Friday, June 4th, 2010 -
Sydney, Australia, 3 June 2010 -- For the first time, the highly anticipated 2010 FIFA World Cup tournament is failing to boost inbound tourism and failing to meet its 16% quota of South Africa's US$11B revenue target.

"We've never expected the hotel industry to drop prices during a peak sporting event. It's most unusual that prices have dropped this significantly. We reject claims that hotel prices are rebalancing due to a stronger US dollar over the last weeks - which hasn't moved against the Rand as strongly as other currencies. Clearly, media reports of violence are affecting demand which hotel chains and sole operators are reacting to in the form of competitive re-pricing," said Michael Doubinski, General Manager,

It’s the lower end of the market where this dynamic occurs. Hotels in the Southern Suburbs of Cape Town in the Claremont and Newlands districts including the Riversong Guesthouse and Harfield Guest Villa currently have rates that average US$160 per night. Bookings generated in March and April for the corresponding World Cup period commanded rates on average of 26% higher.

Hotels located in traditional business districts such as Waterfront Village Apartments in De Waterkant, and the Raddison Blu in Mouille Point have been able to continue to command prices in the upper bracket, likely due to the perception that security personnel are more equipped in these business regions. Johannesburg has been immune to the demand fallout because it's regarded as a much more peaceful city than Cape Town – the latter having a reputation as being one of the most dangerous cities in the world.

“We believe this sends a strong message to the South African Government that inbound tourism requires an underlying social stability to attract international travelers - procuring a once-off high profile event even as prominent as the FIFA World Cup is insufficient to break the hold of the major exotics,” Doubinski added. The message to prospective travelers is - thoroughly research the district you plan to stay in - hotel rate disparity on this occasion represents more than just a different class of room service, you may really get what you paid for.

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2010 FIFA World Cup,, hotels, hotel prices, South Africa, Cape Town



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