Hotels look to cash in on World Cup

About half of hotels, lodges and other accommodation in South Africa will charge premium rates during the World Cup, but Tourism Minister Marthinus van Schalkwyk said on Friday he believed the pricing was responsible.

“Half of all establishments will not be charging a premium at all,” he said in a statement announcing the results of a survey of 2 479 establishments.

“I am satisfied that by far the majority of accommodation establishments are acting responsibly and are sensitive to our warnings about price-hiking and its effects,” he said.

Forty-seven percent of the establishments surveyed said they would charge no more than their normal peak-season rates during the World Cup.

About 26% were charging premiums of at least 50%, while 11% were at least doubling prices during the month-long tournament, which kicks off on June 11.

Hotels were more likely to increase rates in Gauteng, home to three World Cup stadiums, where 65% of establishments planned premiums of at least 50% over peak season rates.

In Durban the figure was 53%, but in tourist hot spot Cape Town only 20% of establishments planned big increases.

South Africa expects up to 450 000 foreign tourists for the World Cup, although world governing body Fifa has warned the actual number will likely be lower.

South Africa hired the Grant Thornton consultancy to survey hotels in hopes of dousing concerns about steep prices for accommodation during the tournament.—AFP
Johannesburg, South Africa

About half of hotels, lodges and other accommodation in South Africa will charge premium rates during the World Cup, but Tourism Minister Marthinus van Schalkwyk said on Friday he believed the pricing was responsible.

“Half of all establishments will not be charging a premium at all,” he said in a statement announcing the results of a survey of 2 479 establishments.

“I am satisfied that by far the majority of accommodation establishments are acting responsibly and are sensitive to our warnings about price-hiking and its effects,” he said.

Forty-seven percent of the establishments surveyed said they would charge no more than their normal peak-season rates during the World Cup.

About 26% were charging premiums of at least 50%, while 11% were at least doubling prices during the month-long tournament, which kicks off on June 11.

Hotels were more likely to increase rates in Gauteng, home to three World Cup stadiums, where 65% of establishments planned premiums of at least 50% over peak season rates.

In Durban the figure was 53%, but in tourist hot spot Cape Town only 20% of establishments planned big increases.

South Africa expects up to 450 000 foreign tourists for the World Cup, although world governing body Fifa has warned the actual number will likely be lower.

South Africa hired the Grant Thornton consultancy to survey hotels in hopes of dousing concerns about steep prices for accommodation during the tournament.—AFP