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, cruising injected R1.32 billion into 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.
VALUE OF CRUISE INDUSTRY FOR CAPE TOWN
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.
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.’’
CAPE TOWN PORT CALLS
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.
Also commenting on the economic impact on 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.”
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.
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CAPE TOWN CRUISE INDUSTRY BOOSTS SOUTH AFRICA’S GDP
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.
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.’’
WORLD TRAVEL AWARDS
The Port of Cape Town has been recognised as Africa’s Leading Cruise Port at the 31st Annual World Travel Awards – for the second year in a row.
Cape Town and the Western Cape are 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 are well-positioned to further solidify their role as a key player in the global cruise market, driving sustained economic growth and job creation for the region.
