Gqeberha Hotel Creates Jobs, Bets Big on Tourism Future

When unemployment hit 33% in Nelson Mandela Bay this year, City Lodge Hotels did something unexpected: they doubled down on the region's future.

The company just completed a major makeover of their Courtyard Hotel in Gqeberha's beachfront Summerstrand district. The transformation of all 91 rooms, the restaurant, conference facilities, and public spaces wrapped up in April after nine months of work.

The refurbishment created seven permanent jobs. While that might sound small against the backdrop of 183,000 unemployed people in the metro, general manager Erich Oberhauser sees it as a signal of confidence. "We believe that tourism is growing and there's a lot of opportunity for tourism and hospitality in Gqeberha," he said.

City Lodge isn't stopping there. Two more properties in the city are next in line for upgrades during 2027, showing the company's commitment runs deeper than a single hotel renovation.

The investment comes as the Eastern Cape battles the highest unemployment rate in South Africa at 47.5%. Over 1.2 million people in the province are actively searching for work.

But Andrea Anderson, general manager at City Lodge Hotels, believes the region has been unfairly overlooked. "The Eastern Cape as a whole is actually the best-kept secret," she said. "Everybody flocks to KZN and the Western Cape, and this is still quite an unspoiled province."

The hotel industry in Gqeberha isn't waiting for government solutions to infrastructure problems either. City Lodge has installed boreholes, water filtration systems, generators, and solar panels across its properties to ensure guests never notice when municipal services falter.

Local businesses along the beachfront have banded together to improve safety and cleanliness. Oberhauser praised the collaborative spirit: "The guys in the industry are not sitting back and accepting it, but they're identifying where they can make a difference."

The Ripple Effect

Tourism jobs create multiplier effects that extend far beyond hotel walls. International visitors create employment opportunities throughout entire communities, from restaurants to tour guides to transportation services.

The newly renovated Courtyard is already trying to strengthen those local connections. The hotel's refurbished restaurant, renamed 25° East and led by sous chef Khanya Mshweshwe, is targeting residents and not just tourists.

When businesses invest in regions others overlook, they're betting on people and potential that official statistics can't measure.