1 01_SOCC16_PIC.indd 1 2017/04/09 10:48 PM INTRODUCING THE 2016 REPORT AND CAPE TOWN 01 IN GENERAL EXECUTIVE SUMMARY Welcome to the Cape Town Central City, within ithe CCID’s boundaries. These A major catalyst for this is expected to be and to the fifth edition of our annual “neighbourhoods”, in many ways, have the City of Cape Town’s Foreshore Freeway investment guide, this time looking at now evolved into their own personalities Precinct project, which has generated 2016 in review. and the business done within each of much discussion and interest both in how This publication is compiled and them has evolved as well. to incorporate affordable housing into the brought to you by the Cape Town Central The usual synopses still exist among CBD to ensure that it can provide homes City Improvement District (CCID), an this publication's pages, but as it has for all tiers of its economy, and as a model organisation that has been the custodian always been an investment guide to to relieve traffic congestion. of the city’s traditional CBD since 2000. assist investors to make well-informed At the end of the day, a downtown’s The economic growth and prosperity our decisions, we hope it will now assist success can only be measured in terms of downtown has witnessed in the past those decision makers, across the how it meets the demands of the people 17 years has been extremely gratifying, broadest economic spectrum, to drill who use it. To this end, we believe many but the rise in investor confidence we down to discover even more about the opportunities still exist, whether they lie have witnessed in just the past five CBD. In this way, they can make even in creating the type of commercial space years, since the first report (looking better investments that also meet the that both corporates and coworking back at 2012), has been nothing short need and desires of other stakeholders entrepreneurs seek, or the type of retail of breathtaking. who live, work, place, visit or stay here. that will bring office workers and residents We owe huge thanks to each and into the streets to safisfy the expectations every stakeholder who has placed their of their purchasing power. All of these confidence in the Central City, whether “This edition takes the data we work together to continually invigorate they be property owners, members of the Central City to be a high potential, have accumulated and uses it to public or private enterprises, or parents high opportunity economic node. who have brought their children into the intensively dissect the Central CBD to attend an event. City into the four precincts We would also like to thank the many that exist within ithe CCID’s entities and organisations that have boundaries.” contributed their own valuable data and insights into this report, from the City of Cape Town and Western Cape Like many other global downtowns, Government to private enterprise. ours is seeing the rise of the millennials. This edition takes the data we have Likewise, we are starting to see much- TASSO EVANGELINOS ROB KANE accumulated over many years and uses needed densification take root, as we CHIEF EXECUTIVE OFFICER: CHAIRPERSON: CAPE it to intensively dissect the Central give rise to the vertical city, on both CAPE TOWN CENTRAL CITY TOWN CENTRAL CITY City into the four precincts that exist a commercial and residential front. IMPROVEMENT DISTRICT IMPROVEMENT DISTRICT 2 02_03_SOCC16_DOING_BUSINESS.indd 2 2017/04/09 10:55 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 INTRODUCING THE 2016 REPORT AND CAPE TOWN IN GENERAL ACCOLADES FOR CAPE TOWN 100 RESILIENT CITIES NETWORK: Cape Town was one of the 37 newly selected cities that joined the 63 existing cities that form the 100 Resilient Cities (100RC) Challenge. The programme is aimed at helping cities build resilience to social, economic and physical challenges in urban CAPE TOWN’S WEATHER | AVERAGES environments. Best metro for fi nancial management 17°C 475mm 48.33mm 8.7hrs 111 by Ratings Afrika. This award was based Temperature Annual Monthly Daily sunlight Annual number on a survey of all South African metros. precipitation precipitation of rainy days “Best value long-haul Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec destination in the world” AVERAGE HIGH 25 25 24 22 19 17 16 17 18 20 22 23 (2016 UK Post Office Travel Money Report) TEMPERATURE (°C) LOW 17 17 15 13 11 8 8 8 10 12 14 16 AVERAGE NUMBER ONE IN THE CATEGORY “TOP PRECIPITATION 20 20 30 50 70 90 100 70 50 40 20 20 CITIES IN AFRICA AND THE MIDDLE EAST” (MM) (Travel and Leisure 2016 World’s Best Awards) “Luxury travel destination of the year in Africa and the Middle East” CAPE TOWN IN CONTEXT (Luxury Travel Guide) The Cape Town Central City (an area covering 1.62km²) is the traditional downtown of the metropole of Cape Town, which itself is situated in the Western Cape province of South Africa. The following gives some background to the context “Best city in the world” in which each of these destinations fi nd themselves, and provides a deeper (Telegraph Travel Awards – Vancouver understanding towards the Central City. and Venice took second and third place) as well as “Cheapest long haul destination” Cape Town’s gross geographic product R3 069.817 R424.377 (GGP) as a percentage of the National 9.9% GDP (the second-highest metro in the Among Lonely Planet’s Best Travel Guide's billion billion "Top 10 cities to visit in the world” South Africa’s Western Cape’s country, with Johannesburg 15.39% GDP GDP and eThekwini 9.2%) “Best city for restaurants and bars” CAPE TOWN’S HIGHEST GROSS VALUE-ADDED (GVA) SECTORS IN ITS ECONOMY (Condé Nast Reader’s Choice Awards) report, Quarter 2 (April – June) 35.5% 17.2% 16.9% 13.3% 11.1% Finance Community Trade Manufacturing Transport services POPULATION (AS AT 2015) 54 956 920 6 200 098 3 957 798 South Africa Western Cape Cape Town UNEMPLOYMENT Number one for the “Best winter vacations of 2016” (Condé Nast Traveler). Cape Economic Performance Indicators for Cape Town Cape Indicators for Economic Performance Expanded unemployment: of the 8 879 779 LITERACY Town was selected as the number one 462 442 unemployed people in South Africa during favourite destination to visit in the northern the second quarter of 2016, 462 442 lived in 83.3% 92.5% hemisphere’s winter. Condé Nast Traveler Cape Town. While the official unemployment noted that Cape Town, as a cosmopolitan city, National Cape Town’s has prime weather conditions during this time City of Cape Town City of Cape Town rate for South Africa during 2016 averaged literacy rate literacy rate around 26- to 27%, in Cape Town this figure (December to March), with the restaurant, stood at an average of around 21%. hotel and nightlife scene at its best, rivalling SOURCES: and www.cape-town.climatemps.com 2016; www.weatherbase.com major European and American metropolises. 3 02_03_SOCC16_DOING_BUSINESS.indd 3 2017/04/09 10:55 PM THE CENTRAL CITY INThe following fi guresNUMBERS give an overall viewpoint of private and public enterprise across the entire Central City as these stood in December 2016 when research undertaken1 for this publication was analysed. These numbers are broken down further in EMPLOYMENT & Section 2 of this publication (containing high-level overviews of various sectors), RECRUITMENT as well as precinct-by-precinct in Section 3 in order to refl ect the specifi c 40 AGENCIES nature and characteristics of the four different “neighbourhoods” in the Central City. 97 EDUCATIONAL INSTITUTES & RESOURCES 82 3 12 BUSINESSES IN THE CBD Education Libraries Museums The following indicate in which categories and subcategories the 3 061 entities doing business in ARCHITECTURE, the Central City operate. These 92 ENGINEERING & SURVEYING exclude government facilities, THE VALUE OF which are listed elsewhere on these pages. 53 32 7 CENTRAL CITY PROPERTY Architecture Engineering Surveying The City of Cape Town’s most recent offi cial property valuations report (as at 2016-17) shows the overall nominal FINANCE, INVESTMENT, value of all property in the CBD to be 217 INSURANCE & BANKING R30 628 149 724 R30 628 149 724. 30 25 103 36 23 In addition, to this, there is currently Accountants Business Financial Insurance Investment (conservatively) R12.086 billion of development services & brokers companies property currently under construction, banking planned or proposed for the Central City, to be completed by 2020 (and including ACCOMMODATION those that were completed late in 2016). 297 172 & TRAVEL ENTERTAINMENT (INCLUDING CLUBS, Accommodation THEATRES, BARS & EATERIES) 65 venues (including student hostels) 11 69 4 209 4 Embassies Adult Bars & Conference Eateries Theatres or 21 entertainment clubs venues inside (see more places of complexes below) performance 86 Travel services FREIGHT, CUSTOMS BROKERING, 54 SHIPPING & IMPORT/EXPORT 12 12 30 37 Freight Import & Shipping ART & DESIGN 1 The external and independent resources forwarding export companies STUDIOS that have been used throughout this publication are sited in Sections 2 and 3, as & customs well as in the acknowledgements at the end. brokering or 62% are RESTAURANTS, of which EATERIES or 33% are open after OF 131 11 (8%) also function as bars/clubs OF 69 18h00 There are 209 eateries THESE: or 22% are FAST FOOD/TAKEAWAY THESE: whose primary function or 8% are open seven 45 OUTLETS is to serve food. 16 days a week or 16% are COFFEE SHOPS 33 4 4_5_NUMBERS_SOCC16.indd 4 2017/04/09 11:04 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 INTRODUCING THE 2016 REPORT AND CAPE TOWN IN GENERAL GOVERNMENT