Travel and tourism is one of Africa’s most economically vital sectors — and one of its most exposed. As the global regulatory environment hardens around carbon accountability and ESG disclosure, the hospitality industry faces a defining question: will it lead the transition, or be forced through it?
THE SECTOR BY THE NUMBERS
$211BN
Africa’s travel & tourism GDP contribution in 2024, representing 7.8% of the regional economy
27.9M
Jobs supported by travel & tourism across the African continent in 2024
ZAR 659BN
South Africa’s T&T projected GDP contribution in 2025, equivalent to 8.9% of national GDP
This is not a peripheral industry. It is a cornerstone of employment, foreign exchange, and economic development. Looking ahead, the sector’s contribution to Africa’s GDP is forecast to grow at 3.7% per year between 2025 and 2035, reaching $322.9 billion and supporting an additional 10.7 million jobs. That scale of economic relevance is precisely why sustainability obligations — regulatory and market-driven alike — are landing here with force.
The carbon equation hotels cannot escape
Carbon reduction targets for the global hotel sector (Sustainable Hospitality Alliance)
Those targets — set by the World Sustainable Hospitality Alliance — are the minimum trajectory aligned with the Paris Agreement, a treaty to which South Africa is a signatory. What makes this especially complex for existing hotel stock is where emissions actually originate.
Those targets — set by the World Sustainable Hospitality Alliance — are the minimum trajectory aligned with the Paris Agreement, a treaty to which South Africa is a signatory. What makes this especially complex for existing hotel stock is where emissions actually originate.
Between 30% and 70% of a hotel’s carbon footprint consists of emissions produced in construction, ongoing maintenance, refurbishment, and eventual demolition — meaning operational tweaks alone are insufficient. Owners, developers, and asset managers need to plan retrofits and green refurbishments now, not at the next capital cycle.
The good news: major operators are already moving. Radisson Hotel Group is targeting 100 of its hotels to reach net-zero status by 2030, with South Africa listed as one of the first markets for rollout beyond its initial Nordic pilot — a direct signal that the African market is being held to the same standard as Europe.
For South African operators, the domestic energy context adds both urgency and opportunity. The ongoing shift away from unreliable Eskom grid electricity — itself predominantly coal-powered — is accelerating solar PV adoption and renewable investment. What started as load-shedding mitigation has become a genuine lever for decarbonisation.
“The operators who move with deliberate, verifiable action will not only protect their assets and access to capital. They will define the standard for the rest of the continent.”
South Africa’s regulatory turning point: 2026 is not theoretical
KEY LEGISLATIVE MILESTONES
- July 2024: Climate Change Act 22 of 2024 signed into law: President Ramaphosa assents to landmark legislation establishing South Africa’s climate governance framework.
- Mar 2025: Act commenced by Presidential proclamation: Commencement proclaimed on 17 March 2025. Not all provisions are immediately in force — carbon budget sections await further regulations.
- Aug 2025: Draft Carbon Budget Regulations published: DFFE releases Draft Regulations and Technical Guidelines. Consultation window opens August–September 2025.
- Jan 2026: First commitment period begins: Draft regulations require affected companies to register, calculate carbon budgets, prepare mitigation plans, and report annually from this date. Commencement of some provisions has been deferred.
- Ongoing: Annual reporting + third-party verification: GHG inventories are submitted annually in March. Independent validation is required 3 times per 5-year period. Carbon budgets are reviewed every 5 years through at least 2040.
Non-compliance penalties: Applies to failure to submit, not to exceeding budget
- Failure to submit GHG mitigation plan (first offence): Up to R5M fine / 5 years
- Second or subsequent conviction: Up to R10M fine / 10 years
Operators should not assume they fall below the thresholds. Hotel groups, resort chains, and large independent properties with significant energy consumption are precisely the category of facilities these regulations are designed to capture. The Draft Regulations establish a mandatory carbon budgeting system for high-emitting sectors and activities and apply to data providers whose emissions of Listed GHGs exceed 30,000 tonnes of CO₂-equivalent annually.
ESG disclosure: from brand story to business prerequisite
Regulatory pressure is one force. Market dynamics are another — and they are converging rapidly. Pressure from global organisations such as the World Travel and Tourism Council is pushing hotels and resorts to move beyond general “green marketing” toward formal, verifiable ESG reporting. Hotels that cannot provide credible ESG data risk losing bookings, funding opportunities, and brand credibility.
What travellers are saying (Booking.com Global Survey)
This shift is already visible in the meetings and events market. Many corporates will no longer shortlist a venue unless it can provide verifiable sustainability data alongside price and availability. Sustainability has become a procurement requirement for the MICE industry — not a differentiator, a ticket to entry.
For properties seeking investment or financing, alignment with the ISSB standards, GRI Sector Standards, and the Sustainable Hospitality Alliance’s Hotel Carbon Measurement Initiative (HCMI) is increasingly important. Hospitality brands that utilise these frameworks enable stakeholders to understand and benchmark performance against targets.
The practical imperative: four priorities for operators and practitioners
01
Know your baseline
Conduct comprehensive Scope 1 and 2 GHG inventories. These are now mandatory under the Climate Change Act — with independent verification required.
02
Treat ESG as financial risk
Carbon-intensive assets face stranding risk. Every year of delay on retrofitting increases future cost exposure. Design sustainability in from the start.
03
Align with credible frameworks
Greenwashing is increasingly legally dangerous. Third-party verification and transparent disclosure aligned to recognised standards are now the baseline.
04
Engage your supply chain
Scope 3 emissions are under growing scrutiny. The industry can reduce food-related emissions by 30% by 2030 through procurement changes alone (World Sustainable Hospitality Alliance).
Africa’s hospitality sector has a rare opportunity: to shape its sustainability trajectory ahead of the regulatory curve, rather than scrambling to catch up. The accountability moment is here. The question is who leads it.
Sources: World Travel and Tourism Council (WTTC) Economic Impact Research 2025; World Sustainable Hospitality Alliance Global Hotel Decarbonisation Report; ENS Africa analysis of Draft Carbon Budget Regulations (August 2025); White & Case — Unpacking the Climate Change Act 22 of 2024; Centre for Environmental Rights; PwC Hospitality ESG Insights; CBRE Hotel ESG Adoption Report; HLB Global Hospitality ESG Analysis; EHL Hospitality Insights; ESG Dive / Radisson Hotel Group; Booking.com Sustainable Travel Report.
