The business of tourism in South Africa: a CFO’s view on unlocking growth
Author: Rowan de Klerk, CEO of the CFO Centre South Africa
Over the past year, I’ve had the privilege of working closely with businesses in South Africa’s tourism sector. This has given me a front-row seat to an industry with extraordinary potential, one that creates jobs, attracts direct foreign currency, and offers world-class products that compete with the very best globally.
Tourism is unlike many other industries because it brings hard currency directly into the economy. Each overseas visitor arriving with dollars or euros represents direct, inbound investment. At a time when some of our traditional exports are under threat, tourism is one of the clearest ways to grow the economic pie rather than simply fighting over how it is divided.
The recovery base is strong. In 2023, South Africa welcomed 8.48 million overnight tourists, up 48.9 per cent from around 5.7 million in 2022. While this remains 17.1 per cent below the pre-pandemic peak of 10.23 million in 2019, the growth trajectory is encouraging, noted by Statistics South Africa. Three-quarters of these visitors came from our SADC neighbours, while roughly a quarter were long-haul overseas travellers. This mix matters because overseas visitors typically stay longer and spend more, driving higher returns for operators and surrounding communities.
The spending data reflects this strength. South African Tourism’s 2023/24 Annual Report records R95.1 billion in total foreign direct spend, a 27.5% increase year-on-year. This flow of international spend is already feeding into reinvestment and hiring decisions across the industry.
Looking abroad offers helpful context. In the year ending March 2025, Australia logged 7.7 million international trips, still slightly below its pre-COVID benchmark. South Africa actually hosted more visitors than this over a similar period, which underlines our strength as a destination. The opportunity lies in increasing the share of high-spend, long-haul travellers while maintaining our regional base.
From a CFO’s perspective, there are clear examples of resilience and growth potential. In Zimbabwe, many premium game lodges catering to international guests have been largely insulated from domestic economic instability because they price in US dollars and euros. I’ve seen similar dynamics in South Africa: when lodges are built around conservation, exceptional service, and international demand, they become remarkably stable businesses, even when the broader economy faces turbulence. These operators don’t just survive, they generate consistent returns that can be reinvested in people, wildlife, and infrastructure.
To unlock the next phase of growth, we need to give operators the security to plan long-term. That starts with enabling infrastructure: reliable access to parks and reserves, efficient digital visa systems for key markets, and dependable utilities. When businesses have confidence in these basics, they expand, and private capital follows certainty.
The government also has a role to play in creating the right incentives. Whether through targeted tax breaks, conservation-linked initiatives, or support for route development, well-designed incentives can accelerate projects that already make commercial sense. This isn’t about subsidising weak businesses, but about helping strong operators scale up faster and deliver more jobs, skills, and foreign revenue for the country.
South Africa’s tourism product is top drawer. You cannot replicate Table Mountain, the Kruger National Park, The Drakensberg, our beaches and wine regions. In a world where many destinations are interchangeable, our natural and cultural uniqueness is a competitive advantage that few countries can match.
As CFOs, we’re optimistic about what lies ahead for the sector. With the right foundations, tourism can be the Springboks of business: a world-class team competing on a global stage, winning consistently, and bringing pride and prosperity home.
