Happy MaKhumalo Ngidi | Chief Marketing Officer | Proudly South African | Ambassador | Hostex | mail me |
South Africa has a thriving and growing tourism market. It attracts local, regional and international tourists to our shores. Visitors come here because they want to experience something uniquely South African. They seek experiences that cannot be replicated anywhere else.
Against this backdrop, hospitality emerges as a powerful catalyst for accelerating localisation. The sector sits at the centre of the visitor economy. As a result, it can actively shape how value flows through local supply chains. In practical terms, accelerating localisation through hospitality becomes both a strategic imperative and a scalable economic lever.
Hospitality as a catalyst for localisation
Hospitality integrates multiple industries throughout its supply chain. These include hotel décor, furniture, textiles, food, beverages and guided experiences. Each of these areas creates space to include local producers. When businesses source products and services from local suppliers, they strengthen domestic industries. At the same time, they ensure that tourists receive an authentic South African experience. Consequently, hospitality does not just participate in localisation. It actively drives it.
According to StatsSA, the sector has not yet fully recovered to pre-pandemic levels. However, South Africa’s tourism sector continues to grow. Total arrivals reached 8.92 million in 2024. This marks a 5.1% increase compared to 2023. Furthermore, the sector now contributes 8.8% to GDP. It also supports 1.68 million jobs, according to World Travel and Tourism Council (WTTC) estimates.
This positive momentum highlights the sector’s resilience, despite global economic pressures. Notably, tourism now contributes more to the economy than the mining industry. Mining was once the mainstay of South Africa’s economy. Yet, the tourism sector is often overlooked. This occurs despite its significant economic contribution. Importantly, if positioned deliberately, hospitality can act as a catalyst for SME growth. In this way, accelerating localisation through hospitality becomes central to inclusive economic expansion.
Driving SME growth through demand aggregation
By aggregating demand for locally produced goods and services, the hospitality industry stimulates local enterprises. It also creates a meaningful market throughout the value chain. This includes vehicles used to ferry tourists, furniture and décor, utensils, uniforms, beverages, food supply and guided tours. When hospitality businesses prioritise local procurement, they create sustained demand. As a result, enterprises gain the stability they need to grow and scale.
South Africa also holds a unique global position because of its rich and diverse flora and fauna. Local communities possess long-standing knowledge of these resources. This includes knowledge of their medicinal benefits.
With the right support and sustainable practices, this knowledge can unlock new opportunities. It can help build complementary ecosystems alongside hospitality. For example, opportunities exist within healthcare and wellness. These developments can deliver tangible benefits for communities. Here again, hospitality functions as a catalyst by creating market access for these adjacent sectors. However, barriers to deeper localisation remain.
Barriers to deepening localisation
For instance, the influx of cheap, highly subsidised imports creates pressure on local textile and manufacturing sectors. This challenge is particularly evident with imports from China. These products often come at price points that local industries cannot match. As a result, they attract hospitality operators who want to reduce input costs.
Addressing this challenge requires a multipronged approach. First, authorities must strengthen controls at customs and points of entry. In addition, institutions such as the International Trade Administration Commission must apply appropriate trade measures.
These measures should protect South Africa’s manufacturing capability. At the same time, businesses must shift their mindset. Localisation is not only about short-term cost savings. Instead, it is about long-term economic sustainability. From this perspective, accelerating localisation through hospitality requires both policy alignment and commercial commitment.
Localisation should not be viewed purely as a compliance requirement. Rather, it is a commercial decision that makes business sense. When hospitality businesses invest in local supply chains, they strengthen their own operating environment. In effect, they help build the very market that sustains them.
Enabling platforms and market access
By increasing localisation, the hospitality sector stimulates entrepreneurial development. It also helps create future customers with disposable income. The long-term sustainability of hospitality is closely linked to the strength of the domestic economy. Therefore, investing in local supply chains is also an investment in the sector’s future viability.
Platforms such as Hostex play an important role in enabling this catalytic role. They create focused marketplaces where local producers can engage directly with hospitality decision-makers. In doing so, they allow producers to demonstrate quality and capacity. They also help build trust and credibility.
For buyers, this simplifies supplier discovery. It also shortens procurement cycles. For SMEs, it opens access to meaningful contracts and long-term partnerships. If localisation is to move beyond discussion, practical engagement becomes essential. There must be platforms where demand and supply connect efficiently. These platforms reinforce the role of hospitality in accelerating localisation at scale.
Scaling impact through local procurement
If the hospitality sector fully embraces localisation over the next five years, the impact could be significant. Procurement expenditure in the sector runs into tens of billions of rands. Redirecting a greater share of that spending towards local enterprises could revitalise rural and township economies. It could also create thousands of jobs and generate new economic activity.
As more income circulates within communities, more businesses will grow. In turn, more tax revenue will be generated. Additionally, more consumers will gain the ability to support the hospitality sector. This creates a reinforcing cycle, where hospitality continuously acts as a catalyst for growth.
The opportunity is clear. The sector has both the scale and the influence to lead this shift. If stakeholders act decisively, hospitality will not simply support localisation. It will define and accelerate it.