South African government to boycott hotels not wanting Fifa to manage them

South Africa’s government could boycott business with hotels that refuse to give Fifa’s accommodation agency access to their rooms.

Match, Fifa’s accommodation agent, has so far only contracted half of the 60000 rooms it estimated it would need.

The move by government, which could severely hurt hotels as the government sector is a significant revenue spinner, could encourage hoteliers refusing to sign deals to make their rooms available to Match during the 2010 Soccer World Cup.

Otto Stehlik, Protea Hotels group executive chairperson, issued the warning at an investment conference for the hospitality industry presented by the Tourism Business Council of South Africa. Stehlik is also a member of the ministerial advisory Council for the 2010 Soccer World Cup.

Many of South Africa’s largest hotel groups, including Protea Hotels, City Lodge, Southern Sun and Legacy, have met with Fifa over the last two years to negotiate a fair contract.

Stehlik says, “We’ll be making a lot of money”, but believes the country’s image of being able to host such events could be hurt by a small part of the hotel industry that refuses to make their beds available to Match.

The executive attributes this to “ignorance or greed”, however many hotels feel that although the world cup is the world’s biggest sporting event, that there is no reason why Fifa should get a cut of bed revenue.

Hotels have until the end of October to sign a contract with Match, after which government is apparently prepared to impose boycotts against them. This boycott could, according to Federated Hospitality Association of South Africa’s (FEDASA) executive chairperson Brett Dungan, be extended to private enterprises doing business with government.

Stehlik says that those not willing to sign contracts believed they could be more profitable alone, and that this belief could place the World Cup in danger.

Match’s Adam Brown said that the agency did not have enough rooms at reasonable tariffs, and that this would result in spectators choosing not to come to South Africa.

Contingency plans have already included adding guesthouses and lodges to Match’s inventory, and the possibility of including school and university accommodation too. A last resort would be to berth luxury cruise ships in Cape Town, Port Elizabeth, East London and Durban as additional rooms to let.

Stehlik believes there are enough ships available to make up the shortfall if hotel groups don’t come on board, however, this would be unfortunate as it would mean South Africa’s tourism industry would lose potential revenue.

Brown says the deadline for hotels is at the end of October as inventory must be issued between the 162 tour operators making group reservations in various countries.