Most people regard the Waterfront in Cape Town only as a prime dining and shopping destination but forget, that the revenue had so far as well as will have still an increasingly positive effect for the South African economy.
h3. Contribution to GDP
Over the past decade, the economic hub of the V&A Waterfront has contributed almost ZAR 200bn to South Africa’s economy. In nominal terms the V&A’s contribution to the gross domestic product (GDP) increased from ZAR 10.4bn in 2002 to ZAR 28.9bn in 2012. This translates to an average of 11% increased contribution to nominal GDP every year for the last 10 years, which is 1.5 times greater than the rate of inflation. The real growth in the contribution of the V&A Waterfront, at an average of 5.1% between 2003 and 2012, outstripped that of the country as a whole, the Western Cape province and the national tourism sector. New developments could, furthermore, contribute a cumulative ZAR 188bn to nominal GDP by 2023. The projections indicate a growth of 35% per annum. The result will be an expected contribution, which is 20 times the current contribution. Provincially, the total contribution of the V&A Waterfront to the Western Cape’s Gross Geographical Product (GGP) increased from ZAR 8.99bn in 2002 to ZAR 25.5bn in 2012. The V&A’s cumulative contribution to the provincial GGP since 2002 was over ZAR 170bn.
h3. Tax Revenue
Total taxes – direct and indirect – for the same period amount to almost ZAR 20bn. In 2012 direct taxes alone amounted to ZAR 299m, consisting of ZAR 53.9m in municipal rates and taxes and ZAR 245m in corporate income tax. A recent study found that the V&A has created and sustained direct employment as a result of on-going operations and capital expenditure as well as so-called indirect jobs resulting from multiplier effects and the turnover generated by tenants. The total number of direct and indirect jobs in the province as a result of the V&A’s existence increased from 22 766 in 2002 to 33 136 in 2012. The total direct as well as indirect jobs throughout South Africa created by the V&A increased from 33 522 in 2002 to 47 909 in 2012. This is an overwhelming increase of 43%!