Small-ship cruise operator Sail Croatia recently released a study that analyzed luxury destinations, comparing what travelers typically spend on more upscale essentials, such as multicourse meals, coffee and drinks, spa treatments, private tours, and hotels. An overall score was given to each destination based on how far a luxury budget might be stretched.
The only place that got a perfect score? Cape Town, South Africa. It was ranked the No. 1 most affordable luxury destination in the world. As Sail Croatia director Helle Seuren remarked, luxury doesn’t only exist in expensive places like Bora Bora or Monaco.
In fact, five-star hotels in this popular coastal city beneath imposing Table Mountain average only $199 per night, far lower than most global luxury markets. Researchers found that the cost for a three-course fine dining meal averages only $23, while private tours start at around $127 and taxi rates at just $2. Looking for a pampering spa session? You’ll pay about $50. That makes Cape Town unusually accessible for those seeking more affordable luxury.

What to Do in Cape Town
While affordable luxury makes Cape Town highly appealing, that’s not the only reason to visit. There are activities and attractions for everyone. Beachgoers have miles and miles of beautiful, soft sands to spend the day on, and wildlife lovers can get up close to the famous penguins at Boulders Beach nearby. Active adventurers can hike up Table Mountain for a panoramic view over the city and its spectacular coast. The summit can also be reached via a ride on the Table Mountain Aerial Cableway that rotates for 360-degree views.
Interested in history? Don’t miss the Robben Island Prison Museum where Nelson Mandela was held for nearly 30 years. Day trips to the Cape Winelands for tasting and touring, and scenic drives exploring the scenic Cape Peninsula are popular too. Along the peninsula, you’ll have the chance to spot diverse wildlife like baboons, eland, Cape Mountain zebra, Cape fur seals, and even southern right whales from July through November.

Where to Stay
There’s arguably no better place for a first-time visitor to stay than a hotel along the V&A Waterfront. Many offer stunning vistas of the harbor and Table Mountain while being steps from city attractions like the Two Oceans Aquarium, the Zeitz Museum of Contemporary Art Africa, and the Cape Wheel, for spins with a bird’s-eye view. There is a wide range of shops and eateries for all budgets in this area too.
When to Go
The most popular time to visit Cape Town is in the summer, from December through February, when temperatures are hot, providing ideal beach weather that can draw bigger crowds. September through November is great for hiking and sightseeing with fewer visitors and mild temperatures. Whale watchers may want to opt for September as it’s peak time for southern right whale sightings. The most budget-friendly prices are found in the low season, coinciding with winter (June through August), although it can be rainy and windy.