South African tourism sees significant growth as accommodation income rises

The South African tourism sector is on an upward trajectory, with recent statistics indicating a promising rebound in the tourist accommodation industry.

According to Stats SA, total income for the sector rose by a noteworthy 11.1% in July 2025 compared to the same month in the previous year.

This surge reflects a renewed enthusiasm for travel and the gradual recovery towards pre-pandemic norms.

Income generated from accommodation alone saw a 10.4% increase year-on-year in July 2025, attributed to a 7.9% rise in the number of stay unit nights sold and a 2.4% boost in the average income per stay unit night.

Key contributors to this positive performance were hotels, which recorded an impressive growth of 18.3%, contributing 9.7 percentage points, while 'other' accommodation types also added to the mix with a 2.7% increase.

On a broader scale, when looking at the three months leading up to July 2025, accommodation income increased by 10.2%, with hotels again leading the charge with a 17.0% growth, demonstrating the sector's resilience in the face of economic challenges.

However, the tourism landscape is evolving.

Insights from Jason Veitch, head of accident and health at Santam Travel Insurance, reveal that although South Africans are keen to travel again, their preferences are changing.

The rise of "bleisure" travel - where business trips are extended to include leisure activities - reflects a trend towards maintaining work-life balance even as economic pressures mount.

Interestingly, business travel has shown a strong recovery post-Covid, particularly within the African continent.

South Africans are increasingly travelling for work, with the USA becoming a leading non-African destination, primarily due to ongoing farm work opportunities. 

As international leisure travel gains momentum, beach holidays remain a firm favourite for South Africans.

Mauritius tops the choice list, thanks to its proximity, visa-free access, and robust hospitality connections.

Other popular destinations include Zanzibar, Thailand, and Bali, reflecting a strong inclination towards island-style vacations characterised by pristine beaches and all-inclusive resorts.

The younger generation’s travel behaviours are not the only noteworthy trend; a growing number of older travellers, particularly those aged 60 and above, are extending their getaway durations.

These seasoned globetrotters are increasingly opting for longer trips, often to visit family that has relocated overseas, particularly in countries like New Zealand, Australia, the UK, the Netherlands and Ireland.

While Stats SA reported a 0.8% decrease in seasonally adjusted accommodation income from the previous month, the overall snapshot of the industry indicates a resilient and adaptable tourism landscape.

South Africa's recovery journey in the tourism sector remains promising, marked by evolving traveller preferences and a resilient economy still braving the challenges of inflation and global uncertainties.