Euromonitor: SA sees 40% rise in tourism, surpassing 8 million visitors

Source: 123RF

The tourism sector has seen a 14% average annual increase in trips between 2014 and 2024, highlighting its ongoing development.

Christy Tawii, research manager at Euromonitor International, say: "Tourist arrivals from traditional key markets such as Europe and the United States, as well as new markets like China and India, began to regain momentum, largely driven by South Africa's reputation as a value-for-money destination and the advantages offered by a weak currency. Visitors from these regions choose to extend their stays, further boosting the sector."

SA benefits from shared cultural ties

A significant portion of South Africa’s inbound tourists in 2023 were regional travellers from within Africa, benefiting from shared cultural backgrounds and a growing familiarity with the destination. Regional tourism is expected to strengthen further in 2024, with South Africa continuing to serve as a key destination for travellers within Africa.

Tawii said: “Although transportation and visa processes are still improving, they have made inter-regional travel more accessible, fostering growth in this sector. The introduction of a visa-waiver scheme between South Africa and Ghana in November 2023 is an example of initiatives that have facilitated easier travel between African nations, supporting the rise in regional tourism.”

SA enhances its reputation

South Africa offers more than the traditional safari experiences commonly associated with other African markets. The country's tourism strategy emphasises its strong infrastructure and diverse tourism offerings, which include rich cultural heritage, historical landmarks, adventure tourism, and eco-tourism, appealing to a wide range of international travellers.

Tawii says: "In addition to these established offers, South Africa continues to diversify its tourism portfolio by tapping into unexplored areas such as star bathing, agritourism, culinary tourism, luxury experiences and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism.

"By securing sustainable revenue streams and attracting new and diverse high-value source markets, South Africa is positioned as a destination that caters to a wide range of interests and preferences. This strategic expansion not only broadens South Africa's appeal but also enhances its competitiveness in the global tourism market. The country’s diverse offering positions help it capture a substantial share of this spending."

Increasing focus on domestic tourism

Tawii said: “South Africa’s tourism industry has adapted to global challenges with a renewed focus on the domestic market. According to our research, domestic tourism remained a significant contributor to South Africa's tourism revenue, accounting for over 45% of total value sales.

“Recognising the potential opportunity of local travellers, especially within the middle and high-income segments, tourism operators have developed tailored travel packages and experiences designed to meet the specific needs and expectations of these groups. These initiatives were aimed at making domestic travel more attractive and accessible, encouraging South Africans to explore their own country.”

Critical digital developments

Artificial Intelligence (AI) is set to revolutionise how consumers interact with and book travel products and services, driving a paradigm shift in the industry. The travel industry is gearing up for a digital transformation that will be driven by big data, AI, and a focus on mobile and online platforms. These developments will play a crucial role in shaping the future of travel, ensuring that businesses remain competitive and responsive to the changing needs of consumers.

Tawii says: "In our analysis of how various travel businesses plan to adapt to the evolving landscape our research identified critical digital developments over the next three to five years.

"Building a strong mobile presence emerged as a priority, with 45% of companies already offering trip management apps. This trend underscores the industry's recognition of the importance of mobile technology in meeting modern consumer expectations.

"Businesses are preparing to integrate new technologies across their operations, driven by the understanding that staying relevant in a competitive market necessitates embracing digital tools. Despite concerns about digitisation impacting personal connections in the tourism industry, these new digital avenues offer unique opportunities for growth, differentiation and innovation."

For more information view Euromonitor’s Travel in South Africa report.