Tourism is one of the many external forces influencing the direction and options for local
economic development. A truly legitimate and practical discussion on tourism
development must take place in and with the communities that are being influenced by
tourist industry development. The tourism sector is the fourth largest generator of foreign
exchange in South Africa and lies third, after manufacturing (24.4%) and mining and
quarrying (8.6%), in its contribution to the economy, at 8.2%, but poverty and
unemployment still persist, especially in rural areas.
In line with the conceptual and theoretical framework derived from both demand and
supply factors, this research was conducted to explore and develop a conceptual
framework to examine how prices are established in local markets for tourism andassess
the level of community participation in the tourism business ventures at Senqu Local
Municipality in South Africa. Both quantitative and qualitative methods of research have
been applied throughout the study. The views of the community on their socio- economic
conditions and their willingness to participate in tourism business ventures were also
sought.
The findings of the study lead to the conclusion that the socio-economic living conditions
of the community of SLM are very poor and that empowerment and participation of the
community could be an answer to alleviation thereof and provide a contribution to local
economic development.