Why George is becoming the Garden Route's business hub: economic analysis

when marcus relocated his consulting firm from cape town to george three years ago, his colleagues thought he was making a risky move to a “small town.” today, as his business has grown 200% and his quality of life has transformed, those same colleagues are asking how they can make the move too.

marcus’s story reflects a larger economic transformation happening in george - the quiet emergence of the garden route’s undisputed business hub. while coastal towns like knysna and plettenberg bay focus on tourism, george has built the infrastructure, connectivity, and economic foundations that serious businesses need to thrive.

George’s strategic economic advantages

Location and connectivity leadership

george’s position as the garden route’s business center isn’t accidental. the city sits at the intersection of the n2 highway - south africa’s primary coastal route - making it the natural distribution and logistics hub for the entire region. within four hours, businesses can reach cape town’s major port and financial services. within two hours, they can access the entire garden route market from mossel bay to storms river.

george airport amplifies this connectivity advantage. with direct flights to cape town, johannesburg, and durban, the airport handles over 800,000 passengers annually and connects local businesses to national markets more efficiently than any other garden route location. this infrastructure attracts companies needing both regional presence and national reach.

Population and market scale

with a municipal population exceeding 250,000 and a broader metropolitan area approaching 300,000, george represents the largest concentrated market in the garden route. this scale creates the customer base and workforce that businesses need to grow beyond startup phase.

the demographic composition also favors business development. george attracts educated professionals, retirees with spending power, university students, and increasingly, remote workers and digital nomads seeking quality lifestyle at affordable costs. this diverse population supports both consumer businesses and b2b services.

Infrastructure and institutional strength

george leads the garden route in institutional infrastructure. nelson mandela university’s george campus brings research capabilities, student talent, and academic partnerships that few regional centers can offer. the campus specialises in engineering, business, and technology programs aligned with local economic development needs.

healthcare infrastructure through george hospital and private medical facilities creates a foundation for both employee wellbeing and medical tourism development. educational facilities from primary through university level support family-friendly business relocation.

Economic development momentum

Municipal business-friendly policies

george municipality has implemented strategic policies encouraging business development. the local economic development department actively supports sme formation, provides business licensing assistance, and maintains infrastructure that supports commercial growth.

recent municipal investments in fiber connectivity, industrial park development, and business district improvements demonstrate commitment to economic diversification beyond traditional tourism dependence. these policies create measurable advantages for companies choosing george over other regional locations.

Manufacturing and industrial growth

george’s industrial sector continues expanding, with companies like ppc cement, garden route game lodge, and numerous agribusiness operations choosing the city for regional headquarters. the industrial areas offer established infrastructure, skilled workforce, and transportation advantages that support manufacturing and distribution businesses.

new industrial developments focus on sustainable manufacturing, food processing, and technology services - sectors aligned with south africa’s economic development priorities and george’s environmental advantages.

Tourism integration without dependence

unlike garden route towns heavily dependent on seasonal tourism, george has developed a balanced economy where tourism complements rather than dominates other sectors. this stability allows businesses to plan for consistent year-round operations while still benefiting from tourism-related opportunities.

the integration means local businesses can serve both resident and visitor markets, creating more robust revenue streams and reduced seasonal vulnerability.

Comparative regional analysis

George versus garden route competitors

knysna offers scenic beauty but lacks george’s infrastructure scale and connectivity. the lagoon town faces geographical constraints that limit industrial development and population growth. severe infrastructure challenges during recent years have highlighted the vulnerability of tourism-dependent economies.

plettenberg bay excels in luxury tourism but operates at smaller scale with higher costs and limited business infrastructure. the focus on high-end tourism creates economic barriers for diverse business development.

mossel bay has industrial presence but lacks george’s population scale, university resources, and broader service sector development. the town serves specific industrial functions but cannot offer george’s comprehensive business ecosystem.

George versus major city alternatives

compared to cape town, george offers 30-40% lower commercial real estate costs, reduced traffic congestion that improves productivity, and enhanced work-life balance through immediate access to outdoor recreation. businesses report lower staff turnover and higher satisfaction levels.

employee costs in george average 15-20% below cape town levels while maintaining professional skill availability. this cost advantage applies across sectors from administrative support to professional services.

regulatory and compliance costs remain similar to cape town while operational overhead drops significantly. the combination creates substantial competitive advantages for businesses not requiring physical presence in major metropolitan markets.

Future economic development trajectory

Digital economy leadership

george is positioning for digital economy growth through municipal fiber initiatives, coworking space development like kanwerk, and targeted attraction of remote workers and digital nomads. the city offers lifestyle advantages that tech workers value while maintaining business infrastructure they require.

recent surveys show george ranking among south africa’s top destinations for remote work, with connectivity, affordability, and lifestyle creating compelling value propositions for location-independent professionals.

Regional integration opportunities

george’s central garden route position creates opportunities for businesses serving broader regional markets. companies can establish george headquarters while accessing customers from cape town to port elizabeth. this regional integration advantage grows as transport infrastructure improves and digital connectivity expands.

the city serves as natural regional service center for professional services, specialised retail, and b2b operations serving smaller garden route communities lacking comprehensive business infrastructure.

george’s transformation into the garden route’s business hub reflects strategic advantages that continue strengthening. for entrepreneurs and established businesses seeking growth opportunities outside major metropolitan areas, george offers a compelling combination of infrastructure, connectivity, cost advantages, and quality of life that positions it as 0ne of south africa’s premier regional business destinations.

the question isn’t whether george will continue growing as a business center - it’s whether forward-thinking companies will recognise the opportunity while competitive advantages remain most pronounced. marcus’s story is becoming the standard rather than the exception, as more businesses discover what george’s strategic position can offer their growth and success.

interested in exploring how george’s business advantages could benefit your company? visit kanwerk to connect with our growing community of entrepreneurs and business leaders who’ve made george their strategic choice.