TOURISM

he face of Cape Town ’ s hospitality sector has transformed almost completely in the last few years , and as international tourism in the province thrives , the industry is poised for further growth .

The city out-performed that of Vancouver and Tokyo when it was named the World ’ s Best City by the 2017 Telegraph Travel Awards in December . And despite tough economic times , according to data released by SA Tourism in July last year ( 2017 ), the Western Cape attracted 1.5 million foreign tourists in 2016 , who spent roughly R18 billion in the province , contributing largely to economic growth .

Leon Meyer , General Manager of the Westin Cape Town , a hotel at the Cape Town International Convention Centre ( CTICC ) precinct says the hotel industry in Cape Town ’ s CBD is “ vibrant and healthy ” and has enjoyed continued growth in the last few years , largely due to the city ’ s reputation as a preferred tourist destination .

However , transforming the industry has taken a lot of hard work , and out-of-the-box , innovative thinking to attract new guests and retain existing ones . Likewise for Marriott International of which the hotel group Westin Cape Town is a part of , Meyer says adapting has been priority , especially with the upsurge in technology globally . He says introducing loyalty programmes was one way of doing this , and is of “ great importance ” for the group and to demonstrate the hotel ’ s commitment to its guests .

In the Mother City , specifically , tourism is booming . In 2016 alone Cape Town International Airport reported that 10 million passengers entered the province , the highest number ever recorded . To keep up with the amount of tourists entering the Mother City , the past few months have seen several new hotel developments opening in the CBD alone , including the Tsogo Sun Stay Easy and Sun Square , and the Radisson Blu Hotel and Residence in the CBD . A prominent new development is the Silo District of the V & A Waterfront , including the Radisson Red and Silo Hotel .

“ The city is booming , we have people coming here from all over the world to enjoy what our city has to offer . The Western

Over in Johannesburg , the Mayor ’ s fixing up of the inner city has given rise to an excellent opportunity for investors . Street and pedestalian improvements will link the new Metro Mayoral Chambers to the Gautrain ’ s Station terminus , Constitution Hill , and Wits Univesity .

Protea Hotel by Marriott Parktonian sits at the centre of these improvements . Investors should look at the Parktonian Sectional title scheme . Units go for under a million in an established Marriott franchised hotel , the world ’ s largest hotel group .

New-build hotel investment units are advertised from R4.4 million at The Houghton , adjacent to the Golf Course , with a Leading Hotels of the World badge .

BUSINESS TOURISM IN THE MOTHER CITY

According to Wesgro CEO , Tim Harris , “ Business tourism is an important component of the Western Cape ’ s economy . Not only does it bring in delegates from around the world who will spend money in our province , it also contributes significantly to the knowledge economy . This has an important impact on the investment potential of our region , as influential individuals , with important networks , are able to experience the diversity of opportunities on offer in the Cape .”

In May 2017 , it was announced that Cape Town has been ranked the number one city in Africa for business tourism by the International Congress and Convention Association ( ICCA ). This saw the city rank in the top 40 destinations in the world , a 15-place improvement from the year before .

Cape on the whole has been placed on the global forefront with several awards and it ’ s been highly beneficial for the industry ,” he says .

Several new developments are on the cards , including the Marriott Hotel Foreshore and the Marriott Residence Inn , Meyer says both are expected to help restore the “ previously neglected ” Foreshore , boost the local economy , and in-turn grow tourism numbers in the province further .

“ Both these hotels will become two of the city ’ s largest developments in recent years , and they ’ re expected to give the Foreshore a much-needed boost . The hotels will be open for locals and tourists , which will do even better for our economy ,” Meyer says .

According to Michele de Witt , SA director for Horwath HTL – an international hotel consulting organisation , instrumental in growing the sector among English-speaking sub-Saharan Africa - Cape Town CBD is flourishing . De Witt says more foreign investors are choosing to invest in the Mother City , specifically as the city is different to other CBDs in the country . Cape Town CBD has maintained its appeal as a place to “ live , work and play ” and the province provides potential investors with a robust and relatively diversified economy in which to do business .

“ Cape Town is often on a world traveller ’ s bucket list as a must-see destination . The city ’ s desirability is further enhanced by its proximity to iconic attractions in and around the city , many of which have their own highly acclaimed reputation ,” de Witt says .

According to a recent report by the World Travel and Tourism Council ( WTTC ), Cape Town ’ s tourism revenue relies on both business and leisure visitors . 7.5 % of GDP was generated by travel in tourism in 2016 , with figures showing consistent growth over the past decade . The report also finds that one in nine people in the city are employed in the travel and tourism sector , as compared to 1 in 22 in the country as a whole .

These figures , along with the numerous hotels being developed in the city , point to a thriving tourism sector that offers savvy investors an ideal opportunity .

42 FEBRUARY 2018 SA Real Estate Investor Magazine