Economic implications of second home development in South Africa, case study on Franschhoek

Abstract

South Africa is facing increasing second home ownership. Numerous villages and towns along the South African coastline, and increasingly in its rural interior, have grown and been converted significantly as result of amenity migration. Franschhoek is one of many examples. Nevertheless, until now, with some exceptions, second home development as a topic of research, has been almost invisible to the South African academics. Aiming to a better understanding of second homes in the South African context, this thesis examines the results of research on second home development in Franschhoek, South Africa. It is looked upon the characteristics of second home ownership and the economic implications associated with this phenomenon. The research is especially focusing on the economic implications of second home development. Which has been done by means of analysing and comparing spending behaviour of domestic and foreign second home owners. It became clear that the implications associated with second homes in Franschhoek are both postive (employment creation, capital injections) aswell as negative (displacement and seggregation), creating a paradox. The research strived for a more in-depth understanding of the second home phenomenon in the South African context with the aim to contribute to the current debate in South Africa on foreign ownership and the related second home phenomenon. Hopefully creating a wider interest to the topic of second home development in the South-African context, and offering new food for thought.