Tourism key in reviving Cape Town’s struggling economy

The strategy is divided into chapters that break down the needs of Cape Town’s formal sectors, as well as that of emerging and informal economic ecosystems in conjunction with spatial planning initiatives across the metropolitan region. Picture: Henk Kruger

The strategy is divided into chapters that break down the needs of Cape Town’s formal sectors, as well as that of emerging and informal economic ecosystems in conjunction with spatial planning initiatives across the metropolitan region. Picture: Henk Kruger

Published Jan 10, 2022

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James Vos

DEAR Cape Town

CAPE TOWN: As I write this, the world is getting ready to tackle the year ahead after closing the door on a taxing 2021.

In reflecting on all of last year, I take great comfort in the successes the City and our partners have made in creating more access to opportunities and the lessons learnt from the challenges we continue to face.

Reflective of this success is the uptake from domestic travellers for our pocket-friendly tourism campaign launched at the beginning of December.

In the campaign, the City, via its Official Destination Marketing Organisation, Cape Town Tourism, partnered with Travelstart and other platforms to offer discounts on flights, accommodation and experiences to local travellers.

It resulted in 271 100 domestic visitors coming to Cape Town International Airport last month.

This represents a recovery of 70% of 2019 domestic volumes. For the last two weeks of December, the average number of daily passengers increased to 20 339 and flight movements to 184 per day.

It is initiatives such as these that embody the ethos of inclusivity. These initiatives consider the needs of both those employed in tourism, and those who buy into the experiences it offers.

We will continue to work closely with partners across the public and private sector who share our goal of creating opportunity.

A recent example is the official launch of Cruise Cape Town, a partnership between the City of Cape Town, Wesgro, Transnet National Ports Authority, the Western Province Department of Economic Development and Tourism, the V&A Waterfront, and the South African Maritime Safety.

The Mother City is fast gaining recognition as a prime destination for cruise lines and I want to capitalise on this. This is a market that has potential for huge economic spin-offs, both in terms of passenger and crew spend, and for maintenance of cruise ships.

When looking at the overall tourism picture, my Economic Growth Directorate’s course of action is to restore and sustain traveller confidence and to maintain measures that will boost capacity in tourism.

We will also continue to drive marketing that results in conversion from our key source markets. Through Cape Town Tourism, we will continue promoting domestic tourism while supporting the safe return of international visitors.

In the coming year, I will place even greater effort into tourism enterprise growth. An example is the expanded rollout of the Neighbourhood Experience Development training manual, a practical guide that includes guidance on guest management and business operations.

In fact, this kind of inclusive growth is the vision across sectors. It is the driving force of the City and my work.

Inclusivity gave purpose to the July conclusion of a long-term lease between the City of Cape Town and the Cape Town Market in Epping. The agreement paved the way for a multi-million rand refurbishment that centres on SMMEs, emerging farmers, and consumers. Additionally, 78% of the market’s 7 500 active registered buyers are small buyers who play an essential role in ensuring food security for the poorest people in our city.

Our Business Hub will continue to engage with aspiring and existing SMMEs and entrepreneurs and provide guidance on tendering, supplier development concerns, and cutting through red tape. In its first two years of operation, the hub responded to 5 000 service requests, resolving 98% of them within two working days.

Cape Town’s green energy sector is one space where we are seeking possibilities in an industry that is fast becoming one of the most consequential in the country.

South Africa’s load-shedding and unemployment crises should fuel our focus on greentech growth. I am particularly proud of our achievements in the Atlantis Special Economic Zone for which the City has transferred industrial zoned properties, supported training programmes, and helped to attract investments worth some R700 million.

Another area of economic opportunity is that of immovable property. Real estate underpins several elements of our socio-economic development, from jobs in sectors such as construction, through to generating revenue that allows for the ongoing delivery of municipal services.

An example of this is the approval of the sale of a site to Kwa Ace CC in Khayelitsha, which paved the way for the launch of the first luxury hotel in the area.

Under my continued watch, the directorate will ensure the efficient and effective management and distribution of these assets. This will include the use of virtual auctions as part of our bid to make these transactions more accessible.

The challenges we have faced in this time have reminded us how a range of crises – from load-shedding to unreliable railway – affects everyone from the business owner to the informal trader to the jobless youth.

This kind of targeted intervention in high growth sectors is, I believe, an effective strategy for job growth. After all, Cape Town remains the metro with the lowest unemployment rate on the expanded definition.

All these plans across this diversity of sectors form part of the larger Inclusive Economic Growth Strategy (IEGS), which was recently adopted by Council.

Underpinned by principles such as competitiveness, sustainability, and collaboration, the IEGS is a robust action plan with nearly 200 steps. It is broken down into short, medium, and long-term timeframes aimed at expanding our efforts to be an opportunity city for all who live here.

The strategy is divided into chapters that break down the needs of Cape Town’s formal sectors, as well as that of emerging and informal economic ecosystems in conjunction with spatial planning initiatives across the metropolitan region.

It is our roadmap for a better economic future in Cape Town and its implementation will be my highest priority in my tenure as the Mayoral Member for Economic Growth.

* Vos is the Mayoral Committee Member for Economic Growth

Cape Times

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