South Africa has always held a strong appeal for both local and international tourists. With its natural beauty, rich cultural heritage, and favourable exchange rate, it’s long been one of the top destinations on the African continent. In 2019, the sector contributed nearly 7% to the national GDP and supported 1.5 million jobs. By 2023, the country welcomed over 8 million visitors, nearly doubling the numbers from the year before, signalling a clear return to form. Domestic tourism, too, has shown resilience, with more South Africans embracing local travel experiences in the aftermath of lockdowns. This resurgence, supported by the government’s Tourism Sector Recovery Plan and marketing campaigns by South African Tourism, has laid the foundation for renewed investor confidence.

However, not all is smooth sailing. Several persistent challenges continue to shape the sector’s recovery trajectory. Load shedding, the country’s ongoing electricity crisis, remains one of the most disruptive factors for both businesses and tourists. Frequent blackouts affect accommodation services, transport, and safety, often leaving a negative impression on international visitors. Insecurity and perceptions of crime also pose a deterrent, especially for first-time travellers unfamiliar with the country’s realities. Poor infrastructure in rural tourism areas, such as deteriorating roads and limited public transport, hampers access to otherwise high-potential destinations. Additionally, visa delays and complex entry requirements for travellers from key growth markets have stifled tourism growth, despite promises of reform.

Yet, these challenges haven’t erased the sector’s investment potential. On the contrary, they highlight key areas where strategic partnerships and funding can make a significant difference. For example, investors with a focus on sustainable travel, now more in demand than ever, can capitalise on eco-tourism and conservation-based models that serve both environmental and economic goals. Projects that combine tourism with local development, such as community-run guesthouses, cultural heritage routes, or township tourism, not only support job creation but also align with global travellers’ growing appetite for authentic, meaningful experiences. As South Africa’s digital economy expands, opportunities also exist in smart travel technologies, including booking platforms, remote working hubs, and data-driven visitor services.

The shift in global travel trends is also opening new doors. Post-pandemic tourists are prioritising destinations that offer wellness, open space, and cultural immersion over mass tourism. South Africa, with its diversity of landscapes and experiences, from game reserves and mountain retreats to jazz festivals and food markets, is well placed to meet this demand. Furthermore, the rise of the digital nomad lifestyle has added momentum to urban centres like Cape Town and Johannesburg, where good infrastructure and lifestyle appeal attract long-stay visitors. While European markets continue to play a key role, the country is also beginning to tap into emerging markets across Asia and other parts of Africa, thanks to new airline routes and diplomatic efforts to ease travel restrictions. As Tourism Minister Patricia de Lille recently stated, “We are not just recovering, we are reimagining tourism in a way that is inclusive, sustainable, and globally competitive.”

For all its challenges, South Africa remains one of the continent’s most attractive tourism investment destinations. What the sector needs now is a bold, long term approach, one that acknowledges the barriers but leans into innovation, partnership, and purpose. Investors willing to engage meaningfully with local communities, back sustainable development, and embrace a changing travel landscape will find South Africa not just open for business, but open for transformation.