Cape Town room rates to soar by 20-200% for the World Cup

Almost 20 percent of guest houses and hotels would increase their rates by 20 percent above their peak season rates during the World Cup, according to a Cape Town survey tracking accommodation and pricing trends.

Capeinfo.com, which is endorsed by Cape Town Tourism, tracked changes in accommodation availability and pricing trends with monthly surveys from January until May.

Results show nearly half of the establishments will charge peak season rates during the World Cup, which takes place in the traditional off-season.

"The astronomical prices of luxury private villas on the ocean's edge are not a true representation of the cost of staying in Cape Town during the tournament," Cape Town Tourism spokeswoman Lianne Burton said.

Almost 20 percent of those surveyed would up their rates by 20 percent above peak season while close to 10 percent would charge between 100 percent and 200 percent above peak season rates.

According to Cape Town Tourism statistics last year, average costs for a night in a centrally located guest-house were in the region of R500 to R800, while a self-catering apartment or cottage could cost from R200 to R500 a night. A four-star hotel could charge R1 900 to R2 400 for a room and a five-star hotel up to R5 000 per person per night sharing.

"We know that, in line with current travel trends internationally, there will be a lot of last-minute bookings ... but we cannot afford to be complacent and allow a skewed perception of pricing to turn a potentially positive experience into a highly negative one," she said.

According to the survey, inquiries and bookings had also grown greatly.

Last month, no establishments were fully booked, whereas now 81 are.

This showed a trend in the accommodation industry in Cape Town to lower prices as the World Cup drew nearer to increase bookings.

Finance, Economic Development and Tourism MEC Alan Winde said it seemed demand for accommodation had not reached expectations.

"We are concerned that the current perception of pricing will impact negatively on the tourism industry. The World Cup presents us with a window to the world and could drive our economy for the next 10 years. But it can only do that if people leave South Africa with a good perception," Winde said.

Meanwhile, a survey conducted by Cape Town Routes Unlimited (CTRU) showed local tourism had not declined but performed on par with previous years, despite the impact of the recession. According to the World Tourism Organisation, international visitor arrivals had declined worldwide by 4 percent and were negative in all regions except Africa. World tourism had increased by 2 percent in the last quarter of 2009.

Cape Times

Posted at 09:11AM Feb 12, 2010 by Editor in Residential  |  Comments[5]