South African government this week denied claims that visitors are being overcharged to book hotel rooms during the World Cup this summer following widespread accusations of "price-gouging". The denial was based on the results of a month-long study into the rates at some 2,500 properties during the tournament.
Marthinus van Schalkwyk, the minister of tourism, said he was satisfied that hoteliers in South Africa were acting responsibly in their pricing. He added that in the cities that hosted the 2006 competition in Germany average room rates were 37 per cent higher than in the previous year.
"Most establishments are sensitive to our warnings about price hiking and its effects," he said. "For many lower-graded properties, bed and breakfast establishments and guesthouses, a 100 per cent premium on a low rate may only mean moving from, say, R300 (£27) to R600 (£54) per person per night."
However, a closer look at the report showed that 65 per cent of properties in and around Johannesburg are charging more than 50 per cent more than usual peak-season rates. More than half the properties in the Durban area have increased charges by at least 50 per cent over high-season rates. In Cape Town, this was true of only about a fifth of those surveyed.
The survey follows reports last month that Match, the FIFA agency responsible for securing World Cup accommodation, had been forced to re-release nearly 8,000 rooms – nearly a third of the total it held – due to poor sales. A spokesman for Match said the release was in line with industry expectations.
Telegraph Travel reported in December that some British visitors to Cape Town were being asked to pay up to five times the usual rate for a hotel room during the five-week tournament. According to Hotels.com, the accommodation website, the four-star, centrally located Cape Town Lodge Hotel was then charging £68 per room per night from May 28 to June 5, but raised its rate for the week of June 11 (when the tournament is under way), to £395 per night. This week the hotel was charging a rate of £289 for the week of June 11 – still more than 300 per cent higher than the normal rate for this time of year.
British-based South Africa travel specialists have expressed concern at the long-term damage steep price rises this summer could do to the country's image as a good-value destination. However, Mariette Du-Toit Helmbold, chief executive of Cape Town Tourism, said the city has learnt from the experiences of the hosts of previous major events.
"Countries that inflate tourism costs during big events damage their brand," said Ms Du-Toit Helmbold. "My advice to tourism businesses is to remain responsible as far as pricing is concerned and not expect significant short-term gains. If we can deliver excellent value for money, the long-term benefits of hosting the World Cup will far outweigh the short-term."
The Grant Thornton report said that the opening of new hotels and a slowdown in demand in Cape Town had forced hoteliers to control rates to fill their properties.
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According to the report, the best way for visitors to avoid inflated prices is to steer clear of hotels and b&bs. Room rates have increased by just 21 per cent at hostels, at self-catering properties by 14 per cent and at camp sites by 11 per cent.
It isn't just about building a stadium, there are many factors that need to be taken into consideration and inspection tours of South Africa have been a regular feature over the past few years.
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