De Lille said that while there are many success stories of department-funded tourism infrastructure projects, “some of them are not in a good state, I must be honest.”<\/p>\n\n\n\n
“The Deputy Minister and I will be visiting those projects unannounced. I’m not going to tell them that I’m coming.”<\/p>\n\n\n\n
“I want to catch the contractors on site, and they have something to explain because too many infrastructure projects go over time and budget, and we don’t have that extra budget,” she said.<\/p>\n\n\n\n
De Lille said that after she visits the delayed sites, “we will explain to the rest of the country some of the other problems and challenges that we’ve got with infrastructure projects.”<\/p>\n\n\n\n
She added that there are also several exciting tourism infrastructure projects that are going to be launched in the coming months.<\/p>\n\n\n\n
There has been a history of stalled or delayed government-funded tourism infrastructure projects, some predating the establishment of Tourism as a standalone Department in 2009.<\/p>\n\n\n\n
For example, BusinessTech recently reported how a tourism project in Limpopo, built with R58\u202fmillion of state funds, has remained closed and unused for the past two decades.<\/p>\n\n\n\n
In 2015, the Department of Tourism (DoT) began working with the Government Technical Advisory Centre (GTAC), a National Treasury entity, to assess the viability of stalled projects.<\/p>\n\n\n\n
In 2018, GTAC found that stalled tourism projects were largely due to funding shortfalls, implementation delays, and poor financial viability.<\/p>\n\n\n\n
It recommended a revised project management model with rigorous feasibility studies, better planning, and enhanced collaboration with private and development partners to improve outcomes and prevent future failures.<\/p>\n\n\n\n
To improve project implementation, the Department appointed the Development Bank of Southern Africa (DBSA) as its implementing agent in 2020.<\/p>\n\n\n\n
Contracted directly by the Department and reporting under Treasury, the DBSA\u2019s agreement has been extended several times, with the current term ending in March 2027.<\/p>\n\n\n\n
The DBSA had been tasked with delivering 71 projects under this agreement, with a total budget exceeding R1.17 billion.<\/p>\n\n\n\n
On 27 May, the DBSA gave an update to Parliament’s portfolio committee on tourism on DoT projects managed by them.<\/p>\n\n\n\n
They said that they have made notable progress, with 46 of 56 active projects reaching practical completion and 10 more under construction.<\/p>\n\n\n\n
To date, R956 million has been committed, and R788 million has been spent, creating over 1,260 job opportunities.<\/p>\n\n\n\n
However, the briefing noted that the programme faces persistent delays, cost overruns, and sustainability concerns.<\/p>\n\n\n\n
Challenges include non-performing contractors, community unrest, inadequate municipal services, and a lack of post-handover operational planning. Some projects remain stalled due to land disputes, service gaps, and poor planning.<\/p>\n\n\n\n
To improve delivery, they said in the meeting that the Department is tightening oversight, enhancing project tracking, and restructuring its approach toward fewer, high-impact projects.<\/p>\n\n\n\n
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