The Visitor Economy and the Growth of Cape Town’s Tourism Industry

Cape Town has long been one of the most sought-after tourist destinations in the world, offering breath-taking landscapes, rich cultural heritage, and world-class hospitality. As the city continues to recover from global travel disruptions, the tourism industry has shown remarkable resilience. Major companies across a spectrum of clusters (including convention centres, hotels, tour operators and hospitality, travel planners, restaurants, attractions and supporting bodies) have a presence in Cape Town.

Cape Town’s Tourism Industry: A Key Economic Driver

Tourism remains one of Cape Town’s most vital economic contributors, generating employment and fostering economic growth. Several key factors underpin the industry’s success:

• Diverse Attractions: Cape Town’s Big Six (Cape Point, Groot Constantia, Kirstenbosch, Robben Island Museum, Table Mountain Cableway, and V&A Waterfront) draws millions of visitors annually. In 2024 these six attractions recorded over 3.4m visitors, representing a year-on-year growth of 18%.
• Sustainable Tourism Growth: Investment in infrastructure and community-based tourism initiatives helps ensure long-term sustainability. According to the Economic Value of Tourism in Cape Town research, conducted for the City of Cape Town (May 2023), the local tourism sector is estimated at 5,2% of the city’s total GVA.
• Government and Private Sector Collaboration: Strategic partnerships between the City of Cape Town, tourism boards, and private stakeholders have strengthened marketing efforts and enhanced visitor experiences.

Strengthening Connectivity: Air Access and Cruise Cape Town

Efficient and well-connected transport infrastructure plays a pivotal role in sustaining Cape Town’s tourism sector. Two key initiatives—Air Access and Cruise Cape Town—are helping position the city as a global travel hub.

Cape Town Air Access

Cape Town Air Access is a collaborative initiative aimed at expanding international and regional air connectivity. Led by Wesgro, in partnership with the City of Cape Town, Airports Company South Africa (ACSA), and other stakeholders, this initiative has significantly boosted direct flights to and from Cape Town. Key achievements include:

• Increased Direct Routes: Since its inception, Cape Town Air Access has secured multiple new direct flight routes, reducing travel time for international visitors and facilitating seamless business and tourism travel.
• Boosted Passenger Numbers: More direct international flights have led to a notable increase in passenger arrivals, strengthening Cape Town’s tourism and hospitality sectors.
• Cargo and Trade Growth: Enhanced air connectivity supports not only passenger movement but also cargo trade, benefiting local businesses and exporters.
• Economic Impact: The initiative has contributed significantly to job creation and revenue generation within the tourism industry.

Cruise Cape Town

Cruise tourism is another growing segment that is driving economic activity in the city. Cruise Cape Town focuses on positioning Cape Town as a premier cruise destination by enhancing port facilities and attracting international cruise liners. Key highlights include:

• Increased Cruise Arrivals: The number of cruise ships docking in Cape Town has risen steadily, bringing thousands of high-spending tourists into the city.
• Improved Port Infrastructure: Investments in port facilities have ensured a world-class experience for passengers, enhancing Cape Town’s appeal as a global cruise destination.
• Economic Contributions: Cruise tourism stimulates local businesses, from tour operators and restaurants to retail and transport services, providing economic benefits to the broader community.
• Sustainable Cruise Initiatives: Efforts are being made to align cruise tourism with responsible tourism principles, ensuring minimal environmental impact while maximizing economic opportunities.

The Responsible Tourism Initiative

As Cape Town’s tourism industry grows, the city is also making significant strides toward responsible tourism, ensuring sustainability for future generations with eight priority areas identified to advance responsible tourism efforts:

1. Water Conservation: The Cape Town Water Strategy ensures a sustainable water supply, vital for both residents and the tourism industry.
2. Renewable Energy Initiatives: Shifting towards renewable energy sources remains a key priority to reduce the tourism sector’s carbon footprint.
3. Safety Measures: Enhancing security and traveller awareness is critical for maintaining Cape Town’s reputation as a world-class destination.
4. Waste Management: Encouraging recycling, composting, and waste reduction minimizes the environmental impact of tourism.
5. Community Engagement: Empowering local communities through leadership, education, and tourism initiatives ensures inclusive economic benefits.
6. Skills Development: Training and job opportunities in the tourism sector equip individuals with valuable skills, strengthening the industry’s workforce.

Competitive Advantage and Global Accolades

Cape Town consistently ranks among the world’s top travel destinations, earning numerous accolades that highlight its appeal:

• World’s Leading Festival & Event Destination: Cape Town was recognized at the World Travel Awards from 2021-2023 for its vibrant events scene.
• Top Global Destination: Ranked as one of the best cities to visit by international travel publications such as TimeOut Magazine, Condé Nast Traveler and Travel + Leisure.
• Blue Flag Beaches: Cape Town boasts several Blue Flag-certified beaches, reflecting high environmental and quality standards.
• Culinary Excellence: The city’s thriving food and wine industry has earned global recognition, with several restaurants listed among the best in the world.

These competitive advantages make Cape Town an attractive destination for investors, ensuring long-term demand for tourism-related services.

Investment Opportunities in Cape Town’s Visitor Economy

For investors, Cape Town presents an attractive landscape for sustainable tourism development. Key investment opportunities include:

• Eco-friendly Accommodation: Developing green hotels and lodges that align with responsible tourism priorities.
• Infrastructure and Transport: Enhancing connectivity through sustainable transport solutions.
• Community-Based Tourism Projects: Supporting local entrepreneurs in creating authentic tourism experiences.
• Technology and Innovation: Leveraging digital solutions to enhance visitor experiences and improve sustainability efforts.

Cape Town’s tourism industry is not only rebounding but also evolving into a more sustainable and responsible sector. With strategic investments in air and cruise connectivity, strong economic contributions, global recognition, and a firm commitment to responsible tourism, the city offers compelling opportunities for investors and stakeholders. By aligning with sustainability goals, businesses can contribute to Cape Town’s long-term success while reaping the benefits of a growing tourism economy.