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Tourism in South Africa: Growth of the Industry


South Africa offers an unparalleled array of attractions, making it a top destination for tourists seeking diverse experiences. From the cosmopolitan vibe of Johannesburg to the pristine beaches of Knysna and the breathtaking landscapes of Blyde River Canyon, there’s something for everyone. Nature enthusiasts can explore the vast ecosystems of Kruger National Park or witness the vibrant wildflower season in Namaqualand. For culture seekers, Cape Town’s rich history and Johannesburg’s vibrant art scene provide deep insights into the country’s heritage. South Africa’s tourism industry not only showcases its natural and cultural wealth but also plays a crucial role in its economic growth.

Diverse Attractions in South Africa

South Africa has lots to offer with a range of distinct scenery. Ranging from cosmopolitan cities (Johannesburg), pristine beaches (Knysna), canyons (Blyde River Canyon) and safaris (Kruger National Park).

Each location offers unique experiences which will tick lots of boxes for many people. The diverse attractions of South Africa will be broken down into 3 categories:

Economic Impact of Tourism in South Africa

According to statista.com South Africa’s Travel & Tourism market is projected to reach a revenue of 2.391 billion by the end of 2024. The market is expected to show an annual growth rate of 5.92%, resulting in a projected market volume of 3.187 billion dollars by 2029.

The hotel market has the largest market share in this with a projected market volume of 1.156 billion dollars by the end of 2024. By 2029, hotels are expected to have 9.74 million guests and in 2029, online sales are expected to generate 66% of total revenue.

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In 2022, tourism in South Africa contributed to 3.5% of the country’s GDP. This contribution is larger than utilities, agriculture and construction. Despite this and the projected and current growth of travel and tourism in South Africa, this is a decline before the COVID-19 pandemic because in 2019, tourism contributed to 6.4% of GDP.

Tourism creates opportunities for people and businesses to make money and get jobs. In 2021, 1.08 million jobs were linked to the travel and tourism sector in South Africa which is was an increase of 1.9% when compared to 2020. The Tourism Business Council of South Africa (TBCSA) recognises the role tourism in South Africa plays for economic growth. Since the country is battling to stimulate economic growth and create jobs, they aim to boost tourism and make the driver of economic growth. The country aims to achieve 15.6 million arrivals in 2030. They aim to achieve this by processing visas faster and attract tourists from China and India, therefore, creating more jobs in the tourism industry. The country offers visa waivers for several African countries such as Tanzania, Namibia, Angola, Mozambique, Mauritius, Malawi and Botswana.

Tourism impacts every sector in the South African economy. The tourism sector depends on other industries such as food producers because they receive orders from hotel groups, accommodations and event venues. The auto sector provides buses, taxis, minibus as well as other modes of transport.

Trends Impacting Tourism in South Africa

There are various trends which impact the growth South Africa is experiencing in travel and tourism.

One of them is that travellers are looking for unique and authentic experiences as they are focused on cultural and eco-tourism. People travelling to South Africa want to be immersed in the local culture and engage with communities as well as exploring diverse landscapes.

Domestic tourism has also played a role in the tourism industry in South Africa as according to statistic.com, more South Africans opt for local travel destinations as they aim to support local businesses and explore hidden gems such as Knysna which is a local favourite.

The use of Data analytics may have also played a role in the growth of tourism in South Africa. Businesses are more competitive by using insights and travelling patters to create unique and personal experiences for the customers as well as providing the right products and services.

The Future of Tourism in South Africa

The South African government is dedicated to continuing this growth South Africa is experiencing in travel and tourism.

The African Union has launched a single African Air Transport market which aims to promote competition and connectivity across the continent. Air capacity has grown since 2022 with a 56% increase in the first quarter of 2023, when compared to the same time period in 2022. 

South Africa welcomed 23 new routes with 1.8 million seats in 2023. The country aims to increase the number of direct flights to the country whilst also ensuring South African tourists fill the planes to the countries the direct flights come from to ensure a reciprocal relationship.

Examples of this can be seen through direct flights such as Cape Town to New York and Washington by United Airlines which started in 2022. Air China has direct flights to OR Tambo International Airport which was re-started in 2023. The LATAM flight from Brazil to OR Tambo is another example of South Africa’s growing tourism ambitions.

The government also launched a series of funds and incentives to support the growth and development of the tourism industry.

Tourism Incentive Programme (TIP)

The TIP was established to provide financial support to privately owned tourism businesses with the aim of stimulating growth. Additional programmes such as the Green Tourism Incentive Programme(GTIP) and Tourism Transformation Fund (TTF) were launched in 2017 and 2018 to support responsible tourism. The GTIP aligns perfectly with the growing trend of eco-tourism which positively impacts South Africa. The TTF provides grant funding, equity contributions and debt finance to support investment in new and expansion projects.

Tourism Equity Fund (TEF)

This fund aims to ensure the tourism sector is well equipped to meet the increased demand the country aims to generate.

This fund will facilitate the development of skills and provide programmes such as wine service training, hospitality youth programme and food and beverage.

South Africa: A Thriving Hub for Tourism and Adventure

South Africa stands out as a premier travel destination, offering a rich blend of natural beauty, cultural diversity, and vibrant urban experiences. From the stunning landscapes of Kruger National Park and Blyde River Canyon to the cultural treasures of Cape Town and Johannesburg, the country provides something for every type of traveler. The tourism industry plays a vital role in South Africa’s economy, driving growth and creating jobs. With ongoing government support and emerging trends like eco-tourism, South Africa is well-positioned to continue attracting visitors and strengthening its position on the global tourism stage.


Sources

https://www.statista.com/outlook/mmo/travel-tourism/south-africa#sales-channels

https://www.lonelyplanet.com/articles/best-places-to-visit-in-south-africa

https://www.iol.co.za/business-report/companies/five-major-trends-impacting-the-tourism-sector-in-sa-42470632

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