SOUTH Africa saw a 34% increase in inbound tourism spending during the first quarter of 2010, and anticipates additional growth opportunities around the 2010 Fifa World Cup.

This is according to Tourism Outlook: South Africa, an annual report released yesterday by Visa which analyses cardholder spending over the past two years.

VisaVue Travel data indicates that South Africa weathered the economic head-winds which impacted on international tourism during 2009 better than most countries around the world.

While many countries saw double-digit drops in inbound tourism spending, Visa cardholder spending by international visitors to South Africa decreased only 2.7% – from about R14.04-billion in 2008 to R13.59-billion in 2009.

During the first quarter of 2010, cardholder spending increased to nearly R4.3-billion, up from R3.2-billion during the first quarter of 2009.

The top contributors to South Africa’s inbound tourism spending in 2009 include the UK (26%), US (15%), Mozambique (5%), Germany (4%) and France (4%).

While travelers from Western Europe and the US continue to be the strongest contributors to South African tourism, significant increases in spending by cardholders from emerging markets is indicative of South Africa’s growing stature as a tourism destination.

Visa revealed double and triple-digit growth in spending by cardholders originating from Malawi (168%), Mozambique (118%), Angola (115%), China (28%) and Botswana (18%).

This significant growth can also be attributed to developments in payments infrastructure and increased adoption and use of digital currency by consumers in developing markets.

As host of the World Cup, South Africa is uniquely positioned to further enhance its visibility globally.

The tournament will provide the country with a significant opportunity to showcase its unique assets and culture to the world and attract visitors and tourism revenues for months and years to come.

This year alone, South Africa expects to welcome more than 300000 international visitors. The month-long tournament is expected to add R93- billion to the economy, translating to a 0.54% boost to gross domestic product – a significant contribution given that the total GDP growth in 2010 is estimated at 2.0 to 2.5%.

“The influx of international tourism surrounding the World Cup has helped to support continued infrastructure developments and economic growth within South Africa,” said Charles Niehaus, Visa Sub-Saharan Africa general manager.

“As a longtime partner to Fifa and the tourism industry, Visa is committed to delivering a secure, reliable and convenient payments system to South Africa consumers and merchants, and provide current spending information that can help businesses and the government to enhance inbound tourism arrivals and revenues.”

Retail purchases top South Africa inbound tourism spending consistent with tourism spending trends over the past three years. They continued to account for the largest share of tourism spend on Visa cards in South Africa in 2009, followed by travel-related purchases such as lodging, airlines and travel agencies.

During the first quarter of 2010 the largest merchant segments for South Africa inbound tourism spending, based on transaction volume, were general retail-related purchases such as clothing- and food-related transactions.

Several merchant segments showed significant growth over first quarter 2009 levels.

Visa cardholder spending in the restaurant segment increased 48%, lodging purchases increased 41%, general retail purchases increased 32%, auto rentals increased 29% and airlines saw a 19% increase – I-Net Bridge