Monday, March 29, 2010

World Cup Accom Is Reponsibly Priced

THE majority of accommodation providers in South Africa have acted responsibly when it comes to pricing for the 2010 Soccer World Cup.

Tourism Minister Marthinus van Schalkwyk made this statement releasing the results of a survey conducted by Grant Thornton to compare 2010 rates to regular accommodation rates.

“The research shows that 74% of all accommodation establishments in the country are charging a premium less than 50% above their highest rate for 2010. Half of all establishments will not be charging a premium at all,” said van Schalkwyk.

A total of 2479 respondents were sourced in all nine provinces, including hotels, guest houses, bed and breakfast establishments, lodges, camping and self-catering facilities.

“The survey has found that the addition of price premiums to normal high season rates for accommodation during major events is a global norm, during such events, normal economic principles of supply and demand result in premium pricing,” the minister said.

He added that many respondents do “recognise the damaging impact that exorbitant accommodation prices will have on the legacy of 2010.”

“We will continue to do everything to discourage excessive premiums when these do occur. I have consulted with the tourism industry in this regard,” Van Schalkwyk concluded.

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