Sports tourism, the fastest growing tourism segment prior to the COVID pandemic, is a lucrative travel market, which Africa is increasingly leveraging.

Speaking at WTM Africa, Naledi Khabo, global strategist and CEO of the African Tourism Association, said the global sports market was valued at US$598 billion in 2023 with a compound annual growth rate of 16.8%.

“Sports isn’t just a niche sector of the tourism industry. Prior to COVID, it was the fastest growing sub-sector in tourism and it’s expected to almost triple in size from about US$600 billion in 2023 to US$1.8 trillion in 2030.”

Khabo said over one billion people travel annually to compete, spectate or celebrate. “Now sports is seen as a driver of economic mobility, urban development and national identity.”

Sports travel is a highly lucrative market. Sports travellers outspend business travellers: new Expedia data indicates they spend an average of US$1 500 on their trips.

“When travellers are coming in for sport, they’re not just coming in to see the competition; they’re staying at your hotels, they’re eating at your restaurants, they’re going on tours, they’re shopping and they’re experiencing the culture of the destination. So creating rich itineraries that celebrate your destination’s offerings is key,” Khabo said.

The benefits of sports tourism including economic growth, infrastructure investment, job creation, youth development and global visibility are all valuable, she added.

But, Khabo said, destinations need to be careful to avoid the trap of “white elephant” infrastructure that would not be useful. This requires careful planning to create “innovative and cost-effective solutions”, which are reusable and can be re-engaged.

She said Paris has been lauded for its 2024 Olympics because of its focus on local and small business with 75% of contracts going to small, medium and micro enterprises. Los Angeles, 2028 Olympics host, is also exploring ways to use existing infrastructure.

The African opportunity

Khabo pointed out that Africa is an emerging global hotspot for hosting major sports events.

“It’s no secret that you’re seeing engagement with a lot of different sports and teams, which weren’t previously on the continent. We have 1.5 billion people. It makes sense whether it’s from an attendance perspective or from a branding or merchandising perspective.”

Morocco is hosting this year’s Africa Cup of Nations tournament and will be co-hosting the 2030 FIFA World Cup with Spain and Portugal. It is aiming to become established as a key global player with investments in major infrastructure such as a 115 000-capacity stadium – one of the biggest in the world. Senegal will host the 2026 Summer Youth Olympics – the first Olympic event to be held in Africa. The event will welcome athletes from 206 countries.

Rwanda is also making a strong push to be positioned as a sporting events hub. Its investment includes international branding deals with English Premier League side Arsenal, which has generated over US$160 million in media exposure. The country has also cemented a relationship with the NBA, developed the Tour de Rwanda and is seeking to host the next F1 race on African soil.

In addition, Rwanda is building a sports precinct around its revamped sports stadium, offering hotels and restaurants and making it easier for people to easily enjoy sports, culture and food, Khabo added.

Caution on cost viability

The Africa Travel Week State of the Industry Report, released during WTM Africa, cautions that “major events come with massive price tags and no guaranteed payoff”, highlighting Greece’s US$8 billion Olympic debt spiralling to over US$145 billion.

However, the report also highlights sports event opportunities outside of mega events.

Quoted in the report, Altaaf Kazi, a former sports presenter who worked on the 2010 FIFA World Cup campaign and for South African Tourism, said: “We only focus on one part of the ecosystem but it’s just the tip of the iceberg.”

As an example, Thomas Romburgh and Chris Brothers from One Turn Travel said their bread-and-butter business is school sports.

“It’s a huge market. South Africa is one of two places where UK schools can get really good rugby, especially during their summer holidays. Around 60 UK schools visit South Africa annually, which generates substantial income.”