Australia is emerging as an important luxury source market for South Africa and, boosted by expanding flight access, tourist numbers from ‘Down Under’ have reached 84% of pre-pandemic levels.
According to the latest Tourism and Migration figures from Statistics South Africa, 6 087 tourists arrived in the country in February, compared with the 7 239 arrivals of February 2020, the month before COVID restrictions were enforced.
South African tourism stakeholders have identified that particular potential lies in the Australian luxury travel market.
In March, South African Tourism and international luxury travel agency Virtuoso hosted 27 Australian luxury travel advisers on a mega-fam, with three separate itineraries covering the five provinces of the Western Cape, KwaZulu Natal, the Eastern Cape and the Northern Cape.
Fiona Dalton, Virtuoso General Manager Australia and New Zealand, said appetite for South Africa’s luxury offerings remained strong.
“South Africa is a bucket-list destination for many high-value travellers along with its diversity for repeat luxury travellers. The opportunity was an invaluable way for Virtuoso travel advisers to elevate the client experience, specifically through developing our on-ground relationships,” said Dalton.
Australian travellers are ‘trailblazers’
Australia’s outbound luxury tourist numbers were expected to bounce back to pre-COVID levels later this year and escalate rapidly thereafter, said Megan De Jager, RX Africa Portfolio Director for Travel, Tourism and Marketing.
“This sector could even reach revenues doubling the pre-pandemic numbers by 2024, when an estimated US$8 billion could be generated,” said De Jager.
She described Australian travellers as ‘trailblazers’ who always sought to be the first to discover luxury travel hotspots.
“Luckily, South Africa – and Africa as a whole – still has a lot of hidden gems for Australian travellers to discover. South Africa has all the ingredients to capitalise on the travel appetite of the luxury Australian traveller.”
Valuable market
A survey of 500 wealthy travellers from the Asia-Pacific (APAC) region (under which Australia falls), conducted by luxury travel research specialists Altiant at the end of 2022, revealed that the segment tended to want to fly less often and stay in a destination for longer.
The data also showed a clear preference for taking relaxing/slower holidays rather than more active ones (61% vs 17%), with wellness travel predicted to continue to rise. Three in five affluent APAC travellers now say that health and wellness is a significant factor when planning a trip.
“Australia is definitely an important market to consider, especially as Australian tourists tend to favour longer stays and spend more money than tourists from other regions. In addition, a favourable exchange rate makes South Africa an attractive option,” said De Jager.
Overcoming the barriers
She said the distance between the two countries was still a deterrent for some travellers, but air access had vastly improved.
Qantas Airways currently offers the only direct flight between the countries, linking Sydney with Johannesburg. Qantas, along with Emirates, Air France, Qatar Airways and Singapore Airlines, also offers indirect flights.
SAA has also identified Perth as one of the first long-haul routes it will target under its new expansion plan.
De Jager said South Africa Tourism would have to effectively market South Africa to compete with other popular destinations. “South Africa faces stiff competition from other luxury destinations around the world, including countries such as Thailand, Bali, and Fiji.”
