Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

'Greedy' hotels hurt tourism

Nov 10 2009 07:19

Related Articles

Hotel occupancy at 8-year low

Home owners hold out for 2010

World Cup fillip for car sales

SA targets almost out of reach

Soccer City ready for kickoff

SA has bad reputation - survey

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print

London - Spiralling prices for accommodation during the World Cup could damage South Africa's prospects of enticing tourists back after the competition, the event's chief organiser said.

South Africa hopes that the 2010 World Cup will show off the country's many tourist attractions, from game parks to beaches, and provide a long term boost to the industry, already a major foreign exchange earner.

But some owners of hotels and private homes have inflated prices by up to six times over the last few months in hope of a huge cash bonanza from the competition, sowing fears that profiteering will alienate visitors.

World Cup organising committee boss Danny Jordaan told Reuters in an interview on Sunday he was concerned by this development. "We did make that point to the tourism authorities and I will raise it again... we have to be seen to be fair."

Jordaan, in London to make a speech to a major tourism conference, added: "It is one of the things we asked the tourism authorities to look at. It's not to look at the World Cup as a once-off, but to see tourism over a period of time creating a stable and predictable basis.

"Otherwise you will get a huge influx of tourists into the country and they don't return. Unfortunately this is one of the things that has emerged around major events."

Jordaan said property owners in South Africa thought they could take advantage of the expected influx of 450 000 foreign visitors for the World Cup.

"They say it is the market forces of supply and demand. You know, huge demand and the price must go up. But I think it does not make good business sense for sustainable business. If people feel they did not get a fair deal, they will think twice about coming back."

Accommodation shortfall

Jordaan said there was still a shortfall of more than 46 000 rooms over the month-long competition from June 11 but there would be no problem in making it up because this calculation was based on officially registered accommodation.

There were almost 1 200 non-graded but comfortable establishments on top of the 577 graded hotels.

However, he said there could be problems in some of the smaller host cities like Nelspruit and Polokwane in the north and Port Elizabeth on the east coast when there was a large influx of fans for big matches.

Jordaan said the problem would be overcome by transporting fans in and out by air or bus for these matches.

"That is the bigger challenge. We will have to fine tune the transport arrangements to solve the accommodation problems in the host cities."

Asked if poorer soccer fans would be able to pay the cost of transport, Jordaan said university and school hostels and small bed and breakfast establishments would be used to house them.

Schools and universities will be closed during the World Cup.

- Reuters

 
 
Comment on this story
0 comments
Comments have been closed for this article.
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...