Sandile Phillip
Tourism is one of South Africa’s most powerful economic engines, with the potential to transform lives and communities across our nation. While the sector – decimated by Covid – continues its recovery to pre-pandemic levels, the current contribution of 8.8% to GDP and support for 1.68 million jobs underscores its fundamental importance to our economy.
In South Africa generally, and in tourism particularly, strengthening small, medium, and micro enterprises (SMMEs) ensures the longevity and inclusivity of the industry. A thriving ecosystem of small operators, from boutique bed and breakfasts and shuttle services to local tour guides and cultural experience providers, enriches the visitor experience, distributes economic benefits more broadly and builds crucial resilience throughout the sector.
The entrepreneurial opportunities within tourism are remarkably diverse. Restaurants celebrating our rich culinary heritage, tour operators showcasing our natural wonders, sports tourism ventures capitalising on our world-class facilities and climate – each represents a pathway to business ownership and economic participation.
These opportunities take on special significance in rural and developing areas, where job creation and economic stimulation become especially impactful. Many of South Africa’s most spectacular tourism experiences unfold in far-flung locations, from coastal villages to mountain communities, making it essential that we facilitate entrepreneurship in these regions.
As the biggest lender for SMEs in SA with over 1.2 million customers, we recognise that banking solutions must be tailored to the specific rhythms and requirements of tourism businesses.
Funding solutions should address the full spectrum of tourism business needs. It is essential for banks to provide funding that businesses can genuinely afford and manage, and rather than offering standardised products, invest time in understanding each client’s unique operating environment and growth trajectory.
The pandemic, while devastating for tourism, catalysed an unusual degree of cooperation between the public and private sectors. The relationships built during that crisis continue to yield benefits through enhanced collaboration and mutual support. We must maintain this momentum, ensuring that public-private partnerships function effectively and that no tourism opportunities are lost through inadequate infrastructure or misaligned priorities.
Beyond our funding and commercial offerings, we work closely with municipalities to promote SA tourism. The broader financing ecosystem also plays a crucial role. Not all businesses will secure funding from commercial banks, and government agencies like SEDA fill critical gaps through social impact funding and job creation grants. The Tourism Equity Fund, established by the Department of Tourism in partnership with private sector institutions, offers blended finance solutions combining loans with grant funding, expanding the universe of fundable opportunities.
Looking ahead, South Africa’s tourism potential remains immense. Our beautiful country and welcoming people continue to charm visitors from across the globe. Major events like the upcoming G20 summit present opportunities to showcase our destination to influential global audiences. Every visitor represents an ambassador who can share stories of South African experiences, encouraging others to discover what makes our nation special.
The tourism sector’s recovery and growth trajectory will depend significantly on our collective commitment to supporting the entrepreneurs who bring our destinations to life. Through strategic partnerships, tailored financial solutions, and comprehensive business support, we can ensure that tourism continues to serve as a powerful engine for economic transformation and inclusive growth across South Africa.
DID YOU KNOW?
Sandile Phillip was a panellist at the TBCSA Tourism Leadership Conference 2025 on 19 September in Sun City, alongside Veroshen Naidoo, CIO, Business Partners Limited; Sabelo Ntshangase, SEDFA NW Provincial Manager; and Lee-Anne Bac, Advisory Partner, BDO SA.
The panel addressed topics pertaining to the challenges and opportunities facing entrepreneurs in the tourism sector. For more on the event visit https://tbcsa.travel/conference25/
Sandile Phillip, Head of Sales: FNB Commercial Lend Pillar. He writes in his personal capacity.
