Unpacking pathways to tourism-driven business development in rural communities

Tourism is widely promoted as a pathway to rural development and poverty alleviation, yet limited evidence exists on whether rural communities are willing and able to establish tourism businesses. This study investigates the determinants of rural households’ intentions to establish businesses, including tourism-related enterprises, in communities surrounding uKhahlamba Drakensberg Park, South Africa. Using survey data from 338 households across three communities, probit regression models examine the influence of household characteristics, human and financial capital, tourism skills, perceptions, and perceived opportunities. Results show that 39.3% of respondents had considered starting a business, while 21.2% had considered a tourism-related business. Tourism skills, perceptions of tourism impacts, and community involvement in planning significantly influence tourism business intentions. The study’s novelty lies in demonstrating that tourism-driven enterprise development is shaped less by conventional socioeconomic characteristics than by tourism-specific skills, perceptions and institutional inclusion. Key barriers include limited information, financial resources, skills, and institutional support.