Western Cape Drives 67% of SA’s Tourist Spend in December

The Western Cape has cemented its position as South Africa's tourism and jobs powerhouse, with Cape Town, Stellenbosch and Plettenberg Bay accounting for 67% of all international visitor payments nationwide in December 2025, according to data from payment provider Yoco.

The surge translated into R500 million flowing directly into local businesses in a single month — a boost Premier Alan Winde says is protecting and creating thousands of jobs across the province.

Delivering the Western Cape State of the Province Address on Wednesday, Winde framed the tourism windfall in human terms.

"This is a Cape Town pastry chef who gets a permanent role in a new bakery. This is a Stellenbosch wine guide who can pay off his student loan. This is a mountain bike mechanic in Plett who can make the final payment on his business loan," he said.

Economic Momentum Builds

Winde pointed to improving national macroeconomic indicators — including South Africa's removal from the grey list, lower fuel prices, easing inflation and a stronger rand — as positive signals supporting recovery.

He said economic growth in the Western Cape has doubled over the past five years, with the province leading national job creation.

"Nearly 90% of all net jobs created in South Africa over the last five years were created right here in the Western Cape," he said.

Of the 404,712 net jobs created nationally over that period, 360,347 were generated in the province.

In the most recent quarter alone, 93,000 new jobs were added, pushing unemployment down to 18.1% — the lowest rate in South Africa.

Small Business Boom

The province has also recorded rapid small business growth. Since 2022, the number of small businesses has increased by 143,119 — a 55% rise compared to 18% nationally.

The Western Cape Government has backed this growth through red tape reduction and targeted enterprise support.

Through the SME Accelerator Support programme, run in partnership with the Johannesburg Stock Exchange, more than 200 businesses received funding-readiness support, with 115 matched directly to potential funders over the past two years.

The province also launched its TechTalks series, helping 150 businesses gain practical guidance on technology adoption — including artificial intelligence — to drive competitiveness and productivity.

High-Tech and Industrial Strength

Beyond tourism and small enterprise, the Western Cape is positioning itself as a high-tech manufacturing hub.

Winde noted that 20% of satellites currently orbiting the globe contain components manufactured in the Cape. The province also hosts a growing boatbuilding industry producing vessels incorporating advanced technologies.

Logistics reform was another key focus. The provincial government has pledged full support for Operation Vulindlela — the national reform programme aimed at unlocking infrastructure bottlenecks.

Winde welcomed moves to relax competition rules in rail and port networks and called for urgent investment in the Port of Cape Town.

"Steps to return efficiency to the Port of Cape Town by investing in critical infrastructure are much needed and long overdue. The Western Cape Government will welcome private sector operators and investors with open arms," he said.

Digital Access and Job Support

To support jobseekers, the province has rolled out free Wi-Fi at 1,600 sites. By December 2025, the network had nearly eight million subscribers, widening digital access and opportunity.

Investment Pipeline Expands

Following last year's inaugural Western Cape Investment Summit, which secured multi-billion rand commitments, five major projects are nearing financial close.

Projects expected to be announced this year include:

• R600 million in green hydrogen

• R1.8 billion in manufacturing

• R105 million in the tech sector

• R250 million in the green economy (EV)

• R400 million in solar energy

"These projects will create thousands more jobs for our residents. That is thousands more families with food on their table and a roof over their heads," Winde said.

With tourism surging, small businesses expanding, and billions in green and industrial investment in the pipeline, the Western Cape is positioning itself as a central driver of South Africa's economic recovery.