Cape Town is becoming increasingly unaffordable for South Africans, particularly during the peak holiday seasons. A growing number of hotels in the city, especially around the V&A Waterfront, are shifting their focus to foreign tourists, making the city less accessible to locals. According to a report by MoneyWeb, this trend is evident as many luxury hotels are now targeting wealthier international visitors.
Hotels such as the new luxury development at Quay 7, behind the Table Bay Hotel, are catering to the high-end market, with room rates comparable to international destinations. This trend is most noticeable during the busy December and January period, when accommodation and flight prices are at their highest.
A last-minute return flight to Cape Town can cost around R7,000 per person, with prices expected to rise to R8,000 as demand increases. Renting a midsize vehicle, like a Toyota Corolla Cross, adds another R13,000 to the total cost. For a couple, these transport expenses alone can amount to nearly R30,000.
Accommodation rates during this period are steep. For instance, a five-night stay at the One&Only Waterfront is priced at R280,000, while The Silo Hotel charges R190,000. Budget options like the Breakwater Lodge and the AC Hotel by Marriott start at around R25,000 for the same period. Even mid-range hotels, such as The Mount Nelson and The Westin, come in at approximately R15,000 per night.
More affordable alternatives, such as Southern Sun Waterfront and Sun Square City Bowl, still charge upwards of R18,000 for a five-night stay. Airbnb is often considered a cheaper option, but the impact of short-term rentals on local housing prices has sparked debates. The Department of Tourism may introduce new regulations to curb the rise of Airbnb rentals, as seen in other international cities.
Dining out is also becoming more expensive. A 500ml draught beer now costs about R65, and cocktails often exceed R150. Fine dining venues, like the newly opened Marble Cape Town at the Waterfront, cater to tourists, further raising the cost of living for locals.
