Economic Optimism Soars in Western Cape as Tourism and Aviation Thrive

Regional Focus: Western Cape

By Raine St.Claire

The impressive performance of the Western Cape’s tourism and hospitality sector during the winter of 2023 has established an optimistic outlook for the province, fostering the hope of surpassing prior summer records. This accomplishment serves as a clear testament to the sector’s substantial role in bolstering the provincial economy and fostering job creation.

In recognition of this significant contribution, Mireille Wenger, the Provincial Minister of Finance and Economic Opportunities, has expressed her optimism for the forthcoming peak summer season. She underscores the paramount significance of the tourism industry in the Western Cape, highlighting its potential to sustainably drive economic growth and create employment opportunities in the region.

Billions Fuelled Into Economy Through Air Passenger Contributions

Cape Town’s Air Access initiative, under the leadership of Wesgro, the Western Cape’s trade, investment, and tourism agency, has recently unveiled its latest findings regarding the economic benefits brought by international air travellers to Cape Town and the broader Western Cape region. Over the past year, an impressive 605,000 international passengers graced the runways of Cape Town International Airport, injecting an astounding R24.3 billion into the Western Cape’s economic landscape while supporting a substantial 10,600 jobs.

Wrenelle Stander, CEO of Wesgro and an official spokesperson for Cape Town Air Access, expressed her enthusiasm, stating, “These fresh statistics from our economic impact assessment underscore the importance of the Cape Town Air Access project. It’s not merely about enhancing air connectivity; it’s about creating a ripple effect that positively impacts tourism and the overall economy. With the upcoming peak summer season expected to surpass pre-Covid 2019 passenger levels, it’s evident that this number will continue to soar in 2023.”

To provide some context, every 100 international tourists disembarking at Cape Town International Airport contribute a remarkable R500,000 to the province’s economy. This economic boost extends through both direct and indirect aviation channels, effectively supporting two local jobs for every hundred visitors. Beyond that, these same 100 international travellers inject a direct spending of R2.1 million into the city and province. Additionally, they play a significant role in sustaining air cargo traffic valued at a remarkable R1.4 million for the province.

According to Cape Town’s Economic Growth MMC Alderman James Vos, aviation is at the heart of Cape Town’s charm as a destination. “It perfectly aligns with the goal of creating a tourism-related job in every household in the metro. When more flights are attracted, a multitude of industries benefit. The city takes pride in being a funding partner for the Air Access initiative, which has given a significant boost to the local tourism sector and the broader economy. We eagerly anticipate our aviation industry reaching even greater heights in the coming months,” he stated.

Sailing Into A Cruising Triumph: Record-Breaking 2022-2023 Season

A recent study revealed that in 2022-2023, the Port of Cape Town had its best cruise season ever. It welcomed 70 cruise ships with 145,000 passengers and 42,000 crew, double the 2016-2019 visits. The season injected over R1.2 billion into the Western Cape economy.

This pioneering study, the region’s first, bodes well for the local economy. The cruise industry is vital for Cape Town’s tourism revenue and job market. The study shows continued growth, contributing significantly to the local economy. The study found that for every 30 cruise passengers, one full-time job was created in the Western Cape cruise sector, totaling 1,800 jobs during the 2022/23 season. Cruise lines’ spending nearly matched passengers’ and crew’s onshore spending, boosting the Western Cape economy by R648 million.During 2022/23, the Cape Town Cruise Terminal managed five turnaround visits involving three ships, highlighting high demand and logistical expertise.

The resumption of cruise tourism post-Covid-19 marked a pivotal moment for the local industry. Sustainability efforts in the cruise industry, like sourcing food locally, promise economic benefits for destinations and the cruise value chain. Mossel Bay, with its impressive 14 ship visits, came close to doubling the number seen in 2019. This achievement reinforces Cruise Cape Town’s commitment to boosting cruise tourism along the Western Cape coastline. Western Cape Minister of Finance, Mireille Wenger, also emphasised the substantial economic impact of cruise tourism, particularly in smaller port towns like Mossel Bay.

Recent data from the Cruise Lines International Association reveals that 63% of cruise passengers revisit destinations they first encountered on cruises. This emphasises the importance of developing tourism products along the Western Cape coastline.

A Tale of Hope: Doringbaai Championing Coastal Conservation and Sustainable Abalone Farming

Once upon a time, Doringbaai was a serene coastal village in South Africa’s Western Cape, celebrated for its natural beauty and tranquillity. This charming fishing town, nestled along the rugged Atlantic coast, now finds itself in the midst of a legal battle unfolding in the Western Cape High Court. The case pits an environmental group against mining giants Moonstone and the French energy company TotalEnergies, who aim to drill up to ten exploration wells for oil and gas in the deepwater Orange Basin along the west coast. Their expansion plans also include areas near Doringbaai and potentially farther north, a region that encompasses biodiversity hotspots like the Olifants River Estuary and other environmentally sensitive areas.

This has raised concerns about the preservation of the once breathtaking ocean views that had made Doringbaai a haven for those seeking a tranquil getaway. Amid this fervent effort to protect their coastal paradise, a group of fishermen has emerged as a beacon of hope. Their dedication is unwavering as they work tirelessly to safeguard the community of 2,400 residents, most of whom are fishermen. Abalone, also known as “perlemoen,” thrive in repurposed factory buildings on the Doring Bay Abalone farm. This venture is led by Ruben Saul, the chairperson of the Doringbaai Development Trust, who believes in preserving their resources for future generations.

The majority of the harvested, bred, and cultivated abalones from here are highly prized in Hong Kong, China, where they are considered a delicacy. Doring Bay Abalone is among the rare South African companies legally exporting these mollusks to the Asian market, with a particular focus on preserving the critically endangered Haliotis midae species, facing severe poaching threats. Reports suggest that illegal abalone harvesting has reached alarming levels. In 2018, a TRAFFIC report estimated that nearly 100 million abalones were illicitly extracted from South African waters between 2000 and 2016, with the majority finding its way into the illegal market.

More recently, a 2022 report by the Global Initiative indicated that illegal harvesting now surpasses 3,000 tonnes annually, overshadowing the abalone aquaculture sector, which produces almost 2,000 tonnes each year. While Doring Bay Abalone strives to ensure the sustainability of this critically endangered species, producing 60 tonnes annually is just the beginning. Since its establishment in 2013 with eight workers, the farm has expanded, now employing over 50 locals.

In a departure from conventional commercial aquaculture, the community holds a 37% share in the Doring Bay farm through the Doringbaai Development Trust, with the remainder privately owned. The trust was established in response to the closure of the old Oceana crayfish factory in 2006, which had operated for about 75 years and left many in the community jobless. Since its inception in 2007, the trust has played a crucial role in offering opportunities to numerous residents of this small fishing community.

Abalones typically weigh between 100 and 250 grams in the market, often preserved through drying but also suitable for freezing, canning, or live export. Plans are underway to expand the farm by an additional 30 tonnes, a move expected to create 20 more permanent jobs. This expansion, estimated at around R8 million, further nurtures hope for the future of both Doringbaai and its abalone industry.