Some Price Issues Facing Tourists in South Africa

This video from CNN features an interview with Thandiew January-McLean, who is the CEO of South African Tourism. She discusses how her agency is dealing with concerns over local businesses overcharging customers. She claims there is only a minority of hotel owners who have raised their prices exorbitantly.

She also discusses how the country hopes to use the World Cup as leverage to continue to lure tourists after the World Cup is over.


Will South Africa really benefit from World Cup?
CNN
April 14, 2010

One-Quarter of Accommodations Raise Prices 50% or More During World Cup

A recent survey by the Department of Tourism shows that nearly one-quarter of the nation's tourist accommodations are planning to increase their prices by more than 50% during the World Cup.

The survey, which investigated alleged overpricing by accommodation establishments, showed that the remaining 76% of respondents polled raised their prices by under 50%.

Speaking to Business Day Online, Sindiswa Nhlumayo, Deputy Director-General in the department of Tourism says the price increases were expected.

"When you host an event of such magnitude, increases like are expected based on the laws of supply and demand", Nhlumayo said.

South Africa: 2010 Accommodation Marked Up By Over 50 Percent
Business Day
March 26, 2010

Tourism Ministry to Investigate Price Hikes During World Cup

Tourism officials are pledging to crack down on any local businesses and hotels caught inflating prices ahead of the World Cup.

Marthinus van Schalkwyk, the South African tourism minister, said: "In recent weeks we have noted allegations that accommodation establishments in the tourism industry are not responsible, and are inflating prices excessively.

"Until now, our impression has been that this is not the case, but we believe it should be investigated and the results of the investigation made public."

An internet search found that a room at a midrange hotel near Johannesburg's OR Tambo airport that would cost R1,145 (£95) on a typical weeknight will be at least a third more expensive during the Word Cup. The investigation follows an inquiry into airlines for alleged price collusion.

South Africa hotels investigated over World Cup price rise claims
Guardian
February 24, 2010

Hotels Promise to Keep Rates Standard During World Cup

Operators of bed-and-breakfasts and hotels in FIFA-endorsed accomodation areas have pledged to keep their prices reasonable during the World Cup.

Knysna tourism head Shaun van Eck said the organisation suggested that establishments use summer rates during the World Cup.

"However, many establishments are sticking to their winter rates for the whole period," he said. "We sincerely believe that the World Cup is a long-term opportunity for us to build Knysna... to a top 100 destination in the world. Our approach is definitely a strategy to attract more visitors, and to position Knysna as a value-for-money destination."

Guesthouses promise not to hike prices
Cape Argus
February 4, 2010

Violence and High Prices Limiting Visitors to South Africa During Cup

Violence and high-priced packages aimed at tourists hoping to maintain a tightly secured visit to South Africa are making the World Cup less of a boon than many had hoped, according to this post.

The English FA have returned some of their tickets to Fifa and sales in Germany and Holland have also been slow, amid the disconnected though still unhelpful publicity surrounding the attack on the Togo team bus in Angola and doubts raised by influential football figures such as Franz Beckenbauer and Uli Hoeness over cost and security. The last two questions are linked, because apart from the relative scarcity of available aircraft seats and hotel beds that is driving up the price of World Cup packages, fears over visitors' safety mean that most deals are being pitched at wealthy individuals staying in upmarket accommodation rather than independent travellers on a budget.

South Africa's cup is failing to set the world on fire
Guardian
January 31, 2010