South Africa’s Tourism Comeback Gains Momentum: But Challenges Remain

South Africa’s tourism industry is steadily finding its feet again, five years after the global pandemic brought international travel to a halt. As of early 2025, the sector is showing signs of meaningful recovery, with strong job creation and increased travel volumes — both key indicators of broader economic revival.

According to the World Travel & Tourism Council (WTTC), the country’s travel and tourism industry is set to support 1.9 million jobs this year, a new record that will outpace pre-pandemic levels. That’s nearly 11.3% of all jobs in the country, highlighting tourism’s crucial role as an employer and economic driver.

A Sector on the Rebound — But Not All the Way

International tourist arrivals have surged in recent months. Statistics South Africa reports that 2.98 million travelers passed through the country’s borders in April 2025 — a 21.4% increase compared to the same month last year. January and March also saw high numbers, signaling sustained momentum.

Still, spending by international visitors hasn’t quite caught up. Forecasts show that foreign tourist spend is likely to reach R128.4 billion in 2025, still R37.7 billion below 2019 levels. On the other hand, domestic tourism is thriving, with spending expected to hit R445 billion, which is 3.8% higher than pre-Covid figures.

Jobs Lead the Way, But Barriers Persist

WTTC President & CEO Julia Simpson praised the rebound, emphasizing how the rise in tourism-related jobs reflects the sector’s human impact. “Employment is leading the recovery, showing the value this industry brings to everyday South Africans,” she noted.

Yet the road to full recovery is not without obstacles. Investec economist Lara Hodes warns that several ongoing issues continue to weigh on investment and growth. These include:

• High operational costs

• Poorly maintained infrastructure

• Bureaucratic delays

• A persistently high crime rate, which remains a serious deterrent for foreign visitors

While South Africa has made strides in restoring travel confidence, these issues pose real challenges for operators, particularly smaller tourism businesses.

Accommodation Sector Sees Modest Growth

Data shows a mixed picture for accommodation providers. In March 2025, hotel revenue grew by 8.5% year-on-year, but overall income from the accommodation sector dropped by 6.9%, compared to March 2024. February had seen a more robust 12.6% annual increase.

According to Hodes, although fewer people are staying longer, there’s a healthy amount of travel activity — with many entering South Africa multiple times. This indicates potential growth in business and transit tourism, even as leisure travel adapts to new patterns.

Tourism’s Role in the Broader Economy

Tourism’s contribution to South Africa’s GDP has climbed to 8.8%, reinforcing its place as one of the country’s top growth sectors. With 1.68 million jobs already supported and new employment records projected, it’s clear that tourism is more than a leisure industry — it’s a pillar of economic recovery.

South Africa’s tourism sector is on the path to full recovery, with rising international arrivals, a booming domestic market, and a record number of tourism-related jobs. But to fully unlock its potential, deeper issues — especially around safety, infrastructure, and policy — must be addressed. For now, the outlook is optimistic, but cautious.

{Source: IOL}

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