How Much Of Western Cape South Africa’S Economy Is Based On Tourism?

Tourism in the Western Cape economy is crucial for creating a combined total of 300,000 jobs. In 2017, 1.727 million international visitors arrived in the province, with a total direct spend of R23 billion. A further 1.38 million domestic trips were undertaken in 2017, with total direct tourism spend of R1.6 billion. The RevPAR in July 2021 amounted to 252 South African rands (around 13 U.S. dollars), while in June 2023 it totaled 959 South African rands (roughly 51 U.S. dollars). The SAT data indicated a significant increase in the average spend by foreign tourists, resulting in spend of R12.3 billion by foreign tourists to Cape Town (70 of the total).

Cape Town has performed significantly in terms of tourists to the Western Cape (16.5 in 2018 to 17.6 (19.7 in 2018 to 29.8 in 2019). However, the Average Daily Rate (ADR) for both the Western Cape and Cape Town declined by close to 25, going from R1,655.84 to R1,264.02 and R1,844.85 to R1,399.81. Tourism is projected to contribute 43,566 people directly to Cape Town’s economy, representing around 3,2% of all direct employment.

In South Africa, the share of domestic tourist spending was higher than international tourist spending in both 2019 and 2020. With the lockdowns taking place, the average daily rate for 2021 was R1,099,69, a decrease of -9, compared to R1213,53 in 2020. The revenue per visitor to 24 participating attractions across the six regions of the Western Cape recorded a total of 271,653 visitors in June 2023, a 16-year-on-year growth in the Western Cape economy.

The Western Cape has a GDP per capita of R97,664 compared to the South African average of R81,875 per capita in 2017. Tourism contributed R800 million to the City of Cape Town’s economy in December 2021, a vast improvement from the same period in 2020. The Western Cape’s economy is growing at an average of 5 a year, and by mid-2022, it is poised to emerge as a global hub for adventure tourism, valued at US$4.6 trillion by 2032.

What is the main economic activity in Western Cape?

The Western Cape in South Africa’s South African province is primarily dominated by Cape Town, accounting for 72 percent of its economic activity in 2016. The financial and business services sector is the largest contributor, followed by manufacturing. Nearly 30 percent of the region’s gross product comes from foreign trade, with agricultural products and wine dominating exports. High-tech industries, international call centers, fashion design, advertising, and TV production are rapidly gaining importance.

The Western Cape province had a total GDP of R 424. 38 billion in 2016, growing from R268. 26 billion in 2008, and accounted for 14 of South Africa’s total GDP. Cape Town accounted for 9. 9 percent of the country’s total GDP in 2016. The province has a GDP per capita of R97, 664, lower than the South African average of R81, 875 per capita in 2017. Between 2013 and 2017, the province generated a disproportionately large number of jobs relative to the region’s size to the rest of the country’s economy. Since the founding of Cape Town by the Dutch East India Company in 1652, shipping and agriculture have been the two pillars of the Cape Colony’s economy.

Is tourism growing in South Africa?

The international arrival figures for South Africa for the period between January and March of 2024 demonstrated a 15. 4% increase in comparison to the previous year, reaching a total of 2. 4 million. Minister of Tourism Patricia de Lille expressed her approval of the increase in international travelers, noting that they contribute significantly to the economy and job creation. Furthermore, she highlighted that South Africa continues to offer a compelling proposition for all potential visitors.

What is South Africa’s biggest economy?

In 2022, Gauteng, South Africa’s largest provincial economy, experienced the highest growth rate, with its GDP expanding by 1. 9. The growth was primarily driven by finance, real estate, business services, transport, and communication. The Western Cape also experienced significant growth. However, Northern Cape, Mpumalanga, and North West recorded growth rates below 1 but were significantly impacted by the mining industry, which contracted by 7. 1% at a national level.

How many tourists visit Western Cape each year?

Cape Town International Airport’s international terminal experienced a 14-year-on-year growth in February 2024, with 294, 443 two-way passengers passing through. The domestic terminal also saw a 14-year-on-year growth, with over 576, 000 two-way passengers passing through. George Airport recorded over 59, 000 two-way passengers in February 2024, approaching full recovery compared to pre-COVID levels. 92 of the international air arrivals to Cape Town were from overseas markets, while 8 were from the rest of Africa.

The UK led as the top overseas air market to Cape Town between January and February 2024, followed by Germany, the USA, Netherlands, and France. Namibia led as the top air market from the rest of Africa to Cape Town, with Zimbabwe following closely in second position. Mozambique, Angola, and Kenya followed in the rest of the top five positions.

Air arrivals from the rest of Africa to Cape Town during January to February 2024 reflected full recovery from 7 out of the top 10 Africa source markets to Cape Town vs. Jan – Feb 2019. 43 participating attractions across the six regions of the Western Cape recorded a total of 1, 703, 804 visitors between January and February 2024, with the top 5 attractions with the highest volume of visitors between January and February 2024 being Table Mountain National Park, Table Mountain Aerial Cableway, Table Mountain National Park: Cape of Good Hope, Table Mountain National Park: Boulders, and Kirstenbosch National Botanical Garden.

The continued excellent performance of the Western Cape tourism industry is attributed to the hard work and dedication of local tourism industry, the curiosity and trust of tourists, and the determination of the government, entities, and partners. Minister Wenger expressed gratitude for the efforts of all those working hard to welcome visitors, help grow the provincial economy, and create more jobs around the Western Cape.

What is Western Cape rich in?

The Western Cape is a region with a thriving agricultural and fisheries sector. The sheltered valleys in this region provide ideal conditions for the cultivation of a variety of high-quality fruits, including apples, table grapes, olives, peaches, and oranges. Additionally, the eastern part of the region is home to a diverse array of vegetables.

What is Western Cape best known for?

The Western Cape is renowned for its scenic beauty and diverse flora and fauna. With numerous hiking trails, visitors can choose from coastal or mountain paths, offering easy options for beginners or more adventurous options for seasoned hikers. The region offers stunning views of the Big 5, San rock art, whales, unique architecture, and flower fields. The Western Cape also boasts six diverse regions, each offering a unique experience. Explore the region’s stunning mountain passes, lake districts, historical fishing villages, wheat fields, and indigenous forests.

Which country has the largest tourist economy?

In 2023, the United States surpassed pre-pandemic levels in terms of travel and tourism contribution to GDP, with a total of 2. 36 trillion U. S. dollars. China and Germany followed closely, with travel and tourism contributing around 1. 3 trillion and 488 billion U. S. dollars, respectively. The total contribution of travel and tourism to global GDP reached just under 10 trillion U. S. dollars in 2023. GDP, the total value of goods and services produced in a country in a year, is a crucial indicator of a country’s economic strength.

How much of South Africa’s economy is tourism?

In 2021, travel and tourism contributed approximately 3. 2 to South Africa’s gross domestic product (GDP), representing a decline from 6. 4 in 2019. This decline is largely attributed to the impact of the Coronavirus Disease 2019 (Covid-19) pandemic on the sector. It should be noted that the figures presented have been rounded and sourced from a variety of publications.

Why are so many people moving to the Western Cape?

The Western Cape is attracting a significant number of people due to its low crime rate, increased job opportunities, and better quality of homes. The region offers sprawling estates and high-end homes, as well as easy access to vineyards, beaches, and mountain hikes. The property market in KwaZulu-Natal is only beginning to recover since the July 2021 civil riots, prompting residents to seek a safer environment. Those investing in the Western Cape are zoning larger properties in exclusive areas, indicating a shift towards safer living environments.

Why is Western Cape so popular?

The Western Cape, situated at the southernmost point of the African continent, is a highly sought-after tourist destination, largely due to its breathtaking landscapes, which encompass imposing mountain ranges, picturesque valleys, and expansive sandy beaches.

What is the GDP of the Western Cape?

The real gross domestic product (GDP) of the Western Cape increased by 0. 31% on a quarterly basis in the first quarter of 2023, exceeding the levels observed prior to the onset of the pandemic. This resulted in a GDP value of ZAR 653. This represents an increase of 93 billion, following a contraction of -1. 03 q-o-q in the previous quarter.