South Africa drew a record number of foreign tourists last year but they spent less, denting total revenue, the government’s annual tourism report said.

The report, released this month, said the number of foreign visitors increased 2.7 percent in 2004 to 6.7 million as tourism recovered worldwide after the Iraq war and the outbreak of the SARS virus in 2003.

But growth was slower than in some rival destinations and visitors spent an average of 1,532 rand ($236.8) per day compared to 1,548 rand in 2003 — possibly due to a local currency. They also cut their average stay by one night.

Tourism contributed 7.4 percent of gross domestic product at 93.6 billion rand, down from 100.9 billion rand, but the industry retained its position as South Africa’s top foreign exchange earner after trumping gold exports in 2003.

Tourists have been flocking to visit South Africa’s famed safari parks and dramatic scenery since the end of apartheid 11 years ago.

South African tour operator Tourvest said last week foreign tourists were spending less due to a stronger rand, which rose around 18 percent against the dollar in 2004 – making the country pricier for foreign holidaymakers.

The report said it could not confirm the currency was to blame, but said the number of visitors from “price-sensitive” France and Germany, whose economies are flagging, had dropped.

Visitors spent less on shopping for major items like holiday homes, jewellery and art, while others stayed in cheaper accommodation, the report said.

Visitors from Africa, particularly neighbouring countries, increased.

The government said visitors in the first quarter of this year had risen around 10 percent and was confident the number would keep growing.

“The next growth step suggests that South Africa could break the 7 million mark in 2005 if it retains its competitive position globally,” the report said.

It gave no details on tourism revenue so far this year.