Cape Town Cycle Tour's economic impact surpasses $28mln annually: How local businesses benefit?
Each year, the influx of participants and spectators brings a significant boost to local businesses, generating millions in revenue. From hotels and restaurants to small vendors, the increased foot traffic presents a valuable opportunity for Small and Medium-Sized Enterprises (SMEs) to enhance their visibility and grow their sales. As Cape Town prepares to welcome thousands of visitors, the impact of the event extends far beyond the race, supporting a thriving local economy.
Last year's event saw an estimated 15,000 visitors generating an economic injection in excess of R500m, with sectors such as hospitality, retail, and transport among those that benefitted as many businesses reported record sales over the 2024 race weekend. Those offering seamless payment solutions and digital customer engagement tools were undoubtedly best positioned to maximise on the opportunity.
With thousands of visitors expected again this year, businesses that offer fast and secure digital payments stand to gain the most. For instance, contactless transactions, mobile payment options, and streamlined checkout processes can enhance customer experience and improve sales efficiency during peak trading periods. Scalable banking and payment solutions that cater to businesses of all sizes, can also help entrepreneurs manage cash flow and operational demands effectively.
"The Cape Town Cycle Tour is a game-changer for local businesses. It brings an influx of customers within a short period, so being well-prepared—especially with efficient payment systems and customer-engagement strategies—can make all the difference. To support our clients during this event, Standard Bank offers relevant and targeted products and solutions to help businesses start, manage, and grow their operations,' says Cliff Mayinga, Provincial Head: Coverage Business Banking (Western Cape) at Standard Bank South Africa.
Driving economic impact
2025 marks Standard Bank's second consecutive year as a proud sponsor of the Cape Town Cycle Tour, reinforcing its commitment to supporting local businesses and communities as the Cape Town Cycle Tour is more than just a sporting event but rather a catalyst for economic growth and community development.
Aligned with this commitment, the event offers several key benefits, including:
A boost to the local economy: The event attracts thousands of participants and spectators annually, generating significant revenue for local businesses with sectors like hospitality, retail, and transport reaping the most benefits.
Support for SMEs: No fewer than 141 SMEs benefitted from increased sales during the event last year, with vendors offering food, beverages, cycling gear, and other services among those reporting substantial growth in sales over the race weekend.
Job creation: In 2024, the event created 3,280 temporary and permanent employment opportunities in sectors like hospitality, event management, and tourism – further supporting the Western Cape economy.
Tourism: The Cycle Tour showcases Cape Town as a global destination for sports and tourism, attracting international visitors and boosting the city's profile. Last year, 2,300 of the participants were international visitors, contributing to the city's tourism revenue.
Community engagement and social impact: The event fosters a sense of community and encourages local participation in cycling and other healthy activities. Additionally, it supports various charitable initiatives, contributing to social development and community upliftment programmes in the region. In the race's more than 25-year history, R150m has been disbursed to charitable organisations, helping to uplift the beneficiary communities.
Environmental benefits: The Cycle Tour promotes sustainable tourism and eco-friendly practices, aligning with Cape Town's commitment to environmental conservation.
Beyond direct sales, events like these serve as a platform for brand exposure, customer acquisition, and long-term growth. Businesses that leverage digital tools, such as online promotions, customer insights and business banking platforms, can extend the benefits well beyond race day.
'As we experienced last year, businesses that were ready to turn Cape Town Cycle Tour's possibilities into opportunities by embracing digital solutions for payments, customer interactions, and/or inventory management, were able to maximise their sales and create lasting customer relationships,' adds Mayinga.
As Cape Town gears up for this year's Cycle Tour, local businesses are preparing to meet the demand, ensuring they can make the most of the economic boost the event brings.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
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