Since the beginning of 2011, representing South Africa in various meetings aimed at profiling South Africa's tourism, Minister Marthinus van Schalkwyk frequently mentioned that tourism is a key pillar of the South African economic development strategy with a large number of players operating in multiple market segments.
However, exposed to global exchange rate volatility, rising oil prices, new security costs, external economic shocks like the 2008/09 US economic downturn, non-tariff barriers like visa requirements, travel advisories and discriminatory travel taxes, the industry has taken a serious knock and is still in dire need of greater policy coherence and collaboration at a global level.
Although travel demand to SA in 2011 was expected to grow at an average of 4 percent, it is at a slower pace than in 2010, the results of which has been skewed by the FIFA World Cup and unevenly spread between mature and emerging markets.
Three Cities embarked on a R110 million-project to upgrade the Hotel on St Georges and The Inn on the Square, both located in prime locations. The Hotel on St Georges is located on St Georges Mall, a vibrant pedestrian thoroughfare in central Cape Town, linking the foreshore to Government Avenue and the Company Gardens. The Inn on the Square is located in the corporate business and government district, overlooking the historic Green Market Square.
Mike Lambert, CEO of Three Cities says, ""Despite difficult economic times, we will continue to invest in the Cape as Three Cities is confident that Cape Town will weather the global recession."
