CNBC Africa’s Zanele Morrison is joined by Geordin Hill-Lewis, Mayor, Cape Town for more.
We cross over to a story on Cape Town. They achieved their crowning best city award, and it's called the world, well that is for the world for 2025. It is according to Time Out magazine. It's a remarkable accolade based on feedback from over 18,500 global residents recognizing that Cape Town is unmatched for natural beauty, cultural vibrancy, and the happiness of its people. But what does that mean for tourism, economy, for viability? I'm joined by Geordin Hill-Lewis, the Mayor of Cape Town. Geordin, thank you so much for joining us. And I want to start on the back of that question. What does this mean for Cape Town? What does it mean for job creation? What does it mean for the economy? That's exactly the right place to start. Thank you for having me because that is what it is really all about. That's our obsession in Cape Town is how to grow our city economy faster so that we can get more people out of unemployment and out of poverty and into work opportunities. So all of the efforts that we make to pursue these global rankings, to get more visitors to come to our city, to get new investments and so on, all of that is aimed at uplifting those in our city who are still without opportunity. So when we have a recognition like this and an accolade like this, you're right, it's a very special moment for our city. We hope that it brings even more tourists. Time Out is a very widely read global publication, brings more tourists, brings more hospitality investment, puts us on bright on the radars of hospitality investors around the world so that we can get more people into work here in Cape Town. Those investors, where then do you believe they would need to be or are looking at investing in? And what are the pressures for you to be improving things like infrastructure and addressing some of the challenges we have in South Africa? Once again, that's exactly the right question. So yes, of course, welcoming many millions of new visitors does come with its immense pressures, mainly on our infrastructure base. And that is why we are trying to roll out, and we are rolling out in fact, the biggest infrastructure investment program in the whole of South Africa at the moment, not just to keep up with tourists and visitors, but the number of people moving to Cape Town in their many hundreds of thousands to live here in search of better opportunity. And so we, quite alongside our tourism efforts, we have this enormous infrastructure rollout. And that, of course, is where the biggest pressure is. But I also want to pick up on something you mentioned earlier on when we first started engaging. That is around enabling the local community, enabling businesses to thrive on the back of this tourism sector that's growing. I think the challenge I see is in the need to enable all SME levels to be participating and taking a share of this dollar. And yet, Cape Town is a very sophisticated SME market. Do you see the gap or the need towards more inclusive participation in tourism? We've got a very well-developed tourism market, and it involves many thousands of SMEs in the city. If you consider the tourism value chain, it's a very complex and intricate value chain, whether it be from the various suppliers to restaurants, from big farmers to small farmers, the people that wash the linen and cutlery, the providers of glassware and crockery, you name it. Just in one restaurant, you might have many dozens of SMEs participating in the value chain of a single restaurant. You multiply that over hotels, tourism attractions, tour companies, transport companies, tour guides, you name it, and you'll find that there are many thousands of SMEs already participating. And of course, as the market grows, there is more space for yet more SMEs to participate or those already in the market to grow and to become more profitable, which is also an important part of growing a successful economy. We think there's only good spinoffs from an accolade like this. We need to be reminded all the time just how intricate the value chain is when it comes to tourism and those who work within it. Yet, you still have a job to do, and that job is to continue to implement plans to ensure further growth. What are some of those plans? Most important is that infrastructure rollout. The thing that's going to prepare the city for 10 years or 20 years of future success is actually not so much the ephemeral opinions of global travel writers, as very grateful as we are for their support and recognition, but it's actually the hard work of investing in basic infrastructure in water treatment facilities, sewer treatment facilities, new roads and highways, new public transport infrastructure. When we say that we are rolling out the largest public infrastructure campaign in the whole of South Africa, that's no exaggeration. There is no city that is coming close to what we are rolling out. In fact, we are more than double the next biggest city in South Africa in terms of our infrastructure investment. That is really what is going to keep us at the top of our game for years to come. Jordan, the question I think that you get from a lot of other conversations you have is about local residents. What is the narrative or the story that you share when it comes to those who say it becomes more expensive and more difficult for South Africans to enjoy Cape Town as part of the country and also for those who live there? It's undoubtedly true. I can feel it even as a Capetonian when one goes to a restaurant and looks at the prices that many of the restaurants are priced mainly for foreign visitors rather than local residents. There is absolutely no denying that. That's why we put a lot of effort into, for example, publishing lists of attractions and activities that people can do in Cape Town for free or for very low cost. Enjoying the natural beauty of Cape Town usually costs nothing, and that's one of our biggest and most important attractions. We do try to make sure that there are always things that local residents can enjoy at discount prices. I was most pleased. I hadn't been to visit our famous penguin colony here in the city for a few years. This Christmas, I took my family to swim at the penguin beach called Balders. Again, I was most pleased that it cost only 25 rand for a child, basically $2 or less than $2 for a child to get in and about $4 for an adult. There are things that you can still do affordably for local residents, and I think we have an important role to profile those, which we are trying to do. Now, Jordan, out of all the mayors and the mayoral jobs that you could be asking for, what makes it challenging for you looking at the future of Cape Town and how you need to ensure that you maintain this top spot as a tourist destination? It's a wonderful job. It is by far, I think, the best city in Africa and one of the very best cities in the world to be the mayor of. It is also challenging. I've just spent my morning in a part of the city where living conditions are still tough, in informal settlements, looking at some of those public transport improvements that we are doing there. I'm always reminded every day that there is still a huge amount and a long way to go. There's still far too much poverty, far too much unemployment. There's lots of challenges to keep one's mind engaged and activated and to keep one's hands busy. That is actually what I love about the job. It wouldn't be nearly as exciting or interesting if it was some very highly developed first world city where there's not a single problem. We've got lots and lots of big challenges and that is what keeps us focused on driving forward and working harder so that more people can get out of poverty in Cape Town. I think I'm glad that you're balancing this huge divide in Cape Town. I think if I'm correct, the survey itself really looked at international travellers and their rating of Cape Town as a tourist destination. How much dollars or how much are we attracting? What are some of the numbers you could share with us in terms of just the value that we are getting from people who are having a look at Cape Town and coming through to spend? Well, I can tell you that I think this year we will cross over 2 million visitors during our peak period. That will be the first time ever that we've done that. We will release the statistics sometime fairly soon, but I'm confident that we probably will cross over that magic number. I don't know how much exactly all of those visitors come and spend here, but I do know that there's more than 100,000 people in our city working in travel and tourism in the industry, so it's a huge industry for our city. I do know that there is still lots of room for growth. While 2 million is a good number, 3 million is an even better number. We're never, ever going to rest on our laurels because, again, to go back to where we started, our obsession is not just about welcoming the wonderful guests from around the world. It is all focused on how we actually help the people of Cape Town. And possibly also focused on making people spend those dollars, because that's what's going to help the people of Cape Town. The dollar exchange rate, when we travel, it is painful to travel. We spend so much money because of the value of our currency. Are we making the most of the value of the dollar and those who travel into South Africa? And also, thinking broad, and I'm putting this to you, I know that you focus on Cape Town, but surely we should be getting so much more of those dollars coming in. What could we be doing differently as a country to do that? Firstly, I would say that we should be focusing on value for money. Firstly, on value for money, I think this is an excellent point. I think, actually, this probably played a big factor in us winning. If you look at the two cities that came, number one and two, it's Cape Town and Bangkok, both places where the dollar is extremely strong, or the pound or the euro is extremely strong, where you can get a great holiday if you're an American or a European traveler, you can get a great holiday at a very, very attractive price. I'm not naive to the fact that that probably played a big role in the outcome. But frankly, that, I think, is a great offering. If you are a traveler anywhere in the world, and you are looking to have a fantastic once-in-a-lifetime experience, but not break the bank or spend your entire pension savings doing so, this is the place to come. We love that that's a value add, and we're very happy to own that as a benefit for our value proposition. Of course, as I said earlier, we want people to come here in greater numbers so that we get more of those dollars, and when they are here, to spend more and more of those dollars. That's why the innovation and entrepreneurialism in the tourism industry in Cape Town is extremely impressive. This is not something that the city does. This is great business people themselves coming up with new products, coming up with new tourism offerings, new tours that could be offered, amazing new restaurants, you name it. They are constantly thinking of ways to separate the tourists from their dollars, and they're quite good at it, actually. I've seen it myself. The evolution is incredible. Thank you so much for your time. That's Gordon Hill Lewis, the Mayor of Cape Town.
Theme: Cape Town's Rise to Top Global City and Implications for Tourism and Economy
Cape Town has taken the spotlight as it clinched the prestigious title of the best city in the world for 2025, according to Time Out magazine. With feedback from over 18,500 global residents, the accolade recognizes Cape Town for its unparalleled natural beauty, vibrant culture, and the happiness of its people. This recognition has significant implications for tourism, the economy, and overall city viability. Zanele Morrison from CNBC Africa sat down with Geordin Hill-Lewis, the Mayor of Cape Town, to delve into the impact of this achievement. Mayor Hill-Lewis emphasized the importance of utilizing global rankings to boost the city's economy, create job opportunities, and uplift communities. The recognition from Time Out is expected to attract more tourists and hospitality investments, positioning Cape Town favorably in the eyes of potential investors worldwide. However, the surge in visitors brings about challenges, particularly regarding the city's infrastructure. Cape Town is currently undertaking the most extensive infrastructure investment program in South Africa to cater not only to tourists but also to the influx of residents seeking better opportunities. When addressing the inclusivity of tourism participation, Mayor Hill-Lewis highlighted the intricate value chain of SMEs within the industry, emphasizing the need for continued growth and support for small businesses. He acknowledged the vital role SMEs play in the tourism landscape and the importance of creating opportunities for their advancement. The Mayor underscored that sustained future success hinges on robust infrastructure development, including water and sewer treatment facilities, new roads, and public transport infrastructure. Investing in these foundational elements is crucial for Cape Town to retain its top tourist destination status and foster long-term growth. Despite Cape Town's global appeal, Mayor Hill-Lewis acknowledged the challenge of balancing affordability for local residents with catering to international visitors. Efforts have been made to provide low-cost or free activities for locals, ensuring that all members of the community can enjoy the city's offerings. Looking ahead, Mayor Hill-Lewis remains focused on addressing existing challenges such as poverty and unemployment, underscoring the importance of continuous progress and development. He encouraged a value-for-money approach to attract more visitors, emphasizing Cape Town's affordability and the diverse range of experiences it offers. In conclusion, Mayor Hill-Lewis expressed his commitment to maximizing the city's tourism potential and driving economic growth while remaining mindful of local residents' needs. As Cape Town continues to evolve as a premier global destination, the Mayor's dedication to inclusive development and sustainable progress remains unwavering.
"We've got lots and lots of big challenges, and that is what keeps us focused on driving forward and working harder so that more people can get out of poverty in Cape Town."
['Cape Town', 'Time Out', 'global rankings', 'tourism', 'economy', 'Geordin Hill-Lewis', 'South Africa', 'infrastructure', 'SMEs', 'investment']