While a few exclusive, property rentals for the World Cup have recently been concluded and made front-page news - such as the R7.5 million deal for a high profile international client in Clifton - these are definitely the exception rather than the norm, and have unrealistically raised everyone’s hopes of cashing in during this period.
We at Cape Realty prefer to take a more realistic approach as well as a longer view, which we believe has already begun to bear fruit. We have to date concluded a number of World Cup bookings and have many enquiries pending, yet it would seem that many of the Cape Town rental agents who jumped on the World Cup band wagon have yet to conclude their first booking.
According to a current on-line survey (Cape Town Tourism), over 64% of respondents are charging at least 20% more than standard peak rates, some as high as 200% above, and 59.1% of all respondents do not, as yet, have any confirmed bookings.
Therefore, rather than to over-inflate rentals for this period, Cape Realty has decided to keep prices in-line with peak rates, particularly for the properties where the owner has given us control over the pricing structure.
It is true that rentals in Johannesburg are literally flooding in compared to Cape Town and, according to data from both our local and international sources, we believe the main reasons for this are:
- Tourists are aware that Cape Town winters can be wet and miserable.
- There are no teams staying in the Cape Town area and this means their vast entourages of doctors, media, fans etc will follow them.
- We need to remember that, by and large, fans are not coming to SA to enjoy a beach holiday - they are coming to watch the World Cup.
- Cape Town prices can be ridiculously high and tourists often feel ripped off and may well refuse to pay these rates.
- The global economy is still very much in a recession, and many travelers simply can’t afford the high cost of flights (both international & local), accommodation, game tickets etc.
While we have no doubt that Cape Town is a fantastic destination for all seasons, we urge anyone who is thinking about renting out their property for the World Cup to be more realist with their pricing and to resist over-charging tourists who may well return for a great summer vacation if they feel Cape Town is a value-for-money destination.
And agents who are new to the game should look carefully at their service as well as their pricing to ensure that they are offering a thoroughly professional service, from reservations through to managing the clients’ stay. Cape Town has a fantastic opportunity to make a lasting impression on thousands of new visitors, and we should all make the most of it to encourage return business and a tourist boom for many seasons to come.
