Inbound tourism expenditure has decreased over a two-year period (since 2016) with the 2018 expenditure at recorded at a -0.8% growth rate, according to the latest Tourism Satellite Account (TSA) report.

This statistic aligns with the decrease of inbound tourism numbers, with Statistics SA reporting that there were 244 000 fewer inbound tourists in 2019.

Director of Application of National Accounts at Stats SA, Riaan Grobler, presented the 2018 TSA report at the National Tourism Stakeholder Forum in Johannesburg last week, and provided an overview of the role tourism plays in South Africa’s economy – both in terms of expenditure and employment.

“The increase in domestic tourism expenditure with the decreasing inbound tourism expenditure means that money is leaving the country faster than money is coming into the country,” said Grobler. “The trade balance with the rest of the world for 2018 is R36.3 billion (€2.1bn) which is still healthy but has declined over the years.”

Grobler said the domestic tourism expenditure had been unpredictable over the last few years. In 2016 it showed a 17.2% growth rate and dropped to a low of -9.4% in 2017 and shot back up to 17.6% in two years ago.

According to the TSA, international tourists were responsible for R44 (€2.57) of every R100 (€5.85), indicating that domestic tourists spend more than international tourists in South Africa.

A major focus has been put on the tourism industry to grow the tourism industry by 2030, by President Ramaphosa, yet in 2018 the industry contributed 2.7% to the GDP – the second lowest contribution since the TSA began.

“The slow rate at which employment in the tourism sector is growing will make it difficult to contribute to the economy,” said Grobler. “From 2009 to 2016, only 100 000 direct jobs to the industry were created. The goal to double the amount of jobs in the industry by 2030 will be difficult to reach at this slow pace.”