Cape Town ranked sixth best city in the world for 2026, but affordability concerns persist

Cape Town’s global appeal has once again been recognised, with the city ranked sixth in the 2026 Time Out Best Cities list, but the accolade comes amid ongoing concerns about affordability and the impact of tourism growth.

The annual ranking, based on feedback from more than 24,000 people across 150 cities and input from over 100 experts, evaluates cities on factors including food, culture, affordability, happiness and quality of life.

Cape Town was the only African city to feature in the top 10, alongside destinations such as Melbourne, Shanghai, London and New York.

It was also named the most beautiful city in the world in the survey, with 86% of locals rating its natural beauty and green spaces highly, while 85% said their quality of life was “good” or “amazing”.

The recognition highlights Cape Town’s strong international appeal, with continued high passenger volumes at Cape Town International Airport reflecting sustained global demand.

The City of Cape Town has welcomed the ranking, describing it as a reflection of the role played by communities, businesses and residents in shaping the city.

Mayoral Committee Member for Economic Growth, James Vos, said the City celebrates being ranked in the global top 10 and as the leading city in Africa.

“Cape Town can officially claim the title of the world’s most beautiful city, with 86 percent of locals describing it as such. This is thanks to communities, businesses, City staff and ordinary Capetonians who play their part in making Cape Town vibrant, cleaner and greener,” Vos said.

He added that while global rankings change year to year, Cape Town continues to perform strongly across international tourism indexes.

However, the ranking also brings renewed focus to affordability.

Vos acknowledged global cost-of-living pressures, but said Cape Town compares favourably to other South African cities in terms of lower monthly household bills, while offering better services and value for residents.

Tourism remains a key driver of the local economy. According to the City, domestic and international visitors supported more than 106,000 jobs in 2024, accounting for 6.9% of total employment. A total of 2.4 million overnight tourists contributed R24.5 billion in direct spending.

The City said it continues to work with industry partners and local tourism forums to ensure that the benefits of tourism are shared more broadly.

Vos added that Cape Town is rolling out its largest destination marketing campaign yet, targeting 55 cities across six continents, while a revised Tourism Development Framework is expected to guide more inclusive and sustainable growth.

“Tourism is core to Cape Town’s identity and economy. We must ensure that growth translates into tangible benefits, including jobs, support for small enterprises and community impact,” he said.

Cape Town Tourism also welcomed the ranking, saying it strengthens the city’s reputation as a globally competitive destination.

CEO Enver Duminy said the recognition reflects Cape Town’s natural beauty, cultural diversity and evolving visitor experiences, supported by consistent destination marketing efforts.

“Cape Town’s appeal lies in its ability to offer both iconic attractions and authentic, local experiences,” Duminy said.

He said the slight shift in ranking reflects increasing global competition rather than a decline in the city’s appeal, with Cape Town remaining among the world’s top-tier destinations.

On affordability, Duminy said it was important to strike a balance between tourism growth and accessibility for residents, noting that efforts are under way to promote year-round travel and support small and medium-sized tourism businesses.

As Cape Town continues to attract global recognition, the focus remains on maintaining its competitiveness while ensuring that the benefits of tourism and growth are felt more broadly by residents.

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