Yes, I'd mask off the sky part and play around with curves and introduce some white here and there; it does indeed need contrast, as you said.
On the other hand, I spent a lot of time yesterday or the day before - I no longer know the difference anymore - working up a shot I found of my wife on our honeymoon, a deteriorated Kodachrome, and the amount of masking etc. that I did to try to rescue it made me wonder how far anyone should go before just calling it a day. But, Photoshop can challenge you to beat it, kick its ass; sometimes it wins.
There comes a point where the fun goes out the window.
Not a reference to your shot, by the way, Riaan, just a gratuitous ramble on frustration!
Rob C