tourism in cape town and the western cape · the number of international tourists in particular has...

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T O U R I S M I NC A P E T O W N A N D T H E W E S T E R N C A P E

K E Y F I G U R E S 2 0 1 7

Wesgro Tourism Brochure14nov.indd 1 2018/11/14 3:19 PM

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CONTENTS

Welcome 3

Western Cape’s visitor profile 7

Western Cape’s transport 10 connections

Accommodation 15

Leisure Tourism 21

Business Tourism 23

Western Cape Context 26

Published by: Wesgro, the Official Tourism, Trade and Investment Promotion Agency for Cape Town and the Western Cape.

This booklet provides a summary of the Western Cape’s tourism sector. It has been created for all stakeholders in the tourism industry, inclusive of tourism businesses, groups representing tourism organisations, public sector agencies and potential investors in the city.


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WELCOMEWelcome to the first edition of Tourism in the Western Cape - Key Figures.

The Western Cape tourism sector contributed more thanR38.6 billion towards the Province’s economy and

supported more than 217,000 direct jobs in 2017.

Source: DEDAT, 2018

OVERVIEW OF WESTERN CAPE’S TOURISM SECTORTourism is one of the Western Cape’s strongest economic drivers. Based on 2017 data, the Western Cape tourism sector contributed more than R38.6 billion towards the province’s economy and supported a total of 319 227 indirect, direct and induced jobs.

Apart from the solid economic contribution, tourism also provides a significant number of employment opportunities in the Western Cape; enhancing the cultural offering and quality of life for the province’s residents.

The Western Cape has taken its place as a global big-hitter amongst tourists, with tourist arrivals and spending patterns reaching record levels. The number of international tourists in particular has portrayed remarkable growth between 2016 and 2017.

ABOUT WESGROWesgro is the Official Tourism, Trade and Investment Promotion Agency for Cape Town and the Western Cape. The divisions include Leisure Tourism & Convention Bureau, Trade, Investment Promotion, Research and Film. Whether there is interest in unique travel experiences, investment, shooting a film or exporting to Africa and the rest of the world, Cape Town and the Western Cape has something for everyone.


1.

Source: SATourism, 2018

55%

% Share of all tourists to the

Western Cape, 2017

45%Foreign

Domestic

VOLUME & VALUE In 2014, the Western Cape attracted around 2.99 million foreign and domestic tourists to its shores, generating a combined R17.3 billion in direct total foreign and domestic spend in the province.

By 2017, the number of foreign and domestic tourist arrivals had increased to 3.15 million, reaching R24.7 billion in expenditure.

Purpose of visit: Foreign• Holiday - 64.4%• Visiting friends & relatives - 15.8%• Business / MICE* - 7.2%

Purpose of visit: Domestic• Holiday - 54.6% • Visiting friends & relatives - 42.3%• Business / MICE* - 9.0%

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* Meetings, Incentives, Conferences and Exhibitions


5

1 029 726312 017 196 59999 777224 488

Tourist arrivals to the Western Cape by region of origin, 2017

*Africa Land Markets: Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe.**Africa Air Markets: Angola, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Nigeria, Tanzania, Turkey, Uganda and United Arab Emirates.Source: SATourism, 2018

*Africa Land **Africa Air Americas Asia & Australasia Europe

United Kingdom

Germany United States

France Namibia Nether-lands

Australia Brazil Canada Switzer-land

275 000

250 000

225 000

200 000

175 000

150 000

125 000

100 000

75 000

50 000

25 000

0

Top 10 Markets to the Western Cape2016

2017

change -0,9%

change12,8%

change6,4%

change32,0% change

0,8% change8,3%

change18,5% change

96,9%

change10,9%

change6,8%

MAIN MARKETSIn 2017, the distribution of visitors to the

Western Cape reflected 55% of tourists

originating from overseas, while 45% represented the domestic market.

The leading overseas markets to the province were the United Kingdom (267,845), Germany (230,130),

United States (202,057), France (122,015) and Namibia (115,646). These 5 countries ranked

as the Western Cape’s top 5 foreign markets in 2017.



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MARKET TOURIST ARRIVALS Y-O-Y GROWTH MARKET TOURIST ARRIVALS Y-O-Y GROWTH

Brazil 43,593 96.9% Netherlands 104,871 8.3%

France 122,015 32.0% Switzerland 42,910 6.8%

Australia 56,733 18.5% United States 202,057 6.4%

Germany 230,130 12.8% Namibia 115,646 0.8%

Canada 43,584 10.9% United Kingdom 267,845 -0.9%

MARKET TOURIST ARRIVALS Y-O-Y GROWTH MARKET TOURIST ARRIVALS Y-O-Y GROWTH

Swaziland 6,139 169.3% Finland 6,076 5.2%

Malawi 10,676 146.2% Ireland 18,843 5.0%

Singapore 7,159 91.6% Portugal 18,398 4.1%

Botswana 8,177 81.2% Denmark 14,598 3.5%

Uganda 2,678 74.5% Norway 12,530 3.4%

Large Market / Fast Growth Large Market / Slow Growth

Small Market / Fast Growth Small Market / Slow Growth

MARKET CHANGES Number of tourist arrivals to the

Western Cape and rate of year-on-year growth: 2016-2017


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2.

VISITOR PROFILE Preferred months for travelling:October 163,334November 160,313December 178,532

Whom are they travelling with:Alone 40.1% Spouse/partner 35.9% Friends 10.1%

Age profile: 25-34 31.5%35-44 18.8%45-54 14.8%

Top 5 Cities visited:Cape TownStellenboschSimon’s TownHout BayHermanus

FOREIGN TRAVELLER


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Top Activities Undertaken by Tourists to the Western Cape 2017


74,2%

73,6%

68,0%

67,6%

55,9%

44,7%

39,8%

30,0%

25,3%

17,8%

20,8%

24,7%

7,9%

17,5%

Church

Shopping

Trading

Social

Business

Education training study

Eating out

Entertainment

Nightlife

Cultural, historic & heritage

Theme parks

Wildlife

Beach

Visiting natural attractions

Adventure

PURPOSE OF VISIT: FOREIGN PURPOSE OF VISIT: DOMESTIC

Holiday 64.4% Holiday 54.6%

Visiting friends and relatives 15.8% Visiting friends and relatives 42.3%

Business / MICE 7.2% Business / MICE 9.0%

TOP 3 REASONS why visitors come to the Western Cape

Foreign vs. Domestic

81,5%


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SEGMENT ONE

Spontaneous Budget

Explorers

Aged 18-24. Have about R5,000 disposable income a month.

Travel is a way to discover new people, places and adventures. Consumers in this segment travel to get away from the monotony of daily life; to add to their life experiences and fond memories.

79% of Spontaneous Budget Explorers prefer a weekend holiday filled with activities compared to a quiet weekend getaway.

Message: Have fun in new/different surroundings, whether with existing friends or meeting new friends along the way.

SEGMENT TWO

New Horizon Families

Aged 35 and older. Have R5,000 to R10,000 disposable income a month.

Travel is a way to educate their children, and to provide them with the opportunity to broaden their perspectives. It is also seen as quality time for the family to spend together, and a reward for hard work.

46% of New Horizon Families say that special offers on flights would make them travel more, while 45% felt that special offers on hotels would encourage them to travel.

Message: Spend quality family time and broaden the family’s horizons, while being rewarded for hard work.

SEGMENT THREE

High-Life Enthusiasts

Aged 25-45. Have R10,000 or more disposable income a month.

Travel is a way to boost one’s social status, and to experience the finer things in life in new and different settings.

78% of High-Life Enthusiasts prefer a weekend holiday filled with activities compared to a quiet weekend getaway.

Message: Domestic travel is the quickest and easiest way to enjoy invaluable and enviable world-class experiences.

SEGMENT FOUR

Seasoned Leisure

Seekers

Aged 25-45. Have R5,000 or more disposable income a month.

Travel is a way of life and something of a necessity. Having grown up going on regular holidays, this group of consumers understands the value of travel experiences and memories over commodities.

Travel to escape, relax and spend quality time with loved-ones.

Message: South Africa has so many different places and ways to escape, relax and spend quality time with loved ones.

SEGMENT FIVE

Well-to-Do Mzanzi

Families

25-45. Have R10,000 or more disposable income a month.

Travel is all about escaping the city, and being able to spend time with friends and family in new and different locations.

To a certain extent, travel is also about exposing the children to alternative ways of life and activities.

53% of Well-to-Do Mzanzi Families said that special offers on flights as well as special offers on hotels would encourage them to travel within South Africa.

Message: Break away from daily pressures, whether relaxing with family or having good times with friends.

MARKET SEGMENTATION of the South African Tourism Sector


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Western Cape Air Travel

3.

International Regional Domestic

624 633

2007Total passenger

movement8,3 mil

72 587

3 421 225

667 814

2012Total passenger

movement8,5 mil

73 590

3 489 755

1 078 220

2017Total passenger

movement10,7 mil

106 754

4 122 302

Source: ACSA, 2018

WESTERN CAPE TRANSPORT CONNECTIONS

International connectivity is key to growing tourism in the Western Cape. Cape Town International Airportis Africa’s most award-winning airport, having been voted the best airport in Africa and ranked 19th inthe world (Skytrax 2017). As Africa’s 3rd largest airport, it records passenger movement of over 10 million annually.

The last 10 years has seen dramatic growth in passenger traffic. Total passenger movement (arrivals and departures) reached the 10 million mark in 2016 and continued to show remarkable growth in 2017 (10.7 million). International arrivals through the airport increased by 20.9% in 2017 year-on-year. This can largely be attributed to the number of new routes that have been secured.


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Nov 2016 Air Menzies International (AMI)

UK Cape Town Transportation Logistics, Distribution & Transportation

Jul 2015 Transitex Portugal Cape Town Transportation Sales, Marketing & Support

Oct 2014 Air Botswana Botswana Cape Town Transportation Sales, Marketing & Support

Mar 2014 Thoresen Shipping Singapore

Thailand Cape Town Transportation Sales, Marketing & Support

Oct 2013 Pentagon Freight Services UK Cape Town Transportation Sales, Marketing & Support

Sep 2013 DHL Express Germany Cape Town Transportation Logistics, Distribution & Transportation

Sep 2013 Premier Shipping and Packing Limited (PSP)

UK Cape Town Transportation Sales, Marketing & Support

Jul 2013 GAC Group UAE Cape Town Transportation Sales, Marketing & Support

Mar 2013 Crane Worldwide Logistics United States Cape Town Transportation Sales, Marketing & Support

Sep 2012 DHL Germany Cape Town Transportation Logistics, Distribution & Transportation

Jul 2011 FH Bertling Logistics Germany Cape Town Transportation Logistics, Distribution & Transportation

May 2011 DHL Global Forwarding Germany Cape Town Transportation Design, Development & Testing

Jul 2009 K Line Japan Cape Town Transportation Sales, Marketing & Support

Mar 2009 Evergreen Group Taiwan Cape Town Transportation Sales, Marketing & Support

Nov 2005 SvitzerWijsmuller Denmark Cape Town Transportation Sales, Marketing & Support

Jul 2005 Exel UK Cape Town Transportation Logistics, Distribution & Transportation

Jun 2003 GAC Logistics UAE Cape Town Transportation Logistics, Distribution & Transportation

Source: FDI, 2018

Companies investing in the Western Cape’s transport sector, 2003-2018 YTD


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Cape Town International Airport Route Network | 2017

Cape Town International Airport offers direct flights to 21 international hubs such as London, Paris, Amsterdam, Dubai, Qatar etc, with an average flying time of between 10 to 11 hours. In terms of regional flight connections, Cape Town International Airport carries out regional flights via Johannesburg’s OR Tambo International Airport, and offers the following direct regional flights:

Cape Town International Airport serves as a key port of connectivity to other cities within Africa with:

10 7 3 13 35 3 7 2 3 times a

week direct flight to

times a week direct

flight to

times a week direct

flight to

times a week direct

flight to

times a week direct

flight to

times a week direct

flight to

times a week direct

flight to

times a week direct

flight to

Addis Ababa,

Ethiopia

Maun, Botswana

Gaborone, Botswana

Walvis Bay, Namibia

Windhoek, Namibia

Livingstone, Zambia

Luanda, Angola

Port Louis, Mauritius

Victoria Falls,

Zimbabwe

times a week direct

flight to


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Cape Town International Airport Route Network | 2017

Source: Air Access, 2018

UNITED ARAB EMIRATESDubaiTURKEYIstanbulETHIOPIAAddis AbabaNETHERLANDSAmsterdamGERMANYFrankfurt, Munich, KENYANairobi UNITED KINGDOMLondon Gatwick, Heathrow BOTSWANAMaun, GaboronFRANCEParisSWITZERLANDZurichNAMIBIAWalvis Bay, WindhoekSINGAPORESingaporeZAMBIALivingstoneANGOLALuandaMAURITIUS Port LouisQATAR Doha

AUSTRIAVienna

CHINAHong Kong

RWANDAKigali

ZIMBABWEVictoria Falls, Harare


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Source: OAG, 2018

CAPE TOWN INTERNATIONAL

AIRPORT GROWTHRecent tourism growth has also been

attributed to initiatives like theCape Town Air Access Project.

The project was initiated in June 2015 and officially launched

in February 2016.

Since inception of the Cape Town Air Access project:

2013 2 317 984

2014 2 448 882

2015

2 595 766

2016

2 819 969

2017

3 062 496

Pas

seng

ers

both

way

s

Cape Town International Passengers

The CAGR and the following graph corroborates that growth is driven mostly by the increase in direct passengers and flights to Cape Town and especially after 2015.

There was compounded annual growth (CAGR) of 7% for total international passengers, and 13% for international terminal passengers, between 2013 and 2017.

3 new routes and 17 route expansions were announced.

1.5 million seats were added to the network, doubling the international seat capacity at the airport.

An estimated R4 billion in direct tourism spending was added to the Western Cape Economy.


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4.

Over the forecast period to 2021, Business Monitor International (BMI) is projecting steady growth in the number of hotels and other accommodation establishments in South Africa, averaging 4.6% between 2017 and 2021.

Now, investor attention remains largely focused on the major cities of Cape Town, Johannesburg, Durban and Pretoria. However, BMI believes there could also be scope for major hotel chains to look beyond the major cities for additional investment opportunities.

WESTERN CAPE ACCOMMODATION


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Accommodation Developments

The Western Cape secured eight new hotel investments, of which Marriott International alone opened three. These investments added over 1,300 new rooms to the Western Cape’s accommodation stock. The increase in hotel supply reflects the continuing demand in South Africa, and more so Cape Town and the Western Cape, and demonstrates the growing confidence that investors and hotel developers have in the Western Cape’s tourism sector.

According to the Western Cape Government, sector growth plans will continue to focus on the expansion of programmes and projects promoting the tourism sector. Projects will include Cycling Promotion, Air Access and Destination Marketing. In addition, the Western Cape’s construction sector has accelerated to complement the tourism expansions to date. These new developments will translate into additional jobs in these sectors.

African Pride 15 on Orange President Hotel

Southern Sun Cullinan Westin Cape Town


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Marriott International, in partnership with Amdec in the past year

announced plans to develop three new properties in the city to the value

of R3 billion.

The Carlson Rezidor Hotel Group recently launched the Radisson Red at the V&A Waterfront’s Silo District, and

Radisson Blu Hotel and Residence at the old Triangle House Building.

In addition, the emergence of Airbnb has added to rental and house price growth.

RECENT INVESTMENT PROJECTS

Tsogo Sun also has plans to add 500 rooms valued at R680 million in

Cape Town.


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Apr 2017 Kiwi.comCzech Republic

KwaZulu-Natal

Durban Hotels & Tourism Sales, Marketing & Support 11,79 13

Feb 2017 Wakanow NigeriaNot Specified

Not Specified Hotels & Tourism Sales, Marketing & Support 11,79 13

Oct 2016 WorldVenturesUnited States

Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Oct 2015 Skyline Worldwide UK Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Sep 2015InterContinental Hotels Group (IHG)

UK Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Aug 2015 Cruise.co.uk UKNot Specified


Aug 2015 Minor Hotel Group Thailand Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Sep 2012Hilton Hotels (Hilton Worldwide)

United States


Sep 2012 Vacaciones eDreams UKNot Specified


Apr 2012 Lonrho UK Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Nov 2010 Park Inn BelgiumWestern Cape

Cape Town Hotels & Tourism Construction 1699,87 219

Nov 2010Radisson Blu (Radisson SAS Hotels & Resorts)

BelgiumNot Specified

Not Specified Hotels & Tourism Construction 1699,87 219

Jul 2010Hilton Hotels (Hilton Worldwide)

United States

Western Cape

Cape Town Hotels & Tourism Sales, Marketing & Support 11,79 13

Apr 2010 Ludus ToursUnited States


Apr 2010Peacock Travels and Tours

Nigeria Gauteng Centurion Hotels & Tourism Sales, Marketing & Support 11,79 13

Nov 2009InterContinental Hotels Group (IHG)

UKNot Specified


Jun 2009 Aviareps Germany Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Nov 2008 Rezidor Hotel Group BelgiumEastern Cape

Port Elizabeth Hotels & Tourism Construction 1699,87 219

Aug 2008 IFA Hotels & Resorts KuwaitKwaZulu-Natal

Zimbali Hotels & Tourism Construction 2920,43 569

Jun 2008Africa Sun (Zimbabwe Sun Limited)

Zimbabwe Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Jan 2008 Park Inn Belgium Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

May 2007 Holiday Inn UKWestern Cape


May 2007 Holiday Inn UK Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

May 2007 Holiday Inn UK Gauteng Pretoria Hotels & Tourism Construction 1699,87 219

May 2007 Travel Counsellors UKWestern Cape

Cape Town Hotels & Tourism Headquarters 403,36 102

Apr 2007 Booking.comUnited States

Western Cape


Nov 2006 Accor France Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels IndiaKwaZulu-Natal

Durban Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels India Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels IndiaWestern Cape


May 2004 Kerzner International BahamasWestern Cape


Nov 2003International Financial Advisors (IFA)

KuwaitKwaZulu-Natal


Feb 2003 Rezidor Hotel Group BelgiumNot Specified


COMPANIES INVESTING IN SOUTH AFRICA’S HOTEL & TOURISM SECTOR BETWEEN 2003 AND MARCH 2018

Source: FDI, 2018


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Apr 2017 Kiwi.comCzech Republic

KwaZulu-Natal

Durban Hotels & Tourism Sales, Marketing & Support 11,79 13

Feb 2017 Wakanow NigeriaNot Specified


Oct 2016 WorldVenturesUnited States


Oct 2015 Skyline Worldwide UK Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Sep 2015InterContinental Hotels Group (IHG)

UK Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Aug 2015 Cruise.co.uk UKNot Specified


Aug 2015 Minor Hotel Group Thailand Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Sep 2012Hilton Hotels (Hilton Worldwide)

United States


Sep 2012 Vacaciones eDreams UKNot Specified


Apr 2012 Lonrho UK Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Nov 2010 Park Inn BelgiumWestern Cape


Nov 2010Radisson Blu (Radisson SAS Hotels & Resorts)

BelgiumNot Specified


Jul 2010Hilton Hotels (Hilton Worldwide)

United States

Western Cape


Apr 2010 Ludus ToursUnited States


Apr 2010Peacock Travels and Tours

Nigeria Gauteng Centurion Hotels & Tourism Sales, Marketing & Support 11,79 13

Nov 2009InterContinental Hotels Group (IHG)

UKNot Specified


Jun 2009 Aviareps Germany Gauteng Johannesburg Hotels & Tourism Sales, Marketing & Support 11,79 13

Nov 2008 Rezidor Hotel Group BelgiumEastern Cape

Port Elizabeth Hotels & Tourism Construction 1699,87 219

Aug 2008 IFA Hotels & Resorts KuwaitKwaZulu-Natal


Jun 2008Africa Sun (Zimbabwe Sun Limited)

Zimbabwe Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Jan 2008 Park Inn Belgium Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

May 2007 Holiday Inn UKWestern Cape


May 2007 Holiday Inn UK Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

May 2007 Holiday Inn UK Gauteng Pretoria Hotels & Tourism Construction 1699,87 219

May 2007 Travel Counsellors UKWestern Cape

Cape Town Hotels & Tourism Headquarters 403,36 102

Apr 2007 Booking.comUnited States

Western Cape


Nov 2006 Accor France Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels IndiaKwaZulu-Natal

Durban Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels India Gauteng Johannesburg Hotels & Tourism Construction 1699,87 219

Apr 2006 Indian Hotels IndiaWestern Cape


May 2004 Kerzner International BahamasWestern Cape


Nov 2003International Financial Advisors (IFA)

KuwaitKwaZulu-Natal


Feb 2003 Rezidor Hotel Group BelgiumNot Specified


GP

WC

KZN

EC

LP

MP

NW

FS

NC

31 262

27 271

17 713

10 833

9 634

8 323

7 947

3 424

2 090

NUMBER OF GRADED ROOMS IN SOUTH AFRICA, APRIL 2018

Source: Tourism Grading Council, 2018

WC

Num

ber

of e

stab

lishm

ents

1 567

1 800

1 600

1 400

1 200

1 000

800

600

400

200

0

823718 669

373 328 286162 132

GP KZN EC MP LP NW FS NC

NUMBER OF GRADED ESTABLISHMENTS IN SOUTH AFRICA, APRIL 2018

Source: Tourism Grading Council, 2018

The Western Cape now has 1,567 graded properties as of April 2018, with 27,271 graded rooms available throughout the year.

Western Cape Accommodation Stock


68,7 66,163,4 62,5 61,7 60,9 57,2

52,7

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0

% O

ccup

ancy

BENCHMARKING THE WESTERN CAPE’S HOTEL SECTOR, 2017

Western

Cape Pro

vince

KwaZulu N

atal

Free S

tate

Mpumala

nga

Gauteng

Eastern

Cape

Northern

Cape

Limpopo

Source: STR, 2018

South Africa R778.13 Port Elizabeth R531.98

Northern Cape R449.79 Nelspruit & Surrounds R510.20

Eastern Cape R554.51 Durban R642.22

Limpopo R483.71 Cape Town R1.107.63

Free State R540.38 East Rand R643.55

KwaZulu Natal R690.36 Pretoria & Surrounds R549.31

Mpumalanga R521.72 Sandton R798.63

Western Cape R1,107.63 Johannesburg R567.48

Gauteng R672.78

Occupancy & REVPAR

The Western Cape’s average hotel REVPAR of

R1,107.63 in 2017 ranked as the HIGHEST average revenue achieved across provinces, as well as the overall average for South

Africa as a whole.Source: STR, 2018

According tothe December 2017

STR Global data, the Western Cape ranked in top position

when benchmarking occupancy levels in

South Africa.

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5 .WESTERN CAPE LEISURE TOURISM

12 out of the TOP 20attractions and landmarks visited in South Africa were based in the Western Cape.

13 out of the TOP 25natural scenery and game attractions visited in South Africa were based in the Western Cape.

Robben Island ranked as the TOP landmark in the TOP 10 culture and heritage attractions visited in South Africa.

The Victoria Wharf Shopping Centre is ranked as the TOP mall in the TOP 20 malls and urban attractions visited in South Africa.

Camp’s Bay and Clifton ranked as the TOP 2 beaches in the TOP 10 beachfront attractions visited in South Africa, followed by Mossel Bay in 10th position.



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WESTERN CAPE ATTRACTIONNUMBER OF VISITORS 2017

2016/17% CHANGE

Cape Town

Kirstenbosch 968,004 +2.1%

Table Mountain Aerial Cableway 1,185,452 +5.3%

Table Mountain National Park 3,452,764 +6.2%

Table Mountain National Park: Boulders 923,625 +12.9%

Table Mountain National Park: Cape of Good Hope 1,184,413 +8.7%

V&A Waterfront 24,051,001 -2.3%

Robben Island 351,332 -6.3%

Weskus

West Coast National Park 306,486 -10.6%

Cape Overberg

Agulhas National Park 44,495 +24.8%

Bontebok National Park 22,802 +5.1%

Cape Agulhas Lighthouse 37,835 +20.5%

Kogelberg Nature Reserve 8,705 +14.9%

Cape Garden Route & Klein Karoo

Cango Caves 270,061 +11.8%

Tsitsikamma National Park 359,989 +6.7%

Wilderness National Park 111,268 +9.2%

Cape Karoo

Karoo National Park 37,468 -7.4%

Western Cape’s TopVisitor Attractions

The attractions indicated below include the Western Cape’s most popular icons for which visitor information was available, encompassing a diverse set of sights and experiences across the province. While all of the attractions depicted below are

open to everyone, resident or non-resident, domestic, regional or international, they attract a large proportion of domestic and international tourists, and represents a strong sense of tourism

demand and economic value in the province.

Sources: Kirstenbosch National Botanical Garden, Table Mountain Aerial Cableway, Table Mountain National Park, SANParks, V&A Waterfront, Robben Island, Cango Caves and Hangklip/Kleinmond Tourism, 2018

Cycling eventssuch as the Absa Cape Epicproduce estimated economic

returns of R300m. With prologueand grand finale spectators

reaching over 15 000.Source: Wesgro, 2018

Events & FestivalsThe wider economic impact of the Western Cape events sector generated an average of R260 million (April-Sept 2016). Wesgro supported 35 regional events, which created 1,600 temporary jobs and attracted around 150,000 visitors to the regions of the Western Cape.


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6 .

BUSINESS TOURISMAccording to the International Congress and Convention Association (ICCA), Cape Town is rated as the number 1 business events destination in Africa, by hosting 62 associated meetings in Africa, with an estimated 33 000 business delegates.

Cape Town’s impressive business stature is attributed to the City’s award-winning International Airport, world-class infrastructure, award-winning International Convention Centre and its vibrant destination appeal, making it a first choice destination for business events.

A large share of hotels have expanded their premises to accommodate the lucrative MICE sector, offering accommodation coupled with conference venues. The significant growth and potential of the business tourism sector serves as a strong opportunity for investors, and heightens the Western Cape’s appeal as one of the world’s leading convention destinations and the leading destination in Africa.

For the 2017/2018 year,

the Cape Town and Western

Cape Convention Bureau secured

33 bids with an economic impact

of R453m and 34 000

delegates.


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RANKING COUNTRY# NUMBER OF MEETINGS

RANKING CITY# NUMBER OF MEETINGS

1 South Africa 122 1 Cape Town 53

2 Morocco 33 2 Johannesburg 23

3 Rwanda 21 3 Kigali 21

4 Egypt 17 4 Marrakech 20

5 Ethiopia 17 5 Addis Ababa 17

6 Kenya 17 6 Nairobi 13

7 Tunisia 14 7 Durban 12

8 Uganda 13 8 Cairo 11

9 Ghana 12 9 Accra 10

10 Tanzania 11 10 Kampala 10

Key Business Tourism Facts

• International Water Association (IWA) Water Loss June 2018 Biennial Conference, bringing a total of 600 estimated delegates.

• IATA (International Air Transport Association) Slot Conference June 2019, with a total of 1,100 estimated delegates.

• For the second quarter of 2017/18 the Cape Town and Western Cape Convention Bureau secured four new bids that will all take place during low season in the Western Cape (estimated 2,600 delegates with estimated economic impact of R37m).The economic value of meetings and

conferences secured by the Cape Town and Western Cape Convention Bureau in the 1st and 2nd quarters of 2017/18 was R157 million, securing 18 new bids.

International Wikimania Conference, September 2018

SpaceOps International Congress, May 2020

15th International Conference on Mercury as a Global Polutant, July 2021

Volvo Trucks Corporate Incentive Group, September 2018

RECENT BID WINS

ICCA Rankings (2017)

Source: ICCA, 2018

Source: Wesgro, 2018


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Investment into the Western Cape’s Business Tourism Sector

Cape Town International Convention Centre (CTICC) Expansion

• The CTICC’s stylish new building has been formally named CTICC 2. This building has been designed as a seamless extension of the original building, now called CTICC 1, to provide complementary space for large exhibitions or conferences. As such the integration of the two buildings will allow an event venue complex that will affirm Cape Town’s commitment to developing business tourism and driving the knowledge economy of South Africa. However, CTICC 2 will also be able to operate as an entirely independent facility.

• The stylish new expansion is 31 148m² in extent and consists of 10 000m² of conference and exhibition space, as well as a further 3 000m² of formal and informal meeting space. In addition, CTICC will be constructing a skybridge across Heerengracht to connect CTICC 1 with CTICC 2. This development should be in place by 2019. Provisionally, there will be direct access from CTICC 2 parking, as well as from street level.

• The expansion will allow the CTICC to host much larger events and it will increase the number of events the centre are able to host at the same time. In addition, the expansion will provide the necessary capacity for clients who wish to grow their events.

Century City Conference Centre

• The new Century City Conference Centre, which forms part of a new R1,5 billion commercial and hospitality hub was open for business in 2016.

• The conference centre was opened two weeks earlier than scheduled to host a conference for a large national corporate company in mid-January 2016.

• The rest of The Square development, including the hotel and restaurants, opened as originally scheduled during February 2016.

• The conference centre has a total capacity to host 1900 delegates over 20 venues and offers flexible configurations.

• Three adjoining halls have a total capacity of more than 1 200 delegates cinema style with a fourth hall able to accommodate a further 480 delegates cinema style.

• The multi-function venues is available for banqueting and exhibitions while a large pre-assembly area is available for exhibitions, product launches and the like.

• There are also 11 meeting and breakaway rooms and a business lounge on the first floor, offering various seating styles and privacy work booths. The lounge can accommodate approximately 200 delegates.

• Big employment boost! The Century City Conference Centre and Hotel have so far employed 130 permanent staff since inception in 2016.


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7.

The Western Cape’s tourism businesses traded in an established and thriving environment, while the population grew at a constant pace over the last decade. The Western Cape has a diverse economy, inclusive of strong financial and professional services sectors. Between January 2003 and December 2017, 362 Foreign Direct Investment (FDI) projects were recorded into the Western Cape. These projects represent a total capital investment of R145.05 billion which is an average investment of R400.74 million per project. During the period, 27,586 jobs were created.

Notably, the Western Cape continues to portray strong signs of increased popularity amongst both international and domestic visitors. The province has seen remarkable growth over recent years, with a number of exciting new development projects to drive further growth into the province. The development of the 8 new hotel investments will contribute to making the province even more attractive to future investors and visitors, and even more so improve Cape Town and the Western Cape for the local residents.

WESTERN CAPE CONTEXT


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In 2017, the Western Cape’s population was estimated at 6.5 million people and represents approximately 11.5% of the total national population.

The population has been growing by 123 392 people per year; this is annual average growth of 2.1% from 2008-2017.

POPULATION

HOUSEHOLDS

Over 1.8 million households were recorded in the Western Cape in 2017, representing an increase of +14.1% since 2011.

Change in number of households (2011-2017):

2011 2017

1,602,595 1,829,219

Net migration to the Western Cape (2011-2016):

292,099

Sources: STATSSA, QUANTEC, 2018


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Age ProfileThe Western Cape’s population is relatively young with 59% of the regional population being younger than 35 years of age. Furthermore, approximately 50.7% of the population is female. This ratio becomes more pronounced, the older the sample range becomes as females have a longer life expectancy than males in the region.

00-04Year

05-09Year

10-14Year

15-19Year

20-24Year

25-29Year

30-34Year

35-39Year

40-44Year

45-49Year

50-54Year

55-59Year

60-64Year

65-69Year

70-74Year

75-79Year

80+Year

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

AGE PROFILE BY CAPE TOWN AND THE WESTERN CAPE POPULATION, 2017

Western Cape Cape Town

Age

Gro

up

Source: Quantec, 2018

Source: Quantec, 2018

-400 000 -300 000 -200 000 -100 000 100 000 200 000 300 000 400 000

80+ Year(s)

75-79 Year(s)

70-74 Year(s)

65-69 Year(s)

60-64 Year(s)

55-59 Year(s)

50-54 Year(s)

45-49 Year(s)

40-44 Year(s)

35-39 Year(s)

30-34 Year(s)

25-29 Year(s)

20-24 Year(s)

15-19 Year(s)

10-14 Year(s)

5-9 Year(s)

0-4 Year(s)

Age

Dis

trib

utio

n

Male Female

WESTERN CAPE GENDER AND AGE POPULATION DISTRIBUTION, 2017


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Employment ProfileWestern Cape unemployment was 4-percentage point (narrow definition) lower than the rest of South Africa between 2009 and 2017. In 2017, employment in the Western Cape was 2.51 million; with the largest increase within the agriculture, forestry and fishing, wholesale and retail trade and catering and accommodation services. This is a direct result of the thriving tourism sector in the region, as well as many retailers choosing the Western Cape to headquarter their business into South Africa and Africa.

Employment in the Western Cape increased by 2.0% when compared to the 2.46 million recorded in 2016. This refers to the type of economy the Western Cape has, namely a service economy. An increase in employment within these sectors indicates a stronger economic base with more high-skilled and higher-paid labour, and a corresponding growing demand for goods and services.

The Western Cape has the best literacy rate in the country. This means that the level of skills offered within the province are more extensive than offered nationally. Furthermore, there is a broad variety of tertiary institutions providing businesses with highly skilled and specialized labour. The Western Cape boasts four universities in the Cape Town metropolitan area, namely: the University of Cape Town, the University of the Western Cape, Cape Peninsula University of Technology and the University of Stellenbosch.

WESTERN CAPE SOUTH AFRICA

Population (15–64 yrs) ‘000 4 551 37 832

Labour Force (‘000) 3 127 22 370

Employed (‘000) 2 480 16 288

Unemployment rate 20,7 27,2

Employed / population ratio (absorption) 54,5 43,1

Labour force participation rate 68,7 59,1

Key Employment Indicators (April-June 2018)South Africa and Western Cape Labour force characteristics, April-June 2018

Source: Statistics South Africa, 2018


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2017Cape Town has once again been crowned as the number one city in Africa for business tourism events by the International Congress and Convention Association (ICCA). It is the fourth consecutive win for the city.

Three Cape Town breweries top the South African list for the best locations to visit across the world by travel experts Lonely Planet, in a new book exploring the vibrant world of craft beer, Lonely Planet’s Global Beer Tour. The selected brewers, taprooms and breweries are in 30 countries across five continents.

Featured in Fodor’s Go List 2017

Western Cape voted Golf Destination of the Year, 2017, Africa and Gulf States (IAGTO – International Association of Golf Tour Operators).

Leeu Estates in the Western Cape recognised as South Africa’s Leading Wine Country Hotel 2017 at the World Travel Awards Africa.

Responsible Tourism at WTM London 2017: Best for Accommodation – Grootbos & Best Tour Operator - Transfrontier Parks Destination & Marine Dynamics.

Western Cape Awards

2016Awarded the Conde Naste Readers’ Travel Awards 2016 for Best Overseas City for Restaurants & Bars, as well as the second best overseas city in the world.

The 2015-16 Telegraph Travel Awards chose Cape Town as Best City (for the fourth year running).

In Condé Nast’s Reader’s Choice Awards, Cape Town took the honour as the number one food city in the world for 2016.

Cape Town has been named as the Luxury City Destination of the Year for the second consecutive year in the Luxury Travel Guide Africa & Middle East Awards 2016.


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