Tourism in South Africa contributed 1.5 million jobs and R425.8 billion to the economy in 2018, making it the largest tourism economy in Africa, according to the World Travel and Tourism Council’s (WTTC) annual review of the economic impact and social importance of the sector released today. The 2018 research shows that the South Africa Travel and Tourism sector:
- Contributed R425.8 billion to the country’s economy – the largest of any country in Africa.
- This represents 8.6% of all economic activity in South Africa.
- Generated 1.5 million jobs, or 9.2% of total employment.
- Primarily driven by leisure travellers: 64% of the travel economy was generated by leisure visitors and 36% from business travellers.
- The balance between international and domestic travel: 44% of the tourism spend came from international travellers and 56% from domestic travel.
South Africa has long grasped the potential of Travel and Tourism to drive economic growth, create jobs and promote social development and it is President Ramaphosa’s ambition to double the number of people directly employed in Travel and Tourism in South Africa. Travel and Tourism is South Africa’s greatest resource and the country’s strategy for expansion which priorities regional integration, environment sustainability and putting the community at the heart of decisions will make for a successful combination.
The Global Luxury Travel market size is expected to reach US$2.5 trillion by 2025, expanding at a CAGR of 4.6% over the forecast period, according to a new report by Grand View Research, Inc. Increasing disposable income and consumer spending of the middle and upper class, growing demand for the accumulation of travel memories, increase in micro trips, and emerging tourism and corporate industries all across the globe are expected to drive the market.
- By tour, the safari and adventure segment is projected to ascend at a CAGR of 4.3% over the forecast period in the luxury travel market.
- By age group, baby boomers held an overall revenue share of over 40.0% in 2018.
- USA, UK, Germany, China, India, Brazil, and South Africa are the major countries with the largest market in their respective regions.
Growing traveller’s preference for personalised service, reliable transport, exclusivity, and positive and professional interaction with staff is setting the primary benchmark for luxury travel. Growing political stability across the globe regarding gender, ethnicity, sexual orientation, human rights, racism, citizenship, and less hustle in visa offering are influencing the people’s decision over potential travel destination.
Long haul travellers are seeking to create their own unique holiday and are demanding flexible itineraries for a combination of entertaining and relaxing travel. This personalisation demand of the travellers is making their journey more convenient and fuller of experience.
Elite travellers are preferring to visit unexplored destinations to gain experience and understand the new cultures worldwide. Moreover, they are planning unique trips that include cultural visit, cruising, and adventure activities putting experience over ownership. Travellers now care for access over acquisition and experience over possession, thereby contributing to the growth of the market. Micro trips have emerged as a new trend in the industry, which, in turn, is expected to boost market growth in the forecast period. Travellers are squeezing in more travel itineraries into shorter time frames. To stay and spend quality time during short getaways in a unique and remarkable type of accommodation is expected to become trendy in the forecast period.
By tour type, the market is divided as customised and private vacations, safari and adventure, cruises, yachting, and small ship expeditions, celebration journeys, culinary travel and shopping, and others.
Safari and adventure accounted for the largest share of 35.3% in the year 2018 as luxury travellers are seeking more depth to understand the local culture, sense of adventure, and less crowded environment.
Personalised vacation aimed at safari and adventure is getting popular among all age groups, thereby surging the segment growth.
On the basis of age group, the luxury travel market has been segmented into millennial, generation X, baby boomers, and silver hair. Millennial is the fastest-growing segment with a CAGR of 5.4%. Millennials have a mindset for luxury and its meaningful consumption over owing stuff. They tend to be more independent in their religious and political views, more entrepreneurial, less likely to be married, distrustful of authority, better educated, and more travel-oriented than any other generation. Millennials are shifting their focus from traditional pampering to a wider range of compelling experiences.
The Adventure Travel segment accounted for about 71.12% of the overall Luxury Safari Tourism market revenue, by tour type in 2018, as this is identified as the most popular vacation option among young and middle age group travellers.
In addition, Personalised Vacations aimed at Safari, would witness the fastest growth, registering a CAGR of 8.6% during the forecast period. An increasing number of Luxury Safari Tourismers are indulging in these tours as they enable these travellers to experience the finest local delicacies and also buy some of the most exquisite handicrafts. These trips are getting popular among travellers of all age groups, especially the millennials (21 – 30 years).
The millennial segment is projected to hold the highest market share in the overall Luxury Safari Tourism market, by age group, as they have been identified as the highest travel spenders. However, it has been identified that only 5-10% of marketing is targeted at this traveller segment.
The Luxury Safari Tourism market has huge growth potential and would see immense demand from emerging markets like South Africa. Exposure to social media, growing disposable income and easy visa availability are some of the factors which are propelling the growth of the market. Nowadays, Luxury Safari Tourismers are seeking unique travelling experience, thus opting for exotic and unexplored destinations.
The global Luxury Safari Tourism market is valued at US$1,184.6 million in 2018 and is expected to reach US$1,713.1 million by the end of 2024, growing at a CAGR of 7.7% between 2019 and 2024.