Cruise tourism injects R1.32bn into WCape's economy for 2023-24

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The data was presented by Cruise Cape Town, powered by Wesgro, at the launch of the 2024-25 cruise season on October 24, 2024, at the Victoria & Alfred Waterfront. Despite recent global economic challenges, Cape Town's cruise tourism sector remains resilient, reinforcing the city's status as a premier travel 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. 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.

For the 2023-24 season, the total expenditure generated by vessels and passengers reached R1.5 billion, surpassing the previous season’s figure of R1.4bn. Cruise lines and international passengers were the primary contributors, accounting for R715m and R713m, respectively. Domestic passengers and crew added a further R40m each, representing the remaining 6% of total expenditure.

When factoring in the multiplier effect, this expenditure translated to a R1.32bn boost for the Western Cape economy and a R1.69bn contribution to South Africa's GDP.

Job creation and sector impact

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. Notably, 47% of these jobs were in retail and markets, driven by increased passenger spending on local products.

The hospitality sector—hotels and restaurants—accounted for 31%, followed by business services such as tour operators at 6%. Fuel bunkering accounted for 5%, with the remaining jobs spread across sectors like port services, transportation, and water provision.

Reflecting on these achievements, 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 R1.32bn 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.’’

Broader economic ripple effects

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.’’

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.”

Recognition and future plans

V & A Waterfront CEO, David Green further added: ‘‘As we head into what promises to be another successful cruise season, I wish to also acknowledge the various role-players within the Transnet Ports, the South African Marine Safety Association and the City of Cape Town, particularly the economic growth, the transport, and the traffic management and urban mobility offices, for the positive working relationship to ensure that cruise continues to be a positive contribution to the city’s tourism experience.

"Last Friday, the Port of Cape Town was recognised as Africa’s Leading Cruise Port inclusive of our Cruise Terminal at the 31st Annual World Travel Awards, for the second year in a row. This is a testament to the hardworking personnel we have and a nod to our proud maritime heritage, one that we shall continue to capitalise on.

"Cape Town and the Western Cape is 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.’’

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‘‘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.