Tourism is back

Can Local Tourism Maintain Its Growth Momentum?

- By Bongani Miya

As tourism stakeholders gather in KwaZulu-Natal (KZN) to discuss the state of the sector, growth prospects will undoubtedly come into sharp focus.

For a long time, tourism's significance to the national economy has been understated, with the usual suspects—mining and agriculture—hogging the limelight.

It is a fact that tourism emerged as one of the biggest casualties of the COVID-19 pandemic, a factor that dampened its allure. Post-COVID, it's encouraging that borders have fully reopened. Importantly, the global economy is showing green shoots as travellers with discretionary spending look for new destinations to soak up the sun. Against this background, it's tempting yet again to ask: How significant is tourism to South Africa? What factors can help the sector recover its allure post-COVID?

Post-pandemic, tourism has become one of the fastest-growing sectors in the local economy, and the latest data from Statistics South Africa (Stats SA) on international arrivals validates this view. Encouragingly, domestic tourism spend has grown by 37% since 2022, far surpassing pre-COVID levels. This shows a very strong domestic market. The total number of tourists arriving in South Africa reached 8.92 million in 2024, marking an impressive 5.1% increase compared to 2023. This is a steadfast recovery to the number of arrivals prior to the pandemic. Yet, as impressive as the numbers may seem, the challenge remains on how to keep this exponential growth momentum on an upward curve.

For context, tourism contributed about 8.8% to South Africa's Gross Domestic Product (GDP). The World Travel and Tourism Council (WTTC) estimates that this sector supports nearly 1.68 million local jobs, underscoring its resilience against geopolitical and economic pressures. By boosting demand for services and products, this sector has helped stimulate local economies, especially in coastal regions such as KZN.