The fact that the Western Cape approved an increase in building plans, amounting to more than R27 billion, during the first nine months of 2022 has been highlighted as evidence of a rise in semigration to the Cape region thanks to remote work.
Also read: City welcomes remote work visa for digital nomads to extend their stay in Cape Town
This is according to a report released by Statistics South Africa, that found that building plans approved in the Western Cape were up 23.4% in the first nine months, driven by small home building plans.
“Seven provinces reported year-on-year increases in the value of buildings completed during January to September 2022, of which Western Cape (contributing 11.8%) and KwaZulu-Natal (contributing 5.4%) were the largest positive contributors,” read the StatsSA report.
Meanwhile, Gauteng saw a 1.9% decline in building plans passed.
Western Cape MEC for Finance and Economic Opportunities, Mireille Wenger, welcomed the stats, saying that as a leading indicator of economic confidence in an economy, approved building plans provide insight into future investment and planned construction.
“Between January and September, R27.31bn worth of building plans were passed in the Western Cape, more than any other province, and representing a year-on-year growth rate of 27.5%,” Wenger said.
“This is the fourth month in a row that the Western Cape has passed the most building plans and has completed the most buildings by value, in South Africa.”
She added that the provincial government is determined to create the right environment for the private sector to expand, to grow the economy and to create the jobs we need to improve the lives of our residents.
“It is therefore important that building plans convert into building sites, so that we continue to create new construction jobs in the province. Ensuring this conversion takes place will be a priority for me and the provincial government.”
Earlier this month, the City’s Economic Growth Directorate and Cape Town Tourism met with UK travel industry leaders, airline executives, investors and members of the British media at the South Africa House in London to give them a sample of what Cape Town has to offer.
“I was invited to participate on the panel because of our work in Cape Town to capitalise on this trend, including working with industry to align product and pricing, and because we have successfully marketed the city as a perfect destination for this segment of the travel market,” Mayco member for Economic Growth, James Vos, told IOL.
“Cape Town is the perfect place for digital nomads who blend work and play into their travels.”
“I also told the audience that I am still pushing the South African government to institute a remote worker visa as four other African countries and 40 global countries have done.”
The City’s research indicates that digital nomads tend to stay in one destination longer than three months, while spending up to R50,000.
“One report of a remote worker incentive programme in a city in Oklahoma in the US shows that these travellers generated nearly $20 million (R344m) in additional local gross domestic product. With a special visa, South Africa stands to realise such gains,” said Vos.
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