Cruise Industry Powers Western Cape Economy with R1.32 billion Boost for 2023-24 Season
- The cruise industry contributed R1.32 billion to the Western Cape economy during the 2023-24 season, up from R1.2 billion the previous season, despite a slight drop in ship calls.
- Cruise passengers, vessels, and crew generated R1.5 billion in expenditure, supporting 1,965 jobs across sectors like retail, hospitality, and tourism services.
- With the new cruise season underway, Cape Town and the Western Cape is set to enhance its role in the global cruise market, driving continued economic growth and job creation in the region.
Cape Town, 25 October 2024 - The cruise industry, a key driver of growth within Cape Town and the Western Cape’s broader travel and tourism sector, continues to demonstrate its increasing economic importance. In the 2023-24 season, it injected R1.32 billion to the region’s economy, up from R1.2 billion in the previous period. This steady growth has played a vital role in creating jobs and boosting economic activity across various sectors and comes on the back of a record-breaking performance last year.
The latest data was revealed by Cruise Cape Town, powered by Wesgro, during the official launch of the 2024-25 cruise season at the Victoria & Alfred Waterfront on Thursday evening. The event marked the beginning of another promising season for Cape Town and the Western Cape’s thriving cruise tourism industry, which has maintained its momentum despite the impact of recent global economic headwinds, highlighting the city’s appeal as a top tourism destination.
The Western Cape Cruise Liner Industry 2023-24 Season Report, now in its second year, provides a comprehensive analysis of the cruising season from November 2023 to June 2024. While the number of ship calls—scheduled stops at the port—fell slightly from 70 in the previous season to 67 in the 2023/24 year, the economic contribution saw a marked increase, highlighting the spending power of cruise passengers and the industry's resilience. Ship calls are a key metric for the cruise industry, as they are closely linked to the level of tourism revenue generated in the region.
For the 2023-24 season, the total expenditure generated by vessels and passengers reached R1.5 billion, surpassing the previous season’s figure of R1.4 billion. Cruise lines and international passengers were the primary contributors, accounting for R715 million and R713 million, respectively. Domestic passengers and crew added a further R40 million each, representing the remaining 6% of total expenditure. When factoring in the multiplier effect, this expenditure translated to a R1.32 billion boost for the Western Cape economy and a R1.69 billion contribution to South Africa's GDP.
Employment figures further highlight the industry’s local impact. During the season, 1,096 full-time equivalent jobs were directly created within the cruise and tourism industries in the region, with the multiplier effect bringing this total to 1,965 jobs. Notably, 47% of these jobs were in retail and markets, driven by increased passenger spending on local products. The hospitality sector—hotels and restaurants—accounted for 31%, followed by business services such as tour operators at 6%. Fuel bunkering accounted for 5%, with the remaining jobs spread across sectors like port services, transportation, and water provision.
Reflecting on these achievements, Wesgro CEO Wrenelle Stander, stated: ‘‘The 2023-24 season has reinforced Cape Town and the Western Cape's standing as a premier destination for international cruise lines. Despite a small dip in ship calls, the economic impact has been more substantial than ever. The R1.32 billion injection into the Western Cape economy demonstrates not only the sector's resilience but also its ability to provide consistent value to businesses and communities across the province.’’
Western Cape Minister of Agriculture, Economic Development, and Tourism Dr Ivan Meyer echoed these sentiments, highlighting the industry's wider economic ripple effects: ‘‘The cruise industry serves as more than just a tourism driver; it’s a catalyst for a range of economic activities. From transport and hospitality to local craft and wine industries, the benefits extend throughout the Western Cape. As more passengers disembark and explore our province, the local economy thrives.’’
Also commenting on the economic impact to the cruise industry, Alderman James Vos, Mayoral Committee Member for Economic Growth, City of Cape Town said: “Cape Town’s cruise industry has rapidly become a cornerstone of our tourism sector, thanks to the collaborative efforts of the Cruise Cape Town initiative. These latest figures reaffirm that our city is establishing itself as a global hub for cruise travellers. Each ship that docks injects millions of rands into our local economy, driving tourism and creating jobs. The City is proud to support this programme, as it continues to deliver immense benefits to both our economy and communities.”
V & A Waterfront CEO, David Green further added: ‘‘As we head into what promises to be another successful cruise season, I wish to also acknowledge the various role-players within the Transnet Ports, the South African Marine Safety Association and City of Cape Town, particularly the economic growth, the transport, and the traffic management and urban mobility offices, for the positive working relationship to ensure that cruise continues to be a positive contribution to the city’s tourism experience. Last Friday, the Port of Cape Town was recognised as Africa’s Leading Cruise Port inclusive of our Cruise Terminal at the 31st Annual World Travel Awards, for the second year in a row. This is testament to the hardworking personnel we have and a nod to our proud maritime heritage, one that we shall continue to capitalise on. Cape Town and the Western Cape is dedicated to offering a world-class experience for cruise passengers and operators, with terminal upgrades enabling the city to host larger, more luxurious vessels and enhance its reputation as a top African cruise destination.’’
Cape Town and the Western Cape is dedicated to offering a world-class experience for cruise passengers and operators, with terminal upgrades enabling the city to host larger, more luxurious vessels and enhance its reputation as a top African cruise destination.
‘‘The Port of Cape Town is strategically positioned on one of the busiest routes globally, this enhances the key value of the port as an enabler of cruise tourism. Through reliable marine services, TNPA continues to support the economic growth of this sector in the Western Cape. We look forward to a successful cruise season, working alongside Cruise Cape Town powered by Wesgro to promote the Port of Cape Town and Western Cape as a premier cruise destination,’’ said Ophelia Shabane, acting TNPA Port Manager.
With the new cruise season underway, Cape Town and the Western Cape is well-positioned to further solidify its role as a key player in the global cruise market, driving sustained economic growth and job creation for the region.
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