Abstract
South African policy has identified the need for the tourism sector to undergo transformation, especially
in relation to the black ownership of tourism companies. However, in reality the above has not taken
place at the pace that the government desired, owing to various challenges. Of particular concern has
been the uncertain nature of the effective linkages between large enterprises and smaller, black-owned
enterprises, in relation to the opportunities that the large enterprises present for mutual benefit and
participation in the tourism value chain. The current study aims at determining the main factors that
inhibit large enterprises from establishing such long-lasting business linkages with black-owned
SMMEs, for the sustainable development of South Africa’s tourism industry. A qualitative research
design was adopted in conducting the study. Through a series of interviews with large tourism
enterprises, the study reveals a number of factors that impede cooperation between large and small
tourism enterprises. Among others are the negative perceptions that are held by large businesses
regarding the capacity and resourcing of small black enterprises, as well as the lack of access between
the two, linked to the procurement patterns of large enterprises, in particular. The study, therefore,
proposes some potential strategies for nationwide adoption, which might serve to improve cooperation
between the large and small enterprises for the overall benefit of the South African tourism industry,
thereby forming sustainable linkages between the dominant large enterprises and the smaller, blackowned
tourism SMMEs.