There is no doubt the Cape Town property market experienced difficulties during 2018. There were many factors that influenced this decline; economic instability, water shortages, political fluctuations and an array of other elements. However, recent figures released by a number of Cape Town’s big attractions showcased stabilising in the tourism industry over the December 2018 period.
This is especially reassuring as we know the enormous effect the tourism industry has on the perception of the region and this external view influences a number of economic factors that rub off on the property market.
The second half of the year has shown that the city’s recovery in terms of tourism is stabilising, notwithstanding a poor performance in the early part of 2018. Many of the large attractions such as the V&A Waterfront, Robben Island and Table Mountain cite year on year growth.
Robben Island explained that they recorded the highest increase year-on-year for December at 28% more visitors. The Table Mountain Aerial Cableway also stated that they experienced an increase year-on-year for December of 6%, a notable recovery after ending the year 2% down for the whole of 2018.
What is most encouraging is that International passengers at Cape Town International Airport, according to Airports Company South Africa were up by 4% in December (year-on-year) and by over 9% in total for 2018, at 2.4 million passengers.
These figures and growth patterns certainly indicate a stabilising tourism industry for the Mother City. Which in turn increases and stabilises employment in the tourism industry, and then infiltrates an array of other sectors, and this undoubtedly increases housing demand. This is an absolute necessity as the rise in local and international visitors boosts the local economy. We believe 2019 will certainly improve from a holistic perspective and that key markets will continue to improve.