Read this edition of the Western Cape Tourism & Investment Trends card to find out how the Cape’s flora ...... and a multitude of other attractions are drawing visitors to this region.

The aim of this handy, easy-to-read card is to provide operators, investors and decision makers with a high-quality, accurate overview of tourism in the Western Cape. The card tracks critical statistics pertaining to international and domestic tourism markets and highlights key developments relating to tourism. Anyone engaged in the tourism industry will find this card an essential guide and indispensable in “tracking” the latest trends in this important sector of the economy.

This card is the result of extensive collaboration between the Western Cape Tourism Board, Wesgro and Grant Thornton Kessel Feinstein working together in the interests of tourism.

Front Cover:

The floral wealth of the Cape coastal belt and the hillsides and mountains of the hinterland, rank amongst the top ten floras worldwide. WESTERN CAPE TOURISM AT A GLANCE

Overseas Tourists

Number of overseas tourists to the Western Cape (2000) 770 000

Percentage of South Africa's overseas tourists visiting the Western Cape (2000) 51%

Percentage growth in the total spend by foreign tourists (2000 vs 1999) 1%

Estimated number of overseas tourist nights spent in the Western Cape (2000) 9,9 million

Largest source market of overseas tourists to the Western Cape United Kingdom and Germany

The six most popular attractions in the Western Cape for overseas tourists V&A Waterfront, Table Mountain, Cape Point, Wine Route, Kirstenbosch and the Garden Route

Source: SA Tourism and Statistics South Africa

Domestic Tourists

Number of domestic tourist trips to the Western Cape (May 2000 to April 2001) 4,2 million

Western Cape's percentage share of South Africa's domestic visitor market (May 2000 to April 2001) 13%

Holiday trip share of total domestic tourist trips undertaken to the Western Cape (May 2000 to April 2001) 41%

Most popular regions visited by domestic tourists to the Western Cape (May 2000 to April 2001) Cape Metropole and the Garden Route

Source: South African Domestic Tourism Survey 2001 SIZE OF SOUTH AFRICA'S TOURISM INDUSTRY

Contribution to GDP - 6.9% Contribution to Employment - 6.6%

Source: World Travel & Tourism Council 2001

The South African Travel and Tourism economy is estimated to account for 6,9% of South Africa's Gross Domestic Product and employ 6,6% of the country's formal workforce.

SIZE OF WESTERN CAPE'S TOURISM INDUSTRY

Tourism share of WC GRP - Tourism share 9% of WC Employment - 9%

Source: Wesgro 1999

It is estimated that the tourism industry in the Western Cape accounts for approximately 9% of Gross Regional Product and employs 9% of the province's workforce. Wesgro has identified tourism as one of 13 growth sectors in the Province. In particular eco- and adventure tourism, incentive tourism, health tourism, corporate tourism and conferences have been identified as growth areas within the Western Cape Tourism Sector.

FOREIGN ARRIVALS - SOUTH AFRICA

7 25%

5.73 5.89 5.87 6 20% 4.94 4.98 5 4.49 15% 4 3.67 10% 3 5% 2

1 0% Number of Arrivals Foreign (Millions) Average Annual Growth (%) Number of Foreign Arrivals (Millions) Average Annual Growth Average (%) 0 -5% 1994 1995 1996 1997 1998 1999 2000 Foreign Arrivals (millions) 3.67 4.49 4.94 4.98 5.73 5.89 5.87 % Growth pa 19.019 22.34322.3 10.02210.0 0.8090.8 15.06015.1 2.7922.8 -0.339-0.3

Source: Statistics South Africa

South Africa received 5,87 million foreign visitors in 2000, a slight decline of 0,3% over 1999. This is the first decline in total foreign arrivals since 1986. However, expenditure has increased (see expenditure graph). Foreign visitors to South Africa includes overseas and African arrivals. The majority of African visitors are cross-border travellers including job-seekers, shoppers and traders from neighbouring countries. African cross-border arrivals account for some 70% of all foreign visitors. We suggest that until more is known about the characteristics and spending patterns of African cross-border arrivals it is more meaningful to consider aggregates for overseas arrivals and African air arrivals or alternatively overseas arrivals only when analysing the tourism industry.

OVERSEAS ARRIVALS - SOUTH AFRICA

1.6 1.4 1.2

1 0.8 0.6 0.4

0.2 Anual Arrivals Overseas (Millions)

Annual Overseas Arrivals (Millions) 0

1984 1985 19861986 19871987 1988 19891989 1990 19911991 19921992 1993 1994 1995 19961996 19971997 19981998 19991999 2000

Source: Statistics South Africa

A total of some 1,5 million overseas tourists visited South Africa during 2000, a 2,7% increase over 1999. The average annual growth in overseas arrivals between 1994 and 2000 was just over 8%.

Approximately 281 000 African air arrivals visited South Africa in 2000, 9% more than in 1999, following growth of around 6% in 1999 and 1998. South Africa received approximately 1,81 million overseas visitors and African air arrivals in 2000. PROVINCES VISITED BY OVERSEAS AND AFRICAN AIR ARRIVALS IN 2000

600,000

500,000

400,000

300,000 Holiday Arrivals Business 200,000 VFR Other 100,000 Number of Overseas and African Air 0 Number Arrivals of Air Overseas African and

Gauteng Gauteng North West Free State Mpumalanga Western CapeKwaZulu-Natal Eastern Cape North WestFree StateNorthern Cape Mpumalanga Western CapeKwaZulu-Natal Eastern CapeNorthern Province Northern Cape Northern Province

Source: SA Tourism The Western Cape is mainly a holiday destination for foreign air arrivals.

NUMBER OF OVERSEAS ARRIVAL NIGHTS

9000 8000 7000 6000 5000 4000 (000 s) 3000 2000 Number of Overseas Visitor Nights (000’s) 1000

Number of Overseas Visitor Nights 0

1999 GautengGauteng 2000 Free State NorthNorth WestWestFree State MpumalangaMpumalangaEastern Cape WesternWestern Cape KwaZulu-NatalCapeKwaZulu-Natal Eastern Cape NorthernNorthern Cape Cape NorthernNorthern ProvinceProvince

Source: SA Tourism

Although Gauteng attracts more foreign air arrivals than the Western Cape, in 2000 foreign air arrivals stayed an average of 11 days in the Western Cape compared to just under 9 days in Gauteng. Therefore of the nine provinces, the Western Cape has the highest number of visitor nights - approximately 9,9 million visitor nights in 2000.

The total number of foreign air arrival nights are down from 1999 as the share of foreign air arrivals that visited the Western Cape declined from 53% in 1999 to 51% in 2000. NUMBER OF OVERSEAS VISITORS TO THE WESTERN CAPE

800,000 14% 790,000 780,000 770,000 12%

760,000 760,000 10%

740,000 8%

720,000 6%

700,000 4% 680,000 Western Western Cape 680,000 2% Western Cape pa Western Western Cape (%) Western Cape (%)

660,000 0% Number of Overseas Visitors to the Number of Overseas Visitors to the 640,000 -2% Annual Growth in Overseas Visitors to the Annual Growth in Overseas Visitors to the 620,000 -4% 1997 1998 1999 2000

Source: SA Tourism and Statistics South Africa

The Western Cape attracted approximately 770 000 overseas visitors in 2000, a 3% decline over the number of overseas visitors to the province in 1990. The decline is due to the share of total overseas visitors to the Western Cape in 2000. However, the total expenditure did increase (see expenditure graph).

ORIGIN OF OVERSEAS VISITORS TO SOUTH AFRICA

Far East/Asia Australasia United Kingdom Middle East 5% 2% 10% 22%

Central and South America 3% Germany 14%

North America 13% Europe (other) France Scandinavia 16% Netherlands 3% 6% 6%

Source: Statistics South Africa

European tourists make up the lions share of foreign visitors to South Africa accounting for 67% of overseas air arrivals in 2000. The United Kingdom is South Africa's largest source market in respect of overseas tourists (in 2000, 22% of all overseas tourists emanated from the United Kingdom). 14% of all overseas tourists are German and a further 31% are from other European countries. The North American (USA and Canada) market is also significant at 13% of all overseas visitors. ORIGIN OF OVERSEAS VISITORS TO THE WESTERN CAPE

Far East/Asia Australasia Middle East 8% 4% United Kingdom 2% 25% Central & South America 3%

North America 13%

Germany 15% Europe (other) 15% Scandinavia Netherlands France 4% 5% 6%

Source: SA Tourism

The breakdown of overseas visitors to the Western Cape by source market is very similar to that of South Africa as a whole, with visitors from Europe accounting for 70% of all overseas visitors to the province in 2000.

OVERSEAS AND AFRICAN AIR ARRIVALS - PURPOSE OF VISIT TO SOUTH AFRICA

Other 10%

VFR Holiday 21% 41%

Business 28%

Source: SA Tourism

In 2000, approximately 41% of all overseas and African air arrivals to South Africa visited the country for holiday purposes, 28% visited South Africa for business purposes and a further 21% were VFR travellers (visiting friends and relatives). The remaining 10% of foreign air arrivals visited South Africa for other purposes.

OVERSEAS VISITOR EXPENDITURE

In 2000, the average overseas visitor to South Africa spent R981 per person per day (excluding their airfare). This average daily expenditure has increased by 3% over that recorded in 1999. Therefore, although the average length of stay has continued to decrease (from 16,9 days in 1998 to 16,3 days in 1999 to 15,4 days in 2000) the overall expenditure per trip has in fact increased slightly. OVERSEAS AND AFRICAN AIR ARRIVAL EXPENDITURE PER PROVINCE

10 9 8 7 6 5

billion) 4 3 2 Total Expenditure (R

Total Expenditure (R billion) Total 1 0 1999 2000 GautengGauteng North WestFree State Mpumalanga North West Western Cape MpumalangaEastern Cape Western KwaZulu-NatalCapeKwaZulu-Natal Eastern Cape NorthernNorthern Cape NorthernNorthern Province Province

Source: SA Tourism

In 2000 foreign air arrivals spent in the region of R9,7 billion during their stay in the Western Cape, an increase of 1% over 1999. In the same year foreign air arrival spend in Gauteng was in the region of R9,2 billion and R4 billion in KwaZulu-Natal.

KEY ATTRACTIONS VISITED BY OVERSEAS AND AFRICAN AIR VISITORS

45% 40% 35% 30% 25% 20% Visiting Visiting 15% 10% % Overseas Tourists

% Overseas Tourists 5% 0% 1998 1999 2000

Cape PointPoint WineWine Route Kruger Park KirstenboschKirstenboschKruger Park GardenGarden RouteRoute Ostrich Farms Robben IslandCango Caves V&AV&A WaterfrontWaterfront TableTable MountainMountain Robben Island DurbanDurban BeachfrontBeachfront

Source: SA Tourism

Nine of the 11 top tourist attractions in South Africa are located in the Western Cape. This highlights the importance of this province in respect of South Africa's overseas tourism industry.

In 2000, approximately 42% of all overseas tourists to South Africa included a trip to the V&A Waterfront during their visit to South Africa. 33% of South Africa's overseas visitors visited Cape Point and 34% also visited Table Mountain. Other important Western Cape attractions include the Wine Route, the Garden Route, Kirstenbosch, Ostrich Farms, Robben Island and the Cango Caves. AVERAGE LENGTH OF STAY IN THE WESTERN CAPE

9 7.9 8.1 7.4 7.6 8 7 7 6 5

Days 4 3 2 1.9 2 1.8 1.8 1.8 1.8 1.8 1.8 1.45

Average Average Number of 2 1 0 1996 1997 1998 1999 2000

Cape Town Garden Route Rest of Western Cape

Source: SA Tourism

In 2000, the average overseas visitor stayed in South Africa for just over 15 days which is less than recorded in previous years. There appears to be a trend toward a decreasing average length of stay in South Africa. In general, travellers visiting friends and relatives stay longer than pure holiday tourists.

The average length of stay in the Western Cape has not changed considerably over time. On average, overseas visitors spend 7 to 8 days in Cape Town, 2 days in the Garden Route and 2 days in the rest of the Western Cape. Note that these average stays are not cumulative.

ACCOMMODATION UTILISED BY OVERSEAS AND AFRICAN AIR VISITORS

70% 60% 50% Visitors 40% 30% 20% 10% % Overseas Visitors % Overseas 0%

South Africa HotelsHotels Western Cape Self-Catering Game Lodges Self-Catering Bed & Breakfast Holiday Resorts Friends & Relatives BackpackersBackpackers’Camping/ Hostels Caravaning Country/Country/ GuestGuest HousesHouses

Source: SA Tourism

Hotels are the most common form of accommodation utilised by visitors to South Africa and to the Western Cape. 60% of overseas visitors to the Western Cape stay in hotels whilst in the province. Very few overseas visitors make use of game lodge accommodation whilst in the Western Cape, which can be attributed to the low number of game lodges in the province when compared to the rest of South Africa. Bed and breakfasts, guesthouses and homes of friends and relatives are also important forms of accommodation utilised by overseas visitors to the Western Cape. The Western Cape has proportionally less visitors staying with friends and relatives than South Africa as a whole. FACILITIES UTILISED BY OVERSEAS AND AFRICAN AIR VISITORS TO THE WESTERN CAPE

100% 90% 80% 70% 60% 50% 40% 30%

Western Cape 20% to Western Cape % Overseas Visitors to % Overseas Visitors 10% 1999 0% 2000

Bus Tours Restaurants Car Rentals Bus Tours Car Rentals Restaurants Public Transport Shopping facilitiesBanking Services Public Transport Banking Services Conference Facilities Shopping Facilities Conference Facilities

Source: SA Tourism

Approximately 90% of overseas visitors make use of restaurants whilst in the Western Cape, 80% utilise the shopping facilities in the province and close to 40% hire a car during their stay in the Province. In January and August 2000, only 5% of overseas visitors made use of conference facilities whilst in the Province.

PERCEPTIONS OF OVERSEAS AND AFRICAN AIR VISITORS TO SA AND THE WESTERN CAPE

90% 80% 70% 60% 50% 40% 30% Rating Good Rating Good 20% 10% % Overseas Visitors - % Overseas Visitors - 0%

FriendlinessFriendliness HelpfulnessHelpfulness CleanlinessCleanliness South Africa PersonalPersonal SafetySafety Western Cape

Source: SA Tourism

In general, a higher percentage of overseas visitors rated friendliness, helpfulness, cleanliness and personal safety as "good" in the Western Cape when compared to the overall "good" rating for South Africa as a whole. SOUTH AFRICA'S DOMESTIC TOURISM INDUSTRY

Following a long lack of national domestic tourism surveys, South African Tourism commissioned the South African Domestic Tourism Survey 2001. The study was the largest of its type ever undertaken in South Africa and included interviews with 9 527 respondents, detailing their day and overnight trips taken during May 2000 to April 2001.

The study found that during May 2000 to April 2001 domestic tourists took 33,5 million overnight trips and 20,9 million day trips.The South African Domestic Tourism Survey conducted in 1996 indicated that domestic tourists took 30,4 million overnight leisure trips in 1996, but due to a variation in research methodology care should be taken when comparing the 2001 and 1996 studies for growth.

ORIGIN OF SOUTH AFRICA'S DOMESTIC TOURISTS

Western Cape Eastern Cape 12% 12% Free State North West 7% 8%

Northern Province 13% Gauteng Northern Cape 24% 2% KwaZulu-Natal 15% Mpumalanga 7%

Source: South African Domestic Tourism Survey 2001

Gauteng was the biggest generator of domestic overnight trips between May 2000 and April 2001. The Western Cape accounted for 12% of all domestic overnight trips.

ORIGIN OF THE WESTERN CAPE'S DOMESTIC TOURISTS

Eastern Cape Free State 10% 3% Gauteng 15%

KwaZulu-Natal 7% Western Cape 55% Mpumalanga 2% North West Northern Cape 2% Northern Province 4% 2%

Domestic tourists in the Western Cape travel mainly within their own province, with 55% of overnight domestic trips to the Western Cape originating from within the province. DESTINATIONS FOR SOUTH AFRICA'S DOMESTIC TOURISM OVERNIGHT TRIPS

Western Cape Eastern Cape 12.5% 12.8% Free State North West 6.7% 7.9%

Northern Province 12.9% Gauteng 19.6% Northern Cape 2.7% KwaZulu-Natal 19.0% Mpumalanga 5.7%

Source: South African Domestic Tourism Survey 2001

The latest domestic tourism survey shows that Gauteng was the most popular destination for all overnight trips, followed closely by KwaZulu-Natal. Gauteng was the most popular destination due to it high share of overnight VFR trips (64% of all trips to Gauteng) which comprise the majority (59%) of all overnight domestic trips taken during May 2000 to April 2001.

When these results are analysed according to the type of trip a different picture emerges. Based on the total number of overnight trips to each province and the purpose of overnight trip to each province we have calculated the type of trip per province.

Our calculation shows that the Western Cape is the second most popular destination for overnight holiday and business trips.

Destinations Holiday VFR Business Health Religious Total Share %%%%%% Eastern Cape 14.3 14.0 6.1 4.0 8.8 12.8 Free State 4.5 7.7 8.3 11.4 4.8 6.7 Gauteng 12.5 21.9 28.4 22.0 19.0 19.6 KwaZulu-Natal 23.6 18.2 15.0 26.5 14.7 19.0 Mpumalanga 6.5 5.1 6.6 2.4 7.3 5.7 Northern Cape 2.8 2.6 5.8 3.9 1.9 2.7 Northern Province 9.2 11.1 6.8 11.0 28.7 12.9 North West 3.8 9.2 6.2 8.3 9.9 7.9 Western Cape 22.8 10.1 16.8 10.6 4.9 12.5 Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: South African Domestic Tourism Survey 2001 and Grant Thornton Kessel Feinstein Calculation

DOMESTIC VISITORS BY LSM SUPERGROUP

100% 90% LSM 8 80% LSM 7 70% LSM 6 60% LSM 5 50% LSM 4 40% LSM 3 30% LSM 2 20% LSM 1 10% 0%

Gauteng Free State North West Mpumalanga Eastern Cape GautengKwaZulu-Natal Northern Cape Western Cape Free State Northern ProvinceNorth West Mpumalanga Eastern Cape KwaZulu-Natal Northern Cape Western Cape Northern Province Source: South African Domestic Tourism Survey 2001 The domestic tourists that visit the Western Cape are higher income tourists as 66% of the domestic tourists to the Western Cape fall within the LSM 7 and LSM 8 groups.

DOMESTIC TOURISTS - PURPOSE OF VISIT South Africa Western Cape

Health Business Health Business 1% 4% 2% 5% Religious Religious VFR 14% 5% 47% Holiday VFR Holiday 21% 59% 42%

Source: South African Domestic Tourism Survey 2001

The purpose for the majority of the domestic overnight trips in South Africa are to visit friends and family (VFR) followed by holiday trips.

In the Western Cape overnight VFR trips were more closely followed by overnight holiday trips than in the rest of the country. When comparing the purpose of overnights trips per region it emerge that the West Coast, Breede River, Central Karoo, Garden Route, Klein Karoo and Overberg are predominantly holiday destinations.

Region Holiday VFR Business Health Religious All Western Cape Trips %%%%%% West Coast 53.6 40.2 0.6 3.5 2.1 6.6 Winelands 22.4 51.5 5 5.7 15.4 5.9 Breede River 51.7 38.4 2.7 0 7.2 7.6 Central Karoo 49.5 39.8 5.1 0 5.6 2.2 Garden Route 66 27 2.7 0.8 3.5 16.4 Klein Karoo 48 40.3 4.1 0.8 6.9 2.5 Cape Metropole 27.9 56.4 7.7 3.3 4.6 44.3 Swartland & Sandveld 14.4 65.6 8 0 11.9 1.5 Olifants River Valley 39 51.4 6.3 0 3.3 5.1 Overberg 57.7 34.6 1 0.5 6.3 8.1 Total 41.1 46.2 5.1 2.2 5.4 100

Source: South African Domestic Tourism Survey 2001

WEIGHTED AVERAGE EXPENDITURE PER CAPITA PER TRIP 800 687 700 600 495 500 448 496 400 356 349350 339 270 267 300 238 200 100 Trip 0 Capita per Trip Natal Cape Cape Cape Cape Cape Natal Eastern Western Gauteng Northern Northern Province Western Gauteng Northern Province Northern KwaZulu- KwaZulu- Free State North West Free State North West Mpumalanga Mpumalanga Eastern Cape Weighted Average Expenditure per Capita Weighted Average Average Expenditure per Weighted

Source: South African Domestic Tourism Survey 2001 and Grant Thornton Kessel Feinstein Calculation The average expenditure per capita for all types of overnight trips in South Africa as a whole is R437 of which R182 (42%) was spent on transport, R97 (22%) on accommodation, R105 (24%) on food, R34 (8%) on entertainment and R20 (5%) on gifts.

The Western Cape has the highest average expenditure per domestic tourist of all the provinces, which correlates with the large share of domestic tourists to the Western Cape in the LSM 7 and LSM 8 groups.

AREAS VISITED BY DOMESTIC VISITORS TO THE WESTERN CAPE

45% 40% 35% 30% 25%

Area 20% 15% to Area to 10% 5% Share of Domestic Tourists (%) to 0% Share of Domestic Tourists (%) Share of Domestic Tourists

Overberg Winelands West Coast Klein Karoo Overberg WinelandsBreede RiverCentral KarooGarden Route West Coast Klein KarooCape Metropole Breede CentralRiver Karoo Garden Route Olifants River Valley Cape MetropoleSwartland & Sandveld Olifants River Valley Swartland & Sandveld Source: South African Domestic Tourism Survey 2001

The Cape Metropole is by far the most popular destination for domestic tourists to the Western Cape, followed by the Garden Route.

ACTIVITY PREFERENCES OF DOMESTIC TOURISTS TO THE WESTERN CAPE

80%

70%

60%

50%

40%

the activity 30%

20%

10% Share of Domestic Tourists that prefer the activity

Share of Domestic Tourists that Share prefer of Domestic Tourists 0% Live Visiting Going to Visiting Visiting Shows, Museums, Religious the beach Nature Shopping Robben Dining Theatre or CricketRugby Art Gatherings Reserves Island Concerts Galleries, etc Activity 71.8 58.8 54.5 51.7 49.8 47.2 44.5 44.1 42.8 39.2

Source: South African Domestic Tourism Survey 2001

Going to the beach was the most prefered activity of domestic tourists to the Western Cape, followed by visiting a nature reserve and shopping. SEASONALITY OF DOMESTIC TOURISM DEMAND FOR THE WESTERN CAPE

25% 20%

15% 10%

Share of Trips (%) 5% Share of (%) Trips 0% Jan Feb Mar Apr May Jun Jul Aug Sep OctNov Dec

Source: South African Domestic Tourism Survey 2001

April and December are the most popular months for domestic trips to the Western Cape. This seasonality correlates with the overall seasonality of all domestic trips to all destinations.

PERCEPTIONS OF DOMESTIC TOURISTS TO THE WESTERN CAPE

70%

60%

50%

40%

30%

perception as good 20%

rated perception as good 10% Share of Domestic Tourists that rated Share of Domestic Tourists that Share of Domestic Tourists 0%

Roads Services Roads Services Transport Information TransportRoad Signs Information Tour Guides Tour GuidesTour Operators Road Signs Accommodation Value for Money Safety & Security Booking Facilities Tour Operators Accommodation Value for Money Safety & Security Booking Facilities

Source: South African Domestic Tourism Survey 2001

66% of respondents rated the Western Cape's accommodation as good. Roads and road signs, as well as services and information received high ratings. ONE DAY EXCURSIONS BY DOMESTIC TOURISTS

The South African Domestic Tourism Survey found that during May 2000 to April 2001, domestic tourists took 20,9 million day trips.

The domestic day trippers originated from the Eastern Cape (22%), Gauteng (20%), Northern Province (14%) and the Western Cape (13%). The Cape Metropole was a popular destination with day trippers, recieving 9% of all one day trips.

South African Tourism Regions Number of Trips Share of Total Central Gauteng 2,305,489 11% Wild Coast-Transkei-Ciskei 2,050,496 10% Cape Metropole 1,901,684 9% Capricorn 1,017,248 5% Soutpansberg 955,853 5% Eastern Gauteng 873,915 4% Friendly N6 805,495 4% Valley of the Elephants 798,396 4% Northern Gauteng 743,758 4% Eastern Free State 546,024 3% Other 8,907,586 43% Total 20,905,944 100%

Source: South African Domestic Tourism Survey 2001

As can be expected, day trippers to the Western Cape originated mainly from within the province (92%), with 5% of day trippers originating from Gauteng.

The Western Cape also received mainly day trippers in the higher LSM groups, with 61% being in LSM 7 and LSM 8. This profile is confirmed with day trippers to the Western Cape having the highest per capita expenditure for all provinces.

100 95 90 80 70 63 63 60 56 56 56 55

(R) 50 37 40 (R) 40 30 20 10 Per Capita Expenditure per Trip 0 Per Capita Expenditure per Trip

Gauteng Free State Gauteng North West Free State Mpumalanga North West Eastern Cape KwaZulu-Natal Northern Cape Western Cape Eastern Cape Mpumalanga KwaZulu-Natal Northern CapeNorthern Province Western Cape Northern Province

Source: South African Domestic Tourism Survey 2001 HOTEL OCCUPANCY Average OccupancyAverage Occupancy - SA and - SA Cape and Cape Peninsula Peninsula

90% 80% 70% 60% 2000 Cape Peninsula 50% 2000 South Africa 40% 1999 Cape Peninsula 1999 South Africa 30% 20% Average Occupancy (%) 10%

Average Average Occupancy (%) 0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec

Source: Statistics South Africa

According to Statistics South Africa, demand for hotel accommodation in the Cape Peninsula (for all hotel grades) has a higher seasonal fluctuation than for South African hotels as a whole. In the Cape Peninsula, hotel occupancies peak in February and March with high season extending from October to April. On average, June is the month with the lowest hotel room demand. In the Cape Peninsula, monthly hotel room occupancies declined in 1999 over 1998, but increased again in 2000.

Average Occupancy - SA and Cape Peninsula

80% 72% 65% 70% 60% 54% 57% 60% 52% 52% 51% 50% South Africa Cape Peninsula 40% 30% 20%

Average Occupancy (%) 10%

Average Average Occupancy (%) 0% 1997 1998 1999 2000

Source: Statistics South Africa

AVERAGE ROOM RATE

350

300

250

200 South Africa 150 Cape Peninsula

100

Average Room Rate (R) 50 Average Average Room Rate (R) 0 1997 1998 1999 2000

Source: Statistics South Africa

The Cape Peninsula hotels achieve a higher average room rate than the average South African hotel. 10 PROJECTS UNDER CONSTRUCTION

• Convention Centre (completion mid-2003) • V&A Canal Link • Cape Town International Airport extention (10 year project) • Tourism Centre in Clock Tower at V&A Waterfront • Robben Island Gateway at Clock Tower • Athlone Soccer Stadium upgrade • Arabella Sheraton Hotel (at the Convention Centre) • Crossroads Tourism Centre • Lookout Hill, Khayelitsha • Thesen Island, Knysna Source: Wesgro

10 INVESTMENT OPPORTUNITIES

• Silverstroom Strand Residential & Tourism Precinct • Seapoint Pavilion mixed redevelopment • Big Bay mixed development • Barrydale Wildlife Reserve • Langebaan Lodge • Saldanha Bay Marina • Elands Bay Harbour & Waterfront • Cape Agulhas Hotel/Resort • Monwabisi Resort, Khayelitsha • Goose Valley Golf Estate, Plettenberg Bay

For details about these projects contact Wesgro, Cape Town (021) 418 - 6464

WESGRO'S IDENTIFIED TOURISM MARKET SEGMENTS IN THE WESTERN CAPE

• Business • Meetings, Incentives, Conferences & Events • Family Holidays • Backpackers • Visiting Friends & Family • Health Tourism (incl. Medical treatments, Spa's, etc.) • Historical routes/events • Cultural Events (Metro Cape Town and platteland) • Trade Fairs • Academic Conferences • Sightseeing (Core attractions & Specialised) • Sport (incl. National Sport Disciplines and Adventure Sport) • Eco-tourism • Pensioner Retreat Source: Wesgro You are always welcome to contact us ...

Cape Metropolitan Tourism Wesgro 9th Floor Tarquin House 22nd Floor Cnr Loop & Shortmarket Streets 2 Long Street Cape Town Cape Town 8001 PO Box 16548 PO Box 1678 Vlaeberg 8018 Cape Town 8000 Tel: +27 21 487 2718 Tel: +27 21 418 6464 Fax: +27 21 487 2977 Fax: +27 21 418 2323 [email protected] [email protected] www.gocapetown.co.za www.wesgro.org

Chief Directorate Business Promotion Western Cape Tourism Board and Tourism Tijger Park III PO Box 979 Bloemhof Street Cape Town Tyger Valley 7536 8000 PO Box 3878 Tel: +27 21 483 4165 Tyger Valley 7536 Fax: +27 21 483 3018 Tel: +27 21 914 4613 Fax: +27 21 914 4610 Grant Thornton Kessel Feinstein [email protected] Tourism Hospitality and Leisure Consulting www.capetourism.org 4th Floor, Forbes House 14 Long Street Cape Town PO Box 1550 Cape Town 8000 Tel: +27 21 418 3162 Fax: +27 21 425 1276 [email protected] www.gt.co.za

Tourism, Hospitality & Leisure Specialists South African member of Grant Thornton International