This article was downloaded by: [Memorial University of Newfoundland]On: 25 November 2014, At: 22:06Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registeredoffice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK

Development Southern AfricaPublication details, including instructions for authors andsubscription information:http://www.tandfonline.com/loi/cdsa20

Tourism impact, distribution anddevelopment: The spatial structure oftourism in the Western Cape provinceof South AfricaScarlett Cornelissen aa Department of Political Science , University of StellenboschPublished online: 19 Jan 2007.

To cite this article: Scarlett Cornelissen (2005) Tourism impact, distribution and development: Thespatial structure of tourism in the Western Cape province of South Africa, Development SouthernAfrica, 22:2, 163-185, DOI: 10.1080/03768350500163014

To link to this article: http://dx.doi.org/10.1080/03768350500163014

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the“Content”) contained in the publications on our platform. However, Taylor & Francis,our agents, and our licensors make no representations or warranties whatsoever as tothe accuracy, completeness, or suitability for any purpose of the Content. Any opinionsand views expressed in this publication are the opinions and views of the authors,and are not the views of or endorsed by Taylor & Francis. The accuracy of the Contentshould not be relied upon and should be independently verified with primary sourcesof information. Taylor and Francis shall not be liable for any losses, actions, claims,proceedings, demands, costs, expenses, damages, and other liabilities whatsoever orhowsoever caused arising directly or indirectly in connection with, in relation to or arisingout of the use of the Content.

This article may be used for research, teaching, and private study purposes. Anysubstantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &Conditions of access and use can be found at http://www.tandfonline.com/page/terms-and-conditions

Tourism impact, distribution anddevelopment: the spatial structure oftourism in the Western Cape provinceof South Africa

Scarlett Cornelissen1

The structural dimensions of a country’s tourism sector, and in particular the spatial structure of

tourism production and consumption, relate closely to the nature and extent of the impact that

tourism can have. This article examines the spatial characteristics of tourism in the Western

Cape province, one of South Africa’s foremost international tourist regions, and where its govern-

ment seeks to use tourism as an instrument of development and socio-economic transformation. To

understand how this could be effected it is necessary to understand the spatial distributional effects

of tourism, and the underlying reasons for it. To this end the article examines the spatial structure

of the provincial accommodation sector as evidenced in patterns of accommodation supply and

tourist usage (demand); and trends in the nature, direction and distribution of public and

private-sector tourism investments. The central argument is that tourism is geographically

focused, with tourist activities concentrated in a few locales and sub-regions. This follows the

general demographic and economic contours of the province. Yet trends in capital investments

tend to reinforce the spatial concentration of tourism. Attempts by the government to spread tour-

ism’s benefits have not been too successful due to institutional and capacity deficiencies. Greater

emphasis should be placed on developing domestic tourism.

1. INTRODUCTION

This article examines the spatial structure of tourism in the Western Cape province of

South Africa, one of the country’s premier tourist regions. It evaluates provincial

policy towards tourism development in the context of the impact and distribution of

tourism, patterns in its supply and usage, investment trends, and changes in these over

time.

Like the national government, the provincial authorities are placing a high policy

premium on expanding the tourism sector and using tourism as a pathway to develop-

ment, empowerment and social transformation. Yet international experience shows

that the purported economic and developmental advantages of tourism which are often

ardently claimed are not automatic, and not without dispute. Tourism has several nega-

tive externalities attached to it: it is subject to seasonal fluctuations and high elasticities

of demand and can therefore be an unstable source of income and employment (De Kadt,

1979; Mathieson & Wall, 1982; Brohman, 1996; Sinclair, 1998). It can also lead to

higher inflation and balance-of-payments difficulties in destination countries (Britton,

1982; Mathieson & Wall, 1982; Lea, 1988).

Further, research indicates that three structural factors influence the economic impact of

tourism: the strength of backward and forward linkages among industries (Sinclair &

Tsegaye, 1990; Britton, 1991); the ownership structures and patterns that typify the

1Department of Political Science, University of Stellenbosch.

Development Southern Africa Vol. 22, No. 2, June 2005

ISSN 0376-835X print=ISSN 1470-3637 online=05=020163-23 # 2005 Development Bank of Southern AfricaDOI: 10.1080=03768350500163014

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

sector; and the spatial features of production and related consumption in a given tourism

economy (Britton, 1982; Opperman, 1993; Pearce, 1995). If weak linkages prevail

among economic sectors and industries directly involved in tourism, the flow-through

effect of tourism’s impact, particularly from core to ancillary industries such as construc-

tion and transport will be weaker. Similarly, if tourism producer and supplier companies

are not owned in the destination but in a different country, foreign exchange leakages,

rather than earnings, may characterise tourism in the destination country (Brohman,

1996; Sinclair, 1998).

However, it is particularly the third factor – the spatial structure of tourism in a given

destination – that relates closely to the specific nature of the economic gains that

accrue from tourism and also to the extent of its impact in that destination (Opperman,

1993). More specifically, the location of tourist sites, the existence of tourism infrastruc-

ture and patterns in tourism production and consumption as manifested in, for instance,

tourist circuits or travel flows, connect critically to the eventual impact of tourism. The

manner in which people travel through a destination determines the types of interface

that can take place between tourists and residents, and the potential for revenue creation

among the latter. Further, if tourism production and consumption occur in spatially con-

centrated locales, its impact is similarly concentrated (Pearce, 1995). Much can be

learned about the benefit that tourism has in a destination, by examining the geography

and diffusion of its impact in terms of patterns of production and consumption. Even so,

the structural and spatial aspects of tourism are often overlooked in the devising of

tourism development policy (Pearce, 1995).

Several studies have been conducted on the geography of tourism supply in the Western

Cape and in South Africa more broadly (Cape Town City Council, 1993, 1994; Deloitte

& Touche, 1993; Visser & Van Huyssteen, 1997; Wesgro & KPMG, 1999). These,

however, do not provide an analysis that focuses on the dynamic interplay between

tourism production and consumption, the role that the state or industry may play in

demand creation, for instance through tourism investments or infrastructure develop-

ments, and how this relates to development. To date, with a few exceptions on South

Africa’s tourism space economy (Demhardt, 2000; Rogerson, 2002; Visser, 2003),

limited research has been conducted on the spatial dimensions of tourism in South

Africa and the factors that contribute to it, and its role in enabling or constricting the

government in achieving its transformation and developmental goals.

This article focuses on the spatial dynamics and the distribution of tourism impact in the

Western Cape. It investigates the current structure of tourism in terms of location (ie

supply or production) and demand (or consumption) factors and the interplay between

these factors; what changes have taken place since 1994 and what underlay the

changes; and what the role has been of key actors such as the provincial government

and the private sector. Two particular facets are investigated:

. the geography of the accommodation sector as evidenced in patterns of accommo-

dation supply and tourist usage (demand), and changes in these over time

. trends in the nature, direction and distribution of public and private sector tourism

investments

The analysis shows that tourism activity, and concomitantly its impact, is geographically

concentrated, being focused in certain parts of the Cape metropolis and in the Winelands

and Garden Route. This is partly a consequence of the historical development of tourism

in the province, arising from the promotion of a number of traditional, core attractions

164 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

(or ‘icons’) and sites, and is related partly to the physical, demographic and infrastructural

features of the province. Yet capital investments and promotion behaviour by both the

government and the private sector (particularly in their focus on the international

market) tend to reinforce, rather than significantly reshape, the current skewed structure.

The government has some role to play in directing new development. At the same time

provincial policy aptly aims at redistribution, but is offset by institutional and capacity

deficiencies in tourism governance.

The first part of the article provides a brief overview of the Western Cape tourism sector,

highlighting its prime attractions and the key tourism demand factors. The second part

details the methodology that was used in assessing tourism’s spatial structure. The

third presents data on patterns in accommodation supply and demand since 1994 and

large-scale investment trends. A fourth section discusses some of the wider implications

of the geographic features for tourism policy in the province.

2. WESTERN CAPE TOURISM PATTERNS AND PROFILES

The Western Cape has flourished as one of the foremost international tourist destinations

in the country over the past number of years. The province has several physical and other

qualities that are important for its tourist appeal. Many of these (such as Table Mountain,

Cape Point, the Garden Route and Kirstenbosch Botanical Gardens) have long been mar-

keted internationally and are well-established ‘brand names’ and important tourism

icons, not only for the Western Cape, but also the rest of the country (DEATT, 1999).

This, along with the popularity of the province in general, means that it is one of

South Africa’s most important international tourist attractions. In line with this, and

the national government’s focus on expanding the tourism sector, boosting economic

development through tourism has become a prime policy focus in the province

(DEAAT, 2001).

One estimate of the size of the province’s tourism economy, using Tourism Satellite

Account methodology,1 put it at 13 per cent of the Gross Regional Product in 1996

(Bloom, 1998). A further estimate is that tourism provides employment to 9 per cent

of the provincial population (Wesgro, 2001).

The Western Cape is divided into eight tourist regions that coincide roughly with the pro-

vince’s administrative districts. They are: the City of Cape Town; Winelands; Overberg;

Garden Route; Klein Karoo Kannaland region; Central Karoo; Breede River Valley; and

the West Coast.

The province has a significant share in South Africa’s international tourism market, in

2000 receiving close to 60 per cent of all international visitors (Satour, 2000). The pro-

vince is further the main destination for overseas tourists, drawing an average of 55 per

cent of all overseas tourists in 1998 (Satour, 1997, 1998). In addition the province

receives the lion’s share of visitors from non-neighbouring Africa, in 1997 drawing 37

per cent of this component of South Africa’s international market (Wesgro, 1999).

These market profiles stand in sharp contrast to tourism in some of the Western

Cape’s main competitor provinces where, as in Gauteng, for example, business

1Tourism Satellite Account (TSA) methodology was developed by the World Tourism Organi-sation (WTO) and the World Travel and Tourism Council (WTTC). It aims to provide a compre-hensive delineation of all the economic activities related to, or influenced by travel and tourism in agiven economy, by anticipating and depicting the flow-through effects of tourism-specific andtourism-related activities.

Tourism impact, distribution and development 165

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

tourism or tourist arrivals from neighbouring African countries predominate. When one

considers that the travel motivation and spending patterns of overseas visitors and from

non-neighbouring Africa tend to be markedly different from that of business tourists –

the former stay longer and spend more and generally come for the purpose of holiday –

these market segments are highly significant: it indicates that the Western Cape draws

more leisure tourism than any other province, and may be expected to draw a larger

income from such tourism.

Survey data on domestic travel patterns in the province indicate that the City of Cape

Town is the main destination for domestic tourists from other provinces (WCTB,

1999), receiving 72 per cent of all non-resident South African visitors. After this

follow the Garden Route, the West Coast and the Winelands. The Klein and Central

Karoo regions, Overberg and Breede River Valley receive only 1 per cent apiece of

domestic visitors from the rest of South Africa (WCTB, 1999). Gauteng is the largest

province of origin for domestic visitors. Most fall within the categories of ‘visiting

friends and relatives’ or ‘holiday’. Considerably fewer people report travelling to the

Western Cape for business purposes.

For domestic tourists resident in the Western Cape, the pattern is different, with the

Garden Route and West Coast ranking as the most frequently visited regions (WCTB,

1999). In contrast to the preferred destinations of tourists from other provinces,

regions such as the City of Cape Town and the Winelands receive relatively fewer

Western Cape-resident tourists.

The Western Cape government, through its White Paper on sustainable tourism develop-

ment and promotion (DEAAT, 2001), aims to foster tourism growth in the province.

Specifically, it aims to increase the total number of overseas and domestic visitors to

above 8 million, and to raise total tourist spending to above R14 billion by 2010

(DEAAT, 2001). It also seeks to develop a sustainable and inclusive tourism sector.

Importantly, tourism is treated as a vehicle through which the economic and social trans-

formation of the province could be achieved. In this respect, the chosen path for tourism

development is one that emphasises:

. social equity through the promotion of accountable tourism management practices,

and the development of tourist products that give equal representation to the

peoples of the province

. economic empowerment through the creation of opportunities for ‘previously neg-

lected communities’ to participate in mainstream tourism production and consump-

tion, and by encouraging the growth of small-scale enterprises

. an integrated approach that seeks to enhance coordination among tourism sectors, and

collaboration among the state, private sector, tourism employees and communities

. economic, institutional, environmental and social sustainability, defined as the exis-

tence of a diversity of market opportunities and employment, a judicious balance

between the protection, and use of the environment, the participation of host commu-

nities in tourism management, and their cooperation with public and private sector

actors (DEAAT, 2001)

The provincial policy is hence distinctive, in that it seeks to couple market and product

expansion, aspects that are usually the focus of tourism development policies, with expli-

cit socio-economic aims such as poverty alleviation and empowerment. In this way one

of the key objectives of the Western Cape government is to assist in the restructuring of

the tourism sector to spread the gains from tourism. By emphasising local ownership of

166 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

tourism production and strong connections between economic sectors, the development

framework is furthermore aiming to root tourism into the local economy.

However, in order to understand how tourism could be of developmental benefit for the

residents of the Western Cape and, concomitantly, for the province’s tourism develop-

ment policy to deliver on its aims, it is necessary to understand the spatial distributional

effects of tourism, and the underlying reasons for it.

3. METHODOLOGICAL NOTE: ANALYSING THE GEOGRAPHICAL

IMPACT AND DISTRIBUTION OF TOURISM

Broadly, tourism impact can be defined in terms of the number of tourists who visit a

specific area, the amount of money that they spend, and the employment and income

that is generated in the area as a consequence. Impact can also refer to the investments

or production activities that either evolve from tourist activities in a given area, or are

undertaken to prompt tourist activity (Smith, 1989; Sinclair, 1998). Tourism’s impact,

in other words, can be assessed through its direct and indirect effects. For this,

demand-side or supply-side data can be utilised.

Demand-side studies of impact make use of indicators of effective demand, defined as

the number of people who partake in a tourist activity or visit a tourist location

(Pearce, 1995; Hall & Page, 1999). Common measures of effective demand are tourist

expenditure (for example the sale of bed-nights in the hotel sector, or car rental days),

visitor arrivals and departures at ports, and the duration of stay in a destination

(Uysal, 1998). Studies can also assess employment related to tourism or calculate tour-

ism’s trade effects (the effect of tourism on the balance of payments) (Sinclair, 1998).

More comprehensive methodologies seek to combine these various methods in order

to derive at a measure of the overall impact that tourism has on a given economy.2

In contrast, geographical impact focuses on patterns of location, concentration (or

spread) and flow. Specific analyses include assessments of the spatial configuration of

tourism in a given region. This entails examining the location and distribution of facili-

ties, attractions, accommodation stock, and so on. Another involves examining tourist

movement within destinations. A third focuses on the geography of tourist usage of

supply.

The analysis of the spatial structure and variations in tourism constitutes an important

first step in understanding tourism in given area. The location of specific types of

tourist facilities or attractions may be indicative of specific kinds of tourist activity

that pertain to that area, and moreover may indicate the existence of certain tourist

markets (Smith, 1989). The volume of supply (facilities or attractions) or of consumer

usage in an area, and its relation to the resident population can be taken as a measure

of the tourism level or intensity of that area (Defert, 1966; Keogh, 1984; Potts &

Uysal, 1992). Finally, the distribution of infrastructure in a destination may account

for patterns of tourist movement through that destination, and may be related to patterns

of tourism impact (Pearce, 1995).

2One example is of multiplier models (see, for instance, Archer, 1977) that attempt to measure thedirect, indirect and induced effects of tourist expenditure on income. Another, related methodologyis input-output analysis that attempts to measure the effect and flow-through of tourist or govern-ment spending, or tourism-related investments (Fletcher, 1989; Fletcher & Archer, 1991). A thirdis Tourism Satellite Account (TSA) methodology.

Tourism impact, distribution and development 167

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

As tourism accommodation (such as hotels or guesthouses) is the most discernible

component of tourism, accommodation statistics are most widely used to assess spatial

variations in tourism (Pearce, 1995). Further, accommodation statistics constitute a most

ready and visible measure of tourism impact in a local economy (Potts & Uysal, 1992), as

the accommodation sector accounts for the largest proportion of tourist expenditure once

tourists reach their destination. It also constitutes a useful surrogate indicator of two

important features of tourism – the type and the level of tourist activity in a region

(Pearce, 1995).

A set of quantitative and qualitative methods was used to assess the spatial distribution of

tourism activity and impact in the Western Cape. On a province-wide (macro) level,

three types of quantitative investigations were carried out. These were analyses of the

level and location of tourism incidence as reflected in accommodation supply, tourist

usage of accommodation and tourism investments. The purpose of this was to investigate

both the static (locational) and dynamic (tourism flows or usage) elements of impact in

the province, and to highlight geographical variations. In addition interviews were con-

ducted with a sample of accommodation operators – a total of 40 establishments – and

people in government and industry with interests in tourism.3

In order to assess patterns in accommodation demand, hotel trading statistics drawn from

Statistics South Africa’s regular survey of the hotel sector were analysed. Specifically,

statistics on hotel bed-nights sold, and hotel income, were extracted for the years

1994 – chosen as base year as it was the year of South Africa’s first democratic elections

and when international tourism first increased – to 2001.

Data on accommodation supply was obtained from the Western Cape Tourism Board’s

(WCTB) accommodation directory for 2000–2001. This directory provides a listing of

all accommodation establishments in the province (hotels, guesthouses, bed and break-

fast establishments, backpackers and camping and caravan sites), and the number of

rooms or beds in each establishment. The WCTB listing is the single most comprehen-

sive directory on accommodation in the province. However, as it is new, it does not

provide historical information on how accommodation supply has changed. For this,

the accommodation listing of the Automobile Association of South Africa (AA) was

used. The AA directory has been compiled since 1985 and provides similar information;

it also contains information on accommodation establishments in different regions and

towns and their capacity. Once again 1994 was chosen as the base year.

Data on tourism investments were extracted from the database on Major Investments and

Development Opportunities (MIDO) compiled by the Western Cape Trade and Invest-

ments Promotion Agency (Wesgro). MIDO collates information on commercial,

leisure/tourism and industrial/retail investments above a value of R10 million that are

undertaken in the Western Cape. Such data are obtained from two main sources –

local authorities, with whom applications for new developments have to be lodged,

and the mass media.

MIDO is the most comprehensive database on large-scale investments in the province. A

shortcoming is that because it includes only investments in excess of R10 million and

generally does not incorporate smaller-scale expansion or refurbishment of existing

projects, the database does not give a complete picture of all tourism development in

3This was part of a larger analysis of provincial tourism in which a total of 181 interviews wereconducted with local and international tourism producers, regulators and consumers.

168 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

the province. Indeed, tourism has been characterised by a significant degree of small-

scale development, particularly in the accommodation sector through the voluminous

growth of guesthouses and bed and breakfasts over the past number of years. While

such developments are important, it is the capital investments that significantly

reshape the fundamental structure of a tourism economy, and upon which smaller deve-

lopments generally are contingent. Capital investments are usually a barometer of the

direction of change in the underlying spatial structure of tourism in a given destination.

4. THE SPATIAL STRUCTURE OF THE WESTERN CAPE

ACCOMMODATION SECTOR

4.1 Overall accommodation supply

In 2001 there were more than 54 000 tourist beds in the province. Significantly, close to

three-quarters of these were in only two types of establishments – hotels and self-

catering establishments. Guesthouses and bed and breakfast establishments respectively

provided about one-tenth of tourist beds, while backpackers and camping and caravan

establishments together provided only 6 per cent of total accommodation in the province.

As far as the availability of tourist beds is concerned, therefore, hotels and self-catering

establishments are by far the most important components of the provincial accommo-

dation sector. Backpackers and camping and caravan sites do not constitute a significant

element of the accommodation supply. Figure 1 shows the relative share of tourist beds

held by different accommodation types in each of the province’s regions.

The location and patterns of distribution of the various accommodation types indicate

certain kinds of tourist activity that pertain to the different regions of the province.

First, tourist activity geared towards hotel accommodation is concentrated in the four

coastal regions, and is comparatively less often found in the rural regions of the

Western Cape. Second, the self-catering sector is widely spread throughout the province,

Figure 1: Regional distribution of accommodation supply in the Western Cape,

2001

Tourism impact, distribution and development 169

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

but occurs particularly in the rural areas. It may indicate that there is relatively robust

tourist demand for this type of accommodation, ahead of other accommodation types

such as guesthouses or bed and breakfasts.

As can clearly be seen, the City of Cape Town has the largest share of the accommo-

dation stock. The City may therefore be said to hold particular importance in the provin-

cial accommodation sector. Within the City itself, however, even though there has been

general growth across all of the six municipal regions, the Cape Town municipality, and

specifically more affluent parts such as the City Bowl and Atlantic Seaboard make up

two-thirds of the total accommodation stock.

4.2 The provincial and metropolitan hotel sector

Tables 1 and 2 illustrate how hotels are distributed in the province and City. The spread

of hotels follows the general pattern of accommodation supply in the Western Cape. The

hotel sector is very significant in Cape Town, making up 65 per cent of total bed supply

in the city. Again, within the City, there is a concentration of hotel units in the Cape

Town municipality.

Between 1994 and 2001 significant changes have taken place in the city’s hotel sector.

There has been a great expansion of the city’s hotel stock during these years. The greatest

change has however taken place only after 1996, when within five years the number of

hotel beds has nearly doubled. A large proportion of hotel expansion took place between

1996 and 1998/1999. For instance, 32 new hotels were developed in the City of Cape

Town between May 1996 and May 1998 – 13 hotels in 1996, 15 in 1997 and four in

1998 (Wesgro, 1998).

Interviews with people active in the tourism industry indicated that very little hotel

development took place in the province’s rural areas. The growth in the metropolitan

hotel sector was attributed to a number of factors. First, double-digit growth in inter-

national tourist arrivals in the aftermath of South Africa’s first democratic elections

was said to have led to a rise in demand for hotel accommodation. Second, the

Table 1: Hotel distribution in the Western Cape, 2001

Region

Number of

hotel units

Per cent

of total

Number

of beds

Per cent

of total

Average number

of beds

per hotel unit

Hotel beds

as percentage

of total number

of beds in region

City of Cape Town 100 47,4 13 523 64 135 65

Garden Route 42 19,9 4 020 19 96 33

Overberg 21 10,0 1 067 5 51 17

West Coast 20 9,5 704 3,3 35 14

Breede River Valley 11 5,2 533 2,5 49 13

Winelands 7 3,3 424 2 61 15

Klein Karoo 7 3,3 574 2,7 82 22

Central Karoo 3 1,4 302 1,4 101 42

Total 211 21 147 100

Source: Western Cape Tourism Board (2001).

170 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

success of the Rugby World Cup in 1995 led to optimism over the future of the South

African and Western Cape tourism industries in the mid-1990s. The bid process for

the Olympic Games in 2004 which started in the early 1990s set in motion a series

of state and privately-funded development projects in the greater metropolis, which

continued even after the city failed to be awarded the games (Hiller, 2000). These

factors had the effect that investment in the hotel sector once again became viable

after the downturn of the sanctions-era of the 1980s.4 Within this context, many new

hotel investments were made under a tax incentive scheme that had been introduced

by the former government.5 According to knowledgeable informants, another reason

why hotel investments expanded so rapidly during this period was the rise of sectional

title developments, in which hotels are purpose-built for multiple ownership. In the

middle of the 1990s, the rising popularity of this type of investment meant that the

number of hotels in the city rapidly increased. During this time the provincial govern-

ment also implemented new policies aimed at regulating the casino industry. While

the establishment and licensing of three new casino complexes in the province (one

each in the City of Cape Town, Overberg and West Coast) also entailed the development

of hotels tied to such complexes, this did not have a large tourism impact according to

most of those interviewed.6

4.3 Patterns in demand in the provincial hotel sector

In terms of tourist demand, a number of shifts had taken place in the hotel market of the

Western Cape over the past decade. In the first instance, as can be seen in Figure 2, tourist

usage of hotel accommodation has consistently grown. For the Western Cape demand for

Table 2: Distribution of hotel beds in the Cape metropolis, 2001

Municipality

Number of

hotel units

Number of

hotel beds

Per cent

of total

Average number

of beds per hotel

Cape Town 67 10 812 80 161

Tygerberg 9 1 076 8 119

Helderberg 9 779 5,8 86

South Peninsula 9 360 2,6 40

Blaauwberg 4 280 2,0 70

Oostenberg 2 216 1,6 108

Total 100 13 523

Source: Western Cape Tourism Board (2001).

4The director of one of the largest hotel chains in South Africa, for instance, argued: ‘The situationin 1986 was such that we had a state of emergency, we had disinvestment, sanctions. That was thelowest period in apartheid-era tourism, and this affected hotels severely. Occupancy in our hotels,in our industry, was at an all-time low, there were no new projects happening whatsoever. Hotelswere unable to refurbish because they didn’t have the revenues. Then, after the political transform-ation in 1994, things changed dramatically. We ended up having dramatic growth after 1996.’5Section 13.2 of the Income Tax Act of 1967 offers incentives for the construction and develop-ment of new hotels. Up until 1988 tax concessions were given for the development of three- tofive-star hotels. Such concessions included the rescinding of building costs over 9-, 12- and14-year periods. In 1988 20-year write-offs for building costs were introduced for hotels of allstar gradings (DEAT, 1996).6This is due to the demographics of casino patrons, who are generally medium- to low-incomelocal residents or day visitors from further afield.

Tourism impact, distribution and development 171

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

hotel accommodation has increased to the extent that on a national basis, the province

has established a strong position, and takes one-quarter of the overall hotel market.

Within the Western Cape itself, domestic tourism forms the mainstay of the province’s

hotel market, accounting for close to three-quarters of total provincial bed-nights sold,

although by 1997 the province had secured a significant share of the national market

for international tourists (approximately 42 per cent) (Figure 3).

Figure 4 and Table 3 illustrate the disparities between the hotel markets of the province’s

various sub-regions in terms of the volume of international tourism they draw, and tourist

usage by star grading.

Table 3 presents data on the share of hotel bed-nights sold and hotel income generated in

various star grading categories in the Western Cape’s eight tourism regions during

January 2001. It shows interesting contrasts in the relative importance of different

types of hotels in different sub-regions. In Cape Town, for instance, it can be seen

Figure 2: Trends in hotel bed-nights sold in the Western Cape, 1992–2001

Source: Statistics South Africa (various years)

Figure 3: The hotel market for international tourists in the Western Cape

Source: Statistics South Africa (various years)

172 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

that tourism demand is highest in the three- and four-star sectors, with bed-nights sold in

the five-star sector making up less than one-fifth of the total number of bed-nights sold.

However, as far as hotel revenue is concerned, the five-star sector is the single most

important earner in the city. It can also be seen that one- and two-star hotels do not

play such a significant role in the city’s hotel market. Similar features characterise the

hotel markets of the Garden Route and Winelands. It is clear, however, that the ungraded

hotel sector plays a very large role in the rest of the Western Cape province.

Overall, the City of Cape Town, the Winelands and the Garden Route are distinguished

by the fact that they draw more international tourists, and more higher-yielding clients,

than other parts of the Western Cape. Concomitantly, in these regions a major share of

hotel impact is afforded through international tourism. In contrast, in the outlying rural

areas of the Western Cape (the West Coast, Breede River Valley and Karoo regions)

domestic tourism is the mainstay of the hotel sector.

Qualitative analyses of hotel demand indicate that increases in hotel supply in the pro-

vince have not been met with sufficient levels of tourist usage. This has had attendant

effects on occupancy levels. Interviews with hotel operators and managers in different

areas of the Western Cape (a total of 20 hotels) show that the rise in hotel supply

during the mid- to latter-1990s had substantially affected the hotel sector. Operators

agreed that the sharp increase in international tourist arrivals had translated into rising

demand for accommodation. Until 1996, ‘business was booming’. By 2001, however,

the situation had reversed: the growth in international visitors had levelled off, while

supply had continued to increase. At present, therefore, operators agreed that demand

was inadequate to sustain the hotel industry. Most operators spoke of a decided ‘oversup-

ply’ in the province’s hotel sector. One hotel executive stated: ‘We’ve got occupancy

sitting at 50–60 per cent at the moment, which is really an industry operating at half

capacity, it’s not really a healthy industry.’7

International literature and empirical studies on the hotel property market suggest a

general lag between hotel investments and occupancies, often because hotel investments

tend to be made independent of macro-economic fluctuations and based on the price

structure within the hotel sector (for example, Wheaton & Rossoff, 1997).

Figure 4: Share of hotel bed-nights sold to foreigners in the Western Cape, by

region, 1995–1997

Source: Statistics South Africa (various years)

7Personal communication with owner and chief executive officer, Relais Hotels, 6 March 2001.

Tourism impact, distribution and development 173

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

Table 3: Tourist usage, by star grading

Star grading Ungraded One- and two-star Three-star Four-star Five-star Three- to five-star One- to four-star Total

Per cent of bed nights sold, by star grading

City of Cape Town 13 41 28 18 100

Klein and Central Karoo 6 48 46 100

Garden Route 41 7 52 100

Winelands 28 72 100

West Coast 35 65 100

Breede River Valley 69 31 100

Overberg 100 100

Per cent of hotel income, by star grading

City of Cape Town 8 23 27 42 100

Klein and Central Karoo 25 29 46 100

Garden Route 19 13 68 100

Winelands 15 85 100

West Coast 37 63 100

Breede River Valley 43 57 100

Overberg 100 100

Source: Statistics South Africa (January 2001).

17

4S

Co

rnelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

Lower occupancy levels in the metropolitan hotel sector could be a manifestation of the

‘normal’ lag between investments and occupancy. It needs to be asked, however,

whether other deeper-lying or structural factors account for lower occupancy rates.

South Africa has ostensibly gained from a destination substitution effect in the aftermath

of the series of terrorist attacks of 2001 and 2002 and the unrelated, substantial weaken-

ing of the Rand at the end of 2002. For example, in contrast to a global tourism decline of

1 per cent in 2001 (WTO, 2002), international arrivals into South Africa grew by 11 per

cent during the first part of 2001 and 2002 (DEAT Media Release, 9 March 2003). This

had translated into an increase in hotel occupancies for 2002, to a national average of 57

per cent for the period June to July. In Cape Town, average hotel occupancy for this

period was 63 per cent.8 Notwithstanding, the country’s sector is subject to marked vola-

tility. By the end of 2003, for instance, international arrivals had once again waned due to

broad economic downturns in South Africa’s main source markets. This, coupled with

the strengthening in the country’s currency, has had a downward effect on hotel occu-

pancies (Business Day, 29 October 2003). In the City of Cape Town occupancies for

the period between October 2002 and 2003 declined by seven per cent (Business Day,

2 December 2003).

Such volatility is compounded by a further negative characteristic – the Western Cape’s

tourism market is particularly subject to seasonal shifts, and seasonal variation in

demand greatly affects the city’s hotels. Occupancy generally peaks in January and

February, drops off during March and April to low levels in June, July and August,

before rising again during the spring months of October and November.

Hotel operators argued that within the context of over-capacity in the metropolis, the

negative effect of seasonal demand on the hotel industry became more intense. Further-

more, these factors set the context for the operations, practices and market traits of the

broad accommodation sector. There is extensive divergence between the importance

of different market segments. Overall the corporate and the group traveller segments,

which are less subject to seasonal fluctuations in demand, carry the greatest significance

in the province’s accommodation business, while the individual leisure traveller segment

carries the least. Given the effect of seasonality, however, variability in market compo-

sition is an important feature. Generally the use of accommodation by different market

segments interchanges over different periods of the year. Accommodation operators alter

marketing schedules and market targeting in accordance with seasonal changes in

demand. As a consequence of high levels of supply and intense competition, moreover,

developing niche markets and alternative sources of income is a vital aspect of operators’

activities.

Analysis of the Western Cape accommodation sector brings to light a number of key

aspects. There has been a broad increase in accommodation supply after 1994, partially

brought about by increasing demand after this period. This has produced a differential

effect on different parts of the province and different components of the accommodation

sector. The supply and tourist usage patterns show that different tourist functions and activi-

ties prevail in various parts of the province. There is a clear functional division based on

types of markets: in the rural hinterland the domestic (and leisure) tourist market is most

important, while in the Cape metropolis international tourism and corporate meetings,

incentives, conferences and exhibitions (MICE), both higher-yielding sectors, play a

very important role. Tourism intensity, and the importance of tourism, is also unevenly

8Data obtained from Statistics South Africa (Stats SA).

Tourism impact, distribution and development 175

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

spread throughout the province. Broadly, most tourism takes place in the City of Cape

Town (and specifically in the City Bowl and Atlantic Seaboard area), the Garden Route

and, to a lesser extent, the Winelands. Concomitantly, accommodation impact, as reflected

by actual tourist usage and income generated, tends to be concentrated in these areas.

The next section investigates trends in Western Cape tourism investment in excess of

R10 million, between 1998 and 2001. The objective of this section is to examine the

direction of tourist development and of demand stimulation in the province since

1998. These trends are related with patterns of accommodation supply and usage high-

lighted previously, and conclusions are drawn on the implications for future tourism

growth and distribution.

5. TOURISM INVESTMENT PATTERNS IN THE WESTERN CAPE,1998–2001

Figures 5 and 6 present all the major tourism-specific and tourism-related investment

projects undertaken in the Western Cape and Cape Town since 1998. Table 4 below pre-

sents a further breakdown of these projects by their status and regional location.

The figures and table display a strong degree of investment concentration in the Western

Cape. Investments are most dense in the metropolitan area. Outside the city the Garden

Route, the Winelands and the Overberg are the prime investment regions, while a

number of projects are taking place along the West Coast. In the remainder of the pro-

vince very little large-scale tourist development is occurring.

In other words, there is a high correlation between the investment and accommodation supply

and usage patterns in the province. This has two implications. On the one hand, major tourism

investments follow general levels of tourist activity, with investments being most focused

where tourist activity is most intense. On the other hand, there appears to be very little in

the way of large-scale demand stimulation in the regions where tourist activity is less

dynamic, such as the Breede River Valley and the Karoo regions.

Figure 5: Distribution of tourism investments in the Western Cape, 1998–2001

176 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

In part this pattern of capital investments stems from the demographic and economic

structure of the province. The Western Cape is highly urbanised, with two-thirds of

the population residing in the City of Cape Town. The metropolis also accounts for

three-quarters of the total Gross Regional Product. A further analysis of the kinds of

investments that are made in the Western Cape provides important insights into the

Figure 6: Distribution of tourism investments in Cape Town, 1998–2001

Tourism impact, distribution and development 177

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

direction of tourist development. Table 5 presents a breakdown of the province’s invest-

ment projects by investment type and location.

The most noteworthy and surprising aspect to emerge from Table 5 is the salience of

golf-related and property-related or residential developments. Golf-related developments

constitute a major component of tourism investments in the Western Cape. By 2001

almost one-quarter (24 per cent) of all tourist developments in the province were golf-

related. In total, golf developments (currently under construction and envisaged) carry

a value of R7,9 billion, making these projects of the most extensive in the province. A

number of the golf projects are in the form of golf courses. The majority of the province’s

golf projects, however, consist of what are here termed golf complexes – the establish-

ment of golf estates with residences (houses, apartments or villas) or hotels or both. In

total there are twelve such developments in the Western Cape. These are mainly country-

side developments. The combination of golf, hotel and residential investments – an inte-

grated form of development – is a common and growing trend in real estate development

internationally (Miles et al., 2000). International experience shows that two principal

motivations underlie such developments from the perspective of investors – land use

optimisation and profit maximisation. Close synergies between the three segments in

the primary market that is aimed at (a wealthier, golf-playing clientele) enhance the

return on investment and hence the attractiveness of such investments (Miles et al.,

2000). In addition, diversification reduces the risk of financial loss. With this sort of

development, investors in the Western Cape seem to be following an emergent tendency

in international leisure development.

The pertinence of the golf developments is significant. It indicates the targeting of a specific

niche market – golf tourism. Given the high contingency costs that go along with golf

tourism, this market generally consists of a higher-income clientele. Because in the main

five-star hotels and middle- to high-income residences form part of these complexes, these

can be seen as very exclusive developments. However, a number of golf-related property

developments are also what are known as security complexes – security-controlled com-

pounds with limited access points – and this fact suggests that some of these developments

are specifically aimed at being exclusionary. This seems a stark contrast to the goals of greater

tourism access, empowerment and transformation that underlie the government’s policy. In

Table 4: Tourism investments in the Western Cape, 1998–2001

Region

Total number

of projects

Under construction

(number)

Approved

(number)

Planned

(number)

Total known

value of projects

(R billion)

Cape Town 32 17 5 10 7.8

Winelands 11 4 3 4 1.95

Garden Route 9 8 – 1 5

Overberg 9 5 – 4 1.95

West Coast 6 3 1 2 0.31

Breede River Valley 3 – – 3 0.15

Klein Karoo 2 – – 2 0.005

Central Karoo 0 0 0 0 0

Total 72 37 9 26 R17.2bn

Source: Wesgro, MIDO database.

178 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

Table 5: Breakdown of provincial tourism investments, by type and location

Primary investment category

Total number

of projects

Location

Metropolitan Non-metropolitan

1. Accommodation

a) Hotel 10 Helderberg;

Blaauwberg;

Tygerberg (2)

Overberg (2)

West Coast

b) Hotelþ conference 4 Cape Town (3)

Cape Town

Overberg

Winelands (2)

c) Hotel and residential 2 West Coast

d) Tourist accommodation 2 Cape Town

Robben Island

Klein Karoo

2. Golf

a) Golf courses 5 Tygerberg Winelands (3)

Garden Route

b) Golf complexes

(golfþ residential or golfþ hotel)

12 Blaauwberg Overberg (2)

Winelands (4)

Garden Route (5)

3. Combination recreation/leisure

and residential

10 Cape Town (2)

Tygerberg (3)

Blaauwberg

Garden Route (2)

Wineland

Overberg

4. Combination recreation/leisure

and commercial

3 Breede River Valley

West Coast

Garden Route

5. Infrastructure 10 Tygerberg (5)

Cape Town (3)

Winelands

Klein Karoo

6. Convention centre 1 Cape Town

7. Conservation

a) Nature reserve complexes

(nature reserve and residential)

3 Garden Route

Overberg

Breede River Valley

b) Conservation and tourist

accommodation

2 West Coast

Overberg

c) Conservation and recreation 2 West Coast

Overberg

8. Tourist attraction

(a) Themed attraction 1 Blaauwberg

(b) Cultural or e/heritage attraction 5 Cape Town (2)

Tygerberg

Winelands

Overberg

9. Casino 2 Tygerberg Overberg

10. Resort 3 South Peninsula West Coast

Breede River Valley

11. Waterfront development 1 West Coast

Source: Wesgro, MIDO database.

Tourism impact, distribution and development 179

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

addition, in recent years, there has been increased censure of the negative ecological impacts

of golf estates, which generally have high levels of water consumption. As most of these

estates are situated in the more rural areas of the province – most new developments have

for instance been concentrated in three regions, the Garden Route, Winelands and Overberg –

there has been a great degree of criticism of the high levels of water consumption and the

added pressures that such developments place on restricted physical resources (Mail and

Guardian, 2 April 2003). Notably, these three regions generally draw more higher-income

and more international visitors than the other non-metropolitan regions of the Western Cape.

Overall, the high coincidence of residential-cum-commercial and tourism developments

indicates a general attempt by investors to optimise investment returns and. as far as

possible, lessen investment risks. Very few of the investment projects entail the deve-

lopment of single-modality tourist attractions. Only three of the investments, for

instance, consist of the construction or refurbishment of resorts. In addition, only one

waterfront development is planned. This development, situated in the coastal town of

Lamberts Bay, is part of the West Coast Investment Initiative, one of the Spatial Devel-

opment Initiatives driven by the central government since the late 1990s. The Spatial

Development Initiatives are a comprehensive national strategy aimed at enhancing

industrial development in those under-utilised areas with economic potential by remov-

ing barriers to investment, establishing infrastructure and providing various financial and

tax incentives. The Lamberts Bay project entails the integration of the existing fishing

harbour into a waterfront development for tourists.

Several of the investments in the Western Cape are infrastructural development projects. It is

noteworthy that very little infrastructure development (with the exception of the centrally

driven West Coast Investment Initiative) is taking place in the non-metropolitan parts of

the Western Cape. The single largest infrastructure project (both in scale and in financial

value) is a medium- to long-term project at the Cape Town International Airport. In the

medium term the project entails: the expansion of the cargo and freight centres at the

airport; the refurbishment and extension of the runways and the arrivals and departures

halls to increase the airport’s passenger handling capacity from 350 to 950 passengers per

hour; the construction of office blocks and a cricket oval on the airport premises; and the

establishment of a 5-star hotel. It is expected that all these developments, valued at R246

million, will be completed by 2005. Longer-term planning, set for completion by 2015

and valued at R2.8 billion, will see a major property development for commercial, retail

and warehousing occupation around the airport site, the construction of multi-storey car

parks, and satellite terminals and runways (ACSA Master Plan, nd).

In total the value of the entire airport development is R3.1bn, making it the single leading

investment project in the Western Cape. This infrastructure project is very important. It is

premised on expected rises in passenger and tourist arrivals at Cape Town International

Airport. It is projected that traffic at the airport will increase from 5 million in 2000 to

more than 12 million by 2015, one-quarter of which will be international tourist arrivals

(ACSA Master Plan, nd).

Hotel development is another major constituent of tourism investments in the Western

Cape. By 2001 16 individual hotel projects were undertaken or planned in the province,

just more than half of this (56 per cent) located in the City of Cape Town. In comparison

with the pattern of hotel development in earlier years, there seems to be a greater degree

of diversion. Between May 1996 and May 1998, for instance, 32 new hotels were

established in the metropolis. Of these, more than three-quarters were located in the

180 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

Cape Town municipality (Wesgro, 1998). As can be seen in Table 5, by 2001 several new

hotel developments were taking place in other parts of the city and the province,

suggesting a deconcentration out of the city bowl area. One reason could be that the

market in the city bowl has become saturated; Section 4 on the accommodation sector

evidenced a large degree of over-capacity in the metropolis.

A second difference is that while earlier hotel developments were mainly mono-

functional, several of the new developments that have taken place between 1998 and

2001 are dual-functional or multi-functional. First, as mentioned earlier many of the

golf-related or commercial and residential developments are dovetailed with the estab-

lishment of hotels. As discussed earlier, this is aimed at offsetting risks. Second, some

of the hotel developments are linked with the development of conference facilities.

The largest and most important hotel and convention project is the development of the

Cape Town International Convention Centre at the foreshore of the city bowl.

A very small proportion of the new accommodation that is being developed is geared

towards the segment of the tourist market that does not stay in hotels. Three investment

projects, in the Klein Karoo, the West Coast and the Overberg, respectively, consist of the

construction of lodges or more informal tourist accommodation. In the latter two regions,

moreover, the accommodation developments are linked to broader conservation projects.

This indicates that there is only a limited number of large-scale investments aimed at

accommodating the middle- to low-income, domestic or lower-paying tourist markets in

the province. This may be because these tourists occupy the local guesthouses, backpacker

and bed and breakfast establishments in the various parts of the province. A second reason

could be that the construction costs of informal or cheaper accommodation establishments

such as lodges or chalets are relatively lower, and hence not captured by the MIDO database.

In all, the bulk of large investments target the upper end of the market. Only a small pro-

portion of resources is directed at the domestic, local and lower-paying sections of the

tourist market in the Western Cape. In view of the fact that the domestic market is the

basis of the tourism industry in the Western Cape, the aptness of this can be questioned.

In sum the following features of tourism investments in the Western Cape may be high-

lighted. There is a high level of concurrence with property developments in the province

(signalling investors’ attempt at risk reduction). Coupled with that, there is a broad concen-

tration on multi-modal recreation and leisure complexes. Middle- to high-income tourist

markets are generally targeted, but there is a particular targeting of the golf tourist market.

6. DISCUSSION AND CONCLUSION: TOURISM IMPACT, DISTRIBUTION

AND DEVELOPMENT

The following key features emerge with regard to tourism’s spatial structure in the

Western Cape. Tourist activity is generally concentrated in respect of accommodation

supply and usage patterns. There are important differences between regions in the pro-

vince and municipal areas within the metropolis as regards the markets they draw,

their tourist function, and the relative importance of tourism. Tourism is of greatest

economic consequence in the Cape Town municipal area, although areas adjacent to

the Cape metropolis, most notably the Garden Route and the Winelands, also obtain a

substantial proportion of the economic spin-offs of tourism. In the remainder of the

province, however, the nature and level of tourism intensity is much less.

Tourism impact, distribution and development 181

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

Patterns of tourist investment since 1998 have been very particular: the focus is on com-

bination or multi-sphere developments of which tourism is just one aspect. Moreover,

demand stimulation is geared at higher-paying, higher-yielding niche markets, rather

than the lower-income domestic market. The bulk of investments occur along the

coastal areas of the province, and in the Winelands region. These features make the

course of tourist development in the province very distinctive: tourist development

and value-adding through tourism investment converge in the areas of the province

where tourism activity and impact is highest.

To a great extent this is due to the economic and demographic structure of the province,

with the greater portion of the population, and the larger component of economic activi-

ties based in or adjacent to the metropolis. Yet there are facets to the pattern of tourism

development that present significant challenges to the government’s goal of fostering a

sustainable sector that is of economic benefit for the majority of residents. First, even

though there has been wholesale growth in the number of international and domestic tour-

ists to the province, and in tourist activities generally, aspects such as incongruities

between supply and demand (such as in the accommodation sector) hold import for

tourism growth and sustainability. Declining and seasonal occupation is a generic

problem. The hotel sector, however, faces the added difficulties of reduced overall

revenues, which in turn influence their employment and other operating practices (this

includes the use of casual labour and reduced staff training), and also affects the ability

of accommodation operators to engage in aspects such as skills development or training.

Second, while the metropolis is the economic engine of the province, and has accounted

for much of the tourism growth over the past decade, this growth has been uneven. A

growing body of case studies is showing that tourism benefits are not spreading in the

way the government has envisaged. In the City of Cape Town much growth is occurring

in the more affluent parts such as the city bowl and Atlantic seaboard, while despite

various attempts to promote activities such as township tourism in the more populous

and poorer parts of the city, this has not borne the expected growth or benefits

(Goudie, Khan & Killian, 1999; City of Cape Town, 2003).

Third, most new capital investments are targeted particularly to the international tourist

segment. While the province has a comparative advantage in this market vis-a-vis other

South African provinces, to date too little has been done to develop the domestic tourist

segment, which has a number of features that should be capitalised on. In the first instance,

by its sheer size domestic tourism in the province still accounts for the greater portion of

tourist income. In addition, domestic travel patterns do not reflect the excessive seasonal

fluctuation of, and are less geographically concentrated than, the international market.

For example, although there is a general slump in domestic visitor numbers over the

winter period (May to August), areas such as the Breede River Valley and the Central

and Klein Karoo experience relatively high levels of tourism; for instance, 40 per cent

of all visits to these areas are made in the winter (WCTB, 1999). These patterns suggest

a greater degree of consistency than that showed by the international segment.

The provincial government acknowledges that domestic tourism is important and should

be promoted (DEATT, 2001). It has pursued this objective through a series of product

development and promotion strategies, of which the aim to ‘package tourism themes

and attractions in the form of suggested routes and itineraries’ (DEATT, 2001: 38),

and the development and promotion of new, alternative products such as cultural

tourism, are the most significant. The latter aims to integrate people previously excluded

182 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

from tourism into its production, while with the routes and themes concept the goal is to

provide more exposure to the hinterland of the province.

The province shares similarities with many other developing countries in that its tourism

development policy is a highly ambitious attempt to merge two very different, often

contending objectives – sustainable growth, and equity or distribution. This means

satisfying both the needs of the market and the requirements for distribution.

Tourism literature suggests that both objectives – sustainability and empowerment – are

in practice difficult to realise. In other developing countries this is due to factors such as

insufficient infrastructure and resources, lack of capacity (Goudie et al., 1999), poverty

(Sindiga, 1996), low levels of education and weak institutions. South African studies

have noted how the shortage of skills, capital and other resources has posed obstacles

to community-focused tourism programmes (Koch, 1994; Boonzaaier, 1996). In

this study, interviews with a wide range of tourism producers, regulatory and organis-

ations and tourism officials in the Western Cape indicated that the province is similarly

hampered by inadequate resources, along with, a general lack of interest in township or

cultural tourism by the international market. In addition, commercial considerations

often mean that large, well-established tourism companies are unwilling to contribute

to empowerment or transformation goals.

The skewed spatial structure of tourism in the Western Cape indicates that there is much

potential to distribute tourism activity and impact. Provincial policy, specifically as encap-

sulated in the 2001 White Paper, has appropriate goals, but to date has failed in implemen-

tation. More attention should be given to addressing the institutional shortcomings of

tourism administration, which despite attempts to streamline the various regional and

local institutions, still remains too bulky. The establishment in early 2004 of the

Destination Marketing Organisation would hopefully go some way to improving

tourism governance. At the same time, concerted effort needs to be made to address

lack of capacity at the local tourism institutional level, particularly in the poorer parts of

the city. In addition product development should be in line with consumer’s preferences

and there should be a general attempt to increase the domestic market. In this, the govern-

ment has some role to play in channelling capital investments that aim to promote domestic

tourism. Providing incentives to the private sector would be an important part of this.

REFERENCES

AIRPORTS COMPANY OF SOUTH AFRICA (ACSA), nd. Master Plan. Johannesburg:

ACSA.

ARCHER, BH, 1977. Tourism multipliers: the state of the art. Bangor Occasional Papers

in Economics No 11. Cardiff: University of Wales Press.

BLOOM, J, 1998. The macro-economic significance of travel and tourism to the

economy of the Western Cape. Discussion paper 3/96 (revised). Cape Town: Wesgro.

BOONZAAIER, E, 1996. Negotiating the development of tourism in the Richtersveld,

South Africa. In Price, MF (Ed) People and tourism in fragile environments.

New York: John Wiley and Sons.

BRITTON, SG, 1982. The political economy of tourism in the Third World. Annals of

Tourism Research, 9(3): 331–58.

BRITTON, SG, 1991. Tourism, capital, and place: towards a critical geography of

tourism. Environment and Planning D: Society and Space, 9: 451–478.

Tourism impact, distribution and development 183

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

BROHMAN, J, 1996. New directions in tourism for third world development. Annals of

Tourism Research, 23(1): 48–70.

BUSINESS DAY, 2003a. Hotel sector faces anxious festive season. Johannesburg,

2 December.

BUSINESS DAY, 2003b. Hotels feel the pinch as rand bites into SA tourism prospects.

Johannesburg, 29 October.

CAPE TOWN CITY COUNCIL, 1993. Surveys of tourism in Cape Town. Cape Town:

Cape Town City Council.

CAPE TOWN CITY COUNCIL, 1994. Are we serious about tourism in Cape Town?

Cape Town: Cape Town City Council:

CITY OF CAPE TOWN, 2003. Tourism development framework. Cape Town: City of

Cape Town.

DE KADT, E (Ed), 1979. Tourism – passport to development? Perspectives on the social

and cultural effects of tourism in developing countries. Oxford: Oxford University Press.

DEFERT, P, 1966. La localisation touristique: problemes theoriques et pratiques.

Berne: Editions Gurten.

DELOITTE & TOUCHE, July 1993. The Olympic games and tourism development in the

Western Cape, Cape Town.

DEMHARDT, IJ, 2000. Aktuelle Strukturen in der tourismusgeographischen Entwicklung

des Binnen- und Auslandstourismus der Western Cape Province (SudAfrika). In Bahr, J

& Jurgens, U (Eds), Transformationsprozesse im Sudlichen Afrika – Konsequenzen fur

Gesellschaft und Natur. Kiel: Geographischen Instituts der Universitat Kiel.

DEPARTMENT OF ECONOMIC AFFAIRS, AGRICULTURE AND TOURISM

(DEAAT), 1999. Western Cape Tourism Green Paper. Cape Town: DEAAT.

DEPARTMENT OF ECONOMIC AFFAIRS, AGRICULTURE AND TOURISM

(DEAAT), 2001. White Paper on sustainable tourism development and promotion in

the Western Cape. Cape Town: DEAAT.

DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND TOURISM (DEAT), 1996.

White Paper on the development and promotion of tourism in South Africa. Pretoria: DEAT.

DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND TOURISM (DEAT), 2003.

It’s official – SA is world’s hottest destination. Media Release, Pretoria, 9 March.

Available online at: www.environment.gov.za.

FLETCHER JE & ARCHER, BH, 1991. The development and application of multiplier

analysis. In Cooper, CP (Ed), Progress in tourism, recreation and hospitality manage-

ment, vol 1. London: Belhaven.

FLETCHER, JE, 1989. Input–output analysis and tourism impact studies. Annals of

Tourism Research, 16: 514–29.

GOUDIE, SC, KHAN, F & KILIAN, D, 1999. Transforming tourism: black empowerment,

heritage and identity beyond apartheid, South African Geographical Journal. 81(1): 22–31.

HALL, CM & PAGE, SJ, 1999. The geography of tourism and recreation: environment,

place and space. London: Routledge.

HILLER, H, 2000. Mega-events, urban boosterism and growth strategies: an analysis of

the objectives and legitimations of the Cape Town 2004 Olympic bid. International

Journal of Urban and Regional Research, 24, 2: 439–58.

KEOGH, B, 1984. The measurement of spatial variations in tourist activity. Annals of

Tourism Research, 11: 267–82.

KOCH, E, 1994. Reality or rhetoric? Eco-tourism and rural reconstruction in South

Africa. Geneva: United Nations Research Institute for Social Development.

LEA, J, 1988. Tourism and development in the Third World. London: Routledge.

184 S Cornelissen

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14

MAIL AND GUARDIAN, 2003. Graft and the environment. Johannesburg, 3 April.

MATHIESON A & WALL, G, 1982. Tourism: economic, physical and social impacts.

London: Longman.

MILES, ME, BERENS, G & WEISS, MA, 2000. Real estate development – principles

and processes, 3rd edn. Washington DC: Urban Land Institute.

OPPERMAN, M, 1993. Tourism space in developing countries. Annals of Tourism

Research, 20: 535–56.

PEARCE, DG, 1995. Tourism today: a geographical analysis, 2nd edn. Harlow, Essex:

Longman.

POTTS, TD & UYSAL, M, 1992. Tourism intensity as a function of accommodations.

Journal of Travel Research, 31(2): 40–44.

ROGERSON, CM, 2002. Driving developmental tourism in South Africa. Africa Insight,

32(3): 33–42.

SINCLAIR, MT & TSEGAYE, A, 1990. International tourism and export instability.

Journal of Development Studies, 26(3): 487–504.

SINCLAIR, MT, 1998. Tourism and economic development: a survey. Journal of

Development Studies, 34(5): 1–51.

SINDIGA, I, 1996. Domestic tourism in Kenya. Annals of Tourism Research, 23,1: 19–31.

SMITH, SLJ, 1989. Tourism analysis – a handbook. Harlow, Essex: Longman.

SOUTH AFRICAN TOURISM (SATOUR), 2000. A survey of South Africa’s foreign

visitor market, January. Pretoria: SATOUR.

SOUTH AFRICAN TOURISM BOARD (SATOUR), 1996. A survey of South Africa’s

foreign visitor market, January. Pretoria: SATOUR.

SOUTH AFRICAN TOURISM BOARD (SATOUR), 1997. A survey of South Africa’s

foreign visitor market, January. Pretoria: SATOUR.

STATISTICS SOUTH AFRICA, various years. Hotel Trading Statistics, Pretoria:

Statistics South Africa.

UYSAL, M, 1998. The determinants of tourism demand: a theoretical perspective. In

Ioannides, D & Debbage, KG (Eds), The economic geography of the tourist industry:

a supply-side analysis. London: Routledge.

VISSER, G & VAN HUYSSTEEN, K, 1997. Guesthouses: new options for tourists in the

Western Cape winelands. Acta Academica, 29(2): 106–37.

VISSER, G, 2003. South African tourism and its role in the perpetuation of an uneven

tourism space economy. Africa Insight, 33(1–2): 116–23.

WESGRO & KPMG LEISURE AND TOURISM, 1998. The Western Cape tourism

sector – background for investors. Cape Town: Wesgro.

WESGRO, 1998. Hotel accommodation trends in the greater Cape Town area,

1996–1998. Cape Town: Wesgro.

WESGRO, 1999. Tygerberg tourism potential report. Cape Town: Wesgro.

WESGRO, 2001. Western Cape overview, www.wesgro.org.za

WESTERN CAPE TOURISM BOARD (WCTB), 1999. Market survey – travel patterns

of domestic tourists. Cape Town: WCTB.

WESTERN CAPE TOURISM BOARD (WCTB), 2001. The Official Travel Guide of the

Western Cape Tourism Board, 2000–2001. Cape Town: Western Cape Tourism Board.

WHEATON, WC & ROSSOFF, L, 1997. The cyclic behaviour of the US lodging industry.

Torto Wheaton Research Commercial. Available online at: www.tortowheatonresearch.com.

WORLD TOURISM ORGANIZATION (WTO), 2002. World tourism highlights 2001.

Madrid: WTO.

Tourism impact, distribution and development 185

Dow

nloa

ded

by [

Mem

oria

l Uni

vers

ity o

f N

ewfo

undl

and]

at 2

2:06

25

Nov

embe

r 20

14