South African Tourist Earnings Recover to Pre-pandemic Levels

Image: GCIS, GovZA.

A key growth engine of the South African economy has recovered to pre-Covid levels, according to new data.

The June international tourism figures from Stats SA show that 134 396 overseas travellers visited the country during the month, up 9.2% when compared to June 2023.

Receipts increased by 8.9% y/y in June (7.6% y/y previously), reaching R2.45 billion (nominal terms). In June 2019 (pre-pandemic), income received was R2.36 billion.

"Income derived from the tourism accommodation sector (accommodation only) has recovered to levels achieved before the onset of the Covid-19 pandemic, which devasted the tourism industry internationally," says Lara Hodes, an economist at Investec.

Year-to-date (to end June) overseas traveller numbers are up 80 249, or 8.2% y/y, with the majority stemming from USA and the UK. International tourism indicators remain positive, with international arrival numbers in Q1.24 reaching 97% of levels attained in 2019.

"In general, South Africa is considered an affordable travel destination. While the primary expense is usually the flight to the country, costs for accommodation, meals, and activities are relatively low compared to many other destinations," says Vika Laki at Yesim.app.

When measured on a quarter-on-quarter basis, income from accommodation rose by 7.7% in Q2.24, supported largely by growth in the hotels category (which makes up the largest share) and the “other” accommodation grouping (which includes lodges, bed-and-breakfast establishments, self-catering establishments and ‘other’ establishments not elsewhere classified).

The recovery to pre-pandemic levels of this important sector of the economy "evinces the resilience, which is essential to growth and employment creation in South Africa," says Hodes.

Boosting the sector was growth in domestic tourism, which Hodes says remains vital for the sector.

In 2023 38 million domestic trips were recorded, which contributed R121 billion in terms of spend for 2023.

South Africa's Minister of Tourism, Patricia de Lille, recently said domestic tourism "is the bedrock of our sector" and that they are working with a number of industry bodies "to drive further improvements for domestic travellers such as making travel more affordable and accessible".