Business
How the V&A Waterfront pulled off an R11 billion year
Cape Town has never struggled to sell itself to the world. But in 2025, one place quietly turned that global attention into hard numbers on a scale few South African destinations can match. The V&A Waterfront welcomed 25 million visitors over the year and generated more than R11 billion in retail sales, even while parts of the precinct were under construction.
That figure alone puts the Waterfront in a league of its own. But the story behind it says just as much about where Cape Town is heading as it does about the mall itself.
A festive season that rewrote the record books
December 2025 was the kind of month retail managers dream about. More than three million people passed through the Waterfront in just a few weeks, spending R1.4 billion along the way. On New Year’s Eve, an estimated 200,000 revellers packed into the precinct for celebrations that spilled across social media and screens worldwide.
The party was livestreamed by global internet star IShowSpeed, whose broadcast clocked more than 47 million views. For many Capetonians, it felt surreal seeing a familiar local space trend internationally. For the city, it was priceless exposure that money simply cannot buy.
More than shopping. It is an economic engine
Behind the glossy storefronts and waterfront views lies a serious economic machine. According to Waterfront leadership, the precinct supports over 83,000 direct and indirect jobs and contributes more than 1.5 percent to the Western Cape’s GDP.
What makes the 2025 numbers particularly striking is that the Waterfront achieved this growth without its new luxury retail wing being completed. Retail sales still grew by seven percent year on year, suggesting demand that is not just strong but resilient.
Hotels full, even with new competition
Accommodation across the precinct told a similar story. The reopening of the InterContinental Table Bay Cape Town after a ten-month conversion gave the area a timely boost ahead of the festive rush. Across the Waterfront’s 13 hotels, December occupancy averaged a healthy 69 percent, reinforcing its pull as a global tourism base rather than just a local attraction.
For locals, this explains why finding a last-minute table or parking spot during peak season feels harder every year. The Waterfront is no longer only competing with Sandton or Umhlanga. It is competing with the world.
Why Cape Town’s momentum matters
The Waterfront’s success did not happen in isolation. Cape Town’s international arrivals in December were up 11 percent year on year, with regional and domestic travel also rising. Cruise tourism played its part too, with 74 vessels, 126,000 passengers, and 45,000 crew passing through the Cape Town Cruise Terminal during 2025.
Landmarks across the city felt the knock-on effect. Table Mountain, Robben Island, Chapman’s Peak Drive, and Cape Point all reported noticeable increases in visitors, even when weather conditions were not ideal.
This momentum has reignited debate online about whether South Africa is doing enough to protect its tourism lead. Industry voices have warned that East Africa is gaining ground fast, particularly when it comes to air access and cruise routes.
Big plans for 2026
If 2025 proved anything, it is that the Waterfront is far from done. A new luxury retail wing is set to open in 2026, alongside the launch of the EDITION hotel in the third quarter. The hotel will link directly to a new superyacht basin scheduled for completion in October, positioning the precinct firmly in the global luxury travel conversation.
Leadership at the Waterfront has made it clear that innovation is central to these plans. The goal is not only growth, but growth that creates jobs, supports small businesses, and lifts the broader economy.
For South Africans watching from the rest of the country, the message is simple. When tourism, retail, and infrastructure align properly, the results can be extraordinary. In a tough economic climate, the V&A Waterfront’s R11 billion year stands as proof that world-class destinations can still thrive on home soil.
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Source: Daily Investor
Featured Image: SAPeople
