Popular Tourist Destination Affected by Credit Crunch

The information in this article is courtesy of IOL News (Crunch Turns Waterfront Into Sore Eye – 14 March 2009)

Tenants at the popular V&A Waterfront in Cape Town are having trouble keeping up with the increasing rent, and on top of this, the credit crunch is making it harder for shop owners to do business. Even visitors are complaining that the centre of this popular tourist destination is looking shabby and in need of maintenance.

Thus far, two shops have closed their doors and one tenant was evicted for failing to pay rental arrears. One tenant believes that there is not a single tenant that is not affected, and at this rate management might lose some important anchor tenants.

The property was bought by London and Regional and Dubai World for a staggering R7.3 billion back in 2006. Recently, several new developments at the Waterfront have been put on hold.

According to a shop owner, South Africans are spending a lot less and even though there were tourists, it is not near as much as previous years.

According to spokesperson, Maureen Thompson, rentals at the Waterfront were not way above market related prices and new tenants had already signed up for empty shops. She added that the developments on hold are a result of the global recession.

A concerned South African, now living in the UK, said he was appalled by the state of the Waterfront on a recent visit. According to him litter was floating on the water and he was worried that the historic Clock Tower was used by a restaurant for serving food.

Thompson raised the issue with the harbour master and he urged the owner of Emily’s restaurant to make an alternative plan.

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