Foreign Market Share (Grade 12 NSC Matric Tourism): Revision Notes
Foreign Market Share
Understanding inbound tourism
Inbound tourists are visitors who travel to South Africa from other countries. These international arrivals form the foundation of South Africa's foreign tourism market and represent a vital source of income for the country's tourism industry.
Inbound tourism is crucial for South Africa's economy, contributing significantly to GDP, job creation, and foreign exchange earnings. Understanding these visitor patterns helps shape national tourism policy and development strategies.
What is foreign market share?
Foreign market share refers to the percentage of South Africa's inbound tourism market that each source country represents. This includes both the number of tourists from that country and how much money they spend during their visits.
Understanding foreign market share helps tourism authorities and businesses:
- Identify which countries send the most visitors
- Determine where to focus marketing efforts
- Plan for different types of tourist needs
- Track changes in tourism patterns over time
Market share analysis considers both volume (number of visitors) and value (spending patterns), as some countries may send fewer tourists who spend more per person, while others may send large numbers of budget-conscious travellers.
Types of foreign markets
Foreign markets are classified into two main categories based on how tourists arrive in South Africa:
Land markets
These are countries where at least 60% of visitors arrive by land transport (such as buses, cars, or trains). South Africa's land markets include:
- Botswana
- Lesotho
- Mozambique
- Malawi
- Namibia
- Swaziland (now eSwatini)
- Zambia
- Zimbabwe
The 60% Rule: Remember this key threshold - a country is classified as a land market if at least 60% of its visitors arrive by land transport, and as an air market if at least 60% arrive by air. This classification is essential for understanding tourism patterns and infrastructure needs.
Air markets
These are countries where at least 60% of visitors arrive by air. Most long-distance international markets fall into this category, as flying is the most practical way to reach South Africa from distant countries.
Arrival statistics
Arrival statistics are the official numbers that show how many international tourists visit South Africa. These statistics are:
- Collected at border posts and airports
- Classified by country of origin
- Analysed to identify trends
- Interpreted to inform tourism planning
Data Collection Process: Arrival statistics are gathered through sophisticated tracking systems at all official entry points. This data is then processed by Statistics South Africa and the Department of Tourism to create comprehensive reports that guide policy decisions and marketing strategies.
These statistics help the government and tourism industry understand visitor patterns and make informed decisions about marketing and infrastructure development.
Source markets explained
Tourism professionals use the term source markets to describe the main countries or regions from which tourists originate.
Established source markets
Europe has traditionally been one of South Africa's most important source markets, sending large numbers of visitors annually.
Emerging source markets
Countries like India and China represent emerging markets with growing potential for increased tourism to South Africa. These markets are particularly important for future tourism growth as their economies develop and more people gain the means to travel internationally.
Market Analysis Factors: When analysing source markets, consider multiple factors that influence visitor numbers: economic conditions in the source country, availability of direct flights, visa requirements, exchange rates, political stability, and the effectiveness of marketing campaigns in that region.
Key Points to Remember:
- Inbound tourists are international visitors coming to South Africa from other countries
- Foreign market share measures each country's portion of South Africa's tourism market in terms of visitor numbers and spending
- Markets are classified as land markets (60%+ arrive by land) or air markets (60%+ arrive by air)
- South Africa's land markets are mainly neighbouring African countries
- Arrival statistics provide official data on international visitor numbers for planning and analysis
- Europe remains a key established source market, while India and China represent important emerging markets