Western Cape expects R1.3 billion cash injection as 2024/25 cruise season kicks off

As the 2024/25 cruise season launches, Cape Town’s cruise industry continues to show its growing impact on the Western Cape economy, contributing an estimated R1.32 billion in its most recent iteration.

This growth, up from R1.2 billion in the record-breaking 2023/24 season, has provided supported local job creation and economic activity across various sectors. 

The recently released Western Cape Cruise Liner Industry 2023/24 Season Report, now in its second edition, noted a total expenditure of R1.5 billion from vessels and passengers between November 2023 and June 2024, exceeding the previous season’s R1.4 billion. 

This was despite a fall in the number of ship calls from 70 to 67, reflecting the continued spending power of international cruise passengers.

Key contributors to this growth were international passengers and cruise lines, accounting for R715 million and R713 million, respectively. Additional contributions came from domestic passengers and crew, each adding R40 million, representing a smaller but vital 6% of the total expenditure. 

When multiplied across sectors, this spending translated to a R1.3 billion boost for the Western Cape economy and R1.69 billion for South Africa’s GDP overall.

This translates into significant job creation. During the 2023/24 season, an estimated 1,096 full-time equivalent jobs were created in the cruise and tourism sectors, with indirect effects bringing the total to 1,965 jobs. 

Retail and markets saw the highest share of employment (47%) due to strong passenger interest in regional goods, followed by hospitality (31%), tour operators (6%), and fuel bunkering (5%).

“The R1.32 billion injection into the Western Cape economy shows the resilience of the cruise sector and its sustained value for businesses and communities,” said Wrenelle Stander, CEO, Wesgro. “Despite a minor drop in ship calls, the economic impact has been more substantial than ever.”

James Vos, the City’s MMC for Economic Growth, echoed this sentiment, expressing pride in the Cruise Cape Town initiative’s continued contributions. 

“Our cruise industry has quickly become a cornerstone of Cape Town’s tourism sector,” Vos said. “Every ship visit injects millions into the local economy, boosting tourism and creating jobs.”

The 2024/25 cruise season gets underway as the Port of Cape Town is once again recognised as Africa’s Leading Cruise Port at the 31st Annual World Travel Awards. 

David Green, CEO, V&A Waterfront, acknowledged the milestone, stating, “Winning Africa’s Leading Cruise Port for the second consecutive year reflects the dedication of our teams and Cape Town’s rich maritime heritage. With terminal upgrades, we’re well-positioned to welcome larger, more luxurious vessels, enhancing Cape Town’s standing as a premier cruise destination.”