Cape Town’s tourism sector showed strong resilience in 2025, generating R24.5 billion ($1.5 billion) in direct visitor spending and supporting more than 106,000 jobs, driven largely by a surge in international arrivals.
However, the recovery remains uneven, with domestic tourism spending declining sharply as South African households face growing economic pressures.
The latest 2025 Economic Value of Tourism report from Cape Town Tourism highlights two contrasting trends: rising international demand for the city as a global destination, and reduced spending by local travellers who are still visiting but cutting back on travel costs.
Foreign overnight visitors increased significantly, reaching 1.44 million in 2025. International tourists stayed an average of 9.5 nights and spent around R1,390 per day, contributing approximately R19 billion in direct foreign visitor spending.
Data from Airports Company South Africa (ACSA) showed that Cape Town International Airport handled a record 11.1 million two-way passengers during the year, including 3.3 million international passengers through the airport’s international terminal.
International passenger traffic increased by 7 percent compared with 2024, while domestic passenger numbers also rose by 7 percent to 7.8 million passengers.
The city’s leading international source markets remained the United Kingdom, the United States, Germany, the Netherlands, France and Australia.
The United Kingdom led with 210,932 arrivals, followed by the United States with 167,053, Germany with 161,271, the Netherlands with 70,818, France with 68,348 and Australia with 51,971.
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Despite the strong international performance, domestic tourism faced significant challenges.
The number of domestic overnight trips to Cape Town reached 1.42 million, recovering to nearly pre-pandemic levels at 98 percent of the 2019 figure. However, visitors stayed for shorter periods and spent less money.
The average domestic stay declined from 5.2 nights to 4.4 nights, while daily spending dropped to R882.
As a result, total domestic tourism spending fell from R8 billion to R5.5 billion, reflecting financial pressure on South African households.
Cape Town Tourism said the decline was not due to reduced interest in the city, but rather a result of changing consumer behaviour. Many South Africans continue to visit Cape Town, but they are choosing cheaper options, including staying with friends and relatives and reducing spending on activities.
The organisation said it is responding with targeted campaigns aimed at rebuilding domestic demand and increasing visitor spending.
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One initiative, the “You don’t need a holiday. You need My Cape Town” campaign, aims to encourage South Africans to explore the city by highlighting experiences across different budgets.
Cape Town is also expanding its regional tourism strategy through partnerships with neighbouring countries, particularly Zimbabwe and Namibia. Regional visitor arrivals increased by 17 percent in 2025, indicating growing potential from African markets.
Internationally, the One Small World campaign continues to promote Cape Town as a premium destination focused on natural beauty, cultural experiences and global connectivity.
Tourism remains one of Cape Town’s most important economic sectors, contributing 6.3 percent of the city’s Gross Value Add (GVA).
However, tourism GVA declined to R23 billion, an 11 percent year-on-year decrease, while employment in the sector fell by 8.5 percent. The decline was linked mainly to the drop in domestic tourism spending, which fell by 32 percent, partially offset by an 18 percent increase in foreign visitor spending.
Cape Town officials said the focus moving forward will be on attracting high-value international visitors, rebuilding domestic tourism and expanding the city’s African tourism footprint.
Mayoral Committee Member for Economic Growth and Tourism, Alderman James Vos, said tourism remained a major driver of employment and economic opportunity.
He said the city’s strategy was focused on increasing visitor numbers, growing tourism spending and ensuring that more communities benefit from the sector.
Key attractions continued to record strong visitor numbers in 2025, with Table Mountain welcoming 1.19 million visitors, up 19 percent, while Chapman’s Peak Drive recorded 1.05 million visits, an increase of 23 percent.
Hotel occupancy averaged 61.7 percent during the year, reaching a peak of 81.5 percent in February, with average room rates at R2,574.
Cape Town Tourism CEO Enver Duminy said the international market was demonstrating strong confidence in the city, adding that the goal was to ensure tourism growth translated into long-term economic benefits and job creation for residents.
