Forecast: Inbound Tourism Expenditure on Accommodation Services for Visitors in South Africa

Inbound tourism expenditure on accommodation services for visitors in South Africa has shown significant variability over the past decade. In 2023, this value stood at 23.7 billion South African Rands. Over the years, the market experienced fluctuating growth rates with significant peaks in 2017 and 2022. The impact of the COVID-19 pandemic is evident in the decline observed in 2020, followed by a notable recovery.

From 2018 to 2023, the compound annual growth rate (CAGR) was 3.54%, indicating moderate growth. The year-on-year variation from 2021 to 2023 averaged to 9.85%, driven by recovery post-pandemic.

The forecasted data from 2024 to 2028 shows a continued growth trajectory with an estimated 2.23% CAGR, and an overall growth rate of 11.68%. This suggests a steady increase in tourism expenditure on accommodation services over the next five years.

Future trends to watch for:

• Possible impacts of global economic conditions on international travel.
• The role of digital transformation in enhancing booking and customer experience.
• Climate change and sustainable tourism initiatives influencing traveler preferences.
• Health and safety protocols shaping the future of travel accommodation demand.