South Africa's tourism sector performance outlined in Tourism Satellite Account

The Tourism Satellite Account (TSA) for South Africa for the years 2020, 2021, and 2022 provides a comprehensive analysis of the tourism sector's economic contributions, showcasing its recovery and growth during this period. Here's a detailed summary focusing on key aspects such as tourism expenditure, the balance of payments, employment, and the sector's overall economic impact:

Economic Impact and Growth

• Tourism Direct Gross Value Added (TDGVA): There was a notable increase in the TDGVA, from R128,746 million in 2021 to R219,119 million in 2022, reflecting a substantial growth of 70.2%. This surge signifies the tourism sector's increasing contribution to the national economy.
• Tourism Direct Gross Domestic Product (TDGDP): Parallel to the growth in TDGVA, the TDGDP also saw a significant rise from R140,095 million in 2021 to R234,663 million in 2022, amounting to a 67.5% increase. This growth underscores the tourism sector's vital role in bolstering the country's GDP.

Employment Trends

• The sector demonstrated remarkable resilience in terms of employment, with a 48.9% increase in the number of persons directly engaged in tourism from 2021 to 2022, totaling 733,385 employees. This indicates the sector's recovery and its importance as a major employment driver.

Visitor Numbers and Tourism Expenditure

• Visitor Numbers: South Africa experienced a significant uptick in non-resident visitors, from 2,663,861 in 2021 to 7,341,796 in 2022, showcasing the sector's recovery trajectory post the global downturn.
• Inbound Tourism Expenditure: In 2022, inbound tourism expenditure rose dramatically by 196.0% to R71,087 million. The primary expenditure items included road passenger transportation services, non-specific products, accommodation services for visitors, and tourism-connected products.
• Domestic Tourism Expenditure: Similarly, domestic tourism expenditure witnessed a substantial increase, growing by 522% to R435,756 million in 2022. The expenditure was largely on non-specific products, road passenger transportation services, food and beverage-serving services, and air passenger transportation services.

Balance of Payments and Tourism Trade Balance

• The tourism sector also impacted the country's balance of payments positively, with a significant portion of the economic activity stemming from tourism-related services. In 2022, the trade balance between inbound and outbound tourism expenditure showed a near equilibrium, indicating balanced growth in both inbound and outbound tourism activities.

Sectoral Contributions and Recovery

• The TSA highlights the sector's robust recovery across various dimensions, including expenditure growth, employment, and visitor numbers. The increased activity in tourism has had a multiplier effect on the economy, contributing to the GDP and providing employment opportunities.
• The data also emphasizes the diversification of tourism-related spending, pointing towards a healthy and sustainable growth path for the sector. This includes a significant portion of the expenditure directed towards domestic tourism, indicating a strong local tourism market.

To view the full Tourism Satellite Account, click here.