Fedhasa warns on World Cup rental risks

Those hoping to rent out rooms for the first time to cash in on the World Cup have been warned of substantial risk to guests and owners.

"This has got to be a business decision: people must understand they are renting out their places and homes to the public; it's a risk. I've warned people: do not do this half-heartedly expecting it's going to be a wonder sale. Hospitality is a tough business," Federated Hospitality Association of Southern Africa (Fedhasa) chief executive Brett Dungan said.

He "strongly recommended" that those hoping to enter the hospitality market during the World Cup draft a legal document with terms and conditions protecting themselves from malicious damage or fraud by visitors.

Dungan also said hosts should not misrepresent their establishments, or try to defraud visitors.

"Do not advertise your room as a five-star establishment if it isn't. Don't let the visitor book for five nights and try to get them to leave after four. Get everything down on paper," he said.

Dungan outlined several steps for those wishing to rent property during the World Cup.

# Benchmark your establishment against graded criteria that are available at www.tourismgrading.co.za.

# Gauge the price range of similar quality establishments, and set your price accordingly.

# Register with a reputable portal or service that advertises rooms.

# Create a secure, trusted account to allow for the flow of money between the guest and owner.

# Deliver what is promised.

# Ensure that all legally binding contracts are in order.

Dungan suggests owners use Rooms4u, a website portal created by the tourism department and Fedhasa to facilitate the renting of rooms for the tournament.

"I strongly advise people not to invest a fortune in upgrading or changing their establishments. People must just charge accordingly. This is a tough business and it's not going to make everybody rich quickly."

Meanwhile, Cape Town Tourism announced a "Code of Responsible Pricing for Cape Town", which was endorsed by several hospitality associations and government departments. The code seeks to outline means for establishments to protect themselves and guests while ensuring a long-term commitment to tourism.

Cape Times

Posted at 09:38AM Feb 16, 2010 by Editor in Residential  |