South Africa's tourism industry rebounds as accommodation income rises
The accommodation industry, a cornerstone of the tourism sector, has nearly tripled its income since 2020, surpassing pre-pandemic highs.
Image: Freepik
South Africa’s tourism industry continues to gather pace, with the latest data showing solid growth in accommodation income as travel rebounds.
Statistics South Africa reported that total income for the tourist accommodation industry rose in August compared with the same month last year, with income from accommodation alone showing a strong increase.
Hotels led the recovery, followed by growth in lodges, bed-and-breakfasts, and other smaller establishments.
Seasonally adjusted figures also pointed to steady momentum heading into spring, reflecting ongoing resilience ahead of the festive travel period.
Tourism’s recovery is visible beyond accommodation. The industry employed about 1.8 million people in early 2025, with forecasts suggesting it will reach around 1.9 million by year-end.
The sector contributes close to 9% to South Africa’s GDP, almost back to where it was before the pandemic.
International arrivals reached nearly nine million visitors in 2024, about five percent more than the year before.
Tourism by the numbers.
Image: ChatGPT
Statistics South Africa’s latest report into the sector showed that overseas arrivals continued to rise in August, led by travellers from the United States, the United Kingdom, and Germany.
Yet, Investec economist Lara Hodes noted that “income derived from the tourist accommodation industry eased modestly to 9.6% year-on-year in August, from 10.7% logged in July.
Positively, Hodes added that confidence amongst participants in the hospitality sector lifted notably in the third quarter.
However, this was not matched by an increase in business volumes, likely as a result of the subdued domestic demand environment, with overseas arrival numbers robust at the beginning of the third quarter of 2025.
As of September, South Africa was just 33 000 visitors shy of its pre-Covid peak after attracting 5.85 million international tourists in the first seven months of 2025 – a 14% jump on last year – but a new BDO analysis says the apparent comeback hides worrying trends.
While global tourism bounced back to 2019 levels in 2024 with growth of more than 12%, South Africa managed just 5.1% growth, leaving it 13% behind its own 2019 arrivals.
As South Africa moves into the quieter shoulder season before year-end holidays, Hodes said a further rise in traveller numbers is expected.
Tourism Month in September again highlighted the sector’s contribution to jobs and growth.
Statistics South Africa noted: “With every journey taken, the footprint of tourism grows – reflected in visitor statistics, spending patterns, and livelihoods sustained across provinces.”
Number of tourists from the 10 leading overseas countries.
Image: StatsSA
From the Cradle of Humankind to Robben Island and Mapungubwe, the country’s twelve UNESCO World Heritage Sites remain key attractions.
The accommodation industry, a cornerstone of the sector, has nearly tripled its income since 2020, surpassing pre-pandemic highs.
IOL Business