An Overstrand Municipality survey conducted by the Tourism Department, has revealed that while economic confidence among non-tourism businesses remains relatively stable, a significant infrastructure gap is emerging.
In Hermanus, the cost of congestion is the primary concern for business owners. Traffic and parking constraints are no longer viewed as mere inconveniences, but as direct threats to productivity. In the outlying towns like Stanford and Kleinmond, the focus shifts to road maintenance, with business owners reporting that roads in industrial nodes are in poor condition and require urgent repair. Respondents also expressed concern about the overall physical condition of towns. In Gansbaai, business owners highlighted a shortage of available land and appropriate industrial zoning for smaller, local workshops or services.
HERMANUS:
Hermanus had the highest volume of feedback, focusing primarily on the friction between daily operations and peak tourism.
The ‘Parking Crisis’: A recurring theme is that parking in the CBD is occupied by business staff all day, leaving no room for customers. Suggestions include a ‘Park and Ride’ system (using Hoy’s Koppie or the New Harbour) and shuttle services.
Infrastructure & Safety: There are specific concerns about pedestrian safety at the Harbour Lane/Main Road corner (disfunctional traffic lights for years) and the difficulty for tourists/residents in Northcliff to cross the Main Road.
Operational Costs: Businesses are feeling the pinch of high municipal rates, taxes and electricity costs. Some feel that pricing in the area is being geared toward “overseas visitors,” making it unaffordable for locals.
Law Enforcement: There is a call for a stronger SAPS and Law Enforcement presence, especially after 17:00, to handle minor infringements and drunk driving.
Economic Outlook: Generally positive about the “trickle-down” effect of tourism, but there is a clear frustration that business owners “cannot enjoy their own town” during holidays.
GANSBAAI:
Feedback from Gansbaai was more critical of the status quo and the dominance of a few large entities. Many respondents expressed concern that a small number of large operators (e.g., Marine Dynamics, Grootbos) dominate the local economy, leaving smaller businesses sidelined.
The growth of unregistered short-term rentals was highlighted as a significant issue, creating unfair competition for compliant accommodation providers and contributing to rising property prices. In one case, a respondent reported difficulty securing rental space for a preschool due to tourism-driven demand.
There were also calls for stronger representation of non-tourism businesses, including the establishment of a Chamber of Commerce with a dedicated focus on this sector.
Additionally, local businesses feel ‘outside contractors/competition’ are coming in and taking away local opportunities.
STANFORD:
Stanford businesses feel their needs are unique and shouldn’t be lumped in with the broader region.
Niche Dependence: Respondents noted that Stanford has no large industry and is almost entirely dependent on tourism, which needs to be “nurtured and supported” specifically.
Infrastructure: There is a specific request to tar the roads in the industrial area, as the current dirt roads cannot handle the traffic volume and impact operations.
Visibility: Businesses expressed that without constant “reminders” and festivals, the town is easily forgotten by the broader district.
KLEINMOND:
Feedback from Kleinmond focused on strengthening and building on the town’s existing offering, while positioning it more clearly within the broader Overstrand experience.
Respondents highlighted the need for more family-friendly activities and spaces that can operate throughout the year, complementing what the town already offers.
A key theme was the need for more inclusive, collective marketing. Businesses expressed concern that the Overstrand is often marketed primarily through Hermanus, leaving smaller towns overlooked. They are calling for a shift towards promoting the region as a connected destination, where visitors are encouraged to explore multiple towns during their stay.
Suggestions included creating dedicated markets or hubs for locally produced goods to enhance the local economy and visitor experience.
Social concerns were also noted, including unlawful structures and their potential impact on safety and crime.
