What South African wine tourism has to offer is nothing short of remarkable. With 522 wine cellars stretched across 23 wine routes in the Western Cape, Northern Cape, and KwaZulu-Natal, the country offers a rich and easily accessible wine experience. Our wineries serve up world-class wines, paired with mouthwatering cuisine, captivating stories, and a warm, heartfelt South African welcome – all without requiring deep pockets by international standards.
Daneel Rossouw, Head of Sales for Agriculture, Nedbank Commercial Banking
The UN World Tourism Organization (UNWTO) recognises South Africa as one of only two principal wine tourism locations alongside the celebrated Napa Valley in the USA.
According to the UNWTO, these locations offer an exceptional experience that connects travellers with the destination’s history and tradition, enhances their gastronomy offerings, and provides abundant information for tourists to appreciate their surroundings.
High-calibre service, a strong narrative, and a range of activities also enable wineries to appeal even to non-wine lovers, creating a truly well-rounded experience.
The opportunity comes with significant financial upside
According to research done by South Africa Wine in 2022, wine tourism contributed R9.3bn to South Africa’s GDP, formed 17.3% of total winery turnover, and generated employment for up to 40,000 people, depending on the season. Wine tourism provides much-needed income and superior profitability to businesses that are built on notably low margins.
In 2022, micro wine cellars (which generate total turnover of less than R10m per year) benefited the most from wine tourism, with 36% of their total turnover derived from wine tourism activities, followed closely by small cellars (R10m to R50m) at 35%. Wine tourism generated 22% of large wineries’ (between R170m and R300m) total income in 2022, and medium cellars (R50m to R170m) 19%.
Importantly, all these contributions have increased considerably since 2019, when the first wine tourism study was done. Notably, black-owned wineries in South Africa are becoming increasingly popular destinations for wine tourism thanks to their unique stories and culture. And, with 81 black-owned wine farms and 107 black-owned wine brands, there's scope to contribute significantly to the transformation of the wine industry while shaping a more diverse and inclusive wine tourism landscape.
'Customers don’t remember what you tell them. What they do remember is how you make them feel.'
Prosperous wine tourism requires smart investment in experiences that create unique and lasting memories. To craft these memorable moments, wineries must first understand their visitors – who they are, why they come, and what captivates them – to develop and deliver tailored offerings that truly resonate and exceed expectations.
One of the most powerful consumer insights from the Great Big Wine report conducted in 2021 by Vintelligence was that farm visits and in-person attendance of wine tastings and food-and-wine-pairing events were the most impactful engagement methods to drive up the average price paid for a bottle of wine, as well as the number of bottles purchased in a month.
The report also revealed that special promotions were the most effective motivator for wine farm visits, influencing 72% of consumers. Special occasions followed closely, inspiring 67% of visits.
Yet, far too many wineries are missing a golden opportunity by letting a captive audience simply walk out the door. Visitors arrive for a tasting, perhaps make a purchase, and then leave, often without the winery capturing any of their details.
The result? Wineries are constantly chasing new customers while letting potentially high-value guests slip through cracks. By not collecting visitor information, wineries are not only losing valuable data but also the chance to build lasting customer relationships and loyalty.
This kind of insight is crucial for driving repeat visits and boosting future sales. Tools like wifi analytics and customer relationship management systems can help wineries track visitor behaviour and convert one-time guests into loyal patrons.
The impact of this data-driven approach is clear: Beau Constantia reported that just 5% of guests who shared their contact details went on to purchase an extra bottle of wine at an on-site event, generating nearly R275,000 in additional annual revenue. In a competitive market, this kind of insight can be the difference between breaking even and turning a profit.
Local is 'lekker'
South Africa wine tourism data for 2023 revealed that the UK, the US, and Germany are the top 3 source nations for international wine tourists. However, wine cellars disregard the local tourism sector at their peril.
According to the same data, 66% of wine tourists are domestic travellers, of which 37% live within 40 kilometres of the wine cellar. In addition, 58% of overnight guests on wine farms are domestic travellers, and this number increases in winter, with 81% of overnight guests in July being domestic tourists.
As expected, it also showed that Western Cape residents visited the Cape Winelands significantly more frequently than South African consumers residing elsewhere, with 61% having visited wine farms more than 5 times compared to 27% respectively. And, while not as common for consumers living outside of the Western Cape, day trips from Cape Town or elsewhere within the province were still the most cited length of trip for all consumers.
This indicates that wineries don’t even need to invest in costly accommodation options to cash in on the wine tourism trend. By simply adding daytime experiences like inviting restaurants, charming farm stalls, and family-friendly events and activities to their wine tastings, they can attract more visitors, boost sales and profits, and build a direct marketing database.
Of course, essential to growing wine tourism is securing funding to develop these facilities, train skilled teams, adopt the latest technology, and implement strategic marketing initiatives.
However, this forward-thinking approach empowers wineries to connect with present and future customers, foster loyalty, and build their brand – ultimately increasing profitability and resilience and laying the foundation for sustained growth and long-term renewal across the industry.
