With rising international visitor spend boosting growth and domestic travel slowing under economic pressure, the 2025 tourism landscape reflects a divided performance.
Image: Magnific
Cape Town’s tourism sector generated R24.5 billion in direct spend in 2025 and supported more than 106,000 jobs, according to the latest Economic Value of Tourism report.
While international tourism reached record highs, domestic travel weakened under economic pressure, creating a split picture for the city’s tourism economy.
Foreign visitors drove much of the growth. In 2025, Cape Town welcomed 1.44 million international overnight visitors, who stayed an average of 9.5 nights and spent about R1,390 per day.
This resulted in R19 billion in foreign direct spend, marking a strong year for the city’s global appeal. Key source markets included the United Kingdom, United States, Germany, Netherlands, France and Australia.
Airports Company South Africa reported 11.1 million two-way passengers through Cape Town International Airport, a 7% increase year-on-year, with international passenger numbers also rising by 7%. This confirms continued demand from both overseas and domestic travellers, even as spending patterns diverged.
Domestic tourism told a more restrained story. South Africans made 1.42 million overnight trips to Cape Town, close to pre-pandemic levels, but stayed shorter and spent less.
Average stays dropped from 5.2 nights to 4.4 nights, while daily spend fell to R882. Total domestic tourism spend declined from R8.0 billion to R5.5 billion.
This drop is linked to broader household financial strain. Travelling for leisure declined, while visiting friends and relatives increased, with many travellers cutting costs by relying on hosts for accommodation and choosing cheaper activities.
Despite this, demand for Cape Town remained steady; visitors simply adjusted how they travelled and spent.
The combined effect of weaker domestic spend and stronger international growth led to an overall decline in Tourism Gross Value Add to R23 billion, down 11% year-on-year and an 8.5% drop in tourism-related employment.
However, officials note that this reflects national economic pressures rather than reduced destination appeal.
Cape Town Tourism and the City of Cape Town are responding with three main strategies. The first is a domestic campaign titled "You don’t need a holiday. You need My Cape Town", aimed at encouraging South Africans to continue visiting the city despite economic constraints.
The second is a regional partnership with Zimbabwe and Namibia to grow African arrivals, which increased by 17% in 2025. The initiative focuses on joint marketing and trade collaboration to strengthen regional tourism flows.
The third is the "One Small World" international campaign, positioning Cape Town as a global destination for high-value long-haul travellers, particularly from established markets in Europe, the United States and Australia.
Tourism remains a key pillar of Cape Town’s economy, contributing 6.3% of Gross Value Add. Attractions such as Table Mountain and Chapman’s Peak Drive saw strong growth in visitor numbers, and hotel occupancy reached 61.7%, peaking at over 80% in February.