Cape coffers swell with R260-million Cycle Tour cash contribution

The study was commissioned by the City of Cape Town's Department of Economic Development and Tourism and has become one of the most anticipated studies that is conducted annually by the Mother City.

"Since embarking on the impact studies in 2000," Lenferna continued, "the City of Cape Town has been able to account for a direct benefit of more than R600-million over the past four years from the Cycle Tour. Judging by the year-on-year increase, this figure could grow to as much as R900-million next year.

The event has embarked on an aggressive international marketing campaign and we are now beginning to see the dividends from this initiative. International travelers stay longer and also bring much needed foreign currency to the Mother City. This year the event attracted 1 141 international cyclists and supporters who spent an average of 10 days in Cape Town compared to an average of only five days for local and over border cyclists."

This year the event accounted for an estimated R260-million in revenue generated through accommodation, food/drinks, shopping, tourist attractions, the sale of bicycle spares and equipment as well as bicycle related services.

Commenting on the impact of the Cycle Tour on the Western Cape, Premier Marthinus van Schalkwyk said, "Tourism is perhaps the single most important growth industry in the Western Cape – not only for its economic benefits, which are impressive, but for the contribution it makes to the reputation of the Cape, which is priceless. World Class events like the Cycle Tour reinforce our status as the Cape of Great Events, and continue to draw record numbers of new foreign and local visitors."

The additional events that form part of Life Cycle Week like the Mountain Bike Challenge, Giro del Capo, Tricycle and Junior Tours and the Celebrity Carbo Loading dinner enticed cyclist to stay extra nights and accommodation expenses increased with a staggering 78% from 2002, accounting for R98.3-million of the total spend. This is 216% increase from 2000 when accommodation only accounted for R31.1-million of the total expenditure in the Western Cape.

Once in town, visitors flocked to restaurants and eateries where more than R50.3-million was spent on main meals.

Even though there was a significant increase in the amount of international participants and supporters, tourist attractions and other entertainment venues suffered a 23% decrease in the funds generated from the Cycle Tour. In 2002 these attractions could coax cyclists and supporters into spending R15.2-million and R13.1-million respectively, while 2003 saw them only willing to part with R21.9-million.

The influx of cycling fanatics also increased the feet through the doors of bicycle shops in the Western Cape. Closely rivaling accommodation as the area that accounted for the largest growth this year, the purchase of bicycle parts and related services added a further R16.5-million to the funds. This is an increase of 77% over 2002 figures.

The Premier added, "Participants and spectators who buy souvenirs, use local transport and accommodation, and who visit the many other attractions of the Cape, bring the benefits of the Cycle Tour to a much wider community than just the formal hospitality industry. This is the vision of our Provincial Government – to expand the benefits of tourism to all of the people of the Western Cape."