From vine to victory: Uncorking SA's Wine Tourism potential for explosive industry growth

Key topicsGlobal Recognition & Economic Impact: South Africa's wine tourism is a top UNWTO destination, driving R9.3 billion GDP and supporting 40,000 jobs.Growth Drivers: Future success hinges on capturing customer data, creating memorable experiences, and leveraging domestic tourism.Inclusivity & New Opportunities: The growing popularity of black-owned wineries is diversifying the industry and attracting new visitors..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Patrick Kidd.South Africa's wine industry is increasingly recognised for its significant potential in wine tourism, a sector poised to be a primary economic driver for the country. Identified by the UN World Tourism Organisation (UNWTO) as one of only two primary wine tourism destinations globally, alongside California's Napa Valley, the nation's 522 wine cellars spanning 23 scenic routes across the Western Cape, Northern Cape, and KwaZulu-Natal offer a distinctive blend of rich cultural heritage, outstanding gastronomy, and engaging visitor experiences. This dynamic sector has already demonstrated its considerable value by contributing R9.3 billion to the national GDP in 2022, accounting for 17.3% of total winery turnover, and supporting up to 40,000 jobs. This signals a promising pathway for future growth and prosperity across the nation.Economic contributionsThe wine tourism sector contributed R9.3 billion to the national GDP in 2022. This accounted for 17.3% of the winery turnover and supported local businesses. The industry created up to 40,000 employment opportunities, particularly during peak seasons. This income is notable in an industry where profit margins can be low.The growth in wine tourism has had varying impacts across winery sizes:Micro-wineries (annual turnovers less than R10 million) saw 36% of their total turnover from wine tourism activities.Small wineries (R10 million to R50 million) had 35% of their income from tourism.Medium-sized wineries (R50 million to R170 million) reported 19% of their income from tourism.Large wineries (R170 million to R300 million) received 22% of their total income from this sector. These contributions have increased since the first wine tourism study in 2019.Inclusivity and diversityA trend in South Africa's wine tourism landscape is the increasing popularity of black-owned wineries. These establishments are drawing attention for their unique stories, culture, and community engagement. The country has 81 black-owned wine farms and 107 black-owned wine brands. This shift contributes to the diversification of the South African wine industry and shapes a more inclusive wine tourism experience.Visitor experiences and data captureFor wineries, creating memorable experiences for visitors is a focus. Daneel Rossouw, Head of Sales for Agriculture at Nedbank Commercial Banking, stated, "Customers don't remember what you tell them. What they do remember is how they make them feel".Insights from the 2021 Great Big Wine report by Vintelligence indicate that farm visits, wine tastings, and food-and-wine pairing events effectively increase the average price of wine purchases and encourage visitors to buy more bottles. The report also noted that special promotions influenced 72% of consumers to visit, and visits for special occasions inspired 67% of wine tourists. These findings suggest wineries can influence foot traffic and sales by offering tailored promotions and experiences.The collection of visitor data is an area for improvement. Many wineries do not capture visitor details, potentially missing opportunities to build lasting relationships. Tools such as customer relationship management systems (CRMs) and Wi-Fi analytics can help track visitor behaviour and convert first-time guests into repeat visitors. For example, Beau Constantia reported generating nearly R275,000 in additional annual revenue from just 5% of guests who provided their contact details and made subsequent purchases.Domestic tourismWhile international visitors from key markets like the UK, the US, and Europe are important, domestic travellers constitute a significant portion of South Africa's wine tourism. Data from 2023 shows that 66% of all wine tourists are local, with 37% living within a 40-kilometre radius of the wine farm they visit. Domestic tourists also show a higher frequency of visits, with 61% of Cape Winelands residents visiting wine farms more than five times, compared to 27% of visitors from other regions. In July, 81% of overnight guests were domestic.This indicates an opportunity for wineries to cater to day-trippers. Focusing on daytime experiences such as restaurants, farm stalls, and family-friendly events can attract visitors, boost sales, and cultivate a local customer base.Investment for future growthTo support growth in wine tourism, investments are needed to enhance facilities, train staff, and adopt new technologies. Investments in marketing and customer experience aim to strengthen connections with customers, foster loyalty, and support long-term growth.Wineries may increase profitability and reinforce their market position by creating experiences and building relationships with local and international visitors. Continued innovation and sustainable growth strategies are factors for the future success of South Africa's wine tourism industry..*This article uses information from the following sources:South Africa’s Wine Tourism Industry: Growth, Opportunities And Future Prospects - Travel And Tour WorldWine tourism may be South Africa’s hidden economic jackpot - Cape Town EtcWine tourism: A golden opportunity for South African wine businesses - BizCommunity

From vine to victory: Uncorking SA's Wine Tourism potential for explosive industry growth

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