Cape Town hotels score with World Cup pricing

Sunday, 30 Mar, 2010 0

CAPE TOWN – A new survey has backed claims by Cape Town tourism officials that the city’s hotels are offering fair-value during the upcoming FIFA World Cup.

South Africa’s minister of tourism, Marthinus van Schalkwyk commissioned a month-long accommodation pricing survey carried out by Grant Thornton South Africa to establish a clear picture of prices throughout the country.

On the back of international criticism that South Africa is price-gouging during the World Cup, the survey targeted 2,479 accommodation establishments from all nine provinces with 38% of respondents coming from the Western Cape region.

Establishments included hotels, guest houses, bed and breakfast establishments, lodges, backpackers, camping and self-catering facilities.

The survey results have shown that 65 percent of Johannesburg establishments are charging more than 50% higher than their peak season rates.

In Durban, 53% are hiking their prices to 50% and more over their high season rates.

Australia faces Germany in its opening World Cup group match in Durban on June 13.

The survey found that less than 20 percent of Cape Town’s establishments are going this route.

The Grant Thornton Survey attributed the fair pricing in Cape Town to the excess supply of accommodation and the recent opening of new hotels, adding to the already good levels of supply.

This, coupled with a significant slowdown in demand, has forced operators to tightly control rates in order to achieve acceptable occupancies.

A second factor is the efforts of Cape Town Tourism to promote ethical pricing during the World Cup and the signing of a World Cup pricing code-of-conduct.

Said Cape Town Tourism CEO, Mariette Du-Toit Helmbold, “I strongly believe that our consistent messaging around responsible pricing and the industry’s commitment have paid off – setting an excellent standard for Cape Town in long term pricing legacy and sustainability.”

Cape Town Tourism has pointed to the pitfalls experienced by other international destinations that have previously hosted major events.

“Countries that inflated tourism costs during the event damaged their brand and it has taken some of them years to rebuild perception,” warned Du Toit-Helmbold.

Cape Town Tourism’s most recent member poll around hotel occupancy during the FIFA World Cup period revealed that five and four star hotels in and around the CBD and Green Point areas are doing well.

Most were fully booked on match days with limited availability for the rest of the World Cup, whereas hotels of the same grading further afield, in the northern and southern suburbs as well as Somerset West, are seeing slower bookings and more availability due to their distance from the games.

Du-Toit Helmbold added, “My advice to tourism businesses is to remain responsible as far as pricing is concerned and not expect significant immediate or short term gains.

“If we can deliver excellent value for money experiences, the long term benefits of hosting the World Cup will far outweigh the short term."
 



 

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Ian Jarrett



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