Analysis of Domestic Tourism Spending in South Africa: Fewer Trips Amid Rising Overall Costs

Wage earners in South Africa are receiving slightly more money than last year, but this increase is insufficient to offset the rising cost of living, leading households to have less purchasing power despite nominal wage growth.

According to the PayInc Net Wage Index, which tracks about 2.1 million wage earners, the average monthly net wage in September was R21,689, which is 0.3% higher than in August and 1.8% compared to last year.

However, when inflation is taken into account, the picture changes. The real net wage index only grew by 0.1% per month to R20,178, remaining 2.6% below the level of a year ago.

This data demonstrates pressure on household finances, as rising transport costs affect the economy by increasing the prices of goods and services, while wage increases remain modest.

Expert Comments

Shergeran Naidu, Head of Stakeholder Engagement at PayInc, noted: 'The average nominal net wage increased in September 2026 to R21,689, which is 0.3% higher than in August and 1.8% compared to a year ago.'

Nominal wages have been growing gradually, but the pace remains moderate. The average nominal index grew by 1.7% since the beginning of the year compared to an increase of 3.7% for the entire year of 2025.

In real terms, the trend is more concerning for consumers. PayInc data for the current year shows that average net wages have decreased by 2.2% after accounting for inflation, limiting funds available for non-essential expenses and negatively affecting consumer confidence.

Calculated Increases

The index accounts for net wage payments deposited into bank accounts after deductions such as income tax and employee pension contributions. It covers earners whose net income ranges from R5,000 to R100,000 per month, not the entire workforce.

Higher fuel prices have added pressure to household budgets this year, and also increased costs for businesses transporting goods across the country.

Independent economist Eliza Kruger stated that the significant rise in fuel prices since April, following the start of the conflict in the Middle East, has led to increased operational and transport costs across the economy. This impact has spread from households to energy-intensive sectors such as mining and manufacturing.

Kruger emphasized: 'Transport costs have become a significant factor in the growth of producer and consumer inflation, while elevated international oil prices continue to put pressure on the domestic economy.'

What could the growth look like?

At the time of preparing the report, the price of Brent crude oil was around $114 per barrel, and uncertainty related to the conflict clouded the fuel price forecast.

The cumulative rise in local fuel prices has been quite significant. Despite temporary government support in the form of partial reduction of fuel levies in November and December, PayInc predicted that the price of 95 octane petrol would still be approximately R10 per liter higher in November than in March. A corresponding increase for diesel with 0.05% sulfur content was expected to be around R12 per liter.

This support measure is intended to cushion the blow to households and businesses, but it does not negate the growth that has already occurred. Kruger warned: 'Given South Africa's reliance on road transport, businesses may face difficulties in fully compensating for these increases, which raises the risk of further price adjustments across the economy.'

Nearly a quarter of South African workers leave their homes before six in the morning, and this is not because work starts at that time, but because of the commute itself.

The average travel time by train is 107 minutes one way, by bus is 84 minutes, by taxi is 63 minutes, and by car is 44 minutes. These figures are averages, and many people spend significantly more time traveling, with the duration of their journeys constantly increasing.

The time spent commuting means the loss of numerous opportunities: homework is glanced at instead of being done for an hour, meals may be eaten standing up or skipped entirely, and conversations are postponed until the weekend, joining a host of other deferred tasks.

Researchers from the Harvard Growth Lab assessed this problem. The cost of travel and fuel amounts to about 17% of net income. They then assessed the travel time itself, assigning the value of the employee's hourly wage to each hour spent in transit. Thus, a person who spends three hours a day commuting during an eight-hour workday has effectively worked eleven hours for eight hours of pay. Combined, this accounts for 57% of their salary.

Money constitutes a smaller part of this burden, while hours constitute a more significant one, and no one bills them for it.

These hours do not disappear without a trace. The difference between the average train passenger and the average car driver is just over two hours per day, which equates to more than 500 hours over approximately 250 working days a year. This is enough time to gain qualifications, start a side business, or for a parent to participate in their child's upbringing. One person can invest this time, while another spends it sitting idly, and this gap widens every year without measures to eliminate it.

The situation closes into a vicious cycle: finding a job requires time and money, which become increasingly scarce the further a person lives from the city center. As a result, people take the jobs they can reach, rather than the ones they could perform, keeping their income low and preventing them from changing their location.

The International Monetary Fund found in March that in areas where the usual commute takes more than an hour, the unemployment rate is higher than in areas where it lasts less than 15 minutes, by more than 20 percentage points.

Distance does not just complicate the journey to work; it complicates the very possibility of getting a job.

None of this is a natural phenomenon; distances were designed. According to the Group Areas Act of 1950, people were evicted from parts of the city where workplaces were located and relocated to settlements on the distant outskirts, leaving strips of industry and open land between them to segregate groups. Distance was not a byproduct of this plan, but its tool.

Less discussed is what happened afterward.

Since 1994, the state has built about two million houses, mainly where land was cheap, and cheap land is located on the periphery of cities, far from workplaces. This time, the motive was not ideological but budgetary, supported by goals based on the number of units built rather than the distance to work. However, a house is not just a structure; it is also a location, and the location determines the cost of living. Thus, a program intended to correct spatial injustice reproduced its geography for reasons that looked rational in a data table.

It must be acknowledged that no one intended to repeat past mistakes, and policy has changed conscientiously multiple times. What has not changed is the price of land. It is high near the city and cheap on the outskirts, and a budget evaluated by the number of houses built will always lean towards the cheaper option.

By placing people far away, we pay annually for their round trips. Next year, nearly 10 billion rand will go to subsidizing suburban rail transport, and over 8 billion rand to bus contracts, while the housing settlement budget, which could reduce distance, shrinks for the third consecutive year.

Meanwhile, the cheapest form of transport has quietly disappeared. In 2013, the railway served about 49 million passenger journeys in one month, and by 2022, this figure had dropped to about one million, with those who used it switching to taxis, which cost almost twice as much.

No one pays double willingly. Where trains run, people use them. Our trains stopped running. Lines were closed, carriages were dismantled, and the schedule became a recommendation, and what remained seemed unsafe. Nearly two-thirds of train users reported dissatisfaction with safety on board to the South African Statistics Agency, and more than seven out of ten reported dissatisfaction with safety on the way to the station. A service that is unreliable and unsafe is never cheap.

This shows what choices exist. The cheap option does not work; the one that works costs more than many people earn, and reliability here is what needs to be bought. The further you live, the more you need it and the less you can afford.

People did not wait. Informal settlements and backyard rooms, which were unplanned, are often better situated than state-built homes, as those who built them preferred proximity to ownership, giving up title deeds for an hour a day. It took until the mid-2000s for policy to begin viewing this as a rational trade-off and to start improving these settlements in situ.

In July, the Constitutional Court stated something similar. The ruling states: 'Spatial inequality has condemned many South Africans to extremely long commutes, requiring multi-hour journeys every day, often before dawn.' The court ruled that the housing system, which is built only on the city outskirts, is unconstitutional. The court noted that the location of a home is not just one of many factors, but a necessary factor.

Now every government in the country is bound by this, and it is not leading to the construction of a single new home.

It only determines whether all of this was inevitable. For more than seventy years, we viewed distance as a feature of the landscape, and the commute as the cost of living away from the center, when someone deliberately created this distance and then, over three decades, restored it by mistake.

Whether this changes will be seen not in a court ruling. It will be seen in where the next houses are built, and whether the person leaving home tomorrow before six in the morning does so because of a map drawn by someone, or because of a map that no one could redraw.

December is traditionally a time for family gatherings, trips to the coast, and road trips across South Africa. However, due to pressure on family budgets and rising travel costs, travelers are planning their holiday spending more carefully.

According to Standard Bank data for the 2025 holiday season, South Africans have not given up their December holidays. Instead, many have adjusted their plans to get more value from their spending.

The bank reported that middle and low-income households made up to 45% more hotel bookings in December 2025, while spending 6% less per booking. This occurred despite airfares in December being more than 20% higher than the annual average.

These results indicate a shift towards value-oriented travel: vacationers are changing when they book, where they stay, and how they reach their destinations.

As travel budgets are expected to remain under pressure, Standard Bank forecasts that these habits will become even more pronounced in the 2026 holiday season.

For those planning to fly during the holidays, early booking can significantly reduce travel costs. Standard Bank data shows that nearly a third of annual domestic air travel expenses are booked between September and November. The average December flight is also booked more than six weeks in advance.

Delaying purchases until later can result in higher expenses. According to the bank, average spending on airfare increased by 39% between September and November.

The busiest travel days are Fridays in mid-December, with return flights peaking from January 2nd to 4th. Travelers looking for better fares are advised to compare prices, maintain flexibility in travel dates where possible, and book as soon as their plans are confirmed.

Standard Bank reports that customers with eligible credit cards can save up to 40% on airfares from various airlines through Standard Bank Travel in the banking app, for themselves and up to eight family members or friends. Furthermore, the bank offers all its customers a 10% discount on basic LIFT fares from October 26th to 28th for travel between November and April when booking through Standard Bank Travel in the app. Travelers should check applicable terms, conditions, and booking dates before making a reservation.

For many South Africans, the holiday break is less about staying in a resort and more about returning home. These 'home travelers' travel from cities to visit family in Limpopo, the Eastern Cape, and rural KwaZulu-Natal, often staying with relatives instead of paying for accommodation.

This movement also affects spending in major cities. Standard Bank data indicates that spending in city hotels and entertainment venues during the holiday season may decrease by up to 34% as regular patrons leave the city.

However, for those traveling long distances by car, fuel remains a significant factor. Given the pressure on family budgets from petrol price increases, it is worth calculating the full cost of the return journey and comparing it with other transport options, especially for solo travelers or couples.

Drivers can also meticulously plan refueling stops and look for reward programs that help reduce fueling costs. Standard Bank notes that UCount Rewards participants can earn up to 10 cents per liter when refueling at Astron Energy using an eligible Standard Bank card, subject to program terms.

Long journeys may also require overnight stays. The bank reports that hotel costs for roadside stops are rising by 52% during the holiday season, highlighting the importance of early booking. Standard Bank clients can save up to 30% at participating Courtyard Hotels, City Lodge Hotels, Town Lodges, and Road Lodges in South Africa, Namibia, Botswana, and Mozambique when booking through Standard Bank Travel before January 31, 2027, and paying with a Standard Bank card.

For families dreaming of a week by the sea, December remains a key month for coastal holidays. Standard Bank data shows that hotel booking expenses peak in December, exceeding the monthly average by 45%. Durban is also becoming an increasingly popular coastal destination alongside Cape Town.

However, families are changing their approach to post-arrival spending. According to the bank, apartment-style accommodation costs are rising by 69% as more travelers choose places with kitchens and the flexibility to cook some meals themselves, rather than eating out every day.

Location and timing also affect the final bill. Standard Bank points out that staying outside one's home province costs, on average, 2.2 times more than staying closer to home, and hotel bookings in December and January cost approximately 9% more. For families planning a coastal getaway, comparing destinations, traveling during off-peak seasons where possible, and choosing self-catering accommodation can help stretch the holiday budget.

Airport transfers can also increase travel costs. Standard Bank customers can benefit from a 15% discount on pre-booked Uber Reserve trips to the airport, limited to R100 per trip, according to the bank.

Travelers seeking freedom of exploration find that road trips allow them to explore coastal cities, scenic routes, and reserves at their own pace. However, the most popular options may require booking well in advance of December.

Standard Bank data shows that car rental bookings peak in October, exceeding the average by 18%. National park fees follow a similar trend: bookings peak in September and October, when families book campsites and plan visits.

The bank reported that bookings at some car rental companies have increased by up to 44% during the holiday period. Travelers planning to drive themselves must confirm vehicle availability, check mileage and insurance conditions, and factor in fuel, tolls, accommodation, and park entrance fees when budgeting.

Owners of eligible Standard Bank credit cards can save up to 35% on car rentals with selected partners when meeting applicable conditions.

The common thread among these four types of travelers is planning. Rather than canceling vacations, many are booking in advance and considering the total cost of the trip: from transport and accommodation to food and entertainment.

Several practical steps can help travelers manage expenses: book early, compare transport options, consider self-catering, be flexible with travel dates, carefully check discounts, and budget for the entire trip, including transfers, food, entertainment, fuel, and potential overnight stays.

The message for the 2026 holiday season is clear: December holidays do not necessarily have to disappear amid tighter budgets. For many South Africans, the task is to find ways to maintain the annual tradition, making every rand count as much as possible.