On the 13th of June 2010 myself and three friends set out on a 14hrs roadtrip to Bloemfontein from C… Readmore…
| Make 2010 a love affair, not a one night stand | | Print | |
| Written by Lianne Burton |
| Thursday, 03 December 2009 08:40 |
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While issues of Cape Town’s readiness, safety and security and transport infrastructure have dominated global headlines in the run-up to the 2010 FIFA World Cup, fears of being fleeced are now top-of-mind for scores of potential World Cup visitors. Cape Town Tourism's head of marketing, Lianne Burton, explains why. Speaking to a cross-section of members of the UK travel trade at the World Travel Market in London in November, I was struck by the fact that concerns about greedy accommodation providers and international and domestic airlines ripping off World Cup visitors were as widespread as those about safety and security. When England qualified, for instance, a spate of press reports in the UK encouraged excited fans to stay home and watch the World Cup on TV, arguing that unrealistic pricing would put the World Cup out of most mere mortals’ reach. The astronomical prices of luxury private villas on the Atlantic Seaboard were cited, out of context, to add fuel to the fire. While these reports were undoubtedly exaggerated, they indicate that the issue of overpricing during the 2010 World Cup is a hot media topic. And it’s not surprising. Battered by the worst recession since the 1930s, travellers worldwide are particularly price-sensitive. Global tourism figures for January to October 2009 are down by 8% compared with the corresponding period last year, and the European Travel Commission has warned that there is unlikely to be a strong travel rebound, with recovery likely to be subdued. Add to this the fact that Cape Town is a long-haul destination, and the subject of accessible pricing becomes even more critical to our global attractiveness, World Cup or not. According to Cape Town Tourism’s representative in London, Mary Tebje of MTA Tourism Leisure consultants, ‘the downturn in travel and tourism has been especially pronounced for long-haul travel, with a move towards increased short-haul trips and short leisure breaks.’ The UK Office of National Statistics reported that the number of overseas visits by UK residents (Cape Town’s key source market), fell by 12% in the last 12 months to July 2009. Interestingly enough, affordable long-haul destinations like Mexico, Thailand, the Dominican Republic and Jamaica have bucked the trend, showing an increase in British visitors, year-on-year. Even traditionally well-heeled travellers are trading down from luxury to mid-priced travel options. So where does Cape Town fit into this picture? A recent report, compiled by UK website pricerunner.co.uk on the comparative affordability of 33 leading world cities, pegged Cape Town as the 16th most expensive city, ahead of London. According to the website, London has become more affordable in response to the recession and has fallen from second most expensive destination in 2007 to 20th most expensive city in 2009. (Oslo in Norway is reported as most expensive and Mumbai, in India, the cheapest.) Cape Town’s reputation as a leading destination is underpinned by the fact that we offer pristine natural beauty, cultural diversity, a fascinating political history, a cosmopolitan vibe and a sophisticated tourism infrastructure – all at an affordable price by global standards. This value positioning has cemented our place as one of the top long-haul destinations for travellers from the UK, USA, Germany and the Netherlands. But it is not guaranteed. The opportunity presented by the 2010 FIFA World Cup has seen major infrastructural investment in Cape Town as a Host City. Cape Town is undoubtedly ready to welcome the world – some 350 000 visitors from traditional and non-traditional markets are expected to visit Cape Town – in June 2010. The question we now need to ask is, ‘how would we like to be remembered by these visitors?’ This ‘memory’ will become the new definition of our destination brand, and will drive tourism growth for years to come. In tourism terms, as with infrastructural improvements, the World Cup opportunity is all about legacy. We have a once-in-a-lifetime chance to reinforce our positioning as a unique, value-for-money destination. If we adopt a short-term, ‘get rich quick’ attitude and hike prices unreasonably, visitors will become negative brand ambassadors, spreading the word that Cape Town is officially overpriced. This will seal our fate alongside many cities, including Sydney, for instance, that have seen a drop in tourism after hosting mega events. In contrast, responsible pricing practices will ensure that visitors will return time and time again to Cape Town. Sydney experienced a staggering decline in visitor numbers in the three years after hosting the Olympics in 2000, with ‘greed’ being singled out as a key factor.In September 2009 Cape Town Tourism conducted a pricing strategy workshop for its members, in partnership with US consultancy Myriad Marketing, highlighting the strategic importance of responsible pricing practices during the World Cup and citing global best and worst practice examples to drive home the message. Sydney, for instance, experienced a staggering decline in visitor numbers in the three years after hosting the Olympics in 2000, with ‘greed’ being singled out as a key factor and a painful lesson learnt. As a helpful guideline, Cape Town Tourism is encouraging local tourism establishments and operators to peg their June/July 2010 World Cup rates somewhere in the region of their high-season 2010 rates, and certainly not more than 15% above next year’s high season rates. We would like to think that local airlines will share our responsible approach. Says Cape Town Tourism CEO, Mariette du Toit-Helmbold, “Like many other top world cities, Cape Town does have some high-end luxury products like private, serviced villas located in exclusive areas on the edge of the ocean, and these properties do appeal to the prestige visitor at the top end of the market. On the whole, though, we are confident that, through our efforts and the support of the industry, Cape Town’s pricing strategy will be well balanced for the duration of the 2010 FIFA World Cup. The majority of the local industry is made up of responsible operators who realize the importance of offering value for money to World Cup visitors and are right behind us in ensuring that the destination is not labelled as ‘greedy’ after the event.” It’s hard not to fall in love with Cape Town. But if we rip off World Cup visitors, we will almost certainly have to settle for being a one-night stand. Like many lost loves, it will be a wasted opportunity that might haunt us for years to come. What the world is saying ( 4 Votes ) |
Comments
Add to this the huge price hike in electricity (plus we've been put onto commercial rates for this), and the ever increasing cost of food and cleaning materials which no longer increase in cents, but in Rands per week.
We are not in Durban central, so our normal occupancy rates are between 40 - 50%. Running a B&B here has become unviable and we will be closing down in the new year.
They're thinking of doing similarly in Cape Town and we are in process of negotiating with city council something acceptable and affordable to all.
Regarding electricity try putting showers onto gas - saves enormously as one does not need to remember to switch geysers on & off. One can possibly stay within private rates then too.
Suggestion no. 2 : Do not buy lots of different chemicals - we buy 5lt bottles that we dilute significantly and they last many months. For showers & wash basins we use bulk shampoo in fixed wall containers - for shampoo & shower. Saves a lot.
We are putting in solar water heaters (discount via Eskom I think) which will also save considerably.
Washing machine - have not used powder or fabric softener for years. Use "Bio Wash Ball" that lasts 3 years, keeps grey water suitable for garden watering or assists with municipal water cleanliness. Gives same results as powder/ fab softeners.
Here in cape town the same Municipality hikes prices Electricity, Property rate, water sewereges especially for next year (they need mor money to finance all the constructions) so we as B&B owners have to pay for all this should we take it from our own little salaries? I'm afraid we have to give it ower to our guests!!
The point of this article, however, is not about municipal rate increases, but rather businesses that increase their rates exhorbitantly just for World Cup.
The only hefty increase has been for electricity which is beyond the City's control as it has to buy electricity from Eskom at charges approved by the national regulator. Other increases were in line with inflation.
The much needed upgrades to the airport, rail and road system as well as other infrastructure were planned and funded by national, provincial and local government as well as public enterprises.
The only extra provision the City has had to make over and above its original budget was a R660 million loan provision for the completion of the Cape Town stadium. This provision is expected not be fully used and also to be offset largely by income from the sale of the commercial rights to the stadium, lease income from the stadium operator, ticket sales, other savings and expected contributions from the national budget.
At 1% of property value for commercial properties, Cape Town’s property rates are in line with international norms. Cape Town has the lowest commercial property rate of all South African cities.
Ian Neilson, Deputy Mayor
finishes to the property and the quality of furniture and linen.
3. Rentals will work as follows:
Market Value | Home with bedroom no en suite | Home with Bedroom with En-suite
R 350 000 - R 750000 R 350 R 420
R 751 000 - R1 000 000 R 560 R 700
R1 001 000 - R1 300 000 R 840 R1 050
R1 301 000 - R1 800 000 R1 400 R1 750
R1 801 000 - R2 500 000 R2 100 R2 450
R2 501 000 - R3 500 000 R2 800 R3 850
R3 501 000 R3 100 R5 100
For every one million rand escalation in property value add R350 to room rental.
Above rentals are for room rentals for a maximum of two people sharing.
Above rentals will increase by 10% 5 days before and on match date and only in the areas where such matches will take place.
o Quarter Finals will be played in JHB, CT, PE
o Semi Finals will be played in CT, DBN
o Finals will be played in PE, JHB
The above is taken from the procurement document of an agent of FIFA who is signing up B & B's, Houses, Hotels etc.
In our vicinity they have procured most of the beds
These people take from the Public Rate
Which the nett income:
A 10% Booking Fee
Plus 30% Commission.
From the 60% left for the Accommodation Provider he has all the normal running expenses of the accommodation plus the Municipal and Government Taxes which leaves him very little at the end of the day.
Something tells me you are all barking up the wrong tree.
Somebody is making a lot off money and it is not the Accommodation Provider.
I suggest you speak to the Soccer Orgenisers and their Cronies, they are setting the prices and are making the the Profits.
From where I stand it is quite obvious that there is very little the poor Accommodation Provider can do to remedy the problem under discussion.
You are welcome to contact me for more information.
Secondly, your comments do not address businesses which are not contracted to MATCH, but are still charging a rate 260-400% higher than their usual peak season rate.
You obviously didn't attend CTT's pricing workshop because you don't have a clue whats going on and all you can do is gripe. You miss the point completely.
You are actually proving my point.
Do you honestly think that the hotels absorb the 30% commission paid, it simply goes on top.
Please help me, I am at a loss, what makes MATCH so special.
Do you know how easy it is to have an establishment with a Municipal valuation of R 3.501 mil. which means if my establishment is contracted to MATCH I may charge eleven times my normal rate
which gives me 1100%. See the price fixed by the agent in my last writ.
But if I am a Small Independent Operator bearing all the costs, not contracted to MATCH you frown on 400%
Secondly are you trying to tell me that FIFA is a Charity organisation and are not making Mega Bucks, in its own right.
FIFA is a business which was formed to generate money full stop.
I have actually forgotten to say that the
Accommodation Provider also pays a once off registration fee of R467.00 and a monthly advertising fee of R363.00 which makes the Accommodation Provider poorer still.
Please look elsewhere for sympathy
Hotels like Cape Grace, Table Bay and Winchester Mansions are contracted to MATCH and some contracted three years ago. The rates guests will pay are more or less the same as the hotels' current peak season rates. And the hotels are very happy with the deals they are getting.
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