Industry Insights

Spotlight on: TOURISM

Cape Town’s visitor economy, narrowly defined here as the accommodation and restaurant sector, contributes almost R11 billion to economic output.

This excludes the role the industry plays in downstream activities such as transport, trade and recreation. Cape Town’s iconic attractions, including Table Mountain, the Cape of Good Hope, Robben Island, and the V&A Waterfront, form part of the City’s competitive offering, enticing around five million visitor trips through the award-winning Cape Town International Airport. The city’s blend of natural beauty, history, and cultural diversity makes it a top destination for both local and international travellers.

Competitive Advantages of Tourism in Cape Town

Tourism in Numbers

• Economic output for Accommodation and Restaurants, a component of tourism within the retail sector in Cape Town was R10.8 billion in 2023, contributing 13.1% to South Africa’s output in this industry. (S&P, Regional Explorer, 2024)
• Formal employment in the accommodation and food and beverage services industry reached 58,085 full time jobs in 2023, an increase of 3,508 compared to the 2022 South African Revenue Services (SARS) data.
• Revenue per available room rose to R1,470, and occupancy rates climbed to 68% in 2023, both showing year-on-year improvement. (Cape Town Tourism, 2024/25)
• The average daily spend for international travellers in 2023 was R1 454 and for the domestic travellers, R1 194. Both increased when compared to 2022.
• The Cape Town International Airport welcomed 1,302,489 international visitors and 3,446,011 domestic visitors in 2023. Both categories showed increases from 2022, supported by the efforts of the Cape Town Air Access team. The airport serves 27 airlines with 38 active routes to 31 destinations. According to 2024 data from Airports Company South Africa (ACSA), while international numbers have recovered to above 2019 levels, domestic travel is yet to fully recover.
• Cape Town has two established conference centres namely the Cape Town International Convention Centre and Century City Conference Centre, which strengthens Cape Town’s competitive and award-winning MICE sector.

Emerging trends shaping the industry in Cape Town

Tourism companies in Cape Town have identified trends that reflect changing traveller preferences and global changes in the market.  Many local companies identified the following key factors shaping the future of the industry as they explore how to capture these new markets and capitalise on these trends.

Trends identified by Cape Town companies

Exciting Openings and Iconic Revamps:

Some recent and upcoming developments in Cape Town’s hospitality scene include:

• The Winchester Hotel received a new and refreshed look in 2021.
• The Pullman Cape Town opened in the CBD in 2023.
• The world’s tallest hemp-built hotel launched in late 2023, The Hemp Hotel.
• In 2024 Cape Grace reopened under new management (Fairmont) and in the same year it received the globally recognised Green Key certification. It is the only hotel in South Africa with this certification.
• 2025 will see the introduction of South Africa’s first Mama Shelter hotel in Cape Town.

Overcoming Growth Challenges in Cape Town – Focus on Safety and Security:

Recognizing the safety challenges and the need for a secure environment for visitors, the City has implemented the following measures:

• Campaigns by the City of Cape Town to educate visitors on beach safety protocols.
• Training law enforcement officers through Project 1000, a partnership with the Western Cape Government to combat crime and strengthen municipal policing.
• Enhanced safety measures in the CBD through collaboration between the Cape Town Central City Improvement District (CCID) and Metro Police.
• Cape Town Tourism’s quick-response assistance for tourists in distress through their Band-Aid Programme.

Interesting Perspective:

If Cape Town Stadium, with its near 55,000-seat capacity, were used as a benchmark, how many times could the city’s top attractions fill it in 2023? This comparison underscores the popularity of some of Cape Town’s attractions.

Visitors to Cape Town’s top attractions fill the CT stadium this many times

Industry performance

The impact of the tourism industry is hard to fully grasp due to its connection with many downstream sectors such as retail and transport. What the synthesised 2023 data shows is that the growth in jobs of over 6%, and the growth of international tourist arrivals of 16%, supports the narrative that the sector is recovering and performing well. Tourism companies in Cape Town are also adopting new technologies and sustainable business practices to assist in attracting growing segments of the market, particularly the youth and business travellers, to the destination.

For more insights into the industry, kindly refer to the EPIC (Economic Performance Indicator for Cape Town) report, pages 45–48. Additional resources are available through Cape Town Tourism and Cape Town Air Access. 

Download the full Industry Insights: Focus on Tourism Infographic.