International exposure key for SA

Johannesburg - The real value of the Soccer World Cup won't be the money spent in South Africa during the tournament, but the international exposure that South Africa receives and the long-term effects on the country.

On Friday Michael Tatalias, head of the Southern Africa Tourism Services Association (Satsa), told Gauteng business that the television images (from the tournament) will be the most successful story we can tell.

Tourist numbers may be lower than had been expected, but the true value will lie in the exposure received, reckons Tatalias.

The great benefit for Potchefstroom, which wants to be recognised as a world-class sporting venue, does not for instance lie in the money spent by the Spanish football team - which decided on Potch for its base - but what the tournament means for the town in future.

After the tournament Potch can go to the world and say: "Spain liked us." That's a tremendous endorsement, says Tatalias. Economists.co.za economist Mike Schüssler says the tournament will not produce the good growth initially expected.

It was originally thought that the spectacle would boost our gross domestic product by 1%, but the current estimate is 0.4% and some are even looking to 0.2%. S

Schüssler says this could partly counter the effect of the Eskom tariff increases, but a 35% hike will do far more harm than the World Cup will do good.

He points out that there are two factors deterring tourists - the excessive prices for transport and accommodation, and the aftermath of the global recession, which has shrunk the size of people's wallets.

Tatalias says the Competition Commission's investigation into possible collusion between domestic airlines to fix prices during the World Cup is a brave step by government and sends an important message that government is pro-consumer.

Established airlines have already begun to adjust their prices downwards as private aircraft that offer cheaper packages to visitors are being hired, inter alia from Brazil and West Africa.

Now the focus is on packages from France which, it is hoped, will have a similar effect on the prices of flights from Western Europe, he says.

There are already signs of cheaper domestic flights, with Kulula.com offering certain flights between Cape Town in Johannesburg during the tournament for only R390.

Although visitors do not expect to get off cheaply - people expect to pay more during international sporting events - they still want prices that are fair, says Tatalias.

- Sake24.com

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