Tourism Economic Diversification Scoping Study: Coalfield Region
Overview: This is a tourism study covering the coalfields region of Mpumalanga that forms part of TIPS`s research on economic diversification. The study reviews the state of tourism in the area, lessons from post-mining tourism elsewhere in the world, and potential development pathways for tourism in the Coalfields.
The research forms part of the Just Transition work examining practical pathways to diversify the coal-dependent economy of Mpumalanga as coal mining and coal-fired power generation decline. The region is highly dependent on the coal value chain, with over 120,000 workers employed in coal mining, power generation, petrochemicals and related activities, concentrated in a few municipalities such as eMalahleni.
Because the phase-out of coal power stations will significantly affect local employment and economic activity, the study explores tourism and recreation as potential complementary economic sectors that could contribute to regional diversification and new job creation. However, the research stresses that tourism alone cannot replace coal-sector employment, but it can support new small business opportunities, local enterprise development and place-based regeneration, particularly if linked to heritage, environmental restoration and recreational land uses on rehabilitated mining sites.
Key Findings:
- The research concludes that tourism can play a supporting role in the economic diversification of Mpumalanga’s coalfields, particularly through post-mining land rehabilitation, SME development, and destination planning, but it must be integrated into a broader multi-sector Just Transition strategy.
- The Mpumalanga coalfields currently have limited tourism activity, largely focused on business travel linked to mining and energy industries.
- The coal phase-out represents a trigger event that could reshape the regional economy and create opportunities for new tourism-based economic activities.
- Tourism development in the region requires strong public-sector support and coordinated planning, as current tourism actors have limited resources and influence.
Recommendations:
1. Globally, many former mining regions have diversified through post-industrial tourism, including cultural heritage tourism, recreation, ecological restoration and community-based tourism initiatives. These models can inform development pathways for Mpumalanga.
2. Post-mining landscapes can be repurposed for recreation, cultural heritage attractions, green spaces and eco-tourism, which can benefit both residents and visitors.
3. Diversification must be multi-sectoral, combining tourism with other sectors such as agriculture, renewable energy and SMME development to ensure sustainable economic transformation.
4. Tourism cannot replace coal mining, but it could be part of an economic reorientation of the region, supporting SMMEs and new clusters of development.
5. It is vital to improve tourism innovation, coordination and collaboration; reducing barriers for SMMEs; working with craft and design industries to expand markets; and building government tourism capabilities and agency.
Download the research report here.