Cape Town - Cape Town Central City Improvement District (CCID) has released their annual 'The State of Cape Town Central City Report: 2015 – A year in review', which highlights the continued strength of investment confidence driving the Cape Town CBD, an area that accounts for over 25% of the metropole’s economy and 30% of its workforce.
During the 2013/14 financial year, the City of Cape Town placed the official nominal value of property in the CBD at R23.725 billion (up from R6.127bn in 2005/06). With the developments that have been completed since 2014 and those now on the cards, this value has been estimated, conservatively, to rise by another R8.21bn within the next five years, the report found.
R832 million CTICC expansion
One of the major factors that will see the value of the CBD grow, is the expansion of the Cape Town International Convention Centre (CTICC).
This R832 million expansion will see the centre grow with 10 000m2 of multi-purpose conference and exhibition space, and 3 000m2 of formal and informal meeting space. The improvement hopes to see even more business travellers flock to the Cape Town City Centre for conferences, which has seen a major cash injection into the city over the past year.
According to the Cape Town CCID figures, the CTICC contributed R3.4 billion to the national GDP over the 2014/2015 period, and R1.20 billion of total foreign exchange earnings. It creates 8 058 direct and indirect jobs for South Africans.
R1.6 billion hotel investment
Another value-adding factor to the CBD is the increase of hotels and demand for hotels in the area.
The report shows that average hotel room rates in Cape Town’s CBD are currently 23% higher than the median for the metropole in 2015, driven by both business and leisure tourism demand for centralised accommodation.
New hotel accommodation is on the rise in Cape Town, and more than R1.6 billion will be invested in upgrading or building new hotels in the City.
According to new figures from the annual W Hospitality Group Hotel Chain Development Pipeline Survey, the overall number of planned hotel rooms in Africa has soared to 64 000 in 365 hotels, up almost 30% on the previous year.
This increase is largely down to strong growth in sub-Saharan Africa, which is up 42.1% on 2015 and is significantly outstripping North Africa which achieved only a modest 7.5% pipeline increase this year.
South Africa ranks in position 9 of the hotel development pipelines in Africa list for 2016.
READ MORE HERE: Africa hotel industry grows nearly 30% in one year
The following infographic shows the current completed, planned, purposed and hotels under construction in the Mother City:
The report includes the results of an online survey on the popular First Thursdays event, and particularly looked at the expanding night-time economy and the opportunities that exist in this sector for supply to meet demand.
It combines various value-adding aspects in the Cape Town City Centre. You can view the whole report here.
This is what the city looks like by numbers:
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