14 May The Capital Hotel Group and IDC capitalise on Gqeberha’s growth prospects
South Africa’s tourism sector is riding a high with a record 10.5m international visitors having graced our shores in 2025. This marks a 17.7% increase from the 2024 numbers surpassing a high which was last recorded during the Covid-19 pandemic.
Importantly, travellers from African countries accounted for the majority of international arrivals in the country in the process sustaining thousands of jobs in several communities spread across the country. Keen to capitalise on this growth, tourism accommodation purveyor, the Capital Hotels Group has launched a R270 million development in Gqeberha, Eastern Cape.
The 145 hotel rooms and apartments has access to the Boardwalk casino, a beach front and a shopping center providing tourists with a rare experience of the Eastern Cape’s hospitality industry. Marc Wachsberger, CEO of the Capital Hotels, Apartments and Resorts has commended the IDC for supporting this project saying this partnership has led to creation of more than 200 jobs in a region that is faced with massive unemployment.
Said Wachsberger: “Gqeberha being the economic capital of the Eastern Cape province is driven by a myriad of industries spanning manufacturing, seaport activity, education, among other factors. The marine and seaport economy has transformed the city into a major manufacturing hub catapulted by the Coega SEZ. Among others, the city boasts the R11 billion BAIC vehicle assembly plant as well as Aspen’s manufacturing plant which has become one of the largest manufacturing hubs for general anaesthetics in the world.”
Tourism contributes nearly 9% to South Africa’s Gross Domestic Product (GDP) and supports roughly 1.8 million local direct and indirect jobs. As a key institution mandated to support industrial development, and job creation, the IDC thanked Capital Hotel and apartments for choosing to invest in some of the country’s outlying regions.
Said IDC Head of services Kagisho Bapela: “Tourism supports more than 948,000 jobs in the country and contributes significantly to local GDP. This sector is critical to growing our economy and creating employment opportunities said Bapela adding that Gqeberha has all the fundamentals to become one of South Africa’s critical economic coastal hubs.” This new development enhances the city’s accommodation offering while also strengthening its ability to attract high value leisure travellers.
For Capital Hotel Group, this marks the company’s 12th such investment in the country and the IDC’s second funded project; the first was Capital Mbombela, launched in 2021.
Importantly for the IDC, this project affirms the Corporation’s growing support to the tourism sector as a priority, future‑facing, job‑rich investment sector. Related investments are aligned to national tourism and regional development objectives.
Following the launch of the Gheberha project, KZN-based and IDC funded Club Med SA is expected to open its doors to the public in July. As the biggest resort ever built in South Africa after Sun City, Club Med is poised to transform KwaZulu Natal’s province’s economic fortunes.
