An audit of public funded tourism projects in the Eastern Cape province of South Africa

Abstract

The launch of the Eastern Cape’s Provincial Growth Development Plan in 2003 (SA.ECPGDP, 2003) resulted in a capital investment of R556.482million in 40 tourism facilities during the period 2004-2012. The primary objective of the study was to determine the status quo of these projects and to establish their contribution to the regional economy. The study took the form of a qualitative in-the-field survey to obtain factual data and to establish the participant’s views regarding the successes or failures of these projects and the reasons therefore. Of these projects the vast majority are not operational due largely to poor planning, and a lack of proper management and control. Only nine of the projects are operating and these are mainly small, both in terms of employment figures and turnover, and not contributing significantly to economic development and job creation in the province, as envisaged in the Provincial Growth Development Plan. Investments made were therefore largely fruitless and wasteful, or perhaps a result of questionable actions.