What Caused Cape Town’s Record Tourism Numbers in December?

https://iframe.iono.fm/e/1519830″ width=”100%” height=”126″ frameborder=”0

You can also tune in to this podcast on iono.fm here.

JEREMY MAGGS: The tourism sector in Cape Town is thriving, with over 500,000 arrivals tallied at Cape Town International Airport this past December, marking a 3% increase from the previous year. Moreover, regional travel has experienced a robust 22.5% growth. This clearly indicates that Cape Town is solidifying its status as a premier global destination, supported by enhanced air connectivity and international recognition.

What factors are propelling this growth, and more critically from a numerical standpoint, what implications does it have for the city’s tourism sector? Enver Duminy serves as the chief executive officer of Cape Town Tourism. Enver, to start off, a 22.5% increase in regional arrivals—what factors are leading this trend, and which markets are contributing the most?

ENVER DUMINY: Good afternoon, Jeremy. Yes, those figures are remarkable, but we must also recognize that they are comparing to a very low base in relation to international and domestic figures. We are looking at about 11,000 from the region; nevertheless, this increase is largely due to enhanced flight capacity, with airlines like Air Botswana and others.

Thus, while it’s encouraging to see such significant growth, we should remember that it comes off a low base.

Furthermore, we consider regional Africa as part of the international metrics. Adding that into the mix does impact the overall growth.

Over the past year, we’ve noted a significant uplift—with the airport reporting approximately over 10 million two-way passengers flowing through Cape Town International Airport in the last calendar year.

JEREMY MAGGS: A 3.7% increase in international arrivals. How does that stack up against pre-pandemic figures, and do you believe it’s a reasonable uptick?

ENVER DUMINY: Yes, it is a reasonable increment. Keep in mind that December primarily serves as the festive season, mainly attracting locals. International visitors do come to Cape Town to escape the cold of Europe and the US.

However, the true peak season for Cape Town traditionally begins right after Christmas—let’s say from mid-January through to April.

Therefore, we should anticipate much higher growth. As Cape Town Tourism, our primary concern is seeing continued growth. We’ve also predicted that, based on our forecasts, the growth rate is likely to taper off by the end of 2024 as other destinations improve.

For instance, look at what happened to Durban this past year; despite their challenges, they are starting to recover. Domestic travelers might shift back to them. Additionally, improved air access is critical to our success, highlighted by the increasing number of flights and new carriers entering the market.

Take for example Norse Atlantic Airways, which just entered the market at the end of 2024.

We’ve witnessed KLM and Air France ramping up their frequency, with Air France extending their operational season through April, departing from their traditional March end date.

All these developments are encouraging, but we must acknowledge that increased arrival numbers don’t always correlate to boosts in accommodation or attraction attendance. During December, we observed mixed results in our performance metrics.

While air arrivals increased, some attractions reported declines, particularly among our major six attractions. Moreover, accommodation within the central business district (CBD) saw some decreases; however, we noticed a rise in attraction attendance and accommodation options outside of the traditional CBD. This indicates a growing geographic distribution of visitors. Moreover, today’s visitors differ. These often include individuals visiting friends and family, as well as repeat visitors who, having experienced the primary attractions during their first trip, are now keen to explore more of Cape Town’s unique offerings.

JEREMY MAGGS: A significant portion of that visitor cohort would naturally comprise local travelers, who remain the largest segment, as I’ve read. I’d like to know what strategies are in place to encourage South Africans to return to Cape Town, especially given criticisms about the city’s high costs.

ENVER DUMINY: Yes, Jeremy, that remains a continuous challenge concerning market demand.

One initiative we actively pursue is ensuring that travel remains affordable for locals.

This is an ongoing effort at Cape Town Tourism, where we engage with our members and the broader tourism industry promoting what we refer to as responsible and fair pricing to deter price gouging and greed that, while sometimes tempting in the short term, can harm our reputation. We also recognize that many South Africans are grappling with significant financial constraints. Salaries have not kept pace with inflation and operational costs of running a business in South Africa are steep. This combination elevates the challenge.

Despite these circumstances, Cape Town Tourism promotes affordable travel options.

There are numerous free or low-cost activities available in Cape Town, many of which cost under R50 or R100 for families.

Our goal is to highlight and promote these affordable experiences, as many people wish to stay in premium locations like the CBD or Camps Bay where demand is high and supply limited, naturally impacting pricing.

We are also observing some attractions offering discounted rates specifically for locals, as seen with Sanparks [South African National Parks], which practices tiered pricing based on residency status. We regard this as an ongoing process involving continuous dialogue with the industry to promote fair and responsible pricing.

JEREMY MAGGS: I’m glad you brought up the issue of price gouging. What measures do you have in place to manage that concern?

ENVER DUMINY: It’s a particularly challenging issue to address. Our approach as a membership organization involves working collaboratively with our members to help them understand the importance of long-term strategies to keep ourselves competitive and cost-effective as a destination.

Additionally, we aim to assist them in reassessing their pricing structures, and coordinating with suppliers in the sector to ensure a better understanding of the impacts of pricing decisions. We monitor social media and take in feedback from visitors, which allows us to address concerns directly with the relevant member. Essentially, our code of fair and responsible pricing aims for industry-wide adherence to maintain public trust.

JEREMY MAGGS: How much of an impact do you anticipate from the new Cape Winelands Airport on these numbers in the medium term?

ENVER DUMINY: The expected impact is significant. Cape Town International Airport can accommodate increased volume, and the growth we’ve experienced can be largely attributed to the Cape Town Air Access initiative, which has brought many new flights to the region.

Eventually, we will require a second airport.

Another consideration is that Cape Town’s urban expansion has historically been outward, not upward. Hence, improving access to the airport fosters new zones for economic growth in the northern suburbs.

JEREMY MAGGS: Lastly, regarding Cape Town International Airport, could you give a brief assessment of how this growth is affecting job creation? Is it something you can quantify?

ENVER DUMINY: At this moment, no. We typically wait for comprehensive data to come in for accurate analysis. Currently, however, we estimate around 91,000 jobs associated with the tourism sector, and we continually aim to grow that figure alongside increases in tourist arrivals.

JEREMY MAGGS: Thank you very much, Enver Duminy, CEO of Cape Town Tourism.

Stay informed with Moneyweb’s comprehensive finance and business updates on WhatsApp here.