If you have been following Cape Town Tourism’s campaign for 2010, then you’ll know it is time to start blowing the vuvuzela.
The use of the vuvuzela trumpet is not without controversy. There was talk of it being banned from the 2010 World Cup before FIFA gave it the official thumbs up in July this year. And there are many other points of debate raging over 2010. Will Bafana Bafana play like Banana Banana? Will the taxi associations behave themselves when the new transport infrastructure is put in place? Should prostitution be legalized for the 2010 World Cup?
In the property game, the question most South Africans are asking is this: should I be trying to cash in on 2010 by renting out my house, apartment, shack over the World Cup?
CRI representatives attended a presentation by FIFA’s accommodation and hospitality company, MATCH, in January this year. The stats presented were enlightening – between 250 000 and 400 000 visitors expected and 55 000 rooms needed. Much has been made of these stats, particularly by private homeowners whose eyes have glazed over with Dollar, Euro and Sterling signs. What many people tend to forget, however, is that South Africa already has 80 000 graded rooms on offer – more than enough to cover the amount required - this should temper unrealistic expectations by avaricious homeowners and once-off rental enterprises alike.
There will, however, certainly be a shortage of accommodation in up market “in demand” areas in Cape Town, such as Clifton, Camps Bay, Bakoven, Llandudno, Constantia, and Bishopscourt. These are popular destinations for overseas travelers and they are not exactly saturated with an abundance of hotels to choose from. So, there is definitely an opportunity here.
If you are an experienced renter in any of the aforementioned areas, then it’s a no brainer – you market your property for rental over the World Cup period at a realistic premium to maximise the rental income return usually derived from your property.
The less seasoned renter needs to do some homework first. Perhaps asking the following questions is a good start: Is it convenient to vacate the property for a month? What is needed to prepare the property for short term rental guests? How does one manage the rental and service the property whilst the guests are in occupation? What terms need to be put in a rental agreement? What happens if the property is damaged? These questions are not posed to dissuade prospective once-off renters, but rather to make sure that you enter into the exercise with your eyes open and aware of the risk that comes with the potential reward.
Well, how is demand looking for accommodation at present? As teams have qualified, so the enquiries to the CRI nerve centre have steadily increased. At the time of writing, only 11 teams have thus far qualified. It will only be after 18 November that the world will know which 31 teams have secured their place at the 2010 World Cup event, and then shortly thereafter, where their pools games will take place. It is that point that we expect the enquiries to come in thick and fast.
We have already confirmed a healthy number of bookings. In respect of rates, we have finalised rentals ranging between the 2009 peak rate plus 30% and double the 2009 peak rate . Much will depend on the property in question and the length of stay required. Homeowners who are prepared to be pragmatic and not too greedy are going to be the ones who really benefit from the World Cup experience.
Here at CRI we have devised a “World Cup Response Plan”. So if you happen to be a first time or once-off renter who is looking for assistance in marketing your property, securing guests, and managing the rental, please do get in touch with us. Even if you are an experienced renter, we are happy to market your property along with our existing portfolio.
Whether you decide to rent or not, World Cup 2010 is certain to be a thoroughly exhilarating experience and all South Africans should be extremely excited about participating in the world’s greatest sporting event. Let’s deafen the rest of the world with blasts on our vuvuzelas!
