Foreign Visitors Boost Cape Town Tourism to R24.5bn, While Domestic Spend Declines Amid Economic Pressures
Cape Town’s tourism sector demonstrated notable resilience in 2025, generating R24.5 billion in direct visitor expenditure and supporting over 106,000 jobs. However, this growth was accompanied by a decline in domestic tourism spending, largely due to economic pressures affecting South African households. In response, Cape Town Tourism has initiated proactive campaigns aimed at increasing visitor numbers and spending.
Insights from the Economic Value of Tourism Report
The recently published 2025 Economic Value of Tourism report by Cape Town Tourism presents a dual narrative: one highlighting the city’s growing international appeal and the other reflecting the economic challenges faced by local households.
The data indicates that while foreign visitors increased in both numbers and spending, domestic travelers maintained their visitation frequency but reduced their length of stay and expenditure. This dynamic illustrates the current state of Cape Town’s tourism economy and outlines the necessary steps for future growth.
Cape Town: A Global Destination
Cape Town continues to attract high-value, long-haul international visitors. In 2025, the city welcomed 1.44 million foreign overnight visitors, who stayed an average of 9.5 nights and spent R1,390 per day, contributing R19 billion to the local economy.
Airports Company South Africa (Acsa) reported a record 11.1 million two-way passengers for the year, including 3.3 million international travelers. This marks a 7% increase from 2024, while domestic passenger numbers also rose to 7.8 million, reflecting a similar growth rate.
The primary source markets for international visitors included the United Kingdom (210,932 arrivals), the United States (167,053), Germany (161,271), the Netherlands (70,818), France (68,348), and Australia (51,971).
Shifts in Domestic Travel Patterns
Despite the overall increase in tourism, domestic spending faced significant challenges in 2025. The number of domestic overnight trips to Cape Town reached 1.42 million, recovering to 98% of pre-pandemic levels in 2019. However, the average stay decreased from 5.2 nights to 4.4 nights, and daily spending fell to R882.
Data from Statistics South Africa (Stats SA) and South African Tourism (SAT) revealed an uptick in travel for visiting friends and relatives (VFR), while discretionary holiday travel declined. Hosts often absorbed accommodation costs, leading to a trend toward more affordable activities.
Total domestic spending decreased from R8 billion to R5.5 billion, contributing to a decline in Tourism Gross Value Add (GVA) and employment figures. This trend reflects not a diminished interest in Cape Town as a destination but rather the financial constraints faced by South African households.
Strategic Initiatives for Growth
In light of these challenges, Cape Town Tourism and the City of Cape Town have launched several initiatives aimed at boosting visitor numbers and spending:
-
CTT Domestic Campaign: Inspiring Local Travel
Cape Town Tourism has introduced a domestic campaign titled “You don’t need a holiday. You need My Cape Town.” This initiative seeks to tap into the desire of South Africans to travel, showcasing a variety of experiences from urban getaways to outdoor adventures, while addressing economic realities. -
Regional Partnerships with Zimbabwe and Namibia
A formal partnership has been established with tourism authorities in Zimbabwe and Namibia to enhance visitor flows from neighboring countries. Regional arrivals increased by 17% in 2025, indicating significant potential for growth through collaborative marketing and trade engagement. -
One Small World Campaign: Global Positioning
The One Small World campaign aims to position Cape Town as a premier destination for high-value international travelers. This initiative targets established markets such as the UK, USA, Germany, Netherlands, and France, while also seeking to attract new visitors who have yet to experience the city.
Economic Impact of Tourism in Cape Town
Tourism remains a crucial sector in Cape Town’s economy, accounting for 6.3% of the city’s total Gross Value Add and providing over 106,000 jobs. The decline in Tourism GVA to R23 billion (-11% year-on-year) and employment (-8.5% year-on-year) can be attributed to a 32% drop in domestic tourist spending, although this was partially offset by an 18% increase in foreign tourist spending.
The decline in employment aligns with national trends, suggesting that Cape Town’s tourism performance reflects broader sector dynamics. Alderman James Vos, the Mayoral Committee Member for Economic Growth and Tourism, emphasized the importance of tourism as a catalyst for job creation and economic development. He noted that the city’s strategy is yielding results, with a focus on markets that convert interest into bookings.
Indicators of a Thriving Destination
The 2025 data also reveal positive indicators for Cape Town’s tourism health. Table Mountain recorded 1.19 million visits, a 19% increase year-on-year, while Chapman’s Peak Drive saw 1.05 million visits, up 23% from the previous year. Hotel occupancy rates averaged 61.7%, peaking at 81.5% in February, with an average room rate of R2,574.
Enver Duminy, CEO of Cape Town Tourism, remarked on the significant growth in foreign tourist spending, asserting that these figures reflect a city that is highly sought after by global travelers. The ongoing campaigns and partnerships are designed to create favorable conditions for tourism growth, ensuring that the benefits extend to local communities.
Source: www.zawya.com
Read all the latest developments and breaking updates in the Latest News section.
Published on 2026-06-16 15:12:00 • By the Editorial Desk
