Nearly half of tourism businesses in South Africa are expecting improved performance in the next 12 months despite economic and operational difficulties.

These are the findings of the latest Tourism Business Pulse Report released by the Tourism Business Council of South Africa (TBCSA) on Monday, revealing a resilient yet challenged tourism industry.

The report assessed business conditions from July 2023 to June 2024 and found that 47% of businesses expect improved performance in the next 12 months.

TBCSA - the umbrella organisation representing the unified voice of business in the hospitality, travel, and tourism sector - said that while the past year saw marginally above-normal performance, structural constraints continue to hamper the sector’s full recovery.

The sector experienced mixed results, 34% of businesses had a strong year, while 30% struggled due to financial and operational pressures.

Businesses highlighted load shedding, rising operational costs, inadequate municipal services, and high crime rates as key barriers to business sustainability.

Among market constraints, TBCSA said nearly half of businesses reported that significant impact from visa regulations, limited air access, and weak domestic leisure demand negatively affected growth.

However, TBCSA CEO Tshifhiwa Tshivhengwa said African business travel demand, a favorable exchange rate, and sustainability investments provided some relief for the sector.

“The findings of this report highlight the urgent need for strategic interventions to support tourism businesses,” Tshivhengwa said.

“Addressing visa regulations, improving infrastructure, and ensuring reliable municipal services will be key to sustaining the sector’s growth.”

Despite these challenges, the overall industry sentiment is optimism, with expectations for stronger market demand and improved operational efficiencies over the next year.

Meanwhile, Tourism Minister Patricia de Lille on Monday emphasised the importance of both domestic and international travel in sustaining and growing the tourism sector.

Speaking at the launch of the Easter Campaign, De Lille said domestic tourism in South Africa continued to perform well, with travellers increasingly looking for affordable and unique experiences.

The campaign encourages travellers—both local and international— to rediscover South Africa with the wonder and excitement of a first-time visitor.

De Lille also said international visitors remain a key part of South Africa’s tourism strategy. In the first two months of 2025 alone, the country welcomed nearly 1.8 million international visitors - an increase of 4.7% compared to the same period last year.

“International travellers are drawn to South Africa for its diverse cultures, breath-taking landscapes, and warm hospitality. We must continue showcasing what makes our country special and keep igniting the spirit of exploration,” De Lille said.

“Every night spent in a guesthouse, every meal at a local restaurant, and every souvenir bought from a market contributes to our economy. By supporting local tourism, we ensure that the benefits of travel extend beyond major cities—promoting inclusive economic growth.

“Whether you’re a young family, a group of friends, an adventure junkie, or someone who just needs a break, South Africa has something for you.”

BUSINESS REPORT