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.

Soccer sharks leave SA bleeding

Jan 08 2010 07:41 Antoinette Slabbert

Related Articles

Consumer cheer on the way

World Cup licence worries

World Cup boost for SA wines

'Hawkers must stay put in 2010'

Tourists pay for 'white elephant'

World Cup 'waste of resources'

 

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%.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

MyCiti buses running at a loss

May 28 2012 07:53

The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.

 
Share Share line Print

Pretoria - Huge profits are being made from soccer fans and in the process the local tourism industry is being harmed.

But who exactly is responsible, is unclear.

Chris Brothers of the inbound tour operator Brothers Sport has ignited a debate about exorbitant prices in an open letter to the editor of the website Tourism Update. He railed against hotels and other suppliers that are not only increasing their tariffs, but also seriously exploiting regular customers.

Brothers Sport has for the past seven years offered overseas clients travel packages to South African sports events.

Brothers mentions a hotel that would normally charge R600/night during June and July, which is now quoting R3 200/night.

In a conversation with Sake24 he said that a bus that he would normally hire for R5 000 or R6 000/day, will cost him R10 000 to R15 000/day during the tournament.

What is more, his normal supplier can't help, as the supplier's fleet has been leased to the Japanese at "sky-high" prices.

Brothers reckons it is shortsighted to hike prices so outrageously.

Of course prices will rise, but there should be limits, he declares.

He believes the local tourism industry will suffer if the 2010 tourists are exploited in this way.

At the same time, relations between local service providers established over the years could be sacrificed on the altar of short-term profit.

Brothers reckons service providers should follow the examples of low-cost airlines kulula.com and 1time, which are still charging reasonable tariffs.

Carmen Sampayo, who is managing reservations for the African Sky hotel group during the tournament, agrees that prices are being pushed up excessively.

But she says hotels are frequently mistakenly blamed.

Of the R5 200 that a soccer enthusiast has to pay for a room in African Sky's four-star St Georges Hotel in Cape Town during the tournament, the hotel will receive less than half.

According to Sampayo, it is increasingly common for tour operators to reserve rooms and sell them on at a profit.

There are up to 10 players in the middle, she claims, each adding their 10%.

Simon Blackburn of Three Tree Hill Lodge in the KwaZulu-Natal Drakensberg proposes a blacklist of service providers who are hiking prices excessively, or the publicising of the names of those keeping their prices unchanged.

Kagiso Mosie, spokesperson for the Tourism Business Council of SA, cautions operators against irresponsible price-fixing.

She said that enterprises that are experienced difficulties during the recession are probably trying to make good their losses by raising prices.

She believes that businesses should realise that the country will still be able to draw tourists after the tournament and the country's reputation as a destination offering value for money needs to be preserved.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Sasha

"In the short term this is true, Greece will dominate the headlines on a day to day basis, until their next elections when there would be some clarity to answer the question, "What next for Greece?" Amazingly everyone except the politicians seem to be lining themselves up for worst case scenario, b... 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...