Cape Town Airport’s $1.35 billion upgrade poised to boost tourism and regional economy

Cape Town International Airport is set to become a stronger engine for South Africa’s tourism and economic growth following a R21.7 billion ($1.35 billion) infrastructure upgrade led by Airports Company South Africa (ACSA). 

The centrepiece of the project is a R6.39 billion ($398.68 million) realigned main runway scheduled for contractor appointment in December 2026. The 3,500-meter by 60-meter runway will shift eastward by 11.5 degrees to optimize aircraft flow, reduce congestion and unlock additional precinct development space.

Runway upgrade to boost capacity and tourism
The new runway, fully Code F compliant, will accommodate next-generation wide-body aircraft, with rapid-exit and partial parallel taxiways cutting runway occupancy and accelerating peak-season turnarounds. 

For tourism, the expansion is a game-changer. By increasing inbound capacity, Cape Town can attract higher-spending travelers, boost hospitality revenues, and drive job growth across hotels, transport, and leisure sectors.

ACSA will invest R2.39 billion ($149.12 million) in domestic arrivals upgrades and R500 million ($31.2 million) in departures expansion. The international terminal will receive R863 million ($53.84 million) in phased enhancements, including apron stands, retail expansion, upgraded immigration facilities and improved baggage reclaim systems.

National aviation recovery strategy
The expansion comes as ACSA strengthens its balance sheet following pandemic-era aviation losses. After reporting losses during the COVID-19 downturn due to traffic collapse, ACSA has gradually restored profitability through traffic recovery and cost discipline. The R21.7 billion ($1.35 billion) capital program signals confidence in sustained passenger growth and long-term sector recovery.

Recently named Best Airport in Africa at the 2025 Skytrax Awards, Cape Town International Airport remains central to tourism, trade facilitation and Western Cape economic expansion.

ACSA says the infrastructure push will future-proof South Africa’s aviation network, positioning Cape Town as a resilient high-capacity gateway over the next decade.