Tourism is an important revenue generating industry within South Africa. Despite this, the income obtained from the tourism could be much higher than at current level. Many ideas have been put forward for increasing the level of this income - some at national level and some at regional level. The main objective of the research was to explore an idea for increasing the level of tourist income generated in the Port Elizabeth area. The idea was researched by means of conducting a cost-benefit analysis of two tourist related projects. These projects would introduce charter airline services between Europe and Port Elizabeth. A second objective was to identify constraints on the project or market failures which would prevent their implementation.