The study gives the lie to reports of widespread price-gouging, especially in the Cape Town. 78% of Western Cape establishments have a premium of 25% or less over high season 2010 rates. The report is available here
At Abbey Manor – we did respond to this survey – we are charging high season rates, with no premium. Our rationale is that we are in business for the long-haul, and price-gouging will only damage our reputation.
But the joke is that the department thinks it is because “The efforts of Cape Town Tourism to promote ethical pricing during the 2010 FIFA World Cup™ and the signing of a 2010 FIFA World Cup™ “pricing code-of-conduct”. What a load of nonsense.
June/July is mid-winter – and in case you don’t know – that means rain, wind and cold. We love it, as it means good food, fires, and great wine and friendships – but tourists don’t. Cape Town is largely empty at that time. Each summer Cape Town manages far more visitors than will be coming for the soccer.
It’s simple supply and demand.
Our prediction is that those establishments that change too much will stand empty.
For the record, Abbey Manor is at present 76% booked for the period. We expect to close at about 90%.