An audit of public funded capital investment in tourism projects in the Eastern Cape Province

Abstract

This dissertation deals with an audit of community tourism projects that were invested in, in the Eastern Cape as part of government intervention to create job opportunities and contribute to the growth of the Eastern Cape economy through the tourism industry. The focus is on projects that received capital allocations for infrastructural development rather than operational costs. The study sought to achieve the following objectives: • Determine the status quo of publicly funded capital tourism projects developed since 2004. • Determine the modus operandi followed with regard to capital tourism projects. • Determine the reasons for the successes or failures of these projects. • Provide recommendations to address gaps and failures in tourism projects. The key informants to the study were steering committees that were established to implement community tourism projects. The steering committees are represented by government officials (local, provincial and national), consultants and community trusts or any community structure that represents the broader community. The study revealed three types of community projects, namely: • Projects that are operational – although there are projects operating, the number is insignificant and it is unlikely that they would achieve the objectives that they were built for. The overall operational status does not warrant the R500m that was invested by government. • Projects that operated before but closed hence, referred to as ‘white elephants’ – there are a number of projects that were in business but currently closed due to poor management and lack of skills. • Projects that were under planning during the survey – these are projects that have been under planning for a very long time.