Cape Town named world's most affordable luxury destination in 2026

Cape Town’s reputation as an affordable international travel destination has received a resounding endorsement from European small-boat luxury operator Sail Croatia, which has named the Mother City the World’s Most Affordable Destination for 2026.

The research, shared by Travel + Leisure, highlights Cape Town’s combination of opulent hotels, a standout fine-dining scene, world-class attractions and nature-based experiences - all offered at prices that undercut many global luxury destinations.

“Luxury doesn’t have to hurt your wallet, and that’s especially true with a visit to Cape Town,” Travel + Leisure notes.

That value becomes even more apparent when converting from dollars or euros to rands, making high-end travel experiences significantly more attainable for international visitors. Take a V&A Waterfront hotel such as The Commodore, for example: a stay just steps from one of the city’s most popular attractions can cost $200 (around R3,400 at an exchange rate of R17 to the dollar). A hotel of comparable calibre in New York City could easily exceed $450 per night during peak season. 

Venture slightly beyond the city, and the value proposition continues. In the Cape Winelands, a stay at La Petite Ferme in Franschhoek may come at a premium, yet a five-course wine-paired experience at its Chef's Table costs under $90 (approximately R1,650). That’s a fraction of what a similar dining experience would command in cities such as Paris or Florence. 

SEE: The 26 Best Experiences to try in Cape Town in 2026

The study also highlights everyday affordability: a coffee in Cape Town averages around $2 (roughly R20 to R40), a three-course meal can be had for under $23, and a quality local beer costs about $3. Together, these factors position the city as an actual luxury-travel sweet spot for overseas visitors, with real economic benefits from tourism. 

Early indicators suggest that South Africa experienced an increase in international travel in 2025, with approximately 8.56 million people visiting the country from January to October. This marked an increase of 1.3 million new arrivals when compared to the same period in 2024. 

Cape Town's 2024/25 cruise season also delivered record revenue of R1.79 billion, reinforcing its status as a compelling and competitively priced destination. 

The dual-pricing debate

The defining factors of the study cannot be overstated, particularly at a time when some locals might question the “affordable luxury” accolade. Recent festive-season events have once again reignited debate around dual pricing, highlighting the tension between global appeal and local accessibility - a significant factor in responsible and sustainable tourism destination management. 

Prominent local DJ Desiree addressed this issue on social media when explaining why two ticket prices, one for locals and one for internationals visitors, are being charged for the MMINO event. “Cape Town is amazing, attracting visitors globally with its unique culture and vibrancy. Let’s make sure everyone can enjoy it without breaking the bank,” she said. “MMINO Cape Town’s got your back with subsidised tickets for locals, for the second year running. Thanks for being part of this, and see you on the dancefloor.”  

Against this backdrop, the rand’s continued strength against the dollar and easing fuel prices offer reasons for optimism, for both local residents and international travellers alike. Being named the World’s Most Affordable Luxury Destination is a notable shoutout and shows its ability to deliver exceptional experiences at global value, even as conversations around inclusivity and pricing continue.

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