The hosting of the G20 Summit will go a long way in strengthening the tourism sector’s contribution to economic growth and job creation numbers. This year marks a historic year as it will be the first time that the African continent will host the G20 Summit, under the theme Solidarity, Equality, Sustainability.
This could not have come at a better time as this not only bodes well for the promotion of South Africa’s rich history, heritage and cultures, but for partnering with the rest of the African continent in advancing the continent’s growth agenda. Since forming South Africa’s government of national unity (GNU) in July 2024, the nation has seen positive developments across sectors.
The JSE exhibited notable performance. The bond market has rallied, with 10-year government bond yields dropping from 11.04% to 9.36% by November, while S&P Global Ratings upgraded the country’s outlook to positive. Beyond the financial markets, there has been a notable uplift in business confidence. This reflects investor confidence in improved fiscal management and economic reforms under the coalition government.
Renewed confidence is evident in the strengthening rand and rising foreign direct investment, reflecting trust in the country’s economic trajectory. South Africa’s imminent hosting of the G20 Summit is a boon for tourism and trade. Hundreds of delegates, including minsters, government representatives, global media representatives, business leaders and support staff attending the summit will result in an overall demand for services, including a surge in hotel bookings and dining experiences.
According to the World Travel and Tourism Council (WTTC), South Africa’s tourism sector employed 1.46 million people in 2023. This figure is expected to rise to 1.7 million jobs in the short term, and there is a push to increase this substantially within the next five years. WTTC also indicates that tourism’s direct and indirect contribution to South Africa’s GDP was 8.2% in 2023 and 8.8% in 2024. The hosting of the G20 Summit will go a long way towards strengthening the tourism sector’s contribution to economic growth and job creation numbers.
The sector also stimulates related industries, contributing to a broader inclusive economic impact. The Tourism Ministers G20 Meeting will take place in Mpumalanga in September 2025, along with a tourism investment conference.
We are preparing and excited to host delegates from all over the world and showcase all the diverse and unique tourism offerings we have across all nine provinces, as we will be encouraging them to stay to enjoy these offerings and see more of our beautiful country. We have shared information on the official G20 website on some of the many exciting tourism offerings in our country, along with other important information about South Africa’s G20 presidency.
In 2023, South Africa hosted the 15th BRICS Summit in Johannesburg and the 20th African Growth and Opportunity Act (AGOA) forum in November 2023. The BRICS Summit brought together 25 heads of state, including leaders from the five original BRICS nations: Brazil, Russia, India, China and South Africa.
It also welcomed representatives from 67 countries and UN Secretary-General António Guterres highlighted South Africa’s growing global influence and its ability to host high-profile international gatherings. The AGOA Forum attracted over 5 000 participants, including trade ministers from 32 AGOA-eligible countries and a US delegation led by Trade Representative Katherine Tai.
Both events went smoothly and showcased South Africa’s ability to host major international gatherings. Now, with the imminent hosting of the G20 Summit, which comprises 19 sovereign states (including South Africa), and the EU and AU, we will further demonstrate our excellence in hosting mega events.
As South Africa gears up to host the G20 Summit this year, tourism’s economic significance takes centre stage, as around 135 meetings will be held in our country throughout 2025. This event presents another opportunity to highlight the nation’s unparalleled hospitality, world-class infrastructure, quality-assured accommodation and experiences, and ability to host global events.
It is also means that G20 delegates can engage with and experience our diverse tourism experiences in all nine provinces; our rich heritage and cultures throughout our vibrant cities, towns, townships, villages and dorpies; and our arts, crafts and business sectors, allowing them to leave with a lasting memory while contributing to the South African economy.
The exposure of South Africa while hosting the G20 will exponentially increase our country’s appeal as a travel destination. These important gatherings throughout the year will also bring massive benefits for small, medium and micro enterprisess as we will be encouraging G20 delegates to visit our hidden gems, immerse themselves in our traditions and cultural offerings, and support small businesses.
About 40 heads of state are expected to attend. Together, these members (G20 + EU + AU) account for around 85% of global GDP economy, 75% of international trade and two-thirds of the world’s population. According to Allied Market Research, the global meetings, incentives, corporate and exhibitions (MICE) industry was, in 2023, valued at approximately US$523.3 billion (R9.7 trillion) and is projected to grow significantly in the next five years.
The South African MICE industry was valued at US$6.6 billion in 2023 and is projected to grow fourfold over the next eight years, reaching US$25.9 billion. In 2023, international tourism spend contributed R95 billion to the South African economy, while domestic tourism generated an impressive R121 billion in spend.
South Africa’s ability to align itself with these global trends underscores its competitiveness and strategic importance. As the top business events destination on the continent, South Africa has secured bids to host 25 international business events by 2029, projected to contribute over R240 million to the economy.
Forty-eight bids were submitted between April and August 2024, with an estimated economic impact of R586 million. Notably, the SA Revenue Service reports that South Africa recorded a trade surplus of R12.8 billion in September 2024, with China, Germany and the US among the key contributors.
These figures highlight the economic interdependence between tourism and trade, as thriving international relationships bolster visitor numbers and export volumes.
The G20 Summit provides a unique platform to amplify these successes.
During the Tourism Ministers G20 Meeting in September this year, and during the Tourism Investment Conference we will be showcasing the many investment opportunities and projects available for investment in South Africa. On the domestic front, SA’s air travel capacity has rebounded with 18 million seats for 2024 and 4.2 million seats already projected for the first quarter of 2025. Visiting places with such scenic views as Table Mountain is easy.
SA Tourism
Air travel capacity recovery has been solid for South Africa. Currently, we have active international routes connecting 72 cities worldwide, serviced by 55 airlines, offering over 7.8 million seats across over 52 000 flights. On the domestic front, our capacity has rebounded with 18 million seats for 2024, and 4.2 million seats already projected for the first quarter of 2025.
On 4 December last year, Cabinet approved a route development marketing strategy that will be implemented by the department of tourism and the private sector. The hosting of the upcoming G20 Summit positions South Africa in the global spotlight, boosting tourism’s economic impact through increased foreign direct investment, job creation and inclusive growth; all key pillars of the GNU.
South Africa’s reputation for warm and welcoming hospitality is well recognised globally and, beyond business and the friendliness and warmth of our people, South Africa boasts a wide variety of award-winning tourism experiences.
The country’s diverse landscapes offer endless opportunities for both adventure and relaxation. We cannot wait to welcome G20 Summit delegates and head of states from all over the world as we continue to drive inclusive growth and strengthen South Africa’s global reputation.
De Lille is South Africa’s Minister of Tourism.
