This report focuses on the current state and future outlook of the travel and tourism industry in South Africa, including travel agencies, tour operators and related services. It includes information on the size of the industry, number of travellers, revenue, occupancy and economic impact, and the state of the industry in terms of tourism spend, accommodation, business travel, infrastructure and medical tourism. There is information on notable players, corporate actions and industry developments. The report includes profiles of 55 companies, with diversified travel and tourism groups such as Tourvest, Cullinan Holdings and Rennies BCD, travel agencies such as Flight Centre, Travelstart and Harvey World Travel, and tour operators such as African Eagle and Nomad Africa.
Introduction
- South Africa’s travel and tourism sector made a strong recovery in 2023, and has been resilient and adaptable since the pandemic. \r\n
- The industry is a significant contributor to the economy. \r\n
- International arrivals increased by almost 50% in 2023, although arrival numbers were still below pre-pandemic levels recorded in 2019. \r\n
- Industry analysts were expecting the situation to normalise by 2024.\r\n
- The industry accounted for 9.2% of total employment in 2023, and employment numbers were a third higher than in 2022.
Trends
- Demand for health and wellness and cultural experiences.
- Domestic tourism becoming increasingly more important.
- Increased interest in adventure tourism and culinary tours.
- Sustainable practices, community engagement and responsible tourism are gaining prominence.
- Technology is transforming the sector.
Opportunities
- Leveraging technology, such as developing online booking platforms, virtual tours and apps.
- Adventure tourism such as hiking, water sports and wildlife safaris.
- Culinary, wine, beer and gin tourism.
- Cultural exchanges between tourists and local communities, such as homestays, cultural workshops and heritage tours.
- Eco-friendly accommodation, wildlife conservation experiences and community-based tourism initiatives.
- Medical tourism.
- Organising, marketing and hosting international events, music festivals and sports tournaments.
- Promotion of sustainable tourism.
Challenges
- Economic factors affecting travel.
- Adaptability to rapidly changing digital and technological advancements.
- Balancing tourism growth with environmental conservation and sustainability.
- Challenge to secure funding for tourism development projects, marketing campaigns and infrastructure development.
- Complex regulatory frameworks and visa regulations.
- Inadequate transport infrastructure, especially in rural areas.
- Maintaining consistent service quality levels.
- Perceptions on crime, health risks and political instability.
- Safety and security concerns, with high crime rates and negative safety perceptions.
- Seasonal fluctuations.
- Skills shortages, retention and training.
Outlook
- Travel and tourism industry growth is forecast to significantly outstrip growth of the country’s economy. \r\n
- Economic and geopolitical headwinds continue to pose significant challenges to international tourism and confidence levels. \r\n
- Persisting inflation, high interest rates, volatile oil prices and disruptions to trade continue to translate into high transport and accommodation costs. \r\n
- Extreme temperatures and other weather events could impact the destination choice of many travellers. \r\n
- The outlook for the South African industry depends on economic recovery and growth, increased international tourist arrivals, effective marketing and promotion, streamlining visa policies and processes, stimulating domestic tourism, improvement in safety and health measures and expansion of cultural and heritage tourism. \r\n
- Travel agencies will increasingly focus on online sales, and some traditional brick-and-mortar travel agencies may close or scale down due to decreased demand for in-person services.
Methodology
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