Hospitality property sector's hopes for World Cup spinoffs were too high

With the World Cup now approaching its final phase, it is possible to assess its impact on the hospitality and property sector, and, says Lanice Steward, MD of Anne Porter Knight Frank, it has to be said that the likely benefits to these sectors were exaggerated, not only by FIFA for also by some of the spokespeople for the property sector.

“I am alarmed to think how many starry-eyed people installed new furniture, flat screen TVs, internet and wireless connections in the expectation of a massive influx of visitors – only to find that this has not materialised.”

Steward said that half a million people visit Cape Town every summer without causing a drastic shortage of accommodation in the hospitality sector. It, therefore, made no sense to assume that on any one day 35 000 or so visitors (taking up perhaps half the seats in the new Green Point Stadium) would result in an unprecedented boom in the hospitality industry.

“With hindsight, it is now clear that Cape Town never was going to lack accommodation space for this even,” she said, “and it is regrettable that some people were led to think otherwise.”

The Cup, said Steward, has very definitely put South Africa more on the world’s radar screens – but it should have taught us not to be gullible regarding any bullish predictions on any subject related to SA property.

“We can now look forward to future business as a result of the World Cup but regrettably the B & B, guesthouse boom has not been as spectacular as hoped for.”

Article by: