Wesley Cowan, Managing Director
Galetti Auction – Cape Town
If last year’s indicators were anything to go by, then Cape Town is for another record-breaking festive season.
In December 2023, Cape Town International Airport saw an 18% increase in international visitors compared to the previous year. This growth continued into early 2024 with a 13% rise in tourist arrivals from January to April, outpacing 2019’s numbers by over 55,000 visitors.
“Cape Town is considered one of the world’s top travel destinations, and it remains affordable compared to cities like London and New York,” says Wesley Cowan, Managing Director of Galetti Auction (Cape Town).
Reflecting its popularity, Cape Town was again named Africa’s Leading City Destination at the World Travel Awards in October 2024 for the fourth consecutive year.
One in 23 people in Cape Town work in the tourism industry, showing how important it is for the local economy (Stats SA). “Despite challenges like load-shedding, Cape Town’s well-managed infrastructure continues to attract tourists and businesses alike,” adds Cowan.
With a strong presence in Cape Town’s property sector, Cowan highlights three trends for the season:
Growth in Short-Term Rentals
Cape Town’s Airbnb market ranks higher than destinations like Sydney, Barcelona and Amsterdam, with a median occupancy rate of 71%.
“There’s high demand for investment properties here,” Cowan notes. “Visitors prefer staying in local-style accommodations and immersing themselves in Cape Town’s lifestyle rather than booking into big hotels. This trend could lead to more buy-to-let purchases, with some sellers choosing auctions to drive competition and increase selling prices.”
Cowan also sees demand from local and global brands looking to expand in Cape Town, boosting the need for short-term rentals. As demand for commercial property rises, he predicts more suburban office spaces in areas like Constantia, Claremont, and Newlands.
Rise of Experiential Tourism
Cape Town is popular for luxury, sustainable, adventure and experiential tourism.
“Whether it’s food, wine, culture, or scenery, there’s something for everyone,” says Cowan.
Travellers are looking for immersive experiences that let them connect with local culture, like the new Durbanville Wine Safari or Uber Safari, which offers rides from Cape Town to nearby safari spots.
“In addition to major airlines like KLM, Lufthansa and British Airways increasing flights to Cape Town, United Airlines has recently expanded its direct routes from the US to Cape Town. Meanwhile, the newly launched Norse Atlantic offers affordable direct flights from London, making it even easier for international travellers to visit and tapping into the growing demand.”
Cruise Sector’s Impact
The cruise industry added R1.32 billion to Cape Town’s economy in the 2023/24 season, creating nearly 2,000 jobs in tourism, retail, and hospitality. Cowan says that demand from international tourists keeps the sector strong, and travel companies promote packages to further boost Cape Town’s economy.
He concludes that Cape Town’s focus on tourism marketing, including the “Choose Cape Town” campaign, is paving the way for a successful season. “I’m excited to see how increased demand over the festive season could drive growth in residential and commercial property markets.”As demand for commercial property rises, he predicts more suburban office spaces in areas like Constantia, Claremont, and Newlands