Business Day (Johannesburg)

South Africa: Fifa Terms 'Are a Problem for Small Hotels'

Julius Baumann

8 July 2009


Johannesburg — ONEROUS conditions imposed by Match, the Fifa agency tasked with securing 55000 rooms for the 2010 Soccer World Cup, remained a problem for small hotel operators, Tourism Minister Marthinus van Schalkwyk said this week.

The minister said that with more than a 100000 graded rooms in SA, the country had more than enough accommodation for next year's tournament, but many small operators were reluctant to sign over their stock to Match as they were unhappy with the contract conditions.

"The industry has raised concerns about the price level offered by Match as well as its escape clause," Van Schalkwyk said in an interview.

"Many feel they can do better by holding on to their rooms. While we will continue to work with Fifa and Match to secure enough rooms, it is a free market, and we as government cannot interfere."

Addressing Fifa president Sepp Blatter's concerns about the lack of available rooms in Bloemfontein, the minister said it was not a shortage of hotel rooms but rather a transport problem.

"We realised that we could not approach private sector players to build hotels where there would be no demand beyond 2010.

"So we had to come up with a way of transporting fans to the host cities, and the focus is on making sure we have the transport infrastructure in place for next year."

Van Schalkwyk said it was important for SA to take its tourism industry "to the next level", and his department would soon draw up a five-year tourism sector plan in consultation with stakeholders.

"We have had a successful few years. When I said a number of years ago that we would reach 10- million visitors by 2010, no one believed it was possible. But now we know it will be possible," he said.

Van Schalkwyk said that success was achieved largely through marketing and a broader, more comprehensive plan was now needed. He said Africa was an important market. South African Airways (SAA) played a critical role in expanding into it. "In 2007-08, we saw a 19% growth in the Africa air market, and SAA is central to developing that market."

Van Schalkwyk has in the past been extremely vocal about SAA's lack of support of the growing tourism sector.

However, this week he took a more conciliatory tone . "Under the new management, SAA and the department developed a better relationship, and I have been approached by SAA to discuss their strategy with regard to tourism."

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