This festive period, nearly three-quarters (73%) of South Africans plan to stay home and not travel. A significant reason for this is financial strain, with almost half of those not travelling (41%) citing affordability as the key factor.
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While South Africans are expected to spend R289 billion this festive season, some 73% indicated that they would be staying at home during this period this year.
Less spending this year
This is according to the Wonga Summer Spending Survey, which collected data from over 10 000 people across the country.
The data showed that while spending is up from last year, 40% of respondents plan to spend less this year, an indication that low consumer confidence and a high cost of living are causing South Africans to spend cautiously in an effort to stretch their budgets.
Costs increased over the past year
Over the past year, we've seen costs increase across both transport and accommodation expenses, says Tina Manyanya, the spokesperson at Wonga.
“For example, despite fluctuations, the cost of unleaded petrol at the coast is 1.3% more expensive now compared to when our survey was last conducted in November 2024. In terms of accommodation, Pam Golding Residential Property Index notes an increase in house price inflation of 4.96% for homes valued above R3 million and 2.31% for those valued below R1 million.”
Wonga says that this year holiday accommodation cost R817.12 while transport (bus tickets, plane tickets, petrol, etc.) cost R1,160.71. Last year, it says holiday accommodation was R750 and transport (bus tickets, plane tickets, petrol, etc.) was R1,131.
The survey also showed that 70% of South Africans expect to spend more than usual over the festive season. The average festive spend is expected to reach R6 299 per person, a decrease from 2024, but still comfortably above 2023 levels.
Spending will be on food and drink, gifts, and local travel and transport. Three-quarters of South Africans do not plan to travel over the holiday season, with almost half saying they cannot afford it. Some 68% of South Africans will be celebrating with family, with nearly half of them planning to do so over a braai.
Of the respondents who expect to spend less this year, just over 40% cited having less money than last year, while 35% say they want to save rather than spend.
Wonga says this year’s data points to a shift in mindset: South Africans are still spending, but they’re doing it cautiously.
Higher expenses
Manyanya says these impacts, inflation, and rising municipal rate costs potentially feed higher expenses; it is natural that South Africans will adjust their plans by accommodating their budgets accordingly.
“Subsequently, 73% of our 2025 respondents indicated that they would be staying at home this festive season,” she says.
South Africans will be staying home this year: nearly three-quarters (73%) of respondents say they won’t be travelling over the festive period, and almost half of these (41%) say that this is because they can’t afford it.
The 26% who will be getting on the road are predominantly going to the Eastern Cape and KwaZulu-Natal.
“Most people travelling (52%) are doing so to visit family, not for tourism, which confirms that connection is the biggest driver of festive mobility,” reveals Manyanya.
This year, visits to Limpopo are up slightly from 13% last year to 14% in 2025, while Gauteng lags slightly at 13%, and surprisingly, the Western Cape comes in at 13% as well.
“While the figure for the Western Cape isn’t higher than last year’s 13%, it is interesting to note that the Western Cape, a tourism mecca, is not attracting that many local tourists,” she noted.
The majority of South Africans who are travelling will be doing so by car (50%), taxi (18%) or bus (18%).
International travel increased marginally from 3% to 3.1%, likely due to the continued volatility of the Rand (despite recent recoveries) and the rising cost of living.
Coastal property
Meanwhile, coastal property has continued to outpace house price growth at an average of 6.2% compared to just 4.2% for inland areas, with some areas falling as low as 2%, according to agents from the Seeff Property Group.
They said this is driven by the appeal of the coastal location (sea views, beaches, climate), and boosted by the sustained migration (especially retirees and remote workers) to coastal suburbs and towns, driving up demand and prices.
The property group said buyers are willing to pay a premium for the perceived superior quality of life, better local governance and infrastructure (in key coastal regions), and tourism rental potential.
Tourism SA, for example, recently reported a phenomenal 14% year-on-year growth in tourist arrivals for the first half of the year, and by September, these had already exceeded pre-pandemic levels with 7.6 million visitors. This is a further demand boost for coastal property, said Seeff.
Holiday areas fully booked
Most holiday areas are fully booked out for the summer period, with visitors set to flock to the popular coastal hotspots. This is also usually the time when many start looking at investing in a holiday or retirement home, or an Airbnb on the coast.
Sales data from Seeff shows that the Cape, along with other coastal hotspots, have enjoyed an excellent year with many areas seeing higher activity on the back of the significant interest rate cuts since mid-2024.
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