|
EDITOR'S
VIEWPOINT
Rooms
at reasonable prices
As
the government was doing its humiliating about?turn on foreign
investment in the security industry in the middle of October
and dithering over whether it should support the fight against
international terrorism, the Minister of Foreign Affairs,
Nkosozana Zuma, was lecturing Durban hoteliers on what she
thought guests should pay for accommodation.
Before
the industry considers the absence of knowledge betrayed by
her views, it must be said that hotel room rates are not the
concern of the foreign minister. It is not the business of
government to interfere in the business of hotels and it is
hoped that her cabinet colleagues will have the sense to tell
her this. While South Africa was sitting on the fence over
terrorism, Zuma, who should have been taking counsel on this
serious matter, was worrying about hotel prices. Can anyone
take this woman seriously?
Be
that as it may, let's consider her views on hotel prices.
According to news reports, Zuma wants hotels to charge "reasonable"
rates to delegates who attend major government conferences.
Through ICC CEO Peter Brokenshire she was reported to have
taken hoteliers to task over the rates charged during the
racism conference in Durban.
He
conveyed her views to a Fedhasa meeting and was reported to
have committed himself to getting hotels to charge between
15 and 20% less than their published rack rate.
This
should not be too difficult. People who understand how hotels
are run will know that they do that already, especially if
they are paid in advance. Even Zuma should know this. After
all, the government owns SAA and that's how SAA does business.
At
the end of the day the whole issue will probably turn out
to be yet another storm in a teacup. All sensible hoteliers
consider their prices to be "reasonable" and will
continue to do what they think is best for their business.
Whether Zuma's bullying will encourage further investment
in the tourism industry is a matter that her colleagues in
the cabinet might take up with her.
Fortunately
for the hotel and other industries, there are many senior
people in government who do not share Zuma's desire to interfere,
as was demonstrated when plans to ban foreign investment in
the security industry were canned. In the tourism sector,
Tanya Abrahamse, an ANC stalwart who is now executive director
of the Tourism Business Council, spoke out earlier this year
against differential pricing for various categories of tourist.
It
might help the hotel industry to spell out for general consumption
its pricing policy for large groups and events who wish to
reserve accommodation.
|