Why South Africans are travelling more but spending less

Tourism Minister Patricia de Lille's announcement of a 21.2% increase in South African overnight trips during the first half of 2026 reveals a boost in domestic travel. However, the associated spending remains below last year's levels. This trend, according to Tourism Month, suggests that while the desire to travel persists, the way people are exploring South Africa and allocating funds may be evolving.

Brett Tungay, chairperson of the Federated Hospitality Association of Southern Africa, notes that the rise in domestic travel may be fueled by a more price-conscious traveler opting for shorter breaks, budget-friendly accommodations, and reduced discretionary spending on activities and dining out. He believes this shift is crucial for tourism businesses, as smaller, self-catering trips contribute less to the economy than longer, full-service stays.

The tourism sector faces the challenge of encouraging visitors to both travel more and spend more. While initiatives like Sho’t Left Travel Week, South African Parks Week, and Mahala Weeks aim to make travel more affordable, Tungay suggests that businesses should focus on value-added experiences, such as combining accommodation with activities, offering midweek deals, and promoting midweek specials.

These strategies could entice visitors to extend their stays while providing clearer cost expectations. Additionally, attracting travelers during off-peak periods could yield increased occupancy and spending without necessitating higher daily expenses. However, businesses must be cautious not to overemphasize discounting, as this might not effectively stimulate spending.

Instead, fostering unique experiences, showcasing lesser-known attractions, and promoting local eateries and attractions can create a compelling reason for travelers to invest more. While South Africans continue to express a strong desire to travel, the real test for the domestic tourism sector lies in translating this enthusiasm into sustainable economic benefits.

Tungay emphasizes that trip volumes, total tourism expenditure, length of stay, and spending per tourist must be viewed collectively to gauge the health of domestic tourism accurately. The ultimate goal for the industry, as stated by FEDHASA, is not merely to increase the number of trips but to ensure they result in longer stays, stable occupancy, and heightened spending across the tourism value chain.

This could be the decisive challenge ahead, as South Africa's tourism sector seeks to maximize the economic impact of each journey undertaken by its citizens.