How Does Regional Tourism Boost South Africa’s Economy

Updated on 25 August 2025 • Reading Time: 3 minutes

Subscription - Articles

How Does Regional Tourism Boost South Africa's Economy (1)

World-class tourism is the order of the day in South Africa. It has a wide array of biomes, cultures and experiences, all attracting tourists from near and far. Recently, it has been noted that highlighting specific attractions from particular regions gives an extra boost to local tourism and the South African economy.

In the past two years, the tourism industry has shown promising growth, almost recovering to pre-pandemic levels of USD 3,3 trillion, generating 8,8% of South Africa’s GDP and supporting 1,68 million jobs in total.

However, the country also recorded 38 million domestic trips, which contributed R121 billion in terms of spend for 2023. This significant figure for the domestic market, measured against the lower international spend, indicates that domestic tourism is vital for the industry’s survival.

What is Regional Tourism?

Regional tourism is a sub-category of international tourism that is focused on receiving international visitors to a specific geographical area.

The application for South African tourism operators is that the country serves as a geographical area where tourists can visit specific sites or experiences.

Interestingly, 76% of international arrivals to the country originate from Africa. If operators prioritise regional tourism to boost South Africa’s economy, they can attract visitors who find the country to be an affordable destination. Simultaneously, they can:

  • Drive inclusive growth and job creation
  • Reduce poverty and tackle the high cost of living
  • Build a capable, ethical and developmental tourism industry

South African ‘Selling Points’ for Regional Tourism

Among the many reasons to travel to the region of South Africa is that 11% of all tourism resources fall under the category of archaeological or historical tourism resources. They include archaeological or palaeontological sites, historical buildings, churches and cathedrals, battlefields, museums, statues and cemeteries. From Mapungubwe to the Castle of Good Hope, tour operators can create tours, accommodation and other facilities around these sites that attract visitors to the region.

Accommodation, for instance, will always be in demand in regions that have been built around the uniqueness of their environment and man-made attractions. Starting a short-term rental business like an Airbnb is a good idea. In the past year alone, there was a 12% year-on-year increase in income from tourist accommodation that can be attributed to the rise of these short-term rental businesses.

Cultural attractions include festivals, dances and music, traditional architecture, cultural villages, traditional dress and customs, cuisine, films, theatre and music. Bringing foreign currency into the country to purchase souvenirs like cultural arts and crafts helps create SMMEs, black economic empowerment and employment. This can include traditional and modern African arts and crafts, leatherwork, paintings or sketches, weaving and knitting, pottery, glass and ceramics, jewellery and woodcarving.

Additionally, the country boasts an impressive 10% of the world’s plant species, 7% of the reptiles, birds, and mammals, and 15% of coastal marine species. This opens the opportunity for local businesses to highlight the unique and endemic creatures that call Southern Africa home. Across the nine distinct biomes, five world heritage sites, and 22 national parks, tourism SMMEs can build businesses based on these features, be it animal interactions, food experiences and products that are unique to the environment.

Lastly, tourism and travel SMMEs can rely on types of tourism that are specific to the characteristics of each region within the various biomes of South Africa, or what each district is known for. In the Western Cape, for instance, the wineries are a world-famous attraction that many outings, experiences and food vendors were built around. Jefferey’s Bay is known as a surfer’s paradise, and the Garden Route (named for the many endemic flora, including flowering plants like Agapanthus, Arum lilies, wild garlic, clivias and bird of paradise) is a botanist’s dream. In other areas of the country, operators can build businesses around fishing, game watching, or even agrotourism.

With the various natural attractions that already exist in the country, SMMEs have an array of opportunities to create tourism businesses like guided tours, accommodation, restaurants, experiences and adventures. All it takes is a little ingenuity to find your niche and start building your business today. Before you know it, you can get your share of tourists too.

Get Weekly 5-Minutes Business Advice

Subscribe to receive actionable business tips and resources.

Subscription - Articles

Feeling Stuck?

icon
Funding

SME Funding - Get Pre-approved

Note:
1. To be eligible for a short-term business loan, your business must be registered with CIPC.

2. Turnover of more than R50,000 per month


20174557307