Tourism: We have learned that local is lekker

South Africa’s fiscal crisis – in an environment of rising interest rates, soaring food, fuel and energy prices, plus high levels of unemployment – is likely to dominate the news cycle for years to come.

But, while the focus is primarily on the cost of living, the travel and tourism sector is a powerful driving force for the economy, creating jobs, stimulating growth, upskilling and lifting communities out of poverty.

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The latest UNWTO World Tourism Barometer shows global tourism is en route to a strong recovery: 2023 closed with tourism numbers up at 88% of pre-pandemic levels, with an estimated 1.3 billion international tourist arrivals.

China’s reopening earlier last year had a marked impact, but the US boasts the largest travel and tourism sector in the world.

Stats SA’s tourism data for December shows most of our tourists came from the United Kingdom, the US and Germany, which brought in 41 106 (20%); 33 027 (16.1%) and 25 288 (12.3%) tourists, respectively.

With direct flights between the US and SA and the dollar on their side, the US market is a massive opportunity to ramp up our country’s travel and tourism sector.

It’s American tourists – a robust source market for Europe, the Americas and the Middle East – who are driving tourism flows and spending around the world.

In SA, pre-Covid, the US market was our second-largest inbound market, recording 373 694 arrivals.

They spent R7.8 billion that year on tourism in this country. By 2022, that had risen by 6% to R8.3 billion. While the UK brings in more tourists, Americans spend more on our shores.

The reintroduction of direct flights between New York and Cape Town has reduced travel time for US visitors and will likely encourage more Americans to visit SA.

In the year to November 2023, SA welcomed more than a million visitors from Europe, primarily from the UK but also from Germany and the Netherlands, according to recent Stats SA data. China, Singapore, India and Russia also account for a significant proportion of visitors.

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SA’s tourism sector is finally starting to approach pre-pandemic levels, although we have some way to go. Stats SA’s latest data shows international arrivals are still 17.1% below the pre-pandemic levels and the December 2023 number (862 460) is 41.8% lower than the 1 481 183 recorded in 2019.

What this means for SA’s leisure and hospitality sector – whether focused on day trips, weekend retreats, business travel, or longer stays – is an immense opportunity.

While many tourism operators aim to attract international tourism, which is certainly lucrative and cannot be ignored, local tourists should be the cornerstone of their business.

If Covid showed us anything, it’s that local tourists should be our bread and butter: they kept the industry afloat during the pandemic and are a sustainable market.

In SA, plagued by a weak local currency, domestic tourism is likely to see an even bigger uptick in the next few years.

There is no question that our own citizens are eager to explore their country and are cognisant that there aren’t many countries where one can enjoy world-class facilities, gourmet cuisine and exceptional experiences at our prices.

The data reveals that the domestic tourism market is the fastest-growing sector. South Africans took 18.8 million domestic overnight trips in the first half of 2023, a 23.4% increase compared to the same period in 2022.

Thirty years of experience in the hospitality and leisure sector has taught us that providing affordable luxury for the average guest is a winning formula, helping to deliver high occupancy levels despite price sensitivity.

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The local market wants hospitality properties that are easily accessible from major cities, so guests – whether families or Mice (meetings, incentives, conferences and exhibitions) tourists – do not have to factor in flight costs or long road trips.

Consumers are under more financial stress, so they want bang for their buck. While location and facilities are important, experiences are equally critical.

So, too. is the hybrid business-leisure trend post the pandemic, which requires that establishments are able to provide uninterrupted power and reliable Wi-Fi.

Investments in these products are becoming increasingly attractive for investors because they provide a healthy return.

Quality tourism and hospitality products that are easily accessible and provide guests with an enticing experience are likely to flourish in the years ahead, doing much to boost local economies.

• Oberholzer is director at Touch Down Group