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The development of a R250 million world-class aviation centre fronting onto Cape Town International Airport will position the city as one of the world’s foremost private jet and helicopter destinations.
The ExecuJet Business Centre, currently under construction, is expected to support Cape Town’s and the Western Cape’s efforts to become a powerful international player in the business tourism market, said David Frandsen, Acting Executive Manager: Integrated Marketing Services for Cape Town Routes Unlimited.
The new fixed base operation (FBO) will provide a dedicated terminal and hangars for private jet travellers and an application is being made for customs and immigration services.
Nedbank Corporate Property Finance (Cape) is backing the project for local developers Dave Mostert and Johnny Cullum, who already have numerous successful projects in the vicinity of the Cape Town International Airport to their credit.
Frandsen said that business tourism generates a return on investment of 35:1 and thus is a fiercely contested sector internationally. “Cape Town has so much to offer to this booming market, such as excellent conference and exhibition facilities and world-class infrastructures, coupled with the region’s natural beauty. We are experiencing significant growth in this sector and if it continues it will sustain our destination's infrastructural expansion well beyond 2010”, Frandsen said.
With direct access to the N2 highway, runways and international airport infrastructure, this unique location also provides an ideal environment for executive jet aviation-related tenants. “The imminence of 2010 and the influx of high net worth individuals it represents, makes the centre even more relevant”, said Mostert.
The completed project will include a 10 000m2 four level terminal building with split-level basement parking and ample office space for tenants likely to be in the jet-related field, although Mostert says he anticipates keen interest from a wide and varying tenant base. ExecuJet Aviation Group and aviation companies Agusta and Sikorsky are confirmed tenants, with the remaining 20% available for interested parties.
The building’s floors have a footprint of 1 700m2 and combinations of 200m2, 500m2, 1 000m2 and 1 700m2 can be accommodated.
Collaborating on the development designed by Architects Maas & Coetzee are Nanza Consulting (quantity surveyors), Africon (consulting civil and structural engineers), Eckon (mechanical engineering consultants) and Raubicon (electrical engineering consultants). Construction is by CSV Construction.
Mostert said the centre is designed and will be built with unrestricted attention to finish and luxury. “The centre provides the private jet and helicopter communities with an ultimate destination, so to be part of it means being at the centre of an industry that has a net worth of inestimable value and a growth potential off the scale.”
Friday, December 12, 2008
Luxury Tourism Industry feeling the crunch
The impact of the global economic crisis is affecting the luxury tourism industry in South Africa, with a number of hotels and other operators having to discount their prices over the peak holiday season for the first time in many years. And, as a consequence, those international visitors still willing to travel to South Africa will benefit from the improved value-for-money offering, as well as the weaker local currency.
Ursula Gray, Chief Executive of the 5 star Cape Royale Luxury Hotel and Residence in Cape Town’s Green Point, says that most of the luxury hotels in South Africa are struggling to raise their occupancy levels over the holiday season and many are offering previously unheard-of special offers as a means of enticing additional guests. She notes that hotels that are perceived to offer better value for money are likely to fare better over the period.
“As an all-suite offering, the Cape Royale, for example, is able to offer the advantages of lower unit prices for families or groups staying in the same suite, as well as the option of self-catering and entertainment within the comfort of one’s own luxury apartment.
Referring to figures recently released by the South African Tourism office, Gray notes that during August – traditionally a month which sees an improvement in the number of international travelers to South Africa following the low season – actual numbers declined, with the Far East market recording the most significant decrease.
“In times of economic crisis, the Asians are often the first to stop traveling, while lead times for visitors from Europe or the USA are generally a little longer. With a further slump in the global economy during October and November, the outlook for the luxury tourism industry is increasingly negative. These figures are borne out by IATA statistics relating to the sharp plunge in international air passenger traffic, with carriers to Africa being the hardest hit,” she says.
Gray says that the local luxury tourism industry will face severe challenges as a result of the downturn in the global economy, and that many luxury hotels may have to review their rates. Independent research conducted amongst tour operators suggests that some luxury hotels in Cape Town have hiked their rates for several years in a row, and that non-competitive prices are a factor contributing to the lower occupancies this season.
“For South Africa to compete effectively with other long-haul destinations for a share of the increasingly restricted international traveler market, it’s important that hotels price themselves at the correct levels.
Ursula Gray, Chief Executive of the 5 star Cape Royale Luxury Hotel and Residence in Cape Town’s Green Point, says that most of the luxury hotels in South Africa are struggling to raise their occupancy levels over the holiday season and many are offering previously unheard-of special offers as a means of enticing additional guests. She notes that hotels that are perceived to offer better value for money are likely to fare better over the period.
“As an all-suite offering, the Cape Royale, for example, is able to offer the advantages of lower unit prices for families or groups staying in the same suite, as well as the option of self-catering and entertainment within the comfort of one’s own luxury apartment.
Referring to figures recently released by the South African Tourism office, Gray notes that during August – traditionally a month which sees an improvement in the number of international travelers to South Africa following the low season – actual numbers declined, with the Far East market recording the most significant decrease.
“In times of economic crisis, the Asians are often the first to stop traveling, while lead times for visitors from Europe or the USA are generally a little longer. With a further slump in the global economy during October and November, the outlook for the luxury tourism industry is increasingly negative. These figures are borne out by IATA statistics relating to the sharp plunge in international air passenger traffic, with carriers to Africa being the hardest hit,” she says.
Gray says that the local luxury tourism industry will face severe challenges as a result of the downturn in the global economy, and that many luxury hotels may have to review their rates. Independent research conducted amongst tour operators suggests that some luxury hotels in Cape Town have hiked their rates for several years in a row, and that non-competitive prices are a factor contributing to the lower occupancies this season.
“For South Africa to compete effectively with other long-haul destinations for a share of the increasingly restricted international traveler market, it’s important that hotels price themselves at the correct levels.
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