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Hotel operators should not be short sighted and hike their rates to ‘cash in’ on the high demand for accommodation for 2010 as it will make visitors hesitant to return to Cape Town for fear of being ‘ripped off’.
So says Ursula Gray, Chief Executive of the new five star Cape Royale Luxury Hotel and Residence located close to the new Green Point Stadium.
She says demand for accommodation in Cape Town over the 2010 FIFA World Cup period is at an all-time high, and there may not be enough beds to host the estimated half a million tourists that will descend on the city in 2010.
More bed nights are being added through plans to dock cruise liners like the Queen Elizabeth II – which sleeps approximately 1 800 people. And many new hotels are currently under construction in the Cape.
But, some tour group operators say hotels are already starting to hike their prices for 2010 because of the high demand for room nights.
“As an industry, it is crucial that we think beyond the World Cup 2010. It should be seen as an opportunity to offer excellent value and to build long term relationships with our guests to encourage repeat visits to Cape Town,” she says.
“All 85 suites at The Cape Royale are fully booked for 2010 and we have heard that the majority of Cape Town’s hotels – including those still under construction – are in a similar position,” says Gray.
Gray notes that in 2001, Cape Town was identified by major international film production companies as offering excellent value for money and quickly became a preferred filming destination.
“As Cape Town became an increasingly popular filming and production destination, demand for accommodation began to outweigh supply. Many local operators tried to capitalise on the situation and inflated their prices to such an extent that the production companies started pulling out of Cape Town in search of better value destinations.
“It has taken nearly five years to rebuild Cape Town’s image as a destination which offers good value and excellent service. We should be careful not to make the same mistake twice,” she says.
Gray also mentioned that Cape Town will be a long-haul destination for most 2010 guests and that this could work in the city’s favour, provided it continues to offer good value.
“In Germany’s World Cup, the majority of the European guests had short term stays in the country – they would fly in for a specific game and depart the next day. Short-stay guests like these do not generate much tourism income for the city.
“However, Cape Town will be a long-haul destination for the majority of the guests we will host. These long-haul guests are more likely to stay longer, travel the region and as a result will spend more money.
“This will generate more tourism income for the city. But on the other hand, guests who have a longer stay will be even more acutely affected by price hikes. If their stay turns out to be more expensive than they anticipated, they will be reluctant to return,”
