Travel & Tourism - Southern Africa

Southern Africa's Travel & Tourism market is expected to witness a rise in revenue, projecting US$2.54bn by 2024.
The market is anticipated to display an annual growth rate (CAGR 2024-2029) of 5.85%, which will lead to a projected market volume of US$3.38bn by 2029.
Among all the markets, Hotels hold the largest share with a projected market volume of US$1.22bn in 2024.
By 2029, the number of users in the Hotels market is expected to reach 10.75m users.
In 2024, the user penetration rate in the Hotels market is 18.1%, which is expected to grow to 21.6% by 2029.
The anticipated ARPU is US$200.10.
By 2029, online sales are projected to account for 66% of the total revenue in the Travel & Tourism market.
In comparison to other countries, United States is expected to generate the most revenue, with a projected revenue of US$214bn in 2024.
South Africa's Travel & Tourism market is seeing a rise in demand for sustainable and eco-friendly accommodations and activities.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Southern Africa is a dynamic and evolving industry with unique characteristics that shape its development.

Customer preferences: Travelers in Southern Africa are increasingly seeking authentic and immersive experiences, driving the demand for ecotourism, wildlife safaris, and cultural interactions. Tourists are also showing a growing interest in sustainable travel practices, supporting local communities, and preserving the environment.

Trends in the market: In South Africa, adventure tourism activities such as shark cage diving and bungee jumping are gaining popularity among thrill-seekers. The country's diverse landscapes, including mountains, beaches, and savannas, offer a wide range of outdoor adventures for tourists. Additionally, the wine tourism sector in South Africa is experiencing significant growth, with visitors flocking to the Cape Winelands region to explore vineyards and taste world-class wines.

Local special circumstances: Zimbabwe is seeing a resurgence in tourism interest due to its iconic attractions such as Victoria Falls and Hwange National Park. The country's rich cultural heritage and warm hospitality are drawing visitors looking for off-the-beaten-path experiences. Zimbabwe's efforts to improve infrastructure and enhance safety measures for tourists are also contributing to the growth of its travel industry.

Underlying macroeconomic factors: The depreciation of the South African rand against major currencies has made travel to the region more affordable for international visitors, boosting tourism numbers in countries like South Africa, Namibia, and Botswana. Economic stability and government initiatives to promote the tourism sector are further supporting the growth of the Travel & Tourism market in Southern Africa.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.