As the 2024/25 cruise season sets sail, the cruise industry once again demonstrates its increasing significance within the Western Cape economy with an injection of R1.32 billion, reports Cape {town} Etc.
Up from R1.2 billion in last year’s record-breaking season, this steady growth has played a vital role in creating jobs and boosting economic activity across various sectors.
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The official opening of the 2024–25 cruise season on Thursday evening, which signaled the beginning of another promising season for Cape Town and the flourishing cruise tourism industry in the Western Cape, saw the release of the most recent data.
According to The Western Cape Cruise Liner Industry 2023/24 Season Report, now in its second year, the total expenditure generated by vessels and passengers from November 2023 to June 2024 reached R1.5 billion, surpassing the previous season’s figure of R1.4 billion.
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.
The report also indicated that 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.
When factoring in the multiplier effect, this expenditure translated to a R1.3 billion boost for the Western Cape economy and a R1.69 billion contribution to South Africa’s GDP.
Similarly, according to Cruise Cape Town, the report’s employment figures further highlighted 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 due to rising passenger spending on regional goods.
The majority of jobs (31%) were in the hospitality industry, with tour operators coming in second (6%) and fuel bunkering coming in third (5%).
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‘The 2023/24 season has reinforced Cape Town and the Western Cape’s standing as a premier destination for international cruise liners,’ said Wesgro CEO Wrenelle Stander, reflecting on the latest season’s achievements.
‘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.’
Echoing the sentiment, the City’s MMC for Economic Growth James Vos said the City of Cape Town is proud to support the Cruise Cape Town initiative as it continues delivering immense benefits to both the region’s economy and communities.
‘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,’ said Vos. ‘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 launch of the 2024/25 cruise season follows shortly after the Port of Cape Town was recognised as Africa’s Leading Cruise Port at the 31st Annual World Travel Awards, which was highlighted by V&A Waterfront CEO David Green:
‘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,’ said Green.
‘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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Picture: Wesgro / Facebook
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