Alan Winde, Minister of Economic Opportunities, has welcomed the development of a new R680m hotel in the Cape Town CBD. He is join by Wesgro – the official Tourism, Trade and Investment Promotion agency for Cape Town and the Western Cape.
Tsogo Sun has reached an agreement with the owners of the recently demolished Tulip hotel for the construction of a new 500-bedroom hotel complex on the corners of Buitengracht and Strand streets.
Construction is expected to begin next month and be completed by September 2017.
“I’m pleased that Tsogo Sun have decided to expand their offering in the city centre, which already includes The Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun. Tsogo Sun’s continued investment into the Western Cape speaks to the confidence they have in our province as a business destination,” said Minister Winde.
Wesgro CEO Tim Harris said, “Our city is re-inventing itself. This R650m investment is a huge confidence booster for the central city and for tourism investment in the region. In addition, because the two hotels are targeting the 2-3 star ‘value tourism’ market they will help to meet some of the excess demand for rooms in this price range and broaden the hotel product offering in the city.”
The new hotel development will include a 200-bedroom SunSquare hotel and a 300-bedroom StayEasy hotel. The complex will offer banqueting and conference facilities.
Minister Winde said the Cape Town International Convention Centre’s expansion meant there would be an increase in demand for accommodation in the city centre.
“The expansion of the CTICC is set to double the centre’s existing exhibition capacity. We will see an increase in the number and size of conferences, resulting in more business travellers to our region. Developments, such as the Tsogo Sun’s new hotel, will cater to the Western Cape’s projected increase in business tourism.”
“Tourism in the Cape is positioned for growth. Wesgro calls on all investors in the tourism sector to contact us to discuss business expansion and ‘greenfield’ investments in the city and across the province.” Harris added.
Minister Winde said, “Tourism is our fastest growing sector, employing over 204,000 people in formal jobs and generating R17bn for our local economy. Over the next five years, under a high growth scenario, this sector has the potential to add a further 100 000 formal jobs. To reach these targets we have to stay competitive so we can continue to increase tourist numbers.”