Soccer-World Cup profiteering could hurt tourism, says Jordaan

By Barry Moody

LONDON, Nov 9 (Reuters) - Spiralling prices for accommodation during the World Cup could damage South Africa's prospects of enticing tourists back after the competition, the event's chief organiser said.

South Africa hopes that the 2010 World Cup will show off the country's many tourist attractions, from game parks to beaches, and provide a long term boost to the industry, already a major foreign exchange earner.

But some owners of hotels and private homes have inflated prices by up to six times over the last few months in hope of a huge cash bonanza from the competition, sowing fears that profiteering will alienate visitors.

World Cup organising committee boss Danny Jordaan told Reuters in an interview on Sunday he was concerned by this development. "We did make that point to the tourism authorities and I will raise it again... we have to be seen to be fair."

Jordaan, in London to make a speech to a major tourism conference, added: "It is one of the things we asked the tourism authorities to look at. It's not to look at the World Cup as a once-off, but to see tourism over a period of time creating a stable and predictable basis.

"Otherwise you will get a huge influx of tourists into the country and they don't return. Unfortunately this is one of the things that has emerged around major events."

Jordaan said property owners in South Africa thought they could take advantage of the expected influx of 450,000 foreign visitors for the World Cup.

"They say it is the market forces of supply and demand. You know, huge demand and the price must go up. But I think it does not make good business sense for sustainable business. If people feel they did not get a fair deal, they will think twice about coming back."