Photo: Etienne Girardet.

How businesses can benefit from the return of international travel

Posted in Travel & Tour by Jessica Vaughn on 13 March, 2025 at 5:29 p.m.

Marketing [Tourism]  

The tourism sector is experiencing a resurgence, offering a wealth of opportunities for businesses across various industries in South Africa. In 2024, the country welcomed 8.92 million international visitors, marking a 5.1% increase compared to 2023. This upward trend not only signifies a recovery from the pandemic-induced downturn but also shows the potential for economic growth driven by tourism.​

Spending habits and economic impact
The influx of international tourists has a cascading effect on various sectors of the economy. In the first eight months of 2024, South Africa welcomed over 5.8 million tourists, marking a 7% increase compared to the same period in 2023. This surge has been a significant contributor to the economy, with increased spending observed in hospitality, retail, and entertainment sectors.​

For instance, the V&A Waterfront in Cape Town reported higher distributable income, buoyed by a substantial influx of tourists. This positive trend has prompted Growthpoint Properties, which holds a 50% stake in the V&A Waterfront, to commit R4.5 billion over the next three years for further development.

Plans include the construction of at least five new hotels and improvements to retail and residential properties, aiming to meet the growing demand. ​

Emerging travel trends
Several notable trends are shaping the current landscape of international travel to South Africa:​


Eco-friendly and sustainable tourism
There is a growing preference for eco-friendly travel options. Travelers are seeking sustainable experiences that minimize environmental impact, prompting businesses to adopt greener practices. ​

Immersive cultural experiences
Tourists are increasingly interested in authentic cultural interactions. This trend encourages businesses to offer experiences that showcase local traditions, cuisine, and arts, providing deeper connections with South Africa's rich heritage.​

Family and multi-generational travel
There is a rising demand for family-friendly and multi-generational travel experiences. Businesses that cater to diverse age groups with tailored activities and accommodations are likely to attract this growing segment.​

Off-peak and year-round tourism
To alleviate overcrowding during peak seasons, there is a shift towards promoting off-peak and year-round tourism. This approach not only adds to the visitor experiences but also ensures a steady flow of tourists throughout the year, benefiting businesses with consistent patronage. ​

Opportunities for businesses
The resurgence of international travel presents myriad opportunities for businesses:​

Hospitality Industry
With the increased demand for accommodations, there is potential for expanding lodging options, including eco-friendly hotels and boutique establishments that offer unique experiences.​

Retail Sector
An influx of tourists translates to higher demand for local products and souvenirs. Businesses can capitalize by offering authentic, locally made goods that appeal to culturally curious travellers.​

Entertainment and Attractions
Developing new attractions and elevating existing ones to provide immersive cultural and recreational experiences can attract a broader audience.​

Transportation Services
Improving transportation infrastructure and services, such as guided tours and shuttle services, can improve accessibility to various tourist destinations.​

Culinary Industry
Showcasing South Africa's diverse culinary offering through food festivals, cooking classes, and local dining experiences can enrich tourists' visits.​

Final Thoughts
The revival of international tourism in South Africa is a promising indicator of economic recovery and growth. By aligning with emerging travel trends and adapting to the evolving preferences of tourists, businesses can harness the potential of this resurgence. Strategic investments and innovative offerings will not only add to the visitor experiences but also contribute to the sustainable development of South Africa's tourism sector.​

 

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