Mossel Bay, Bredasdorp star Cape performers

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Pieter Laubscher, a consultant at the Bureau for Economic Research, scored the towns highest for their ability to resist the recession and to recover from it.

He said their municipalities - Mossel Bay is in the Eden district and Bredasdorp in the Overberg - "may provide policymakers with pointers as to how to revive the Western Cape's growth path".

Jaco Louw, deputy chairman of the Cape Agulhas Business Chamber, said the towns' success can be attributed to an influx of foreigners moving to nearby seaside villages such as Struisbaai.

Louw said the service industry in Bredasdorp is booming, but that farmers are struggling to find workers as most locals find employment in the construction industry.

Laubscher's study of the Western Cape economy, which accounts for 14% of gross domestic product, finds that Eden and Overberg districts are growing rapidly, largely thanks to the services sector.

"The growth of the catering and accommodation sector and retail in Eden is symptomatic of the vibrancy of tourism in most districts, notably the Winelands, Eden and the Overberg," he said.

"The agriculture sector remains a cornerstone of the province and, linked with tourism, has come to the fore as a key contemporary source of economic expansion."

Source: The Times