TOURISM KEY TO JOB CREATION AND ECONOMIC GROWTH, SAYS DEPUTY MINISTER
- BEE NEWS
- Jul 10
- 3 min read
Karabo Marifi | 9 July 2025
Tourism is a powerful engine for job creation, poverty reduction, and inclusive economic growth in South Africa, according to Deputy Minister of Tourism Maggie Sotyu. Speaking at the tabling of the department’s Budget Vote in Cape Town on Tuesday, Sotyu emphasized the sector’s role in uniting citizens, visitors, and tourists in discovering the country’s beauty and fostering equality.
With a clear mandate from the Government of National Unity to transform South Africa into a thriving tourism nation, the department is focusing on supporting small businesses, improving grading systems, and preparing for international events like the G20 conference to drive growth and create opportunities for all.
Tourism as a Catalyst for Change
In her address, Deputy Minister Sotyu highlighted tourism’s potential to tackle some of South Africa’s biggest challenges, such as unemployment and inequality. “The nation has given this Government of National Unity a clear mandate to turn South Africa into a successful tourism nation,” she said. She stressed that tourism is more than just attracting visitors—it’s about building sustainable jobs and ensuring economic growth that includes everyone.
By showcasing the country’s diverse landscapes, rich cultures, and warm hospitality, the sector can bring people together and create shared hope for a more equal society.
Supporting SMMEs for Inclusive Growth
A major part of the department’s plan is to support small, medium, and micro enterprises (SMMEs), which Sotyu called “key drivers of inclusive growth and poverty eradication.” She warned that “economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable.” To help SMMEs break into the tourism industry, the department runs the Tourism Grading Support Programme (TGSP).
This initiative subsidizes the cost of grading for businesses, making it easier for them to meet industry standards and compete in the hotel sector.In the 2024/25 financial year, the TGSP helped 2,970 establishments get graded under the Tourism Grading Council of South Africa (TGCSA).
This not only promotes high-quality service but also keeps South Africa competitive on the global stage. However, Sotyu pointed out a problem: some big hotels falsely advertise as five-star properties without proper grading. To fix this, the department has launched a Grading Criteria Review, set to finish this financial year. This review will ensure the grading system stays world-class and suits South Africa’s unique needs.
Boosting International Appeal with MICE and the G20
The department is also working to attract international events through the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector. The South African National Conventions Bureau (SANCB) is leading efforts to bid for global conferences, which Sotyu said are vital for economic growth and job creation. “Grading of tourist establishments that host international events is a crucial factor in the sustainability of economic growth,” she explained.
These events spread business opportunities across different regions and create local jobs, especially since tourism relies heavily on people power.The biggest event on the horizon is the G20 conference, which South Africa will host later this year. Sotyu called it a “catalyst for job creation” and a chance to show off the country’s strengths. “The G20 presents an opportunity to showcase the nation’s unparalleled hospitality, world-class infrastructure, quality-assured accommodations, and experiences,” she said. The department is gearing up to make sure the event runs smoothly and that all South Africans understand its importance and share in its benefits.
Tourism’s Broader Economic Impact
Tourism plays a huge role in South Africa’s economy. In recent years, it has contributed billions to the country’s GDP and supported millions of jobs. The sector’s growth is vital for recovery after challenges like the COVID-19 pandemic, but it still faces hurdles such as safety concerns and the need for better infrastructure.
By focusing on SMMEs and grading systems, the department aims to overcome these issues and make tourism a stronger force for good. The G20 conference alone is expected to bring in significant revenue, with delegates spending on hotels, restaurants, and local attractions. More importantly, it will put South Africa on the map as a top spot for international events, paving the way for future opportunities.
A Unified Vision for the Future
Deputy Minister Sotyu’s speech painted an inspiring picture of tourism as a way to unite South Africa and build a brighter future.
Through job creation, support for small businesses, and hosting global events, the department is committed to making sure no one is left behind. “As the department, we are very committed to ensure that no one is left behind on the knowledge, importance, and benefit of this G20,” she concluded.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.