This year is historic as it will be the first time in history that the African continent will host the G20 Summit under the theme “Solidarity, Equality, Sustainability”. This could not have come at a better time as this not only bodes well for the promotion of South Africa’s rich history, heritage and cultures but for partnerships with the rest of Africa in advancing the continent’s growth agenda.
Since forming South Africa’s Government of National Unity (GNU) in July 2024, the nation has seen positive developments across sectors.
The Johannesburg Stock Exchange exhibited notable performance. The bond market has rallied with 10-year government bond yields dropping from 11.04% to 9.358% by November while S&P Global Ratings upgraded the country’s outlook to positive.
Beyond the financial markets, there has been a notable uplift in business confidence. This reflects investor confidence in improved fiscal management and economic reforms under the coalition government.
Renewed confidence is evident in the strengthening rand and rising foreign direct investment – reflecting trust in the country’s economic trajectory.
South Africa’s imminent hosting of the G20 Summit is also a boon for tourism and trade. Hundreds of delegates – including ministers, government and global media representatives, business leaders and support staff – attending the summit will demand services leading to a surge in hotel bookings and dining experiences.
According to the World Travel and Tourism Council (WTTC), South Africa’s tourism sector employed 1.46 million people in 2023. This figure is expected to rise to 1.7 million jobs in 2024 and there is a push to increase this substantially within the next five years.
The WTTC also indicates that tourism’s direct and indirect contribution to South Africa’s GDP was 8.2% in 2023 and 8.8% in 2024.
Hosting the G20 Summit will go a long way towards strengthening the tourism sector’s contribution to economic growth and job creation numbers.
The sector also stimulates related industries, contributing to a broader inclusive economic impact.
While the Tourism Ministers G20 Meeting takes place in Mpumalanga, alongside the Tourism Investment Conference, in September this year, we will showcase the many investment opportunities and projects available in South Africa.
South Africa is preparing, with excitement, to host delegates from all over the world and showcase all the diverse and unique tourism offerings the country has across all nine provinces. Government will be encouraging them to stay and enjoy these offerings and see more of the beautiful country.
In 2023, South Africa hosted the 15th BRICS Summit in Johannesburg and the 20th African Growth and Opportunity Act (AGOA) Forum in November 2023. The BRICS Summit gathered 25 heads of state and government including leaders from the five original BRICS nations: Brazil, Russia, India, China and South Africa. The country also welcomed representatives from 67 countries and United Nations Secretary-General António Guterres, highlighting South Africa’s growing global influence and ability to host high-profile international gatherings.
The AGOA Forum attracted over 5 000 participants, including trade ministers from 32 AGOA-eligible countries and a US delegation led by Trade Representative Katherine Tai.
Both events went smoothly and showcased South Africa’s ability to host major international gatherings.
The imminent G20 Summit – comprising 19 sovereign states including South Africa, the European Union (EU) and the African Union (AU) – will enable the country to further demonstrate excellence in hosting mega events.
As South Africa gears up to host the G20 Summit this year, tourism’s economic significance takes centre stage as around 135 meetings will be held in the country throughout 2025.
The event presents another opportunity to highlight the nation’s unparalleled hospitality, world-class infrastructure, quality-assured accommodations and experiences and ability to host global events.
G20 delegates will also be able to experience the country’s diverse tourism experiences in all nine provinces – the rich heritage and cultures throughout vibrant cities, towns, townships, villages and dorpies as well as arts, crafts and business sectors – enabling them to leave with a lasting memory while contributing to the South African economy.
SA’s appeal as a travel destination
Exposure of South Africa through the G20 Summit will exponentially increase the country’s appeal as a travel destination. Important gatherings throughout the year will also bring massive benefits for small, medium and micro enterprises (SMMEs) as G20 delegates will be encouraged to visit hidden gems, immerse themselves in local traditions and cultural offerings and support SMMEs.
Around 40 heads of state are expected to attend. Together, members (G20, EU and AU) account for around 85% of global GDP, 75% international trade and two thirds of the world's population.
According to Allied Market Research, in 2023, the global meetings, incentives, conferences and exhibitions (MICE) industry was valued at approximately US$523.3 billion. It is projected to grow significantly in the next five years.
The South African MICE industry was valued at US$6.6 billion in 2023. It is projected to grow fourfold over the next eight years to reach US$25.9 billion.
In 2023, international tourism spend contributed R95 billion (€4.978 billion) to the South African economy while domestic tourism generated an impressive R121 billion (€6.34 billion) in spend.
South Africa’s ability to align with these global trends underscores its competitiveness and strategic importance.
As the top business events destination on the continent, South Africa has secured bids to host 25 international business events by 2029 – projected to contribute over R240 million (€12.5 million) to the economy.
Between April and August 2024, 48 bids were submitted with an estimated economic impact of R586 million (€30.7 million).
Notably, the South African Revenue Service reports that South Africa recorded a trade surplus of R12.8 billion (€670.7 million) in September 2024 with China, Germany and the US among key contributors. These figures highlight the economic interdependence between tourism and trade as thriving international relationships bolster visitor numbers and export volumes.
The G20 Summit provides a unique platform to amplify these successes.
Air capacity recovery
Air capacity recovery has been solid for South Africa. Currently, there are active international routes connecting 72 cities worldwide, serviced by 55 airlines, offering over 7.8 million seats across over 52 000 flights in 2024.
On the domestic front, capacity has rebounded with 18 million seats in 2024 and 4.2 million seats already projected for the first quarter of 2025.
On December 4 last year, Cabinet approved the Route Development Marketing Strategy to be implemented by the Department of Tourism and the private sector.
Hosting the upcoming G20 Summit positions South Africa in the global spotlight, boosting tourism’s economic impact through increased foreign direct investment, job creation and inclusive growth – all key pillars of the GNU.
South Africa’s reputation for warm and welcoming hospitality is well-recognised globally. Beyond business and the friendliness and warmth of South Africa’s people, the country boasts a wide variety of award-winning tourism experiences. The country’s diverse landscapes offer endless opportunities for adventure and relaxation.
The country cannot wait to welcome G20 Summit delegates and heads of state from all over the world while driving inclusive growth and strengthening South Africa’s global reputation.
