Determinants of inbound tourism to South Africa

Abstract

South Africa has experienced a significant increase in tourist arrivals over the past ten years. The challenge is to sustain this growth and therefore it is important to understand the factors that influence inbound tourism to South Africa. The purpose of this article is to identify the various determinants of inbound tourism to South Africa from different source markets (categorized in continents). Time series quarterly data from 1993 to 2004 is used in the analysis of tourist arrivals. Cointegration analysis in a multivariate framework is used and the authors find that income, relative prices and travel cost are strong determinants of tourist arrivals (as with other destinations). They also find that climate and capacity play significant roles.