South Africa’s international tourism numbers are rising but it still lags behind global competitors in daily spend by international visitors.
Speaking at the recent Hotel & Hospitality Expo Africa in Cape Town, tourism leaders highlighted a gap between visitor numbers and per-capita spend. While overall tourism revenue is growing, largely due to higher room rates and more arrivals, industry stakeholders say stronger focus on premium offerings and pricing strategy is needed.
While tourism volumes saw 7% growth last year, spending by international tourists could be higher, said Jacques Stoltz, Director of Tourism for the Western Cape’s Department of Economic Development and Tourism.
“It’s important that we increase the value we receive per international tourist because South Africa actually lags behind other countries. We’re not actually doing that great in terms of the spend in US dollars. There is a value conversation that is important as well,” he said.
The relatively low spend could be due to either lack of compelling, high-end experiences for tourists to spend on or insufficient focus on attracting affluent travellers, added Stoltz.
Exact daily spending data for international visitors varies. The City of Cape Town’s Tourism Development Framework 2024 targeted an increase in daily spend from R1 200 (€58) per day to R1 606 (€78) per day.
SA Tourism data indicates that wildlife tourists spend R1 700 per day (€82), stating this is considerably more than the average R840 (€41) spend per day although it does not distinguish between local and international travellers.
Mike Vroom, COO of Hemingways Collection, said: “When you’re in East Africa, the spend is higher because prices are higher. He cited examples where the same bottle of wine that costs R250 (€12) in South Africa might sell for R2 500 in Rwanda (€120). “The market is prepared to pay it.”
Panel moderator Lee-Anne Singer, Chairperson of FEDHASA Cape, said: “There is a dichotomy because we’re also consumers in the same market and there certainly is the perception that Cape Town has become more expensive and more unaffordable. How do we straddle the tension between being a good city to live in that serves its citizens and also attracting the high value spend?”
Speaking on another panel, TBCSA CEO Tshifhiwa Tshivhengwa said data for this year shows a 9% increase in tourism revenues (excluding food and beverage).
“There is growth from a revenue point of view,” he said. However, he added, it is unevenly spread across provinces. The Western Cape has seen growth and Gauteng is benefitting from conferencing and events, and corporate and government travel at a local level.
