Cruise Tourism Fuels Western Cape’s Economic Growth
The Western Cape’s economy has reaped the benefits of cruise tourism during the 2022/3 season, with a new economic impact assessment revealing a contribution of R1.2 billion (€58.4 million). However, there remains untapped potential for further growth in this sector.
The assessment, conducted by StratEcon on behalf of Cruise Cape Town, covered the first complete cruise season since the lifting of COVID-19 lockdowns. It unveiled that the season generated a total expenditure of R1.4 billion (€68.1 million), thereby contributing R1.23 billion to the Western Cape economy.
This industry directly employed over 1,000 people in the province, and an additional 1,800 jobs were created through multiplier effects. According to the report, the distribution of these jobs included 43% for shops, markets, and souvenir sellers, 37% for hotels and restaurants, 6% for various business services such as tour agencies, and 5% for port fees and other government services. The remaining 10% encompassed areas like fuel, transport, recycling, and water provision.
Cruise Cape Town, established by Wesgro in 2020, follows a successful blueprint similar to the Air Access program. This initiative brings together private and public partners to foster growth by removing constraints and promoting both air and cruise travel.
Monika Iuel, Chief Marketing Officer at Wesgro, emphasized the mutually beneficial relationship between Cruise Cape Town and Air Access for the expansion of the nascent cruise industry in the province. She noted that cruise lines prefer destinations with direct flight options for their passengers, underscoring the synergy between Air Access and Cruise Cape Town’s success.
During the 2022/23 season, 70 vessels visited the province, including eight international visits, 34 international turnaround visits, and 28 domestic turnaround visits. Turnaround visits, where ships offload and take on new passengers, were particularly coveted as they allowed tourists to explore attractions before or after their cruise, resulting in increased exchange of goods and services.
The season welcomed 145,000 two-way passengers and 42,000 crew members. The Cape Town Cruise Terminal, operational since 2018, has the potential to accommodate up to 300,000 people annually, indicating room for further growth.
Research indicates that 63% of cruise passengers worldwide return to destinations they visited during their cruises. The economic impact report underscores the importance of repeat tourism for the Western Cape, as it can progressively increase over time, transforming international visitors into regular patrons.
While Cape Town Harbour received the majority of visits, the focus remains on the broader Western Cape coastline. Efforts are being made to bring economic value to smaller towns along the coastline, exemplified by Mossel Bay experiencing its most successful cruise season with 14 ships in 2022/23 and 22 scheduled for the upcoming season.
Looking ahead to the 2023/4 season, there are forecasts of 49 ship calls, 90,200 passengers, and 38,000 crew members. Although the number of ships is slightly reduced from the previous season, the focus is on larger international vessels that tend to stay longer and spend more, ensuring a sustained economic impact.
