TOURISM SECTOR

TOURISM SECTOR

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Global Overview

Domestic travel is projected to grow by 3% annually, reaching 19 billion lodging nights by 2030. Similarly, international travel is expected to recover to its historical average of nine billion lodging nights annually. Travel spending is on an upward trajectory, with global traveller outlays estimated at $8.6 trillion in 2024, approximately 9% of the global GDP (Tourism Report 2024, McKinsey & Company).

 

According to the World Travel Organization, three significant trends are shaping the industry:

  1. Proximity in Travel Spending: Most travel spending occurs domestically. Stakeholders are encouraged to maximize the potential of domestic tourism before focusing on international markets.
  2. Intraregional Travel Growth: Travelers from neighboring countries form the second-largest segment after domestic tourists. This represents an opportunity for regions to tap into nearby markets.
  3. Shifting Source Markets: While established markets remain key, emerging markets such as Eastern Europe, India, and Southeast Asia are rapidly growing as sources of outbound tourism. Additionally, lesser-known destinations are leveraging innovative strategies to attract international visitors, alongside perennial favorites.

 

National Overview

South Africa has solidified its position as the leading travel and tourism destination in Africa. Ranked 55th out of 119 countries in the 2024 Travel and Tourism Development Index (TTDI) by the World Economic Forum, South Africa boasts the most extensive travel and tourism economy on the continent.

 

The TTDI assesses factors and policies promoting sustainable and resilient tourism development. In 2023, South Africa welcomed 8.5 million international visitors, including 6.4 million arrivals from Africa constituting 48.9% increase from 2022. From January to March 2024, international arrivals surged to 2.4 million, marking a 15.4% growth.

 

Tourism is recognized as one of South Africa’s fastest-growing economic sectors, with the National Development Plan targeting 15 million annual tourist arrivals by 2030. This ambitious goal is accompanied by collaborative efforts between the government and private sector to implement the tourism master plan and secure South Africa’s future as a top global destination.

 

 

KwaZulu-Natal Overview

KwaZulu-Natal (KZN) is positioning itself as a must-visit destination with a robust strategic plan for tourism growth. Key initiatives include:

  • Increasing Tourism Numbers and Economic Impact: Aiming to attract more visitors, increase their economic contribution, and extend their stays.
  • Enhancing Visitor Experiences: Improving the quality of tourism products and expanding geographic tourism coverage.
  • Supporting Local Businesses: Promoting the participation of black-owned enterprises in the tourism sector.
  • Hosting Major Events: Growing the number and economic impact of business events held in the province.
  • Building Strategic Partnerships: Collaborating with industry stakeholders to achieve the goals outlined in the Tourism Master Plan.

 

KZN is also focused on strengthening its tourism infrastructure by increasing direct flights, simplifying tour operator licensing, and developing key tourism sites. The five-year plan prioritizes demand-driven skills development and the integration of advanced technology to improve offerings and ensure KZN’s competitiveness in the global tourism market.