High above Cape Town on the panoramic Signal Hill summit, my driver gestured before him with sweeping arms. I thought he was calling attention to the incredible Western Cape headlands and white beaches that distinguish the city, but he re-directed my gaze below. “You see the huge green patch on the plateau above the sea?” he asked. “That is Green Point Common, and in 2010 we will have a beautiful stadium there to host the World Cup soccer matches. It’s a tremendous project that will be a huge benefit to the city.” It seemed intangible, its magnitude escaping me at the time.

For years, so much news about South Africa focused on crime, poverty and race relations. As the 2010 FIFA World Cup drew near, South Africa and Cape Town grew anxious to show their achievements as hosts of the world’s largest sporting event. Nearly four years after stadium groundbreaking, there is no escaping how significant that dream has become. The effort has galvanized Cape Town’s politicians, civic leaders, tourism boosters, the business community and the 3.5 million residents living in South Africa’s so-called “Monte Carlo by the Sea.”

Somewhere between 300,000 and 500,000 soccer fans and related visitors have converged upon Cape Town to take in any of the eight World Cup soccer matches hosted here in June and July. What they encounter has been transformational for the city: the sweeping rose-colored silhouette of Cape Town Stadium, a 68,000-capacity venue dramatically changing an already dramatic skyline that an estimated 28 billion cumulative viewers worldwide are watching during 24/7 live media coverage.

The South African government has invested an estimated $12 billion in infrastructure for the Cup, including other host cities within the country. And by all counts, Cape Town has seen the biggest stimulus. As fans flock into the city on any of 16 international airlines, they immediately see the effects of the $206 million upgrades to Cape Town International Airport (CPT). It now boasts 120 check-in counters and has the capability of handling 15 million annual passengers and 3,000 luggage items per hour. Then there’s the stadium. Over 33 months, the facility was built at a cost of $600 million, employing 2,500 contracted workers while 1,200 tradesmen-in-training learned skills for future projects. Roads and other infrastructure projects have resulted, as well as incalculable improvements by retailers and businesses in anticipation of the World Cup frenzy.

Cape Town has seen a major expansion in the real estate market and valuation. That’s put a crunch on the tenant rental sector as landlords increased rates in advance of the World Cup tourism rental demand. But in terms of investment and trade, British and other foreign investors have already taken advantage of the South African rand’s attractive exchange rate (1 USD = 7.69 ZAR in mid-June). A key development to attract Foreign Direct Investment occurred in 2005, when Barclays bought a majority share in local bank Absa Group Ltd., becoming the largest single FDI in South Africa. Since then, projects in Cape Town have begun to flourish. At least 18 hotel projects are completed — including plush 5-star hotels — increasing the city’s immediate bed count in 2010 to 27,000 within a nine-mile radius. Expand the circle by several miles and that figure jumps to 70,000 beds, ranging from 5-star hotels and golf-estateboutique properties to smaller establishments tucked among the rolling vineyard country of Constantia Valley and the Western Cape Winelands. The Cup’s synergy has infiltrated the central business district, site of an extensive urban renewal project that has committed a five-year private-sector investment worth $5–6 billion. Key properties on the architect’s table include a 35-floor high-rise called Portside, plus two other 26-floor commercial buildings to be built near the train station.

There was a time in the not-too-distant past when this transformation would have been unthinkable. The former economy of South Africa was born with the arrival of Dutch East India Company settlers in 1652. The discovery of diamonds and gold in the later 1800s set the stage for a high-stakes, resource-dominated economy, which led to Britain’s infamous expulsionary Boer Wars and subsequent industrialization that further led to laws aimed at distinguishing and separating races. By 1948, the strict race-based apartheid policy divided the country into a privileged white class and impoverished black class, drawing worldwide ire and crippling sanctions against South Africa in 1980. When the country’s first multiracial elections in 1994 resulted in formerly jailed anti-apartheid activist Nelson Mandela becoming president, the newly elected African National Congress government began the formidable task of rebuilding the country’s economy and repairing the race relations tempest.

The ANC has dominated elections since, holding close to a two-thirds majority in parliament, but its ascendancy hasn’t been without issues. Corruption and cronyism charges are widespread. The vast majority of South African blacks remain poor and mired in 25 percent unemployment. As one political analyst noted, “Once the Cup is over, South Africa must confront the issues that plague its political system and rise to the challenges of its still struggling economy.”

Compared with the rest of the nation, Cape Town is an anomaly. South Africa has a two-tiered economy. Its well-developed manufacturing, mining, agriculture and tourism sector rivals other developed countries and accounts for most of the country’s $277 billion gross domestic product, which has exceeded market expectations by increasing 3.2 percent for the fourth quarter of 2009. Meanwhile, its amorphous secondary economy lacks all but the most basic infrastructure and is more reflective of a developing country. Cape Town is clearly a member of the former.

As the hangover of apartheid has faded, Cape Town has become one of the most recognizable multicultural cities in the world, reflecting its role as a major destination for immigrants and expatriates to South Africa. The political stability and peaceful elections have disarmed apprehensive tourists and business travelers, who are arriving in droves. The city is among the world’s most visited, attracting a projected 3 million visitors this year and responsible for 12 percent of South Africa’s gross domestic product. According to the UNWTO World Tourism Barometer, international arrivals to Cape Town grew by 7 percent the first two months of this year, with particularly strong growth in Asian, Middle Eastern and African visitations. This turnaround comes as welcome news; prior to the last quarter of 2009, the city experienced negative numbers traced to the overall global recession.

Cape Town’s most prized assets are its spectacular location and temperate climate and the tourism windfalls they have created. Known as “Mother City” due to its multi-ethnic amalgam, the nation’s second-largest city is surrounded by the wild Atlantic and is dominated by imposingly sheer Table Mountain. The city is awash in museums, historic districts, galleries and lush gardens such as the world-renowned Kirstenbosch Botanical Gardens. One of the most emblematic areas is the Victoria & Alfred Waterfront, Cape Town’s original Victorian harbor. The entire area was thoroughly renovated in the early 1990s and has become the city’s signature fun zone with shops, bars, restaurants and waterside walkways. Despite some of the faux maritime façades, it’s still a working harbor that berths ships plying the Atlantic and Indian oceans.

Another enticement to travelers here is Cape Town’s lively wine scene. The nearby elegant, lush suburb of Constantia and its wine estates is a historic district with which most visitors fall in love. Besides introducing tourists to the area’s wine-growing culture, Constantia showcases attractive examples of Cape Dutch architecture dating back to 1685. To see the full scale of wine as an important economy in the Western Cape Province, visiting The Winelands, South Africa’s oldest and most exquisite wine-producing region, is a must. The Winelands encompasses several regions, each with its own winetasting tours. The most popular towns include Stellenbosch, Franschhoek and Wellington; and shuttle-driven tours are a popular (and safe) way to experience this Cape Town fixture.

Diversions

Cosmopolitan, multicultural Cape Town is one of the world’s most beautiful cities and a gateway to stellar wineries and the dramatic coastlines of two oceans.

Walk the Victoria & Alfred Waterfront (tel 27 21 408 7600), a tourist magnet with unrivaled choices of shops, restaurants and entertainment options including the Two Oceans Aquarium (tel 27 21 418 3823). Mingle with locals on Long Street, one of the city’s trendiest corridors, with blocks of sidewalk cafés, bars, clubs and fashionable shops.

The most dominating feature of Cape Town’s beachside setting is Table Mountain (tel 27 21 780 9204), a sheer 3,520-foot escarpment sustaining more than 1,400 plant species as well as baboons and countless birds. Get there by catching the scenic Table Mountain Aerial Cableway (tel 27 21 424 8181) that has a rotating floor for dizzying 360-degree vistas stretching to Cape Point. Nearby is Kirstenbosch National Garden (tel 27 21 799 8800 ), a UNESCO World Heritage site sprouting kaleidoscopic plants found nowhere else outside the province. A few minutes south lie the verdant estates of Constantia Valley (tel 27 82 332 7844). Five wineries comprise the Constantia Wine Route, all offering winetasting in delightful settings. If there’s one to linger at, it’s Groot Constantia (tel 27 21 794 5128), displaying some of the country’s finest Cape Dutch architecture.

Gain a greater understanding of South Africa’s apartheid years at Robben Island (tel 27 21 409 5169), the notorious place of imprisonment for political activists including Nelson Mandela. In 1997 the island became a museum with guided tours and serves as a testament to South Africa’s amazing socio-political transformation.

A half-hour east from Cape Town is the Western Cape Winelands (tel 27 21 887 0048) and the possibility of sampling wines from nearly 500 scenic, historic estates. Make sure to see Stellenbosch, the center of the homesteads and its oldest town.

The most breathtaking coastal drive heads southwest from Cape Town past several charming fishing villages such as Simon’s Town. Stop at nearby Boulders (tel 27 21 786 5880), a protected beach home to a friendly, loud colony of jackass penguins. Then continue on the windy Chapman’s Peak Drive, carved into steep cliffs 2,000 feet above the Atlantic, to Cape of Good Hope Nature Reserve (tel 27 21 780 9010), where you’ll be on the continent’s most storied piece of maritime real estate, the “Cape of Storms” that has devoured scores of ships driven into the shallow, rocky reefs.

Info To Go

Cape Town International Airport (CPT) is about 20 minutes from the city center. Taxis charge $13–20 for the 13-mile drive. Most hotels run shuttles into the city; other airport shuttles run to the city center and other popular destinations. All major car rental companies have branches at the airport. For more information, visit www.capetown.travel.

Lodging

Cape Grace Hotel

This hotel on a private quay offers little extras, like the Bascule Cellar which stocks Africa’s largest collection of single malt scotches. W. Quay Road, Victoria & Alfred Waterfront, tel 27 21 410 7100, $$$$

The Commodore

Beaches, shopping, nightlife, mountains and vineyards are all within easy reach of this luxury hotel located in the heart of Cape Town. Portswood Square, Victoria & Albert Waterfront, tel 27 21 415 1000, $$$$

Mount Nelson hotel

In the heart of the city’s cultural center, 201 guestrooms and suites offer spectacular views of Table Mountain and sprawling hotel gardens. 76 Orange St., tel 27 21 483 1000, $$$$

Dining

The Africa Café

Eclectic African-themed restaurant prepares feasts like Egyptian-smoked fish, Cape Malay mango chicken curry and exotic desserts. 108 Shortmarket St., tel 27 21 422 0221, $$$$

Jardine Restaurant

The country’s best game and seasonal produce are on the menu; try the seared Kroondal duck breast or roasted warthog loin. 185 Bree St., tel 27 21 424 5640, $$$

Savoy Cabbage

idely touted as the city’s best, most original restaurant, Savoy serves exquisite contemporary South African cuisine featured in its own best-selling cookbook. 101 Hout St., tel 27 21 424 2626, $$$

Checking In With Mariette Du Toit
CEO of Cape Town Tourism

How Has Preparation To Host Several Matches Of The 2010 Fifa World Cup Soccer Competition Affected Cape Town?

While we believe that 373,000 World Cup visitors will come to South Africa, it is unclear how many will be coming to Cape Town or for how long. Cape Town Tourism and Cape Town Routes Unlimited’s newly launched “Come to Cape Town” campaign, in partnership with low-cost domestic carriers 1Time, Kulula and Mango, aims to attract visitors through high-value flight specials and packages to the city. Our message to those tourists who are basing themselves in Johannesburg and Durban is “Cape Town Is a Place of a Lifetime.” You haven’t experienced South Africa until you’ve visited the Mother City!

What Main Incentives Does Cape Town Offer Business Travelers?

We offer a variety of world-class venues and meeting facilities in stunning locations with ample accommodations and endless entertainment and restaurant options. The weather is great — even our winter can be compared to a European summer. Communications and monetary systems are sophisticated and efficient, and the lingua franca is English. Cape Town offers competitive pricing and upgraded infrastructure and transport networks. Cape Town Tourism is actively promoting business tourism alongside the more well-known leisure offerings. Cape Town is beautiful; and if you’re visiting a long-haul destination for work, why not see the sights?

Describe The Overall Business Climate In Cape Town In Light Of The Global Economic Slowdown.

Business in Cape Town has definitely been affected, but it now seems to be getting better. The proof is in the pudding, with Cape Town retaining its position in the International Congress and Convention Association’s ranking as the world’s 34th best meeting place, with Africa and the Middle East No. 1.

What Projects Are Planned Or Underway In Cape Town?

Cape Town is preparing a pitch to become World Design Capital 2014. The vision of the Capital Project is to promote collaboration worldwide and to encourage the use of design as a tool to further the social, economic and cultural development of the world’s cities. We are also driven by the growing need to make tourism inclusive and sustainable from an environmental, economic and social perspective. Programs are taking shape to develop and support some of the informal tourism streams that are developing and to ensure that adequate training and opportunity stimulates a future generation of tourism entrepreneurs and careerists.