South African Tourist Accommodation Revenue Surges Nearly 10 Percent as Visitors Flood Hotels and Airbnb in 2025

South Africa’s tourism sector saw a notable boost in 2025, with tourist accommodation revenue rising 9.9% to R41.1 billion.

This figure excludes ancillary income like meals, beverages, laundry, and other services, meaning the total revenue generated by tourists is even higher.

The growth reflects a steady rebound in travel and the country’s appeal as a regional and international destination.

Airbnb and Short-Term Rentals Fuel Growth

While Statistics South Africa tracks registered hotels, motels, inns, guest-houses, and caravan parks, short-term rentals via Airbnb and Booking.com are not included in official figures.

Estimates indicate over 90,000 active Airbnb listings nationwide, with about a third concentrated in Cape Town.

This growing segment highlights a shift in traveler preferences toward more flexible, self-catering accommodations, contributing significantly to the broader tourism economy.

Tourist Arrivals Climb Sharply

In 2025, South Africa welcomed 10.5 million tourists, a 17.7% increase from the previous year.

The majority were regional visitors from the South African Development Community (SADC), whose numbers surged 19.6% to 7.9 million.

Overseas tourists also increased, though more modestly, growing 11.9% to 2.4 million, closely mirroring accommodation revenue growth.

Hotels Remain the Dominant Player

Hotels continue to dominate South African tourism accommodation, capturing 57.8% of market share in December 2025, the peak holiday month.

“Other” accommodations—such as hostels or boutique lodges—claimed 35.8%, guest houses 4.5%, and caravan parks 1.8%.

Occupancy rates reflect this distribution: hotels at 56.6%, other accommodations at 36.2%, and both guest houses and caravan parks at 24.5%.

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Impact and Consequences

• Increased revenue highlights tourism as a critical driver of South Africa’s economy.

• Regional travel dominates, signaling strong SADC economic and social ties.

• Growth in Airbnb and short-term rentals may pressure traditional hotels to innovate and diversify services.

• Tourism gains can support employment, local businesses, and infrastructure investment, boosting broader economic recovery.

What’s Next?

• Authorities may consider integrating short-term rental data into official statistics for a more complete picture of tourism revenue.

• Hotel operators could adjust pricing strategies to stay competitive with Airbnb and boutique alternatives.

• Continued marketing to both regional and international tourists may further accelerate arrivals and revenue growth.

• Monitoring global events and exchange rates will remain crucial as international arrivals gradually expand.

Summary

South African tourism accommodation revenue surged 9.9% to R41.1 billion in 2025, reflecting both strong regional visitor numbers and resilient hotel and lodging occupancy.

The rise in short-term rentals like Airbnb further underscores changing travel trends and the sector’s importance to the economy.

Key Takeaways

• Tourist accommodation revenue reached R41.1 billion, excluding meals, drinks, and other services.

• South Africa welcomed 10.5 million tourists, up 17.7% from 2024.

• SADC countries accounted for most visitors, rising 19.6% to 7.9 million.

• Hotels dominate with 57.8% market share; occupancy rates highest among hotels at 56.6%.

• Airbnb listings exceed 90,000 nationwide, with a third in Cape Town.

• Growth in tourism supports jobs, local businesses, and broader economic development.

• Short-term rental inclusion in official stats may reshape future sector reporting.