South Africa's tourism narratives traditionally focus on the arrival of international guests, but statistics show otherwise: domestic travel by citizens generated significantly more income in 2025 than visitors from abroad. A large portion of these funds goes to small businesses located in rural areas and settlements.
The tourism economy of South Africa is often associated with visiting places like Kruger National Park and Stellenbosch. Nevertheless, it is the domestic travelers who are the more significant force in terms of both the number of trips and expenditure, supporting businesses in villages, settlements, and rural communities.
In 2025, South Africa welcomed 10.5 million foreign tourists, which is 17.7% more than in 2024 and exceeds the 2019 level by 2.6%. However, during the same period, South Africans undertook 44.7 million domestic trips, generating R111.6 billion in tourism revenue, according to the Department of Tourism's Budgetary Vote for 2026/27.
Approximately 24.1 million of these trips were related to visiting friends and relatives, meaning many travelers did not use paid accommodation.
According to the Satellite Tourism Statistics Report, spending on domestic tourism in 2024 amounted to R665.3 billion, including transport and business travel, compared to R113.9 billion from international visitors. In 2024, tourism accounted for 4.9% of South Africa's GDP and provided 953,981 direct jobs, equivalent to 5.7% of the workforce.
Tourism Beyond Traditional Destinations
Visiting friends and relatives remains a key factor in domestic tourism, as trips are often timed around weddings, funerals, and religious gatherings. These expenditures can benefit intercity bus operators, minivan taxi services, vendors in settlements, and rural businesses.
Centers in settlements, shasanyamas, and public spaces can function as day trip destinations, while business travel to rural areas attracts facility managers, NGO staff, and government officials to regions without large hotel chains. Small businesses are also becoming part of this broader tourism economy.
In five mining-related communities in the Limpopo and North West provinces, about 700 entrepreneurs receive support through the Settlement Economy Programme. This initiative is funded by a mining partner and managed by the Tshikululu Social Investments NPC through the Tshikululu Trust, implemented by the Lima Rural Development Foundation. Although the program was not initially designed as a tourism initiative, many participating businesses serve domestic travelers.
Among them are IYOTI Crafts and Design, where Thembelo Ngaga creates jewelry and design items in Bokamoso; Khotso Pretty Legodi's fresh food business in Hospital View, Mahavelenga; and MPM Fresh Produce, managed by Morin Malindisa. In Mozesetjane, Helen Lamola provides hair and nail services for weddings, funerals, and homecoming, while Bella Makhapola, who owns the floristry salon Serampana Deco in Ga-Chuene, serves weddings, church events, and school functions. Her business employs 12 people and mentors another 11 entrepreneurs within the program.
In Sandfontein, Kagiso Kgwadi runs LK Transport and Tours, providing transport and personalized tourism services. His services include organizing accommodation, trips, and events for groups heading to places such as Sand City and Mozambique.
Expanding Tourism Opportunities for Small Businesses
Many of these enterprises do not fall into traditional tourism sector categories, despite receiving a significant portion of their income from domestic travelers. The Settlement Economy Programme provides training, mentorship, and grants paid directly to suppliers for purchasing stock and equipment, aiming to increase business stability and sustainability.
The need to expand access to tourism opportunities is also recognized at the state level. In May 2026, President Cyril Ramaphosa stated that tourism has the potential to bring economic activity to rural and underdeveloped areas, as well as create opportunities for youth, women's businesses, and informal traders.
The allocation of R2.54 billion for tourism in 2026/27 aims to ensure that more settlements, villages, and rural areas benefit from this sector. The challenge lies in ensuring that investments reach small businesses rather than concentrating in established accommodation and entertainment complexes.
Informal and micro-enterprises continue to face obstacles, including collateral requirements from commercial creditors. The article argues that creating a special investment pathway for businesses with an annual turnover below R1 million could help broaden access to tourism financing opportunities. Thus, for South Africa's tourism economy, the focus should not only be on attracting more international visitors but also on recognizing the millions of South Africans who already travel within the country and the businesses that depend on them.

