In the social media era, it’s harder to find unique vacation experiences. Yet, many tourists aren’t seeking exclusivity. A Statista survey shows that, on average, 38% of respondents across 21 countries look for unique experiences. South Africa (54%), India (50%), and China (46%) show higher interest in unique trips, while Germany (39%), the U.S. (36%), and the U.K. (34%) are less inclined. Italy (29%), the Netherlands (28%), and Japan (27%) are at the lowest end.
UN Tourism data indicates a recovery in global tourist arrivals, with 1.3 billion in 2023 compared to 1.5 billion in 2019. China led tourism expenditure with $197 billion, followed by the U.S. ($150 billion), Germany ($112 billion), and the U.K. ($110 billion). Total international tourism receipts reached $1.5 trillion, reflecting increased costs due to global crises.
Biodiversity-based tourism data a first for SA
Transport is a crucial service for tourists. A new report on South Africa’s biodiversity-based tourism sector provides data on the spending habits of domestic (resident) and inbound (non-resident) visitors. In 2019, passenger transportation services was the biggest expenditure item for domestic visitors engaged in biodiversity-based tourism. For inbound visitors, the biggest spending item was sports and recreational services.
Biodiversity-based tourism, which includes activities linked to natural ecosystems or indigenous species, drove 13,3% of all tourism activity in 2019. The report, published as a discussion document, also provides data on employment numbers as well as the sector’s contribution to gross domestic product (GDP).
The economic fallout from COVID-19 affected many industries, including South Africa’s tourism sector. A decline in revenue from domestic (resident) visitors and inbound (non-resident) visitors, exacerbated by stringent travel restrictions, saw a fall in tourism trips, tourism-related expenditure, and employment.
The sector has shown signs of recovering from the pandemic’s repercussions. The latest Tourism Satellite Account for South Africa (TSA) report shows how the sector is faring; in terms of tourism expenditure, direct contribution to gross domestic product (GDP) and tourism direct employment.
Domestic tourism is recovering, but inbound and outbound are below pre-pandemic levels
What is immediately evident is the dominance of domestic tourism expenditure since 2019.1 Domestic visitors spent R435,8 billion in 2022. This represents a sharp rise from R286,3 billion in 2021 and is higher than the 2019 pre-pandemic value of R334,2 billion.
In other words, domestic tourism expenditure has recovered – and exceeded – its pre-pandemic level.
The same cannot be said for the other two forms of tourism. Inbound tourism expenditure represents money, often foreign currency, that non-resident visitors (same-day visitors and tourists) spend while in South Africa. In 2019, non-resident visitors spent R121,5 billion within the country’s borders. With the advent of the pandemic, this declined to R35,9 billion in 2020 and further weakened to R24,0 billion in 2021. There was a sharp recovery in 2022 to R71,1 billion, but not enough to reach pre-pandemic levels.
This rise in inbound tourism expenditure in 2022 aligns with travel data. The number of non-resident visitors gracing South African shores increased, from 2,7 million individuals in 2021 to 7,3 million in 2022. Despite this rise, the country still has a way to go to recover to the 2019 level of 14,8 million non-resident visitors.
Outbound tourism expenditure represents money South African residents take out of the country and spend on tourism goods and services of other countries when travelling abroad. Although there has been a consistent recovery in outbound tourism expenditure since 2020, it still fell short of its 2019 pre-pandemic level in 2022.
Tourism trade balance back in positive territory
Another noticeable aspect of Figure 1 is that inbound tourism expenditure was larger than outbound tourism expenditure in 2019. This represents a positive tourism trade balance (i.e. the country received more money via inbound tourism than it “lost” via outbound tourism). From 2005 to 2020, South Africa enjoyed a positive tourism trade balance with the rest of the world. However, in 2021, the country recorded its first (albeit small) negative trade balance, when outbound tourism expenditure exceeded inbound tourism expenditure.2
In 2022, the tourism trade balance flipped back into positive territory, although only by a small margin.
GDP contribution and employment are up but still below pre-pandemic levels
Two other important indicators from the TSA report include the tourism sector’s direct contribution to GDP and the number of people directly employed by the tourism sector. The sector directly contributed 3,5% to GDP in 2022, up from 2,3% in 2021 and 2,1% in 2020, but below the 2019 pre-pandemic contribution of 3,7%. In 2022, the tourism sector’s direct contribution to GDP was larger than three industries: construction, agriculture and utilities (electricity, gas & water supply).
Best Places in South Africa by Lonely Planet
1. Johannesburg
Best city for history and street art
South Africa’s largest city is admittedly not one of its prettiest. Johannesburg was an old mining town that has become a sprawling conurbation, with poorer neighborhoods sprinkled among wealthy suburbs. It seems a world away from Cape Town’s coastal beauty – yet spending some time in Johannesburg gives visitors valuable insight into the country’s complicated past and lively present.
2. Knysna
Best town for beaches
3. Namaqualand
A wine tasting partnered with a food sampling, Stellenbosch, Western Cape, South Africa
4. Stellenbosch
Best region for wine tasting
5. Drakensburg
Best region for hiking
6. Cape Town
Best place for a city break
7. Blyde River Canyon
Best spot for panoramic views
8. Hermanus
Best town for whale watching
9. Kruger National Park
Best place for safaris
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