Aquila Column: Why South Africa Ranks Low in Wine Tourism

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It’s startling to see South Africa absent from global wine tourism rankings, especially when countries like New Zealand and Chile, not traditionally seen as wine tourism powerhouses, are on the list. According to a recent Zero Hedge article, Portugal tops the world’s wine tourism, praised for its heritage, quality, and the seamless experience it offers visitors. This begs the question: why does South Africa, with its centuries-old wine industry and stunning vineyards, lag so far behind in this booming tourism sector?

One major issue lies in profitability. The South African wine industry operates under immense financial pressure, with only a small percentage of producers seeing sustainable profits. Low margins and high production costs make it hard for wine estates to invest in the kind of world-class infrastructure and marketing needed to attract international visitors. Rising costs without a corresponding increase in the price of wine further squeeze the industry, making it difficult to allocate resources to improve the tourism experience.

Regulation is another stumbling block. High excise taxes on both still and sparkling wines add to the burden, discouraging growth. A tax increase of over 7% in recent years makes local wine more expensive, reducing competitiveness in the international market. These regulatory hurdles weaken South Africa’s ability to attract price-sensitive tourists compared to destinations where wine prices are more affordable.

Then there’s the matter of perception. South African wines, though of increasingly high quality, still battle with outdated brand perceptions internationally. The long shadow of apartheid, combined with lingering concerns over wine quality from decades past, has eroded confidence in South Africa’s offering. While this has improved in recent years, the market positioning has yet to catch up with countries like Portugal, which benefits from centuries of consistent branding and heritage.

Compounding these issues is infrastructure. Some of South Africa’s wine regions lack the kind of transport and accommodation facilities that can support large-scale tourism. The well-paved roads, seamless transportation networks, and luxury accommodations found in the wine regions of Portugal or France are simply not as prevalent here, making it harder for tourists to comfortably explore wine routes.

Finally, South Africa faces stiff competition. The global wine tourism market is saturated with strong contenders. Countries like Portugal, Italy, and France have well-established reputations, offering immersive experiences that combine history, food, and wine in a way South Africa has yet to master. Without differentiating itself through a unique selling point or providing an equally seamless visitor experience, South Africa risks being overshadowed.

So what can be done? The answer lies in investment, marketing, and infrastructure development. The industry must address profitability issues and reinvest in upgrading tourism facilities. A stronger emphasis on improving international brand perception will also go a long way in attracting tourists who may still view South African wines as secondary to European offerings. More targeted marketing could highlight South Africa’s unique wine culture—blending African landscapes with European winemaking traditions—to set it apart from the competition.

Wine tourism is a significant driver of economic growth. South Africa cannot afford to miss out. With the right strategies, it could one day rival the likes of Portugal, France, and Italy. For now, though, South Africa remains a hidden gem waiting to be uncovered by the global wine tourism market.