Africa-Press – South-Africa. South Africa’s tourism sector continues to lag behind global and African competitors, with overseas visitor shortfalls costing the country billions.
When it comes to tourism in South Africa, Lee-Anne Bac, advisory partner of tourism at BDO South Africa, said the numbers tell a sobering story.
“While South Africa welcomed 5.85 million international tourists from January to July 2025, a 14% increase over 2024, we remain frustratingly close yet far from our pre-pandemic peak,” Bac said.
South Africa is now just 33,000 visitors (1%) short of its 2019 figures. However, Bac said this apparent success masks deeper structural challenges that demand immediate attention.
“Globally, international tourism returned to 2019 levels in 2024, experiencing over 12% growth. Meanwhile, South Africa’s recovery crawled forward at just 5.1%, leaving us 13% behind our 2019 arrivals,” she said.
“More troubling still, we’ve ceded ground to our African competitors.” Kenya returned to 2019 levels in 2023, and Tanzania exceeded them in 2022 with 18% growth in 2024.
Morocco, which is now Africa’s leading destination with 17.4 million arrivals in 2024, achieved 20% growth.
“In 2016, Morocco had 10.3 million arrivals, South Africa 10 million, and Tunisia just 5.7 million. Today, Morocco leads with 17.4 million, Tunisia holds second place with 10.3 million, and South Africa ranks third,” she said.
Bac said this raises the question of why South Africa’s tourism industry has failed to keep pace with its competitors.
“The most concerning trend lies in our overseas tourism performance, the jewel in tourism’s economic crown due to high per-visitor spending,” she said.
“With just 1.3 million overseas arrivals in the first seven months of 2025, we’re tracking 10% behind 2019 levels and 12% behind 2018 figures.”
Bac explained that the 183,000 “lost” overseas visitors have cost South Africa approximately R4.3 billion in direct foreign spending for the first seven months of 2025 alone.
“For the full year 2024, the shortfall in overseas visitors resulted in a staggering R13.3 billion loss in foreign direct expenditure, export earnings lost to our economy when we need them most,” she said.
Africa shines
Radisson Collection Hotel, Waterfront Cape Town
Although South Africa’s tourism industry is lagging in some respects, the sector is also seeing positive strides on the continent.
The Radisson Hotel Group recently explained that Africa’s hotel industry is experiencing unprecedented growth. There are currently 577 new hotels and resorts under construction, which will add over 104,000 rooms.
This 13.3% increase far outpaces global growth, with sub-Saharan Africa driving much of this momentum.
“We’re witnessing clear market signals across sub-Saharan Africa indicating significant expansion opportunities,” said Daniel Trappler, Senior Director of Development Southern & Eastern Africa at Radisson Hotel Group.
In particular, he pointed to the sector’s potential to generate $168 billion in revenue and create over 18 million jobs by 2033.
When it comes to South Africa, Trapler pointed out that the tourism sector is struggling with supply-demand imbalances.
Other experts have similarly pointed out that although there is much demand from tourists, the market remains underserved. This is especially true for luxury tourism, which is still not being properly tapped into.
Trapler said that, positively, South Africa shows a promising trajectory, driven by strong domestic spending at R445 billion (3.8% above 2019).
The market reflects the broader African tourism renaissance, driven by natural beauty, cultural heritage, wildlife experiences, and strategic infrastructure investments that position these destinations for sustained growth.
In cases where South Africa has made an effort to tap into its tourism sector, the rewards have been clear.
For example, Cape Town’s Air Access Strategy, a public-private partnership focused on increasing the city’s international and continental air connectivity, has shown positive results.
The strategy was primarily meant to boost tourism and economic growth by adding new routes and expanding existing ones.
Cape Town International Airport’s overseas air arrivals exceeded 2019 levels by 21% in the first seven months of 2025, while OR Tambo International Airport remained 21% behind 2019 figures.
However, Bac cautioned that this success comes with a caveat. “We’ve shifted rather than increased total international arrivals. The strategy worked for Cape Town but highlighted systemic challenges in growing the overall market,” she said.
Urgent actions needed
Bac explained that tourism’s traditional model has fundamentally changed. “Competition has intensified from previously unrecognised destinations, and markets are increasingly defined by lifestyle and life stage rather than geography,” she said.
However, Bac added that South Africa’s tourism infrastructure appears inadequately structured for these realities.
To address these challenges, she stressed that immediate action is required. Bac offered the following recommendations:
Brand South Africa campaign: A comprehensive national campaign is needed to improve South Africa’s global image, addressing geopolitical perceptions that deter investment and tourism.
Air access development fund: Establish an economy-wide approach to improving connectivity, particularly to underserved, high-potential regional and overseas markets.
Implement meaningful public-private-community partnerships, including city improvement districts, to address urban decay that drives away domestic and international visitors.
Economic growth focus: Prioritise overall economic development to drive business tourism from domestic, regional, and overseas markets.
Welcoming environment: Develop systematic approaches to ensure that South Africa’s naturally welcoming culture is consistently experienced across the country.
Product innovation: Develop unique tourism products offering diverse experiences while ensuring delivery through skilled, passionate workforces.
“The tourism sector must recognise it operates within a broader economy,” Bac said. “Challenges require economy-wide solutions supported by all economic sectors.”
“Tourism cannot recover in isolation from manufacturing weakness, energy constraints, or governance challenges.”
Most critically, she said South Africa must position tourism at the centre of its economy, recognising its unique capacity to create employment opportunities across skill levels.
“The sector’s multiplier effect on job creation, foreign exchange earnings, and regional development makes it indispensable to South Africa’s economic recovery,” she said.
Bac explained that the statistics paint a clear picture. While competitors surge ahead, South Africa’s tourism recovery remains frustratingly incomplete.
The African market’s success and Cape Town’s air access achievements prove that strategic, coordinated interventions work.
“Now we need the political will, private sector commitment, and public support to scale these successes nationally,” she said.
“The choice is clear: adapt our strategies to new market realities and competitive dynamics, or watch other destinations claim the growth that should be ours.”
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