Abstract
Tourism is an important contributor to South Africa’s economy, supporting employment and revenue generation. By enhancing consumer experience and productivity, the industry has the potential to transform with the integration of artificial technologies such as generative AI, machine learning (ML), artificial intelligence (AI) robotics, and natural language processing. The study investigates how AI adoption in South Africa’s subsectors, air travel, accommodation, and restaurant services, impacts economic growth through key indicators such as job creation and revenue generation. A quantitative, correlational research design was employed, utilising forecasted AI adoption data between 2020 and 2030 and secondary data between 2015 and 2022 for tourism indicators. The analytical methods included econometric forecasting (Exponential Smoothing), feature importance analysis, and machine learning models (Random Forest and XGBoost). The results reveal that AI technologies, specifically machine learning and generative AI, are significant predictors of tourism employment and revenue. While AI adoption positively correlates with revenue in air travel and accommodation, its impact on employment is mixed, with potential job replacements in restaurant services. The study highlights a dual effect on economic growth, reshaping the employment landscape while stimulating revenue generation. It emphasises the need for balanced policies that support innovation while preserving jobs. AI is changing South Africa’s tourism sector, presenting opportunities for efficiency and growth. To guarantee sustainable development, inclusive policies are necessary due to its unequal impact on employment. By presenting empirical data on the economic impact of AI in South Africa’s tourism sector, this research addresses a significant gap in the literature and provides stakeholders and policymakers with impactful insights.