South Africa’s tourist accommodation income grows 10.5% Year-on-Year in May 2025 – Stats SA

SOUTH AFRICA – The tourist accommodation industry in South Africa reported a strong 10.5% year-on-year increase in total income for May 2025, according to Statistics South Africa (Stats SA).

This growth signals robust recovery and confidence in the country’s tourism and hospitality sectors.

Measured in nominal terms (current prices), accommodation income rose by 12.1% in May compared to the same month last year.

This gain was driven by a 10.0% increase in stay unit nights sold and a 1.9% improvement in the average income per stay unit night sold, reflecting both higher demand and increased pricing power.

Hotels led the way with a remarkable 19.1% rise in income, contributing 10.6 percentage points to overall growth.

This is attributed to stronger occupancy rates and higher guest spending.

The ‘other accommodation’ category, including lodges, guesthouses, and bed-and-breakfasts, grew by 3.2%, adding 1.2 percentage points to the expansion.

Income for the three-month period ending May 2025 also rose by 10.5% year-on-year, buoyed by a 12.1% growth in hotel income and an 8.5% rise in other accommodation types.

This demonstrates widespread recovery across multiple accommodation segments.

Month-on-month data further highlights positive momentum.

Seasonally adjusted accommodation income increased by 3.8% in May compared to April, following a 3.1% gain the prior month.

This continues an encouraging trend of growing demand during South Africa’s second quarter.

Supporting these figures, recent sector data show that South Africa’s hotel industry has maintained strong pricing strategies with Average Daily Rates (ADR) growing over 8% year-on-year in May 2025.

This premiumization offsets slight softness in occupancy, indicating hotels are targeting higher-yield clientele effectively.

Moreover, regional trends indicate rising demand not only in major hubs like Cape Town and Johannesburg but also in secondary destinations such as Pretoria and the Free State.

These markets exhibit faster RevPAR growth, driven by domestic tourism and affordability.

Industry observers highlight the sector’s recovery is underpinned by improved international arrivals, visa reforms, and enhanced digital marketing by South African Tourism.

Hotels increasingly invest in technology, sustainability, and personalized guest experiences to capitalize on evolving traveler preferences.

Stats SA’s monthly accommodation income updates remain crucial for understanding demand dynamics and guiding policy and investment decisions in South Africa’s thriving hospitality industry.

Overall, the sustained income growth underscores South Africa’s strengthening position as a preferred tourist destination.

Continued investment in quality accommodation, service innovation, and expanding market reach is expected to drive further positive momentum in the near term.

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