New Victoria & Alfred Waterfront owner Dubai World, one of the emirate's largest investment firms, has announced a US$1bn expansion programme for the Cape Town landmark.

Speaking to the FM in Dubai, James Wilson, CEO of Nakheel Hotels & Resorts, a shareholder in Dubai World, says the development may include a new cruiseliner terminal; reclamation of land in the Granger Bay area; a new avenue linking the waterfront to the 2010 stadium in Green Point; a 500-1 000-bed Jumeirah beach-style hotel and possibly a 250-bed Four Seasons hotel.

Jumeirah may include a beachfront as part of the development. "Every leading hotel group in the world has contacted us to build a hotel at the V&A - it's one of the prime tourist destinations on the globe," Wilson says.

The avenue was agreed with the city council as part of an infrastructure development agreement.

Dubai-based architectural firm WS Atkins will be responsible for the development. The concept is "to bring more water to the public, less roads", says Shaun Killa, who runs the firm.

Beyond the V&A, Nakheel is also looking at other investments in SA, including golf resorts and lodge developments in SA's national parks. "It's early days yet but it makes sense to either tie up with existing lodge operators or win a large concession in the Kruger National Park and develop our own operation," he says.

"But this all depends on getting more tourists to SA, which we can't do if there aren't enough flights," Wilson says. Emirates has been attempting to get landing rights at Cape Town and Durban but has been stymied by SA Airways' insistence on reciprocal rights.

Financial Mail