Delivery of tangible economic benefits by South Africa’s completed tourism infrastructure projects has been questioned after the Development Bank of Southern Africa (DBSA) was unable to provide Parliament with a comprehensive assessment of their operational performance.
The DBSA has been responsible for implementing 71 tourism infrastructure projects, on behalf of the Department of Tourism, valued at approximately R885 million (US$54.8 million).
Of the 71 projects, 54 have reached practical completion, meaning construction is substantially complete, and 30 have reached close-out. Formal transfer to the entity responsible for the infrastructure takes place after close-out.
During a recent briefing to Parliament’s Portfolio Committee on Tourism, MPs questioned the operation of completed projects, visitor numbers, revenue generation and sustainable employment creation.
The DBSA acknowledged that it could not yet provide a comprehensive evaluation of the operational and economic performance of all completed projects.
It undertook to provide the committee with a separate report detailing projects handed over and operational, permanent jobs created after handover and, where available, developmental and economic impact.
Democratic Alliance MP and Shadow Deputy Minister of Tourism Haseena Ismail told Tourism Update that government infrastructure projects too often suffer poor planning, delays, cost overruns and insufficient consideration of long-term viability.
“Many projects fail and become white elephants,” she said.
Every tourism infrastructure project should have a detailed financial feasibility study, fixed deadlines and clear return on investment (ROI) objectives covering job creation and sustainable employment, she pointed out.
The Department of Tourism is ultimately responsible for ensuring projects are properly planned and, as does the DBSA, needs stronger oversight to ensure projects are completed on time and within budget, Ismail said.
“A project cannot be launched without ROI objectives and plans to ensure its long-term sustainability.”
Funding rethink
Questions about the future of another 12 projects, in planning stage but currently on hold, remain unanswered. One project remains in planning while another has been withdrawn by the Department of Tourism.
DBSA Group Executive: Infrastructure Delivery Chuene Ramphele told the committee planning continues while funding remains available. The key challenge is securing funding to take projects into construction.
However, Tourism Minister Patricia de Lille said lack of funding does not simply halt tourism infrastructure projects.
She said the Department of Tourism is reviewing its reliance on the Expanded Public Works Programme, which historically funded tourism infrastructure development, while exploring alternative financing mechanisms and strategic partnerships.
In response to questions from Tourism Update, De Lille said community-based projects remain an important mechanism for taking tourism development to villages, townships and small towns.
She said the Department of Tourism is currently implementing 17 community-based tourism projects awaiting final handover agreements. Another 11 completed maintenance project sites have been handed back to communities. The Department of Tourism is also providing post-construction support to strengthen the operation, governance and sustainability of community assets.
Additionally, the Department of Tourism is monitoring 12 tourism infrastructure projects implemented by various entities, including the DBSA, added De Lille.
She said the Department of Tourism will continue to mobilise investment for tourism infrastructure while infrastructure projects currently under construction are completed.
Delivery challenges
The committee also raised concerns about challenges affecting the existing infrastructure programme, including poor contractor performance, budget pressures, vandalism, delays in municipal services, community disputes and additional work not adequately anticipated during planning.
Three projects remain under construction in 2026/27:
- Platfontein Lodge in the Northern Cape
- Manyane Lodge in North West Province
- Muzi Pan in KwaZulu-Natal
The DBSA has applied for an extension of its agreement with the Department of Tourism beyond March 31, 2027, to complete the remaining contractual and project close-out processes.
According to the DBSA, contractor-related challenges, including terminations and the appointment of replacements where contractors fail to meet their obligations, are being addressed by strengthening project monitoring and contractor performance management.
Ismail said the focus should not necessarily be on building fewer or larger projects but on ensuring that projects of all sizes deliver meaningful outcomes.
“With a limited budget, it is important that the Department of Tourism focuses on the outcome of the project, regardless of its size or cost,” she said.
