Hessequa has a high Location Quotient in Agriculture, which indicates that the region enjoys a comparative advantage in this sector.
The strong performance in construction can be attributed to the large number of houses built in the coastal towns. The statistics indicate that 130 new houses were constructed in Stilbaai in 2004.
Assuming a very conservative estimate of R800 000 construction cost (investment), this would mean a total capital investment of just over R100 million.
Trade contributes a notable contribution to the local economy, and the shift-share analysis also shows that the sector is a leading one. Trade is still an important sector, mainly as a result of the N2 passing through the region.
Also, The Standard Industrial Classification (SIC) does not make provision for Tourism, as the industry cuts across a number of sectors such as Agriculture, Trade, Transport and Finance.
The Tourism industry is seasonal, and the estimated number of visitors over the peak December / January period is about 40 000. As an indication of the significance of this number to the local economy: assuming that the average tourist stays for two weeks and spends R100 per day on accommodation, food, etc. The total injection into the local economy is R56 million (excluding the multiplier effect).
The majority of these visitors visit the coastal area, whereas the huge potential in the inland area is mostly unexploited.
The retirement industry is also presenting huge opportunities as many people choose to retire to the coastal towns of Hessequa. This influx on its own is bringing capital into the region.