South Africa’s tourism industry is experiencing a strong revival in 2025, led by remarkable growth in its accommodation sector. According to recent data released by Statistics South Africa (Stats SA), the country’s tourist accommodation revenue climbed by 10.5% year-on-year for May 2025. This rebound is primarily powered by the hotel sector, which saw a substantial 19.1% rise in income, reinforcing the country’s stature as a world-class travel destination.
With tourism resuming at full pace after pandemic disruptions, local and international travelers are increasingly booking quality stays across South Africa’s diverse landscape—from Cape Town’s iconic coastlines to the wildlife-rich Kruger National Park. This growth reflects not only the resilience of the hospitality industry but also the effectiveness of tourism recovery strategies implemented at both national and provincial levels.
Hotel Sector at the Heart of South Africa’s Tourism Recovery
Between January and May 2025, the South African accommodation sector witnessed a 12.1% nominal rise in total income compared to the same period in 2024. Hotels contributed the lion’s share of this performance, accounting for 10.6 percentage points of the total 10.5% growth recorded in May.
Driving this success was a 10% increase in the number of stay unit nights sold and a 1.9% uptick in average income per unit. The steady demand reflects travelers’ renewed interest in South Africa’s high-quality yet affordable hotel offerings, including luxury resorts, boutique properties, and trusted international chains.
With travel corridors open and airline connectivity improving—especially through Cape Town International Airport and OR Tambo International Airport—South Africa has reemerged as a preferred destination for leisure and business tourism.
Cape Town, Kruger, and Regional Destinations See High Occupancy
Leading the charge are hotels in Cape Town and the surrounding Western Cape, where a combination of scenic beauty, world-class infrastructure, and cultural attractions continues to lure tourists. Hotels near the V&A Waterfront, Table Mountain, and Clifton beaches are enjoying record occupancy rates, particularly during the Southern Hemisphere’s autumn-winter season.
Meanwhile, Kruger National Park, one of the world’s top safari destinations, has seen significant visitor inflows in 2025. Upscale lodges and eco-luxury accommodations in and around the park are reporting nearly full bookings, buoyed by increasing international arrivals and the growing popularity of wildlife tourism.
Johannesburg, as South Africa’s business hub, has also seen improved hotel demand, particularly from conferences, corporate events, and regional travelers. The city remains a key stopover for tourists continuing to adventure routes across Limpopo and Mpumalanga.
Alternative Accommodations Support Sector Diversification
While hotels are the primary growth driver, other forms of accommodation—like lodges, guesthouses, and bed-and-breakfasts—have also recorded positive growth. The “other accommodation” category grew by 3.2%, contributing 1.2 percentage points to overall sector revenue.
These offerings cater to tourists seeking personalized, culturally immersive experiences. Destinations such as the Karoo, Namaqualand, and coastal stretches of the Eastern Cape are increasingly popular with adventure seekers, domestic road-trippers, and international travelers looking to escape conventional tourist trails.
This trend aligns with the South African government’s broader tourism development strategy, which emphasizes inclusive and rural tourism through initiatives like the Tourism Equity Fund and expanded community tourism programs.
Regional Growth Bolstered by Infrastructure and Policy
Provinces including the Eastern Cape, KwaZulu-Natal, and the Free State are benefiting from improved regional connectivity and upgraded tourism infrastructure. Road expansions, new direct flight routes, and investments in local airports have made lesser-visited regions more accessible.
The Department of Tourism’s ongoing “We Do Tourism” campaign also plays a vital role in promoting intra-provincial travel and rediscovering South Africa’s hidden gems. This has further stimulated hotel and lodge bookings in previously underexplored destinations.
Western Cape, particularly Cape Town, continues to lead South Africa’s international visitor share. With direct flights from Europe, the Middle East, and North America resuming in full swing, international hotel chains and boutique hotels alike are seeing year-round demand.
Economic Impact and a Glimpse into the Future
Tourism contributes approximately 9% to South Africa’s GDP and supports over 1.5 million jobs across the country. The rebound in accommodation revenue highlights the sector’s potential as an economic engine capable of driving inclusive growth.
Stats SA’s May 2025 data underscores how both high-end and grassroots-level hospitality players are benefiting from a diversified tourism economy. With events like the 2026 FIFA World Cup qualifiers and cultural festivals ahead, the country is poised for sustained growth in global tourist interest.
Emerging segments such as wine tourism in Stellenbosch, eco-tourism in the Drakensberg, and wellness retreats in Limpopo are also expected to contribute to longer stays and repeat visits.
Conclusion: South Africa’s Hospitality Industry on a Winning Streak
As South Africa continues to invest in tourism infrastructure and diversify its offerings, its hospitality sector is thriving. The significant income growth from hotels and the consistent rise in alternative accommodations mark a strong trajectory for the rest of 2025 and beyond.
Whether it’s the cosmopolitan allure of Cape Town, the wildlife thrills of Kruger National Park, or the untamed beauty of the Eastern Cape, South Africa is reaffirming its position as one of the world’s most attractive travel destinations.
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