Home » TRAVEL NEWS UPDATES » South Africa Removal from the EU High Risk List in 2026 Set to Boost Tourism Growth, Investment Confidence and Sustainable Travel Development

Published on
January 15, 2026

South Africa will officially be removed from the European Union’s list of High-Risk Third-Country Jurisdictions, with this becoming effective with a notice published on 9 January that will come into operation on 29 January 2026. This is after South Africa’s removal from the grey list of the Financial Action Task Force and that of the United Kingdom’s High-Risk Third Countries in October 2025, as a result of further improvement in anti-money laundering/combating terrorism financing regimes.

The EU decision also extends to Burkina Faso, Mali, Mozambique, Nigeria, and Tanzania, thus indicating an increased level of international faith in financial governance reform measures adopted by a number of African economies. To South Africa, this decision indicates a paradigm shift that will significantly impact the subsequent developments of the tourism industry.

Reduced Financial Barriers Create Long-Term Tourism Advantages

Once the EU delisting takes effect, mandatory enhanced due diligence requirements will no longer automatically apply to South Africa-linked transactions processed by EU financial institutions. This change reduces friction in cross-border payments, investment flows, and commercial partnerships, all of which are essential to the tourism economy.

Looking ahead, easier financial transactions are expected to improve the environment for future tourism investment, including hotel development, resort upgrades, airline partnerships, and destination infrastructure. Over time, this can translate into expanded room supply, improved visitor services, and stronger connectivity with European markets, South Africa’s key source of long-haul travelers.

Stronger Investor Confidence Shapes Tourism Development Pipeline

The EU’s decision sends a clear signal to global investors that South Africa is a lower-risk destination from a regulatory and compliance perspective. For the tourism sector, this improved perception is likely to influence long-term planning and capital allocation rather than short-term travel demand alone.

International investors, tour operators, cruise lines, and event organizers typically plan years in advance. Reduced regulatory complexity supports more predictable cash flows and financing structures, encouraging commitments to future tourism projects such as eco-lodges, conference facilities, adventure tourism hubs, and transport links that enhance visitor access.

Supporting Sustainable and High-Value Tourism Growth

Future tourism growth in South Africa is increasingly centered on sustainability, conservation, and community benefit. Easier access to international finance allows more capital to flow into nature-based tourism, heritage protection, and community-owned enterprises, which are critical to long-term destination resilience.

With fewer financial hurdles, funding for national parks, wildlife conservation tourism, and low-impact accommodation can be mobilized more efficiently. This supports a tourism model that prioritizes quality over volume, encouraging longer stays, higher visitor spending, and responsible travel practices.

Enhanced European Market Connectivity Over Time

Europe remains one of South Africa’s most important tourism source regions. The EU delisting improves the operational environment for future airline route planning, tourism marketing partnerships, and cross-border collaborations with European travel companies.

As financial transactions become smoother, travel businesses can invest more confidently in joint promotions, digital booking systems, and multi-year agreements. Over time, this strengthens South Africa’s visibility and competitiveness in European travel markets, supporting steady growth beyond seasonal peaks.

Broader Regional Impact Strengthens South Africa’s Gateway Role

The inclusion of other African countries in the EU delisting decision supports broader regional tourism integration. For South Africa, this reinforces its role as a gateway destination for multi-country itineraries across Southern and West Africa. Improved regional financial credibility can encourage future tourism products that link South Africa with neighboring destinations, supporting longer travel circuits and higher overall visitor value for the continent.

Ongoing Reforms Anchor Long-Term Tourism Stability

South Africa’s National Treasury has noted that while the EU delisting is a major achievement, continued improvements remain essential. Individual financial institutions may retain stricter internal policies, and further reforms are underway ahead of the country’s next FATF evaluation, with a final report expected in October 2027. For tourism, this commitment to ongoing reform provides reassurance that future growth will be built on stable, transparent systems rather than short-term gains.

A Foundation for Tourism Growth Beyond 2026

Improved financial standing aligns with long-term tourism ambitions as South Africa enters the period when the decision by the EU comes into force in January 2026. With improved international perception through reduced compliance costs, coupled with enhanced investor confidence, conditions for tourism growth will be sustainable, resilient, and investment-driven.

But the EU delisting does not offer an immediate surge in visitor numbers; it lays the grounds for a structural tourism expansion over the coming years. The decision encourages support for infrastructure development, conservation funding, and international partnerships, thus placing South Africa in a position to strengthen its tourism economy beyond 2026, with lasting benefits for communities, businesses, and the environment.