A fresh attempt to reopen Pilgrim Rest’s historical Royal Hotel has failed after none of the bids to operate the property met tender requirements, leaving a gap that tourism operators say is costing the town group business and visitor spend.
A progress report submitted by the Mpumalanga Department of Public Works, Roads and Transport to the Portfolio Committee on Public Works, Roads and Transport in August states that bids received for the operationalisation of the Royal Hotel were non-responsive in terms of compliance with the advertised tender. The report says the Bid Adjudication Committee recommended that the tender should be re-advertised.
The department acknowledged that closure of the hotel is contributing to a shortage of tourist accommodation in Pilgrim’s Rest, which is a provincial heritage site and major attraction on the Panorama Route.
The Royal Hotel has been closed for several years following the breakdown of an agreement with Kruger on Sabie (KOS), which took over its operation in September 2022. KOS initially absorbed all 50 employees but later sought to introduce a shift-work system. A dispute followed, resulting in KOS vacating the premises.
Group business lost
Sherry Goodwin, Owner of Brummer Tours, a DMC specialising in Pilgrim’s Rest tours, said the prolonged loss of the Royal Hotel has changed the way large tour groups use the town.
The hotel previously provided 108 beds – enough to accommodate around two coach groups – as well as a popular lunch stop as part of itineraries incorporating gold panning, village tours and museum visits.
“The Royal Hotel was very much an integral part of that. They used to do a fantastic buffet lunch and it was always the go-to destination.”
Goodwin said visitor traffic generated business for shops, informal traders and local performers, including can-can and gumboot dancers who entertained international groups at the hotel.
Brummer Tours saw at least one or two coaches a day, she added, but this has fallen away. Large groups now have to leave Pilgrim’s Rest for accommodation elsewhere.
Goodwin said smaller guest houses cannot accommodate the size of groups attracted by events and tours such as mountain bike races and enduro events.
Lack of accommodation also undermines the visitor experience, she added, as tourists who want to experience Pilgrim’s Rest after dark have to stay elsewhere.
“They want the vibe. They want to go on pub crawls and do the things that we do in town but they cannot do it if they have to drive home.”
Wider decline
Oupa Pilane, Graskop Gorge Lift Company Co-Founder and Director and SATSA National Chairperson, said: “Without the hotel, the destination has lost its main accommodation anchor and an important reason for groups to stop, stay and spend time exploring the museums, historic diggings, shops and village atmosphere.
“Pilgrim’s Rest remains one of Mpumalanga’s most important heritage assets – a living gold rush village and provincial heritage site that should be a cornerstone of the Panorama Route experience. However, the destination has been in decline for some time and it is important that we recognise that the challenges extend beyond the closure of the Royal Hotel.”
He pointed to maintenance, road infrastructure, the condition of the caravan park, safety perceptions and illegal mining activity in the wider area as additional challenges.
“The issue is therefore not simply about getting one hotel open. It is about restoring the entire visitor economy of Pilgrim’s Rest.”
Road access
Road infrastructure is another challenge facing the destination although Goodwin said conditions vary considerably.
“The town is perfect. There is absolutely nothing wrong with it. We continuously repair things and clean up rubbish ourselves as a village.”
She said major access roads into and out of Pilgrim’s Rest are currently being repaired but described the road from Dullstroom to Lydenburg as “appalling”, particularly around Belfast and Dullstroom. Several guests of Brummer Tours are consequently rerouted through Sabie.
Panorama Route recovery plan
The private sector is now looking at a broader response through Kruger Lowveld Tourism and its Panorama Reimagined initiative.
A meeting on August 28 agreed on the need to develop a comprehensive master plan for the Panorama Route, including Pilgrim’s Rest. Seed capital of R200 000 (US$12 353) has been made available to initiate the process. Additional funding will be raised from the private sector and other stakeholders.
The meeting also identified immediate interventions including safety campaigns in partnership with the South African Police Service, clean-up campaigns involving local communities and engagement with the provincial government.
Pilane said there is also a need to engage with the provincial government on the commercialisation and improved management of tourism sites currently under government control.
The aim would be to unlock investment opportunities, improve visitor experiences and ensure tourism assets are properly maintained.
Pilane said the reopening of the Royal Hotel would be an important catalyst but this would not be enough on its own to revive the destination.
“We need to restore the entire destination and then actively put Pilgrim’s Rest back on the tourism map.”
