South Africa's tourism industry is often associated with international visitors, but domestic travellers are the backbone of the sector. In 2025, South Africans undertook 44.7 million overnight domestic trips, generating R111.6 billion in tourism revenue. This significant expenditure supports businesses in townships, villages, and rural communities, often overlooked by international tourists. According to the Department of Tourism's 2026/27 Budget Vote, domestic tourism plays a crucial role in driving the country's economy.
International tourists do contribute to the economy, with 10.5 million visitors in 2025, a 17.7% increase from 2024 and 2.6% above 2019 levels. However, their spending is dwarfed by that of domestic travellers. Statistics South Africa's Tourism Satellite Account recorded domestic tourism expenditure of R665.3 billion in 2024, including business travel and transport, compared with R113.9 billion from international visitors. This highlights the importance of domestic tourism in supporting local businesses and communities.
Visiting friends and relatives remains a major driver of domestic tourism, with travel often linked to weddings, funerals, and religious gatherings. This type of travel benefits inter-provincial bus operators, minibus-taxi services, township vendors, and rural businesses. Township hubs, shisanyamas, and community venues can serve as day-trip attractions, while rural business travel brings site managers, NGO workers, and government officials to areas without major hotel chains.
Small businesses are also becoming part of the wider tourism economy. The Township Economy Programme supports about 700 entrepreneurs across five mining host communities in Limpopo and North West. Although not specifically designed as a tourism initiative, many participating businesses serve domestic travellers. These include craft businesses, fresh-meal providers, and hair and nail services catering to weddings, funerals, and homecomings.
The Township Economy Programme provides training, mentorship, and grants to help businesses become more stable and sustainable. The programme is funded by a mining partner, managed through the Tshikululu Trust, and implemented by the Lima Rural Development Foundation. Successful businesses include IYOTI Crafts and Design, Khotso Pretty Legodi's fresh-meal business, and MPM Fresh Produce.
The South African government recognises the need to broaden access to tourism opportunities, particularly for small businesses and rural areas. President Cyril Ramaphosa stated in May 2026 that tourism can bring economic activity into rural and underdeveloped areas, creating opportunities for young people, women-owned businesses, and informal traders. The 2026/27 tourism allocation of R2.54 billion aims to ensure more townships, villages, and rural areas benefit from the sector.
To achieve this goal, the government and private sector must work together to create a dedicated investment pathway for businesses with annual turnover below R1 million. This would help address the barriers faced by informal and micro-enterprises, including commercial lenders' collateral requirements. By supporting small businesses and domestic tourism, South Africa can unlock the full potential of its tourism economy and create more opportunities for economic growth and development.
Key points
- Domestic travellers generated R111.6 billion in tourism revenue in 2025.
- Small businesses in townships and rural areas are benefiting from domestic tourism through initiatives like the Township Economy Programme.
- The South African government has allocated R2.54 billion to support tourism development in townships, villages, and rural areas.
