African Journal of Hospitality, Tourism and Leisure (May 2019)
Small to Medium Tourism Enterprises (SMTEs) promoting Local Economic Development in Hogsback, Eastern Cape, South Africa.
Abstract
Universally, small to medium tourism enterprises (SMTEs) are acknowledged for their capability to create job opportunities and vibrant economies in both developed and developing destinations. SMTEs have the potential to benefit local communities through creating jobs, especially in small towns such as Hogsback in the Eastern Cape of South Africa. The purpose of this research was to investigate the ability of SMTEs to promote local economic development (LED) in Hogsback. This approach used in this study was based on a mixed methodology and a systematic random sample of SMTEs in the Hogsback area was drawn. A questionnaire was used to collect primary data from 70 respondents. Secondary data were collected through a review of relevant literature found in books, articles, journals, state publications and the internet. The key data were captured and analysed using the Statistical Package for the Social Sciences (SPSS) software. The findings showed that 93.34% of respondents agreed that SMTEs create economic benefit and 90% agreed that the economy of Hogsback relies heavily on the tourism sector. Most importantly, all of the respondents (100%) agreed that the tourism industry is the biggest employer in Hogsback. The study recognised that SMTEs in Hogsback provide significant economic benefits and contribute towards LED. However, they lack information on how they can get support from government institutions in order to grow and develop and this remains a problem. A number of SMTEs are not contributing to LED for this reason. Government agencies should assist SMTEs with finance, market access and other needs to ensure their success in creating economic diversification from agricultural dominated Hogsback and achieve business survival and sustainability.
