TOURISM Minister, Marthinus van Schalkwyk, has announced that government will conduct a survey on accommodation establishments in the tourism industry that are inflating prices excessively.
“Until now our impression has been that this is not the case, but we believe it should be investigated and the results of the investigation made public,” said Van Schalkwyk.
Grant Thornton has been appointed to conduct the survey and has also been requested to benchmark South African accommodation prices against those of other nations that previously hosted the FIFA World Cup.
According to a statement, the Department of Tourism also noted that in many cases where very high prices were cited, they were for private apartments and houses that were being rented out to individuals or groups, often in some of the most high-end neighbourhoods in the country.
“This phenomenon does not represent the tourism industry in general. Furthermore it must be kept in mind that these prices are determined by supply and demand, and the government cannot interfere in the functioning of the market in this regard.”
Van Schalkwyk continued to say that South Africa was a value-for-money destination and this reputation should be safeguarded. “Price hiking could damage the reputation of our tourism industry. However at the same time it must be kept in mind that June and July 2010 will be high season in South Africa, and tourists should not expect the normal low-season prices for that time of the year.”
In conclusion, the minister said there would always be establishments that ‘take chances’ during events such as the World Cup.“We believe this survey will assist us in getting to the bottom of the allegations. As soon as the survey is completed, which is expected to be in three weeks’ time, I will discuss the outcomes with the tourism industry.”
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