South Africa's tourism sector has not only completed an impressive post-pandemic recovery but has emerged as one of the country's strongest economic growth drivers, with positive ripple effects extending well beyond hotels, restaurants and attractions. One of the biggest beneficiaries has been the residential property market, particularly in the country's most sought-after lifestyle destinations.
The latest tourism statistics from StatsSA show that the country welcomed 10,5m during 2025, a 17,7% increase on the 8,9m visitors recorded in 2024 and, significantly, 2,6% higher than the country's pre-pandemic arrivals in 2019.
And the economic impact has been substantial. Tourism now contributes R361,7bn to the economy, equivalent to 4,9% of GDP, which makes the sector a bigger income generator than agriculture, construction or utilities.
Employment in the industry has followed a similarly impressive trajectory. After falling sharply during the pandemic, the tourism workforce has almost doubled from around 450 000 people in 2020 to almost 1-million, which means the industry now accounts for 5,7% of all employment in SA, or one in every 18 jobs.
These figures are important for the residential property market because tourism stimulates local economies, creates employment, attracts investment and often introduces visitors to areas they may eventually choose to call home.
Cape Town provides perhaps the clearest example of this relationship. The city consistently attracts the highest number of international visitors to South Africa, particularly from Europe, the UK, Germany, the US and various other long-haul markets. Many first visit as holidaymakers before returning as repeat visitors, purchasing holiday homes or making the city their permanent or semi-permanent residence.
And this ongoing influx of international buyers has helped underpin exceptional house price growth. Over the past five years, residential property prices in Cape Town have increased at around three times the rate recorded in SA's other major metropolitan areas. Strong demand from foreign buyers, semigrants from other parts of SA and investors seeking lifestyle, security and long-term capital growth has continued to place upward pressure on prices, especially in the Atlantic Seaboard, City Bowl, Southern Suburbs and Winelands.
The latest tourism statistics suggest this trend is likely to continue. Although regional travel from neighbouring Southern African countries still accounts for over 75% of all tourist arrivals, overseas tourism continues to strengthen, increasing by almost 12% between 2024 and 2025. These visitors also stay the longest, typically spending between eight and 14 days in South Africa, giving them ample opportunity to explore different regions and consider longer-term investment opportunities.
The profile of today's tourists is also encouraging from a property perspective. Almost 98% visit South Africa primarily for leisure rather than business, allowing them to experience local neighbourhoods, amenities and lifestyle offerings. The majority are between the ages of 25 and 44, representing the prime working and wealth-creation years when many people begin investing in second homes or international property.
SA also continues to strengthen its tourism links with major emerging economies. More than 213 000 tourists from Brazil, Russia, India and China visited the country during 2025, with particularly strong growth from Brazil and Russia. While these markets remain relatively small compared with traditional European visitors, they represent valuable opportunities to diversify future foreign property demand.
For estate agents, developers and property investors, tourism statistics have clearly become far more than visitor numbers. They provide an early indicator of future demand, especially in coastal towns, wine regions and lifestyle destinations where many international visitors first discover SA property, and many local travellers first experience new towns where they might decide to live permanently or buy a second residence.
