Survey reveals Western Cape most responsible with World Cup pricing

A survey into World Cup price gouging has found that the Western Cape has outperformed most other parts of the country in offering value for money, with over half of accommodation establishments charging at or below seasonal rates.

The survey, commissioned by the government, found that 57.8 percent of accommodation establishments in the province were not charging above the market rate.

The survey compared the prices charged during the World Cup period with the Rack Rate - the rate that an accommodation establishment quotes or charges to the general public.

In the Western Cape, only 3.8 percent of prices were set at or more than 100% higher than the Rack Rate, compared to 32 percent in Gauteng, 29.7 percent in North West and 13.3 percent in Limpopo.

The proportion of accommodation establishments charging less than the Rack Rate was 13.4 percent - second only to the Eastern Cape, at 14.5 percent.

Among the Western Cape operators guilty of World Cup price hikes, hotels were the most culpable, with 18.4 percent offering prices 76 percent or higher above the Rack Rate, compared to 9.6 percent and 5.6 percent in B&Bs and guesthouses respectively.

Mariette du-Toit Helmbold, CEO of Cape Town Tourism, said the findings of the survey showed Cape Town had a mature attitude towards pricing.

She said the initiatives and pricing guidelines had set "an excellent standard for Cape Town in long-term pricing legacy and sustainability".

"Not everybody will, or can, benefit from the World Cup during June and July, but if we can deliver excellent value for money experiences, the long-term benefits of hosting the World Cup will far outweigh the short term and will have positive spin-offs for all of us," she added.

Tourism Minister Marthinus van Schalkwyk said he was satisfied that the majority of South Africa's accommodation establishments were "acting responsibly".

Cape Times

Posted at 10:42AM Mar 30, 2010 by Editor in Residential  |  Comments[2]