R270m apartment hotel creates 250 jobs and revitalises Gqeberha’s tourism sector

A R270-million investment in Nelson Mandela Bay’s tourism sector has resulted in the creation of 250 permanent jobs at The Capital Boardwalk, with additional employment supported during construction and across the wider local economy.

Speaking at the opening of The Capital Boardwalk on Thursday, Marc Wachsberger, the founder and CEO of The Capital Hotels, Apartments and Resorts, said the project reflected the sector’s capacity to drive large-scale job creation.

In addition to the 250 permanent jobs, another 500 were created during construction, said Wachsberger.

“Beyond that, there are still external third-party service providers. So the job creation of the tourism sector is absolutely through the roof.”

He added that the broader economic impact extends well beyond direct employment. “The multiplier effect of that job creation is also massively through the roof. This is the reason we love this business — for the job creation and the upliftment of people that come with it.”

The Capital Boardwalk — which took 14 months to construct — is a 145-unit apartment hotel in Summerstrand. The development offers a range of accommodation, including standard rooms, studios, one- to three-bedroom apartments and penthouses, alongside a co-working hub and conference facilities.

Wachsberger said the group had identified a gap in the local market for medium-term accommodation.

“There are a lot of hotel rooms, but there are no apartment hotels,” he said, noting demand from consultants and professionals linked to industrial activity in the Coega area.

He suggested that Gqeberha had been unfairly dismissed by the market. “This city is alive, but it almost has a bit of a bad name in terms of investment,” he said.

He added that recent developments in the area, including the upgraded Boardwalk Mall, pointed to growing demand for modern infrastructure.

Infrastructure shortcomings not a deterrent

The opening of The Capital Boardwalk comes as the city continues to battle serious infrastructure challenges and dropping dam levels.

The metro’s combined dam levels are below 30%, while high-voltage powerline pylons collapsed on two occasions, causing widespread disruptions.

Wachsberger said the group had invested heavily in contingency measures to mitigate against power failures. All the rooms are equipped with full backup power systems capable of sustaining operations beyond basic lighting, including hot water and air conditioning.

Water security has also been addressed through storage and alternative supply measures.

“We prefer the water not to be cut or dam levels to run out. But we have all these tanks, which ... give us ... 48 hours’ backup for any short-term water cuts. We are on top of an aquifer here in terms of borehole water. And if push comes to shove, we will be putting in a full reverse osmosis backup system. Right now, all the checks we have done say that the water is well under control in Gqeberha,” he said.

Good news for the city

Discover Mandela Bay project manager Shaun van Eck hailed the opening of The Capital Boardwalk as a welcome dose of “good news” that bolsters the metro’s tourism profile. He noted that by catering to a diverse range of travellers, the development injects much-needed variety into the local hospitality sector.

“It adds a new perspective in that visitors can choose between a traditional stay or self-catering,” he said. “It will attract conferences and functions, bringing more people into the city. It’s good news for our metro.”

A ‘vote of confidence’

The Nelson Mandela Bay Business Chamber said The Capital Boardwalk is a landmark investment that will strengthen the metro’s tourism, hospitality and eventing sector.

The chamber’s chief executive, Denise van Huyssteen, described the project as “a clear vote of confidence in Nelson Mandela Bay’s potential as a premier investment and leisure destination”.

She said the development would enhance the city’s accommodation offering and strengthen its ability to attract both business and leisure travellers.

“The creation of 200 permanent jobs is a significant boost for local employment,” she said, noting that private sector investment plays a key role in driving inclusive economic growth.

She added that the benefits would extend well beyond direct employment, with the investment expected to “stimulate downstream economic activity through supply chains, local procurement and increased visitor spend across the hospitality, retail and services sectors.”

In addition, the development would “support efforts to attract conferences, events and international visitors, ultimately increasing occupancy rates and extending visitor stays”. DM