South Africa’s tourism ministry has ordered an investigation into allegations that World Cup hotel prices are unreasonably high, one month after a similar government probe was launched to find out if local airlines were colluding to inflate fares.
The hotel allegations have worried operators and others in South Africa’s tourism business, who called a news conference Tuesday to deny them.
Members of the Tourism Business Council of South Africa, an industry group, welcomed the investigation announced by Tourism Minister Marthinus Van Schalkwyk and said they were sure an independent inquiry would prove that most of them were not inflating room rates.
Business leaders have urged South Africans not to take advantage of World Cup visitors, saying profiteering would keep tourists from returning.
Jabu Mabuza, chairman of South Africa’s state-owned tourism development company and chief executive of a national hotel and casino chain, said the country has sophisticated hotels, restaurants and attractions that rival those anywhere in the world. He said the strategy has been not to market the country as cheap, but as a place where a traveller can get value for money.