality flourish.”

‘Fiscal policies encouraging investment’

Rosemary Anderson, National Chairperson of FEDHASA, said: “If we are serious about growing tourism, we need bold fiscal policies that encourage investment and job creation in the sector. Other countries have successfully done this and we should be learning from them.”

She pointed to Singapore’s productivity and innovation credit scheme as a great example. “It allowed businesses to deduct up to 400% of qualifying expenditures – for building new hospitality and tourism businesses, renovating old buildings into hospitality properties or expanding existing operations from large resorts and hotels to small coffee shops.”

Anderson believes a similar incentive could drive significant reinvestment in South Africa’s tourism infrastructure and enable more growth across the industry.

“Another strong case study is Brazil’s fiscal incentives programme introduced in 2002 to develop tourism in its under-developed northeast region,” she said. “This programme provided income tax credits for businesses investing in tourism-related projects – and it worked.

“Municipalities saw a 34% increase in local employment within the tourism sector on average. There is no reason we couldn’t implement something similar here, particularly to stimulate economic activity in our rural areas – our dorpies and villages have incredible potential as rich tourism destinations but remain impoverished with high unemployment levels.”

Anderson said tourism has long proven that it can be one of the most effective industries for job creation and economic growth if given the right support.

“We hope this Budget will introduce smart fiscal incentives that unlock investment where it matters most – helping us grow our sector while creating jobs where they’re needed most.”

‘Value of outbound’

Otto de Vries, CEO of ASATA, said: “As South Africa looks to strengthen its economy, we hope this year’s Budget will prioritise measures that support opportunity for growth in the travel and tourism sector. This will require considered budget allocations across multiple ministries.

“While we hope to see a much greater budget allocation for the Department of Tourism, a more holistic, long-tail acknowledgement of the value of domestic travel as an economic driver is needed from National Treasury, the Department of Tourism and South African Tourism.”

De Vries pointed out that domestic tourism, particularly corporate travel, contributes significantly more to GDP than inbound tourism. Domestic tourism, including corporate travel contributes R123 billion (€6.4 billion) versus the R95 billion (€4.9 billion) inbound tourism contributes yet it does not receive the same level of commitment or funding from a promotional and marketing perspective.

“By focusing more spend on domestic travel opportunities, South African Tourism’s domestic marketing budget, properly allocated, could help to drive quick economic wins. ASATA is here to support South African Tourism in developing a focused approach to unlocking these opportunities through our members.”

At the same time, added De Vries, outbound travel must be recognised as a critical part of tourism growth. Inbound success depends on airlines operating profitable routes into South Africa – and that requires planes to be full in both directions.

“A strong outbound market helps maintain this balance while supporting and creating new jobs and businesses across multiple sectors within South Africa’s economy.

“We would like to see the minister increase the budgets for the departments of International Relations and Cooperation and Home Affairs if it supports better risk management strategies and diplomatic engagement to create conditions that ease travel restrictions on South African passport holders through improved visa policies and reduced costs.”

Aviation infrastructure and cost reduction

A foundational aspect of the Budget should be ensuring a stable aviation environment.

“Clear policies around airline licensing are essential to provide regulatory certainty and encourage investment in air capacity. But, from a Budget perspective, investment in critical infrastructure – including reliable instrumental flight systems, fuel stability, efficient airport operations and digitised border processes – will help create an aviation sector that is resilient and positioned for much needed growth, which will help to drive down prices,” said De Vries.

“Without these fundamental elements in place, expanding air connectivity will remain a challenge and stifle the growth of our sector.”

Following on De Vries’ call, Ken Hill, CEO Of Drifters, suggests government decreases airport taxes – allowing flights to South Africa to be more affordable.

“Guests will spend that money elsewhere once here,” he said.

Lost skills and awareness of South Africa

While also advocating for increased funding for destination marketing, Sabine Blehle, CEO of GoVacation Africa, noted: “To stimulate tourism, we need to increase the skills and awareness of South Africa in our overseas markets and bring more agents on fam trips to educate them.”