Tourism accommodation income sees significant growth in April 2025

One of the major pillars of the South African economy, the tourism sector, has seen some substantial growth year-on-year

According to Statistics South Africa (StatsSA), tourism accommodation for April 2025 indicated that total income for the tourist accommodation industry increased by 9.8% in April 2025 compared with April 2024.

The tourism and hospitality sector have welcomed the news as a huge positive for the sector.

Stats SA said that measured in nominal terms (current prices), total income for the tourist accommodation industry increased by 9.8% in April 2025 compared with April 2024.

“Income from accommodation increased by 14.8% year-on-year in April 2025, the result of a 4.5% increase in the number of stay unit nights sold and a 9.9% increase in the average income per stay unit night sold. In April 2025, the main contributors to the 14.8% year-on-year increase in income from accommodation were: ‘other’ accommodation (21.2% and contributing 7.5 percentage points); and hotels (11.1% and contributing 6.4 percentage points).”

Stats SA added that income from accommodation increased by 10.9% in the three months ended April 2025 compared with the three months ended April 2024.

“The main contributors to this increase were: hotels (12.7% and contributing 7.4 percentage points); and ‘other’ accommodation (8.6% and contributing 3.0 percentage points).

Seasonally adjusted income from accommodation increased by 3.9% month-on-month in April 2025, following a decrease of 1.5% month-on-month in March 2025.

Rosemary Anderson, National Chairperson Federated Hospitality Association of Southern Africa (FEDHASA) said that this growth is extremely encouraging and important for the hospitality industry.

“A 14.8% year-on-year increase in income from accommodation in April 2025, driven by both more stay unit nights sold and higher income per unit, reflects strong demand and growing consumer confidence. It’s a clear sign that the sector is regaining momentum and that travelers, both domestic and international, are returning in greater numbers and spending more. This growth also supports one of South Africa’s most urgent priorities: job creation.”

Anderson added that tourism is one of the fastest and most effective ways to generate employment, across accommodation, food and beverage, transport, entertainment, retail, and more.

“So this growth in accommodation income directly translates into livelihoods and opportunities for thousands of South Africans. The signs are increasingly positive. Comparing international overnight visitor numbers from January to May 2025 with the same periods in 2024 and 2023, South Africa recorded an 11.07% increase over 2024 and a 21.79% increase over 2023. These consistent year-on-year improvements indicate that we are steadily returning to - and in some cases surpassing - pre-COVID levels in domestic travel, with international numbers steadily recovering.”

Anderson said that it’s important to note that we are still only just over 80% of our pre-Covid inbound international arrival levels.

“So while the growth trajectory is encouraging, there’s still considerable ground to cover - and a great deal of work ahead. This recovery is also uneven across regions. Areas like Kruger and the Western Cape are doing well, but other incredible destinations, such as the KZN South Coast and the Drakensberg, are still struggling to bounce back. That said, this presents a unique opportunity for smart travellers to take advantage of some of the best tourism and accommodation offerings in the country at exceptional value, particularly in these under-visited regions that are rich in natural beauty and authentic South African experiences.”

Anderson added that when we isolate long-haul leisure travellers, such as those from Europe, North America, or Asia, we see that there’s still significant ground to cover to reach pre-Covid volumes.

“That said, with a highly favourable exchange rate, a welcoming tourism policy, and a country open and eager to host visitors, we have an incredible opportunity to regain these markets. Crucially, unlike many destinations currently grappling with over-tourism, South Africa is not saturated.”

Umhlanga Tourism chairperson Jeannie Sarno said that the hospitality industry has been through some hard years and even though their struggles are still very real and ongoing, it brings some relief that there has been an increase from the previous year.

“There is still a lot that needs to be done to see even more growth, but the tourism sector cannot do it without the partnership of the municipalities.”

Sarno added that this comes with great joy as we head into the July holidays. “The weather has been amazing whilst we look forward to welcoming our neighbouring provinces to our warmer waters and sunny winters.”

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