Discover why Cape Town is the Top domestic holiday destination for 2025.

Published on December 28, 2025

The festive season in South Africa has always been synonymous with sun-soaked beaches, family braais, and the Great Domestic Migration. However, as we head into the close of 2025, a new trend is emerging. It’s no longer just about where we go, but how we get there. According to the latest data from Cape Town Tourism’s Domestic Travel Intent Report, South Africans are becoming “savvy explorers,” prioritizing value, flexibility, and meaningful experiences over luxury labels.+1

Despite the squeeze on household budgets, the desire for a holiday remains unshakable. In fact, a resilient 54% of South Africans still plan to travel this season, with Cape Town firmly holding its crown as the country’s most coveted destination.+1

The Shift Toward “Smarter” Travel

The economic climate has undoubtedly changed the way we approach our December break. The days of impulsive, high-spend splurging have been replaced by strategic planning. This isn’t a sign of people traveling less; rather, it’s a sign of people traveling more intentionally.

The report highlights several key ways South Africans are stretching their Rands:

• The “VFR” Effect: Approximately 43% of travelers are opting to stay with “Visiting Friends and Relatives” (VFR). By cutting out high hotel costs, families are able to extend their stays and spend their budget on experiences instead of pillows.
• Self-Catering Dominance: For those not staying with family, self-catering accommodation has become the gold standard. Having a kitchen means more home-cooked meals and fewer expensive restaurant bills, allowing travelers to maintain control over their daily spend.
• The Great Road Trip: With flight prices fluctuating, more than a third of holidaymakers have ditched the airport terminal for the open road. Driving offers the flexibility to pack the whole family (and the cooler box) while significantly reducing per-person transport costs.

Why Cape Town Remains the Domestic King

If the Western Cape is the heart of South African tourism, Cape Town is its pulse. The province attracts 48% of all domestic travelers, and an incredible 80% of those visitors head straight for the Mother City.

But what is the draw during a cost-of-living crisis? It’s the “Free and Low-Cost” factor. Cape Town offers a world-class lifestyle that doesn’t always require a world-class budget. From the iconic white sands of Clifton and Camps Bay to the hiking trails of Table Mountain and the bustling community vibes of local markets, the city provides a high-value “experience-per-Rand” ratio that is hard to beat.

Briony Brookes, Cape Town Tourism’s Chief Marketing Officer, notes that South Africans are prioritizing “meaningful moments.” Whether it’s a sunset picnic at Signal Hill or a day spent exploring nature reserves, the focus has shifted from “how much did it cost?” to “how did it make me feel?”

“This Is Cape Town”: A Global Vision

While domestic travelers are the city’s backbone, Cape Town is also making massive waves on the international stage. James Vos, the Mayoral Committee Member for Economic Growth, recently highlighted the “This Is Cape Town” campaign. This ambitious initiative spans 55 cities across six continents, aiming to position the city not just as a holiday spot, but as a premier destination for investment and sustainable growth.+1

The goal is a “well-managed destination” that benefits everyone—from the local shop owner in Langa to the international digital nomad working from a coffee shop in Sea Point. By strengthening the city’s value proposition, Cape Town ensures that tourism remains a sustainable engine for job creation and economic livelihoods.

Tips for Traveling Smarter This Season

If you’re part of the 54% hitting the road this festive season, here is how to make the most of your trip:

Embrace the Outdoors: South Africa’s greatest assets are free. Spend your days at the beach or in botanical gardens rather than in malls.

Shop Local: Instead of big-chain dining, visit local markets. You’ll get better food, support small businesses, and usually pay a fraction of the price.

Book Off-Peak: If your schedule allows, travel mid-week. Even during the festive season, Tuesday and Wednesday stays can sometimes offer better rates than weekends.

The Verdict

The 2025 festive season proves that the South African spirit of adventure is alive and well. We are a resilient nation of travelers who refuse to let a tight budget stop us from making memories. Cape Town’s success is a testament to the city’s ability to offer something for everyone—from the luxury seeker to the budget-conscious family.

As we move toward 2026, “traveling smarter” isn’t just a temporary fix for high inflation; it’s becoming the new standard for how we explore our beautiful country.