Hospitality as a Catalyst for Accelerating Localisation in South Africa

South Africa has a thriving and growing tourism market. It attracts local, regional and international tourists to our shores. Visitors come here to experience something uniquely South African that cannot be replicated anywhere else.

This is why the hospitality sector presents an important opportunity for localisation.

Hospitality connects many industries across its supply chain. These include hotel décor and furniture, textiles, food, beverages and guided experiences. Each area creates opportunities for local producers. When businesses source products and services locally, they strengthen domestic industries. At the same time, tourists receive an authentic South African experience. This decision also creates a positive ripple effect for local entrepreneurs and industries.

StatsSA confirms that the sector has not 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. 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 growth shows the resilience of the sector despite global economic pressures. The tourism sector now contributes more to the economy than the mining industry, which was once South Africa’s main economic driver. Yet the sector is often overlooked despite its significant contribution. Tourism growth has the potential to drive SME development across many sectors.

The momentum around tourism and hospitality is also visible in industry events and platforms such as Hostex, which continues to bring together suppliers, operators and decision-makers. As explored in Hostex at 40: A Legacy of Trust, Taste and Tenacity, the show has played an important role in shaping the hospitality sector over the past four decades.

Importance of SME as a Driver of Economic Growth

The hospitality industry can stimulate local enterprises by aggregating demand for locally produced goods and services. This creates a meaningful market across 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. This demand allows enterprises to grow.

South Africa also holds a unique global position because of its rich and diverse flora and fauna. Local communities have long-standing knowledge of these resources, including their medicinal benefits. With the right support and sustainable practices, this knowledge can create complementary ecosystems alongside hospitality. These opportunities may extend into healthcare and wellness, delivering real benefits for communities.

There are, however, barriers to deeper localisation.

Cheap and highly subsidised imports, particularly from China, place pressure on local textile and manufacturing sectors. These imports often sell at price points that local industries cannot match. As a result, hospitality operators may choose them to reduce input costs.

Addressing this challenge requires a multipronged approach. Authorities must strengthen controls at customs and points of entry. Institutions such as the International Trade Administration Commission must apply appropriate trade measures to protect South Africa’s manufacturing capability. At the same time, businesses must recognise that localisation is not only about short-term cost savings. It is also about long-term economic sustainability.

Localisation should not be viewed only as a compliance requirement. It is also a commercial decision that makes business sense.

When the hospitality sector increases localisation, it stimulates entrepreneurial development. It also helps create future customers with disposable income. The long-term sustainability of hospitality depends on the strength of the domestic economy. Investing in local supply chains therefore supports the sector’s own future.

Industry platforms play an important role in supporting this shift. Events like Hostex create focused marketplaces where local producers can connect directly with hospitality decision-makers. As discussed in Inside Hostex 2026: What Has Changed and What Matters, these platforms help suppliers demonstrate quality, capacity and innovation directly to buyers.

For buyers, this simplifies supplier discovery and shortens procurement processes. For SMEs, it opens doors to meaningful contracts and long-term partnerships. If localisation is to move beyond discussion, demand and supply must connect in practical spaces.

The broader industry context also highlights why localisation matters. Changing consumer behaviour, cost pressures and tourism recovery continue to shape hospitality businesses. These shifts are explored further in The State of SA Hospitality 2026: Macro Industry Trends.

About Happy MaKhumalo Ngidi

Happy MaKhumalo Ngidi is the 2025 IMM Marketer of the Year and Executive: Marketing & Communications at Proudly South African. She is also a Hostex ambassador.

She is a communications graduate with more than 20 years of corporate experience. Over the past nine years, she has helped reposition and strengthen South Africa’s Buy Local campaign. Her work contributed to its turnaround strategy and renewed relevance.

Her experience spans marketing, PR, brand and product management across hospitality, FMCG and broadcasting. She previously held senior roles at the South African Broadcasting Corporation (SABC) and Metro FM. She also founded her own public relations firm.

Beyond her corporate work, Ngidi is a businesswoman and entrepreneur. She serves as a member of the BRICS Women Business Alliance South Africa. In this role, she champions market access for women-owned businesses.

In 2025, she launched the Happy Khumalo Scholarship Fund in partnership with the Nyatee Foundation. The fund supports learners from disadvantaged backgrounds.

She is also the founder of Bella Wines, a boutique wine brand established in 2022.