Travel & Tourism - South Africa

  • South Africa
  • South Africa's Travel & Tourism market is projected to reach a revenue of US$2,406.00m by 2024.
  • The market is expected to show an annual growth rate of 2.54%, resulting in a projected market volume of US$2,660.00m by 2028.
  • The Hotels market is the largest market in the market and is expected to have a projected market volume of US$1,309.00m by 2024.
  • By 2028, the number of users in the Hotels market is expected to amount to 8,411.00k users.
  • In 2024, the user penetration rate is projected to be 19.9%, and it is expected to increase to 20.6% by 2028.
  • The average revenue per user (ARPU) is projected to be US$198.70.
  • In South Africa's Travel & Tourism market, online sales are expected to generate 70% of the total revenue by 2028.
  • In comparison with other countries, United States is projected to generate the highest revenue in the market, with US$199bn in 2024.
  • South Africa's travel and tourism industry is currently experiencing a rise in demand for sustainable and eco-friendly tourism options.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

 
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Analyst Opinion

South Africa's Travel & Tourism market is experiencing significant growth and development, driven by various factors shaping consumer preferences and market trends.

Customer preferences:
Travelers in South Africa are increasingly seeking unique and authentic experiences, driving the demand for cultural and eco-tourism. Tourists are looking to immerse themselves in the local culture, interact with communities, and explore the country's diverse natural landscapes. Additionally, there is a growing interest in sustainable travel practices, with travelers preferring eco-friendly accommodations and activities.

Trends in the market:
One of the key trends shaping the Travel & Tourism market in South Africa is the rise of domestic tourism. As more South Africans opt for local travel destinations, there has been a surge in demand for accommodation, transportation, and experiences within the country. This trend is fueled by the desire to support local businesses and explore the hidden gems of South Africa. Another notable trend is the increasing popularity of adventure tourism in South Africa. The country's diverse terrain offers a wide range of adventure activities such as safaris, hiking, and water sports, attracting thrill-seeking travelers from around the world. Adventure tourism has become a significant driver of growth in the market, with tour operators and accommodations catering to this niche market.

Local special circumstances:
South Africa's Travel & Tourism market is uniquely positioned to benefit from its rich cultural heritage and natural beauty. The country offers a wide variety of attractions, including wildlife reserves, pristine beaches, and vibrant cities, making it a popular destination for both domestic and international travelers. Additionally, South Africa's favorable climate and world-class infrastructure contribute to its appeal as a tourist destination. Furthermore, the country's diverse population and multicultural society provide a unique opportunity for travelers to engage with different communities and traditions. This cultural richness adds a distinctive flavor to the overall travel experience in South Africa, setting it apart from other destinations in the region.

Underlying macroeconomic factors:
The growth of South Africa's Travel & Tourism market is also influenced by macroeconomic factors such as currency exchange rates, political stability, and infrastructure development. Fluctuations in the exchange rate can impact the cost of travel for international tourists, affecting their decision to visit the country. Political stability is crucial for maintaining a safe and welcoming environment for travelers, while ongoing investments in infrastructure are essential for supporting the growth of the tourism industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

Overview

  • Revenue
  • Sales Channels
  • Analyst Opinion
  • Users
  • Travel Behavior
  • User Demographics
  • Global Comparison
  • Methodology
  • Key Market Indicators
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