Neelam Rahim | neelam@radioislam.co.za
3-minute read | 03 March 2026

South Africa’s tourism and hospitality industry closely watched Finance Minister Enoch Godongwana’s 2026 National Budget Address this week, calling for a decisive shift in government spending to unlock the sector’s full economic potential.

Speaking to Radio Islam International, Alan Campbell, Sales and Marketing Director at ANU Hotels and Resorts, said while there had been “shared optimism” between government and the industry, it now needed to translate into tangible investment.

“We were hoping that optimism would translate into firm investment in tourism-enabling infrastructure and a budget that really underpinned our efforts to compete with other countries in Africa, who seem to be winning the battle in tourism growth,” Campbell said.

Tourism contributed nearly 9% to South Africa’s GDP, making it one of the country’s leading industries. Despite this significant contribution, Campbell noted that growth remained uneven and underdeveloped in key provinces.

“A lot of that was concentrated in Cape Town and Kruger,” he explained. “We have an incredibly beautiful country, and provinces rich in tourism resources like KZN, the Eastern Cape, and Limpopo had not really unlocked their ability to contribute meaningfully to GDP and job creation.”

While international arrivals remained a major focus due to foreign exchange earnings, Campbell emphasised that domestic and regional tourism had played a crucial role in sustaining the sector, particularly during the COVID-19 pandemic.

“Simply, we were not doing enough just yet,” he admitted. “We needed improved access, better roads, and increased capacity at regional airports to make the country more accessible and affordable to travel.”

Private sector appetite for investment had been evident, particularly along KwaZulu-Natal’s north coast. Developments in areas such as Ballito and uMhlanga signalled renewed interest, though Campbell acknowledged that Durban’s once-iconic Golden Mile had lost some of its shine.

“Nothing would have made me happier than to see the Golden Mile rekindled,” he said. “But private investment was waiting for certainty and comfort that government would put the necessary infrastructure in place for them to safely invest.”

Marketing remained another critical pillar. Campbell stressed the need for aggressive global positioning, stating, “We compete in a global market space, and we needed to be competing aggressively as a tourism and government vehicle to take our brand forward.”

With the budget now tabled, industry leaders indicated that infrastructure reform and strategic spending would determine whether tourism could truly function as a national growth engine rather than a regional one.

Listen to the full interview on Sabahul Muslim with Moulana Junaid Kharsany and Alan Campbell.