The construction of SA’s first Club Med resort has been applauded by tourism minister Patricia de Lille.
Located on KwaZulu-Natal’s North Coast, Club Med SA will be the country’s largest resort after Sun City once completed — and one De Lille said would help the country diversify its tourism offering to the world.
The project is being backed by the Industrial Development Corporation (IDC), the biggest development finance institution in Sub-Saharan Africa. It’s one of the IDC’s largest tourism undertakings to date, adding to its current tourism exposure of about R3bn.
The Club Med SA development will result in the creation of an economic hub with a high development impact in an underdeveloped node. An estimated 2,000 jobs will be created through the project — with further creation of downstream jobs across the value chain of linked services.
At the recent Travel Indaba, De Lille said Club Med SA emphasised the importance of shifting global perceptions of the country’s tourism appeal beyond safaris and Table Mountain.
“I want to say thank you for choosing SA to build a Club Med resort. It helps us to give confidence to opportunities that are available in SA, but more than that, we need to diversify our tourism offering to the world,” she said.
Even French airliner Air France is exploring adding a new route to Durban, thanks to the resort project.
If you think about it long-term, there is going to be a marked shift in the KZN economy
— Kagisho Bapela, head of the Services Strategic Business Unit (SBU) at the IDC
Kagisho Bapela, head of the Services Strategic Business Unit (SBU) at the IDC, said more than the global expertise that Club Med brings, its brand strength and the thousands of jobs that will be created indirectly in the region compelled the IDC to partner on the project.
“The direct impact is 2,000 jobs on construction and permanent employees. A further 1,500 indirect jobs are expected to be created. The supply chain that will benefit from the resort is much broader,” he said, noting that different industries would benefit from the procurement of food, furniture and amenities such as linen.
“If you think about it long-term, there is going to be a marked shift in the KZN economy. We are impressed by the recruitment and training of 110 staff members for kitchen and restaurant roles through the NukaKamma Hospitality School, an NGO dedicated to educating young and unqualified individuals from Ballito townships,” said Bapela.
“The local crime stats for the villages surrounding the construction site are already reflecting a 60% decrease in reported cases compared to this time last year. This tells us that the people are already meaningfully engaged, and the jobs are creating a sense of ownership.”
He also added that the IDC’s mandate compelled them to ensure transformation was built into every fibre of the financing deal. “We have pushed the envelope to ensure black participation, and because of this a group of black businesswomen, a BEE consortium, are participating in the economic potential of this project.”
Construction on Club Med SA started in March 2024. The resort has been designed to achieve Level 4 Green Building Certification incorporating features that improve energy efficiency, air quality, and occupant wellbeing.
Nestled on the shores of the Indian Ocean in Tinley Manor, it includes 345 hotel rooms being built by 17 main contractors with 250 subcontractor packages, and 1,400 personnel onsite daily (90 offsite project staff).
Key features of the property include a beach club, a resort centre, children’s club and villa suites. It also boasts a 500-seat convention centre, marking Club Med’s entry into the local business tourism market.
And not to be missed will be the accompanying safari lodge in Mpilo Game Reserve — a private Big Five reserve located in northern KwaZulu-Natal that covers more than 8,623ha — offering a magical safari and beach experience suitable for families.
The IDC’s Services SBU aims to drive sustainable industrial development while facilitating job creation in both the local economy and in the rest of Africa
— Katlego Mphahlele, senior dealmaker in the IDC’s Services SBU
“When deciding to invest in this project, we looked at the whole value chain and future demand for goods and services in the region,” said Katlego Mphahlele, senior dealmaker in the IDC’s Services SBU.
“Our Services SBU aims to drive sustainable industrial development while facilitating job creation in both the local economy and in the rest of Africa. We focus on key industries such as tourism, healthcare, information and communications technology, and also media and audiovisual.
“We consider funding for greenfield and startup projects; expansions and/or refurbishments; expansionary acquisitions and acquisitions by black industrialists — where they are majority shareholders and are operationally involved. This is to ensure transformation happens and is also inclusive of knowledge and skills transfer,” she said.
“We have been investing in tourism for a few decades and are proud of our recent accomplishments. Beyond this resort, we have also funded the newly launched Premier Hotel in Venda and The Capital in Mbombela. The Radisson Blu Durban uMhlanga is also a local jewel that is performing well.”
Ken Ogwang, senior dealmaker in the IDC’s Services SBU, said they chose to work with Club Med SA because of its global footprint in the hospitality business.
Club Med, founded in 1950, is a family-centric travel and tourism operator and is believed to have pioneered the all-inclusive holiday experience. It operates 70 resorts in 32 countries including Indonesia, Thailand, Maldives, Seychelles, Mauritius, Turkey, France, Portugal, Italy, Greece and Portugal.
“The other aspect you get from using an international operator is that you get their brand. If someone is sitting in Jamaica or New York, they know what Club Med is in the global tourism landscape,” he said.
The resort site spans two hills with planned access roads. “We are under very tight deadlines with Club Med global for delivery. If you imagine 1,000 foreign guests on opening day, we can’t very well send them packing back to Europe because the resort is not ready,” said Chris du Toit, the resort’s project lead.
Bulk services including roads, a dam, water infrastructure and a permanent electrical supply are soon to be completed.
According to Olivier Perillat-Piratoine, Club Med SA CEO, the construction of the resort is more than halfway complete. “The construction is doing fantastic. The roofing is completely finished for all the buildings, a sign of good progress. We are launching the reservation in October for the opening in July next year.”
He said Club Med would leverage its global presence to attract international visitors. “We are a very powerful brand. We have a large base of loyal international customers who will trust us with their South African holiday. This is tens of thousands of international travellers that will come to us and they will also spend money and venture outside of the resort. For us it is a brilliant addition to our existing portfolio of destinations.”
Murray Collins, CEO of Collins Residential, one of the country’s top property developers, said Club Med SA was on its way to becoming a destination that redefined all-inclusive luxury.
“We are investing in the local economy and people. Our contractor teams are supported by strong labour with many of the labourers sourced from within 10km from site, and every package has targets for community involvement,” he said.
“Every decision we have made has been about intent. This isn’t just about construction. It’s about legacy, innovation and doing things the right way.”
As Club Med SA makes strides towards completion, and with the IDC behind it, global luxury vacationing with a distinct African touch is set to see KwaZulu-Natal as a top holiday destination.
This article was sponsored by the IDC.
