Cape Town CBD set for record-breaking holiday season
“We expect a bumper summer season which will give Cape Town’s GDP a healthy boost, while creating jobs and opportunities in our communities," says Enver Duminy, CEO of Cape Town Tourism.
According to Grant Elliott, deputy board chairperson of the Cape Town Central City Improvement District (CCID) and COO of the property development company Thibault Investments, the CCID and its partners – the City of Cape Town and the SA Police Service – have worked tirelessly to ensure a safe, clean and welcoming CBD.
“The record increase in visitors to Cape Town’s CBD is a resounding positive for the city’s economy. The undeniable benefits include job creation and spin-offs to local businesses thanks to the surge in tourism-related activity, which supports economic growth.
This influx of local and international visitors underscores the city centre’s growing appeal as a dynamic hub for culture, business, and leisure,” says Elliott.
Boom in short-term lets
The city centre is experiencing a boom in the short-term stay market, which is dominated by platforms like Booking.com and Airbnb.
“Short-term letting has attracted investors who want to tap into this profitable market. The CBD has seen a surge of buildings being converted into short- and medium-term rentals and in particular, aparthotels where guests are able to self-cater while staying in a hotel-like environment.
"This shift not only benefits the economy but also encourages urban revitalisation. Aparthotels contribute significantly to Cape Town’s economy through job creation in cleaning, hospitality, and management services," he says.
He adds that One Thibault – the CBD building redeveloped by Thibault Investments at a cost of R500m in 2023 to cater for the growing need for short-term letting to visitors and holidaymakers in the city centre – is seeing 30 % growth in occupancies year on year. “During key event periods, we experience 100 % occupancy rates, with a strong bias to corporate travellers.”
Property research in the CCID’s flagship economic publication State of Cape Town Central City Report 2023 – A year in review revealed that the total value of property investment in the Cape Town CBD in 2023 was estimated to be R7.285 bn, with mixed-use buildings (with a hotel or aparthotel element) and residential developments dominating.
Already operational are The Trade Boutique Hotel (R65m); aparthotel's Habitat (R140m) and Neighbourhood 84 Harrington (180m); residential buildings, The Barracks (R150m), The Carrington (R70m) and The Tokyo (R150m); and the mixed-use development, The Rubik (R600m) which retail, commercial and residential components.
High demand for hotels
Two five-star hotel developments valued at over R2 billion collectively are also under construction or proposed. Unsurprisingly, demand in the hotel and leisure industry in the Mother City and the CBD is high this season.
Jacques Moolman, general manager of Southern Sun The Cullinan, says: "Cape Town’s vibrant energy during the festive season and its growing appeal as a global destination resulted in December bookings for Southern Sun The Cullinan that exceeded expectations. Early December occupancy was boosted by conferences, corporate functions and sporting events.
"The rest of December looks to be just as dynamic with robust bookings from international and domestic tourists."
According to Moolman, the CBD serves as a gateway to some of Cape Town’s most iconic attractions and natural landmarks which draw visitors from across the globe.
According to research compiled by the CCID, the CBD has experienced an almost non-stop flow of visitors throughout the year. A key contributor to this success is the steady increase over two years of direct flights to Cape Town International Airport, with 226 weekly international flights expected to land during the peak of the summer season.
Cruise economy flourishes
In addition, the growing number of cruise ships docking at Cape Town Harbour brings in a steady influx of international visitors, with Cape Town becoming known as a premier cruise destination option for Africa.
The Port of Cape Town was chosen as Africa’s Best Cruise Terminal 2024 at the World Cruise Awards in Madeira, Portugal, solidifying Cape Town’s reputation as a premier global cruise destination.
According to data compiled by Wesgro, the award-winning terminal is set to welcome over 85 ship calls this season, including 15 new vessels. According to a report on the cruise liner economy by StratEcon, cruise tourism contributed R1,2bn to the Western Cape economy during the 2022/3 season, directly employing over 1,000 people in the province.
Reports indicate that as more cruise lines explore the potential of Africa as a key region for growth, Cape Town & the Western Cape continues to position itself as the gateway to the continent.
Furthermore, as confirmation of its ever-growing popularity, the Mother City is ranked second on the prestigious 2024 Time Out list of “50 Best Cities in the World to Visit” after New York City. Cape Town was also named Africa’s Leading City Destination 2024 in the 31st World Travel Awards for the third year in a row.
Duminy says that Cape Town’s CBD is more than just the pulse of the city; it’s a place where locals and visitors connect over a shared love of culture, cuisine, and community.
“This holiday season, the CBD promises a truly unique experience with its blend of history, innovation and festive spirit.
“For visitors, my message is simple: come immerse yourself in the magic of Cape Town, where every street holds a story, and every corner invites discovery. The warmth of our people and the vibrancy of our city will ensure it’s a season you’ll never forget,” concludes Duminy.
