Foreign Visitors Boost Cape Town Tourism to R24.5bn, While Domestic Spend Declines
Cape Town’s tourism sector has demonstrated notable resilience, generating R24.5 billion in direct visitor expenditure in 2025 and supporting over 106,000 jobs. However, this growth is juxtaposed with a decline in domestic tourism spending, attributed to economic pressures faced by South African households. In response, Cape Town Tourism has initiated proactive campaigns aimed at increasing visitor volumes and expenditure.
Economic Insights from Tourism Data
The recently published 2025 Economic Value of Tourism report from Cape Town Tourism reveals a dual narrative: one of increasing international attraction and another shaped by economic challenges affecting local families. The data indicates that while foreign visitors have increased in both numbers and spending, domestic travelers are visiting just as frequently but are staying for shorter durations and spending less.
In 2025, foreign overnight visitors reached 1.44 million, averaging 9.5 nights and spending R1,390 per day, resulting in a total foreign direct spend of R19 billion. According to Airports Company South Africa (Acsa), the year also saw a record 11.1 million two-way passengers, with 3.3 million international travelers utilizing the airport’s international terminal—a 7% increase from 2024. Domestic passenger numbers mirrored this growth, also rising by 7% to 7.8 million.
The primary source markets for 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 has significantly declined, reflecting the economic realities faced by South African households. Domestic overnight trips to Cape Town reached 1.42 million, recovering to 98% of the 2019 total. 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) indicate a rise in travel for visiting friends and relatives (VFR), while discretionary holiday travel has diminished. Hosts are increasingly absorbing accommodation costs, and activities are shifting towards lower-cost options. Total domestic spending dropped from R8 billion to R5.5 billion, contributing to a decline in Tourism Gross Value Add (GVA) and employment figures. This trend does not indicate a weakened demand for Cape Town as a destination but rather reflects constrained household budgets across the nation.
Proactive Initiatives by Cape Town Tourism
In light of these challenges, Cape Town Tourism and the City of Cape Town are implementing several initiatives to stimulate visitor volumes and spending:
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CTT Domestic Campaign: Inspiring South Africans to Visit
A new domestic tourism campaign, titled “You don’t need a holiday. You need My Cape Town,” aims to capitalize on the desire among South Africans to travel. The campaign highlights a variety of experiences, from high-value city breaks to accessible outdoor adventures, with messaging tailored to resonate with households facing economic constraints. -
Regional Partnership with Zimbabwe and Namibia: New Source Markets
Cape Town Tourism has formalized partnerships with tourism counterparts in Zimbabwe and Namibia to enhance visitor flows from across the African continent. Regional arrivals increased by 17% in 2025, indicating substantial opportunities in neighboring markets. This collaboration aims to convert this momentum into sustained growth through joint trade engagement and coordinated destination development. -
One Small World Campaign: Positioning Cape Town Globally
The One Small World campaign serves as Cape Town’s international brand platform, promoting the city as a hub of human connection, natural beauty, and world-class experiences. Targeting high-value, long-haul travelers from established markets such as the UK, USA, Germany, Netherlands, and France, the campaign seeks to enhance Cape Town’s visibility among potential visitors who have yet to experience the city.
The Economic Impact of Tourism in Cape Town
Tourism remains a critical sector for 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) is largely due to a 32% drop in domestic tourist spending, although this was partially offset by an 18% increase in foreign tourist expenditure. The employment decline reflects broader national trends, indicating that Cape Town’s performance aligns with the overall sector dynamics in South Africa.
Alderman James Vos, the Mayoral Committee Member for Economic Growth and Tourism, emphasized the importance of tourism as a driver of job creation and economic growth. He noted that the current strategy is yielding results, with a focus on markets that convert interest into bookings. As Cape Town prepares its new Tourism Framework 2030, the emphasis will be on increasing visitor numbers and spending while creating opportunities for local businesses and residents.
Indicators of a Thriving Destination
The 2025 data further confirms Cape Town’s status as a thriving destination. Table Mountain recorded 1.19 million visits, reflecting a 19% year-on-year increase, while Chapman’s Peak Drive saw 1.05 million visits, up 23% year-on-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 the world desires to visit. The ongoing domestic campaign, regional partnerships, and the One Small World initiative are all designed to create favorable conditions for tourism growth.
The path forward involves deepening Cape Town’s position in high-value international markets, accelerating domestic recovery through targeted campaigns, and ensuring that tourism growth translates into sustainable jobs and economic benefits for residents.
Source: www.zawya.com
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