/ 12 June 2007

Making the grade

For the first time ever, a Fifa World Cup event will offer football fans the option of non-traditional accommodation.

Match, the company established by the association to manage accommodation for the 2010 World Cup, is entering into contracts with both hotel and non-hotel facilities, bringing small, medium and micro-enterprises (SMMEs) into the picture.

This gives guesthouses, bed-and-breakfast (B&B) and self-catering establishments an opportunity to be showcased on the Fifa website, and meets the government’s aim of boosting second-economy involvement in the mega event.

But take-up from the non-hotel sector is slow, despite Match’s amendment of the agreement terms, following extensive consultation with industry representatives. “Sign-up has not been as prolific as it should be,” said Brett Dungan of the Federated Hospitality Association of Southern Africa, which represented its affiliate, the National Accommodation Association, a grouping of non-hotel accommodation owners, in negotiations with Match.

Mike Bobby, co-owner of Kwa-Eden, a B&B in southern Johannesburg, is one SMME holding back on contracting with Match. His three-star property, close to the FNB Soccer City stadium, would seem a likely candidate.

“There’s a lot of upgrading going on,” he commented. “Smaller accommodation establishments are expanding and improving with 2010 in sight. My feeling is that in three years’ time they’ll be able to command better rates than those they contract at now.

“Many operators have a limited number of rooms, which they don’t believe they will have difficulty filling closer to the time. They have built their own relationships with clients, and do not necessarily see the value in affiliating to Fifa.”

Bobby said his 18-month-old business had benefited from the current boom in tourist arrivals, return business and referrals. “Out of every 10 domestic guests, three to four recommend us to friends and colleagues, or come back themselves.”

But Fifa remains optimistic. It said in a statement: “Given that the revised agreement is intended to address the concerns raised by accommodation SMMEs, it is envisaged that there will be an increased number of non-hotel agreements that are signed.”

Match has hitched its registration process to the Tourism Grading Council of South Africa (TGCSA), making TGCSA grading a prerequisite for participation. Senzeni Ndebele, TGCSA marketing and communications manager, said pockets of insufficient graded-room stock had been identified, presenting opportunities for ungraded facilities in and around the host cities.

“We will be sending our assessors out to encourage greater participation in those regions,” she stated, pointing out that financial assistance for grading fees was available from the tourism enterprise programme, a private-public partnership of the department of environmental affairs and tourism and the Business Trust.

Prospective non-graded establishments can also contract immediately, and have a year to become graded.

The minimum requirements for grading include public liability insurance, registration with the provincial authority as a business, adherence to smoking regulations, no unlawful discrimination and provision of health and safety measures.

Asked if FIFA could predict demand for non-traditional accommodation in 2010, spokesperson Andreas Herren said: “Given the rich and diverse nature of this accommodation, including national park acommodation which Match is contracting, it is expected that there will be a lot of interest from visitors … in non-hotel (SMME) accommodation.”

The Tourism Grading Council of South Africa grades facilities in the accommodation, conference and restaurant industries. Businesses in the accommodation sector can apply for grading in eight different categories, namely hotels, guesthouses, B&B, country houses, lodges, caravan and camping, backpackers and hostelling, and self-catering.