Posted on 23 February 2010.
News24.com reported the following story after recent media stories that the tourism sector is milking tourists ahead of the 2010 FIFA World Cup:
South Africa’s tourism industry and Match, Fifa’s single licensed agency, has hit back at media claims they have outpriced visitors – known as price gouging – to this winter’s Soccer World Cup. Fifa is soccer’s world governing authority.
According to the Tourism Business Council of South Africa (TBCSA), which on Tuesday hosted a specially arranged press conference, peak season prices will be the maximum charged for accommodation and flights during the World Cup in June.
“There is nothing for them (travellers) to worry about,” said Mmatsšatsši Marobe, CEO of TBCSA “The industry is not involved in price gouging, not the majority anyway,” she added.
Most accommodation providers in the country are not aiming to exploit tourists, rather, that it will be business as usual during the World Cup, he said.
The TBCSA, along with Fifa’s Match and numerous South African travel and accommodation associations called a meeting to address the recent reports alleging tourists will be fleeced by opportunistic travel operators during the World Cup.
In the current economy, soccer fans from Germany and England in particular, are worried about the cost of attending the event, said Jaime Byron, executive chairman of Match.
“The nearest qualifying country to South Africa is Cameroon, the distances to travel are long,” he said. “So, yes, packages put together are more expensive, but the distances are what they are.”
Match has the exclusive rights to sell travel and ticket packages for the 2010 tournament, and its near monopoly of hotel rooms has been blamed for the high prices.
Citing Jerome Valcke, Fifa’s general secretary, the UK’s Telegraph said last week that Fifa would overhaul the ticketing system which has been blamed for only 2.1 million tickets sold to World Cup games against the 2.8 million that are available.
Room prices misunderstood
According to TBCSA, it is overlooked that the alleged high prices for hotel rooms is inclusive of transportation and entertainment.
As far as flights are concerned, prices are set to remain at peak season rates. “Airlines have priced their seats reasonably,” said Michael Tatalis, CEO of SATSA.
An SAA flight from Cape Town to Johannesburg for the opening match on 11 June will cost R1270, according to its online booking facility. Kulula and 1Time offer similar prices. Flight prices during December peak season usually reach over R2000 one way.
However, TBCSA’s Marobe said industry players can’t be forced to charge reasonable rates. “We have seen sporadic incidences of some businesses inflating their prices. [But] organised business recognises the long term benefits of sustainable growth in visitor numbers.”
“There are really no worries on our part, said Tatalis. “To those places that are ridiculously high priced, good for you, you’re going to be left empty.”
The body also said there are enough rooms available for accommodation, but that extensive use of private transport companies must be used to be able to ferry travellers to and from games.
“Do I think the bad press will have the sufficient effect to disappoint people? I doubt it very much,” said Byron.
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