Recent findings from a collaborative analysis by Discovery Bank and Visa indicate that growing numbers of foreign nationals from the United Arab Emirates (UAE), Canada, the United States (US), Germany, and the United Kingdom (UK) are travelling to South Africa in increasing volumes. These trends are being driven not only by seasonal escapes but also by growing interest in South Africa’s property market, lifestyle appeal, and favourable exchange rates for wealthier foreign visitors.
Key Takeaways
- Surge in Foreign Visitors: Travellers from the UAE, Canada, the UK, Germany, and the US are increasingly choosing South Africa, with Cape Town capturing nearly half of all international tourist spending.
- Outbound Travel Is Recovering: While South Africans are travelling abroad less frequently, total travel spend is returning to pre-pandemic levels, with the UK, Mauritius, and the US being top destinations.
- Rising Flight Costs Impact Travel: Airfare to key destinations such as the US, UK, and Australia has climbed significantly, leading travellers to stay abroad longer to justify higher costs.
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The data is drawn from the latest SpendTrend25 report, jointly issued by Discovery Bank and Visa. This detailed annual report provides insights into evolving consumer spending behaviours, based on a thorough examination of credit card transaction records. It focuses particularly on spending by Discovery Bank clients as well as the general South African population over the period from 2019 to 2024. The report, which combines banking data and travel analytics, offers a rare behind-the-scenes look at how global travel behaviours are shifting towards emerging destinations like South Africa.
To supplement the transactional analysis, the two financial institutions also commissioned a nationally representative public survey. This survey aimed to provide more qualitative insights into local consumer habits by collecting the views and experiences of a broad spectrum of South African residents. Researchers believe this dual-method approach helps paint a clearer picture of both economic activity and broader lifestyle shifts taking place within the travel and tourism sector.
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UAE Tops the List of Inbound Travellers to South Africa
VisaNet’s inbound travel data for 2024 showed that the UAE emerged as the leading source of international visitors to South Africa, maintaining the top position throughout the year. It was closely followed by Canada, with many Canadian visitors likely seeking to escape the country’s long, cold winter season. Some tourism analysts suggest the UAE’s consistent lead is linked to the growing number of business executives, remote workers, and investors choosing South Africa as a second home or temporary base.
Other notable sources of international arrivals included the UK, Germany, and the US, each of which saw an uptick in visitor volumes, particularly during South Africa’s summer months. The seasonal attractiveness of the country’s warmer climate continues to be a significant drawcard for travellers from colder northern hemisphere countries.
The appeal is further boosted by South Africa’s outdoor leisure options, diverse ecosystems, and vibrant city culture—features that remain strong motivators for luxury and mid-tier travellers alike.
Cape Town Emerges as the Leading City for Foreign Tourist Spending
Among international visitors, Cape Town was the dominant destination in terms of foreign expenditure. According to the report, 46% of total international spending took place in Cape Town, making it the clear leader. In comparison, Johannesburg accounted for 24%, while Durban captured a mere 3% of the total international traveller spend. The remaining 27% was distributed across various other cities and towns across the country. Cape Town’s strong performance is often attributed to its global reputation as a premium travel destination, boasting iconic landmarks, five-star accommodation, gourmet cuisine, and increasingly, high-end health and wellness tourism.
In Cape Town, foreign visitor spending was distributed as follows: approximately 34% went toward accommodation, 19% was spent on retail purchases, and 17% was allocated to dining out. A further 10% of expenditure went to grocery purchases, while the remaining 20% covered various other activities and services, illustrating the diverse nature of spending habits among international guests. Notably, luxury accommodation and boutique shopping districts accounted for a significant share of the total, signalling that Cape Town continues to attract higher-income visitors seeking unique, curated experiences.
South Africans Also Travelling Abroad, Though Less Frequently
The report also analysed outbound travel trends, specifically identifying which international destinations were most popular among South African residents. Despite a general decrease in the number of trips taken, the overall amount spent on travel is recovering, edging closer to levels seen before the onset of the COVID-19 pandemic. However, this recovery has been accompanied by a noticeable increase in the cost per trip. Travel agents and economists alike believe this shift reflects a broader move toward fewer but more expensive international holidays, where South Africans are choosing quality over frequency.
While the overall pace of growth in outbound travel spend slowed in 2024 compared to previous years, Discovery Bank clients demonstrated a marked increase in travel-related expenditure, with a reported 24% rise in spending.
Higher disposable income among affluent clients, paired with easing global travel restrictions, appears to be contributing to this renewed appetite for long-distance international travel.
The UK remained the most visited destination among Discovery Bank clients, accounting for 22% of total trips, although this figure represented a marginal decline of one percentage point from the previous year. Mauritius was the second most visited location at 7%, followed by the US at 6%. Other destinations that showed a notable increase in travel from South Africa included the UAE, Italy, and Australia, each attracting 5% of the total visits. This spread of destinations suggests that both leisure and business travel are recovering in tandem, with some countries drawing repeat visitors through relaxed visa policies and direct flight availability.
In addition to these leading destinations, South Africans also frequently travelled to France, Portugal, Namibia, New Zealand, Germany, Switzerland, Zimbabwe, and India, indicating a diverse range of preferred international locations. Cultural ties, family connections, and historical emigration patterns continue to influence these travel decisions, especially among older and more financially secure travellers.
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Rising Flight Costs Remain a Major Concern for Travellers
The report also highlighted the continuing increase in the cost of air travel. Among the top five destinations, the US emerged as the most expensive, with the average cost of a round-trip ticket increasing by 16% to R37 800. Flights to Australia, although dropping slightly in price by 8%, still remained prohibitively high at R31 150 on average. These rising prices are partially driven by limited flight capacity, higher fuel costs, and lingering operational constraints in the aviation sector.
Flight prices to the UK rose by 8%, reaching R22 240, while airfares to the UAE increased modestly by 2% to R18 020. Flights to Mauritius also became more expensive, climbing by 6% to R11 820.
Travel experts warn that unless more competition returns to key flight routes, airfare may remain a key barrier for middle-income travellers hoping to go abroad.
Despite the rising costs, the data suggested that longer, more expensive flights often resulted in extended stays. For instance, South Africans travelling to Australia typically remained for 22 days, while visits to the UK and the US lasted an average of 17 days. In contrast, trips to the UAE and Mauritius, which involve relatively shorter flight durations, averaged 10 and 9 days, respectively. This length-of-stay pattern highlights how South Africans are maximising the value of costly travel by extending their time abroad when visiting far-flung destinations.
Shift Towards Online Spending Abroad
In a notable development, the report found that South Africans are increasingly spending through international online platforms rather than making purchases in physical stores when abroad. This shift marks a broader change in consumer behaviour and highlights the growing reliance on e-commerce, even while travelling internationally. This trend may be linked to greater awareness of online deals, currency conversion savings, and the convenience of shipping goods directly home—especially for tech, fashion, and specialty items unavailable locally.
The report concluded that although the overall growth rate in travel spending has tapered off, international travel activity continues to recover steadily, especially among affluent banking clients. Rising airfare costs, longer stays abroad, and increasing use of online services all reflect a changing travel environment for South Africans post-pandemic. Ultimately, South Africa’s position in both inbound and outbound travel markets is evolving rapidly, shaped by shifting global wealth flows, lifestyle preferences, and digital consumption habits.
Conclusion
South Africa’s international travel landscape is experiencing notable shifts both in terms of inbound and outbound movement. While Cape Town continues to dominate as a top destination for affluent foreign visitors, South Africans are becoming more selective and cost-conscious when planning trips abroad. Elevated flight prices, evolving spending habits, and the growing appeal of e-commerce are reshaping how travel is experienced and financed. Despite slower growth in 2024, the sector remains resilient, with signs of continued recovery and changing consumer behaviour influencing long-term trends.
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