In October, the number of international passengers clocking through Cape Town’s airport rallied by a hefty 15% year on year, bringing the year-to-date tally to a record-breaking 2.58-million.
That comes off an already high base. International arrivals increased by 48% in 2023 and another 10% last year, according to figures released last month by Wesgro initiative Cape Town Air Access.
Overseas arrivals for the 12 months to December are now expected to comfortably breach last year’s 3-million. That’s about 25% up on pre-pandemic levels and underscores the extent to which Cape Town has positioned itself as a global tourist hotspot in recent years.
Industry players say a growing list of international accolades is getting the city on more travellers’ radars. This year Cape Town was voted best city in the world by the UK’s Telegraph and Time Out magazine, beating global heavyweights Sydney, Seville and Tokyo.
Cape Town scored highly for its natural beauty and scenery, as well as its cultural richness, vibrant food and wine scene, and hospitality excellence. Of course, Cape Town’s value proposition — given the weak rand — doesn’t hurt.
The influx of international tourists has been boosted by more airlines flying to Cape Town. Wesgro CEO Wrenelle Stander says that since January, 11 international airlines have extended their routes and frequency to Cape Town International, while two new routes have been added.
Hotel operators continue to cash in. Revenue per available room across Cape Town, a widely used metric to gauge hotel profitability, climbed 16.2% year on year in the 10 months to October. That’s well ahead of the 11.2% increase recorded for the country over the same time, according to the latest data from hotel analytics group CoStar.
Cape Town hotel guests are now paying an average of R2,538 a night, up 55% on the average R1,647 fetched in 2019 and comfortably ahead of the national average of R1,876. Occupancy rates come to 64.4% year to date, up 1.8% year on year — again comfortably ahead of South Africa’s 60.3%.
Over the peak New Year’s Eve period, rates have jumped 20%-30% — from an average daily rate of about R17,000 last year to more than R21,000
Similarly, operators of self-catering aparthotels and Airbnb-type lets also expect a strong summer season, especially at the higher end of the market.
Nick Taylor, MD of Nox Property, which manages a luxury portfolio of about 250 short-term rental apartments and villas, says average daily rates for the December to February period are up 5%-7% year on year. However, over the peak New Year’s Eve period, rates have jumped 20%-30% — from an average daily rate of about R17,000 last year to more than R21,000.
Nox’s portfolio for the year-end period is already 90% booked, up from 70% last year. Forward bookings for February and March are looking equally strong, says Taylor.
One of the company’s most valuable homes — a five-bedroom, five-bathroom mansion in Bantry Bay — has achieved R160,000 a night over the coming New Year’s period. Taylor says daily rates of R75,000-R80,000 have now become common in Nox’s Camps Bay portfolio.
Jonathan Liebmann, co-founder of BlackBrick Hotels, says forward bookings at the newly opened BlackBrick Gardens on Roodehek Street are filling up. The former mid-century hat factory has been converted into an aparthotel offering short- and long-term stays in 93 one-bedroom units. Add-on amenities include two restaurants, a bar, a coffee roastery, co-working and meeting spaces, a Pilates studio, a rooftop terrace and a pool.
Liebmann describes BlackBrick Gardens as the group’s most elevated product. “The building blends architecture, art, food and experience, and is designed to inspire a new generation of modern travellers and progressive nomads.”
Occupancy is expected to hit 85% in December and peak in February, coinciding with the Cape Town Art Fair and prime summer weather. “February will be massive for us. There’s no better place in the world to be than Cape Town at that time. That’s when international travellers want to escape the worst of the northern hemisphere’s winter,” he says.
Rates at BlackBrick Gardens typically range between R3,500 and R4,000 a night. By contrast, BlackBrick’s Foreshore property, aimed at a younger, local customer base, is priced below R2,000 a night.
Referring to the huge increase in residential and aparthotel building activity in downtown Cape Town and City Bowl areas, Liebmann believes the market for Airbnb-style short-stay apartments is reaching oversupply. However, he argues there’s still a shortage of upscale, amenity-rich products backed by a full hospitality service.
International travellers, he argues, would rather pay $200 a night than $80, “provided it comes with an extensive hospitality and leisure offering”.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.