Is Cape Town Going To Be To Pricey?

In a response to recent UK media reports, which have suggested that South Africa is out-pricing itself ahead of the 2010 FIFA World Cup, Cape Town Tourism says that runaway statements about prohibitive prices are being based on a skewed perspective of the broader tourism offering.

“Like many other top world cities, Cape Town does have some high end luxury products like private, serviced villas located in exclusive areas and on the edge of the ocean and these properties do appeal to the prestige visitor at the top end of the market. On the whole, Cape Town’s pricing strategy is well balanced for the duration of the 2010 FIFA World Cup,” insists Cape Town Tourism CEO, Mariette du Toit-Helmbold. “The majority of the local industry is responsible operators that realize a value-for-money return on any holiday investment is essential to ensuring that the destination is not labelled ‘greedy’ now or after the event.”

Cape Town has played host to many major events, like the recent IPL and Lion’s Tour, and the industry prides itself in offering visitors exceptional service and authentic experiences at good value for money rates.

For the most part, accommodation establishments in Cape Town are posting rates for the 2010 FIFA World Cup that is equivalent to their peak season rates. A good indication of the public’s favourable response to this is that many of them are already fully booked. Average costs for a night in a centrally located guest house are forecast at an average of R 500 – 800 (£40- £64.10), whilst an award-winning four star city hotel is charging on average R1900 – R2 400 (£152.24 –£192.30) per night for a room. Renowned five-star waterside hotels are asking in the region of R 5000 per person per night, sharing (£400). A variety of serviced self-catering apartments and cottages are also available at rates that average from R200 – R500 per person per night (£18 – £40). Cape Town Tourism also recommends unique community based accommodation experiences that range on average between R200 – R600 per person per night sharing (£18 – £45). Day trips and excursions range on average between R120 (£18) for a City Sightseeing Bus Ticket, valid for two days, and R400 per person for a full day tour (£32) like a wine or cultural tour. Cape Town offers some of the best food and wine experiences in the world and three course meal prices in an upmarket restaurant will range from R250 – R550 (£20 – £45) with a good bottle of wine priced at an average of R120 – R300 (£9 – £24).

Cape Town has an excellent accommodation capacity, but allowance where appropriate has been made for temporary accommodation, with particular reference to the budget sector, which could be an area of short-fall in Cape Town. An August 2008 survey commissioned revealed that Cape Town will have ample bed capacity for the 2010 FIFA World Cup. Cape Town’s accommodation capacity (including accredited and approved temporary accommodation stock) currently stands at 56 000 beds and an estimated total number of 70 000 beds should be on line by June 2010 in the greater Cape Town area. Furthermore, Cape Town is in close proximity to regions like Winelands, Overberg and Garden route with good capacity as well.

“Cape Town Tourism is working hand in hand with MATCH and FIFA to encourage as many establishments as possible to contract with MATCH, but we understand too that the decision to sign up to MATCH is a business decision that each individual tourism business must make, weighing up their unique situation, requirements and suitability. Many accommodation establishments either do not fit the MATCH profile or do not wish to sell their accommodation through MATCH due to business reasons of their own”, says du Toit-Helmbold.
Much of the hotel chain stock in Cape Town has been absorbed by MATCH who required that rates were no more than 16% higher than those charged in the summer of 2007.

Sean Kritzinger, Managing Director of Cape Town’s Gilt Edge Travel www.gilt-edge.com feels that the market has remained fair in the face of temptation. “We have already sold over 50% of our packages and we have encountered very reasonable attitudes from the industry as a whole.”

Du Toit-Helmbold also alluded to problems with those sectors of the industry that were not accredited or endorsed by any of the official tourism organisations. She urges visitors to check the legal status of establishments and service providers before they book and suggests that visitors enquire with Cape Town Tourism to avoid disappointment. “Other than urging caution and the use of good common sense, Cape Town Tourism has no control over the quality of establishment or prices charged by people renting out their private homes. Visitors wanting to ensure that they get what they pay for should go through a recognized organization or reputable agent.”

Cape Town Tourism’s Du Toit-Helmbold says that the tourism body has been consistently firm in its stance on pricing and has embarked on an industry awareness campaign around responsible pricing and practice in the run up to the World Cup. “We have taken heed of the lessons that other destinations have learnt during global events in the past, and we have communicated these messages to our membership and the tourism sector as a whole.”

Cape Town, prior to 2010 FIFA World Cup, is an immensely popular tourism destination; voted by The UK Telegraph as their readers’ favourite holiday destination in 2009. “We are intent on using the great marketing opportunity that the 2010 FIFA World Cup affords us, to showcase the destination as a place to which you want to return. High prices and a lack of good service will not reflect well on us and we are focusing all our energy on ensuring that not only our infrastructure but also our mindset is on target and ready to welcome the world”, comments Du Toit-Helmbold.

Fans wishing to attend the 2010 FIFA World Cup on a budget that works for them are advised to contact ATN for suggestions on accommodation, transfers, car hire and tours. www.africatravelnetwork.net