Tourism Department Underspends R201 Million in 2025/26

Delayed service provider appointments and a late-starting Northern Cape infrastructure project drove most of the shortfall in the department's budget.

Updated on Nov. 9, 2026 in Travel — General

Bold flat-color vector editorial illustration of an unfinished concrete foundation with exposed rebar on arid ochre earth, with a tipped wheelbarrow beside it. — South Africa's tourism department underspent its 2025/26 budget by R201 million, largely due to delayed service-provider appointments and a late-starting Northern Cape infrastructure project. AI Illustration. Upload story photo >

South Africa's tourism department underspent its 2025/26 budget by R201 million, with the Destination Development Programme accounting for R120.54 million of the shortfall. The underspend was largely attributed to delayed appointments of service providers for EPWP skills projects and the late start of the Platfontein project.

Why it matters

Unspent allocations mean planned tourism development and skills work in South Africa was delayed during the financial year. The department's annual report also records alleged irregular expenditure that is under dispute and has been referred to National Treasury.

The departmental annual report shows R201 million unspent across programmes in 2025/26, against allocated budgets for each programme. The status of the alleged irregular expenditure, currently under dispute with National Treasury, remains unresolved.

The players

Platfontein project

An infrastructure project in the Northern Cape whose delayed start contributed to the department's underspend.

The details

Savings on office accommodation, cell phone costs and audit fees contributed to the Administration Programme underspend, while increased virtual meetings and changed project delivery approaches reduced spending in Tourism Research. The Platfontein project in the Northern Cape was initially expected to start on 1 January 2026 but only commenced in April 2026, and is now under construction with completion anticipated by 30 July 2027.

1 January 2026: Platfontein project was initially anticipated to commence.
31 March 2026: Fiscal year ended with project spend on Platfontein not realised.
April 2026: Platfontein project commenced.
30 July 2027: Anticipated completion date for the Platfontein project.

Big Picture

The shortfall touches Expanded Public Works Programme allocations, with R90 million directed to skills projects and R30 million to infrastructure. Delays in appointing providers under this programme have held back spending across the department.

Delays in tourism infrastructure and skills projects can affect the pace at which new tourism facilities and jobs become available in affected regions. Travellers planning visits to the Northern Cape should check local development timelines where relevant.

The takeaway

Budget underspending can signal delays that hold back tourism development on the ground. Tracking project completion dates such as Platfontein's 30 July 2027 target shows whether promised work is actually delivered.

What happens next

The dispute over the alleged irregular expenditure is ongoing and was referred to National Treasury under its dispute resolution mechanism. The Platfontein project is scheduled for completion by 30 July 2027.