Why hotels should charge high prices during soccer world cup

They should charge more.  Hotels and B&Bs, your uncle’s Seapoint flat, airlines and taxis and the guys polishing shoes at the airport and garden services mowing lawns should all charge more during the world cup.

“But they’re profiteering” you cry!  Well, yes, in a word. But if the incredible expense of building stadia in the shape of donuts and white elephants is to be recouped, someone has to make some money out of the whole deal.It’s a pity that locals will be mostly priced out of the festivities, but that could be remedied with an auction of cheaper tickets to SA ID holders, or by providing a modest tax and rebate (for locals) system.

I want foreigners to come here with their fat Euro, Dollar, Pound, Yen and Namibian Dollar (yes them too) wallets to spend on our goods and services, to provide employment and profit for South Africans. I want South Africans to spend this earned money in our economy. I want businesses and entrepreneurs to gear up for higher profits and expand the scale of their businesses, train their staff and invest in technology.

(Of course, I also wish the vuvuzelas we should sell for 500% mark-ups were made in South Africa, but apparently I only get one wish a day.)

I want South Africa to get some sort of benefit out of this whole footie thing.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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1 Comment

  1. Also, after the SWC when the prices deflate again, it will provide additional incentive for tourists to visit South Africa. Unless they’re angry that they were ripped off in the first place.

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