Cape Town tourism holds steady as foreign visitors drive $1.5 billion in spending

Cape Town’s tourism sector held steady in 2025, supported by strong international demand that helped offset softer domestic travel spending. According to the 2025 Economic Value of Tourism report from Cape Town Tourism, the city recorded R24.5 billion ($1.51 billion) in direct visitor spending and supported more than 106,000 jobs, keeping tourism among its most important economic contributors even as household budgets came under pressure.

The report shows a clear split in performance between international and local markets. Foreign arrivals carried much of the growth, both in volume and in how much visitors spent per trip. Cape Town received 1.44 million international overnight visitors in 2025, with average stays of 9.5 nights and daily spending of about R1,390 ($86). That translated into roughly R19 billion ($1.17 billion) in foreign visitor spending.

UK leads source markets

The United Kingdom remained the largest source market with 210,932 arrivals, followed by the United States at 167,053, Germany at 161,271, the Netherlands at 70,818, France at 68,348 and Australia at 51,971. These flows continue to reflect Cape Town’s position as a long-haul destination for key markets in Europe, North America, and Australia.

Air travel data from Airports Company South Africa pointed to steady movement through the city’s main gateway. Total two-way passenger traffic reached 11.1 million in 2025, up 7 percent from a year earlier. Of this, 3.3 million were international passengers passing through Cape Town’s international terminal, while domestic traffic accounted for 7.8 million, also up 7 percent.

The domestic travel picture, however, remained more subdued. Cape Town recorded 1.42 million domestic overnight trips, recovering to 98 percent of 2019 levels, but spending came under pressure as households adjusted to tighter financial conditions. Average stay length fell to 4.4 nights from 5.2, while daily spending dropped to R882 ($55).

Domestic tourism spending declines

Data from Statistics South Africa and South African tourism show that more domestic trips were linked to visiting friends and relatives, while discretionary leisure travel eased. Many households shortened trips, cut back on paid accommodation, and shifted more costs to private hosts, changing how tourism spending moved through the local economy.

As a result, domestic tourism spending fell to R5.5 billion ($340 million) from R8 billion ($495 million). The report attributes the decline to weaker household spending power rather than reduced interest in Cape Town as a destination, noting that residents continued to travel but with more limited budgets.

Despite the contrast between international strength and domestic restraint, core visitor activity remained firm. Table Mountain drew 1.19 million visitors, up 19 percent year on year, while Chapman’s Peak Drive recorded 1.05 million visits, an increase of 23 percent. Hotel performance also held steady. Average occupancy stood at 61.7 percent, peaking at 81.5 percent in February, while average daily room rates reached R2,574 ($160).