A trend has been observed in South Africa where citizens are traveling more frequently, yet their spending during trips is decreasing. This situation presents both encouraging news and a worrying signal for the domestic tourism industry.
Tourism Minister Patricia de Lille presented this trend at the launch event for Tourism Month in Durban. She reported that in the first half of 2026, South Africans made 21.2 million overnight trips, exceeding the figure of 20.4 million for the same period last year. The growth in leisure travel was particularly noticeable, reaching 5.2 million, an increase of 36% compared to the previous year.
Nevertheless, despite the increase in the number of trips, overall spending on domestic tourism remains below last year's level. This data indicates a persistent strong desire to explore South Africa but points to a possible shift in the nature of travel and household spending.
Brett Tungaai, National Chairperson of the Federation of Hospitality Associations South Africa (FEDHASA), noted that the growth in domestic tourism is a positive development, demonstrating that South Africans continue to value travel and find ways to do so despite the challenging economic climate. However, he emphasized that the decrease in domestic tourism spending against the backdrop of increased travel volume requires close attention from the industry.
Tungaai suggested that one reason might be the emergence of a more price-sensitive domestic tourist. He believes that people may travel more often but choose shorter holidays, more affordable accommodation, stay closer to home, and be more selective with spending on restaurants, entertainment, and attractions.
This difference is significant for tourism businesses, especially small and medium enterprises that rely on visitors spending money at every stage of the tourism value chain. According to Tungaai, a guest who spends one night instead of three, self-cater instead of dining out, or chooses fewer activities, is still considered a tourist, but the economic benefit to the region is significantly lower.
Thus, the task for the tourism business is not just to attract more people to travel, but to encourage them to stay longer and spend money across a broader spectrum of tourism economics.
De Lille made domestic tourism the central theme of Tourism Month this year, insisting that South Africans should be encouraged to explore their own country. The Minister stated that tourism starts at home, and that domestic tourism is not a secondary part of the economy but a cornerstone of a sustainable tourism economy.
The government plans to stimulate domestic travel through initiatives such as Sho’t Left Travel Week, South African Parks Week, and various provincial Mahala Weeks. These programs are designed to increase travel accessibility through discounts, packages, and free access to selected national parks.
However, Tungaai believes that simply making travel cheaper is not enough to solve the spending problem. He argues that tourism businesses should focus on value, not just price reduction. Packages combining accommodation with activities, family deals, mid-week specials, incentives for longer stays, and local experiences can encourage visitors to extend their stay while giving them greater confidence in the holiday's value.
There is also the opportunity to attract tourists outside traditional peak periods. Tungaai noted that if businesses can offer attractive value during quieter times, it will help improve occupancy and generate additional revenue without requiring visitors to spend substantially more per day.
At the same time, businesses must exercise caution when responding to price-sensitive consumers with endless discounts. Instead, the focus should be on creating experiences that give travelers a reason to spend. This could include promoting lesser-known destinations, developing affordable cultural events, bundling accommodation and activities, or encouraging visits to local restaurants, attractions, and businesses.
Recent figures show that South Africans still want to travel. The challenge is to convert this appetite into sustainable spending that supports the businesses and communities that make these trips possible. For Tungaai, the health of domestic tourism cannot be measured solely by the number of trips; it must consider the number of trips alongside total tourism expenditure, length of stay, and per-traveler spending.
An increase in trips coupled with reduced spending and shorter stays may indicate that more South Africans are participating in tourism, while the economic value generated by each traveler is under pressure. For FEDHASA, the ideal scenario is not just more trips, but 'more trips that lead to longer stays, sustained occupancy, and increased spending across the entire tourism value chain.' This could become the biggest challenge for South Africa's domestic tourism sector.
As De Lille said, 'Every trip has the potential to contribute to strengthening the economy and creating a more inclusive South Africa.' Therefore, the next phase of domestic tourism growth may not be about getting South Africans to travel more, but about extracting more value from each trip.
