Entries tagged with “services”.


It was depressing to read the article”The Business Case for Tourism and a strong brand for Cape Town” by Cape Town Tourism CEO Mariette du Toit-Helmbold, and published on the Cape Town Tourism Blog.  Oddly it has not been sent to its members.  The most disturbing prediction it contains is that the R14 billion Cape Town tourism industry, which employs just short of 300000 staff, will only recover in 2014, in getting back to the 2007 level, the last good year for tourism in Cape Town.  What is disappointing is that Mrs Helmbold does not provide any guidelines to her Cape Town Tourism members as to how businesses should survive the next three years of poor business, nor does she spell out what she and her organisation are doing to market Cape Town more visibly!

To set the scene, Mrs Helmbold writes that international arrivals to Cape Town as well as domestic arrivals have stagnated due to the ‘Global Financial Crisis’, as she calls it, and she estimates a total loss of R 1,5 billion for the Cape Town tourism industry between 2008 – 2014, with zero job creation as a result.  Unlike other provinces, Cape Town and the Western Cape has little Africa-business, with more than 80 % of its business coming from Europe (including the UK, one assumes) and the USA.  Cape Town is a small fish in a massive global tourism pond, with our city’s market share being 0,2 % of world tourism.  She blames SA Tourism by implication for doing too much marketing of wildlife, and too little of the cities in our country :”…many national campaigns are of a tactical nature, which do not necessarily build knowledge and esteem values of our cities”.  The marketing of Cape Town, which is the responsibility of Cape Town Tourism, does “not allow for Cape Town to be compellingly and relevantly portrayed to potential visitors”.  This sounds odd, as Mrs Helmbold is pointing at her own organisation, but she does not explain what constraints there are to marketing the city. She also states that Cape Town’s attributes of being “iconic, complex and multi-faceted” are not evident to tourists.

The rest of the five page document becomes a long and theoretical ramble about how Cape Town should be positioned and at whom it should be aimed: in summary, the marketing of Cape Town no longer should be focused on leisure tourism alone, by highlighting the beauty of Cape Town, but it should incorporate business, investment, academia, and the creative sectors too. All of this appears to have been written to justify to its funders, the City of Cape Town, that unnamed ‘partnerships’ (probably the writers of the document, given its theoretical nature and unusual style for Mrs Helmbold’s writing) are “waiting in the wings for public sector endorsement of Cape Town Tourism’s new 2011/2012 marketing strategy and for the brand execution plan”. 

Sydney is used as an example, in how the 2000 Olympic Games caused a five-year tourism slump to that city, mainly because they stopped marketing themselves, thinking that they had world exposure.  The key learning points for Cape Town Tourism are that cities do not market themselves, they need to be marketed; investment in infrastructure and hosting events create growth and ‘livability’, but may not be relevant to tourists: “lack of marketing induces invisibility and irrelevance, which in itself reduces demand”.

The conclusion of the article seems far too obvious, and one must question why Cape Town Tourism, custodians of brand Cape Town, have not been able to identify the poor tourism and resultant poor industry performance trends, and have not acted proactively to address these problems.  Mrs Helmbold concludes: “If we do not act decisively now our industry and the economic well being of our city and people are at great risk.  If we don’t proactively engage in a new marketing and branding strategy we run the risk of being positioned nonetheless by our competitors, our critics and the media, and most likely to our disadvantage”. The last sentence does not make sense in its wording, nor can one understand why Cape Town Tourism has not changed its marketing strategy to date, having been responsible for the city’s marketing for the past three years already.

As we have pointed out on this Blog, the recent TripAdvisor accolade of Cape Town being ranked in first place as its Travellers’ Choice Top Destination, has seen no tourism benefit at all, and this is echoed by Ms Helmbold: “Although we are considered as one of the new cities to watch for 2020 and continue to rake in travel accolades, it is no guarantee for success or economic growth”.

One must question whether Cape Town Tourism is capable of driving such an important campaign, influencing the revenue of almost all the city’s businesses, all directly or indirectly influenced by tourism, and of its population, dependent on jobs.  Cape Town Tourism’s Marketing Manager until recently was Lianne Burton, a journalist, and not a marketer.  Her departure from the organisation has been kept low-key.  Ms Burton has not been replaced to date.  Mrs Helmbold and her PR Manager Skye Grove are very active on Twitter, but this is rarely about tourism, and far more about their social life. We must question why their time during working hours is not focused on their work and the marketing challenges of our city !  A further concern is the information that we have received that the highly respected PR company that Cape Town Tourism had appointed in Germany, KPRN, no longer does the PR for Cape Town.  There appears to be no visible benefit to tourism in Cape Town of the appointment by Cape Town Tourism of PR agencies in Holland, Germany and the UK.

We wrote to Mrs Helmbold, and asked her some questionsaboutthemarketing of Cape Town.  The first question related to the replacement of Ms Burton.  It appears that Ms Burton left some time ago, but is assisting Cape Town Tourism in a “consultative role” until the end of this month.  A new Executive Manager: Marketing should start on 1 July, she wrote.  Of concern is that Cape Town Tourism also does not appear to have an eMarketing Manager, with a job advertisement posted on Careers24 yesterday, and requiring the person to start on 1 July, not giving anyone time to work out their notice!   We asked about the international PR companies that had been appointed, but Mrs Helmbold was only detailed in respect of the non-renewal of the contract with Kleber Public Relations Network, which has worked with SA Tourism for years.  The company has been replaced by Akomasa Creative Connection in Germany.  Mrs Helmbold did not provide information about the success of the PR campaigns overseas, other than to say that information about it has been presented at workshops, which not all Cape Town Tourism members can attend.  One hopes that Cape Town Tourism can justify its international spend by sending members a detailed report of their international activities to obtain exposure for Cape Town. 

In reply to our question:”What is Cape Town Tourism doing to prevent a bloodbath of restaurant, hotel and other accommodation closures due to poor forward bookings?”, Mrs Helmbold was generalist and vague, and she does not appear to understand that a solution must be found NOW, and not in months to come! This was her disappointing response:

“As I explained in the Paper done on the Business Case for Tourism, the global financial crisis and the subsequent consumer behavioural change has had a significant adverse effect on the tourism industry; demand has diminished, visitor spends have steadied and costs have increased. Our over-reliance on traditional source markets, worse hit by the GFC, places us at further risk. There is not a quick-fix for this problem and no one could anticipate the extend (sic) of the impact of the GFC, of which we are really only now experiencing the magnitude of the impact. This is of course exaggerated by seasonality and as I said before our over-reliance on international leisure visitors from mainly Europe and the US.  

Investing in a strong, multi-dimensional brand is critical. We are pursuing private partners for a few significant brand platforms like international TV productions (BBC, National Geographic), events and campaigns, focusing on our unique strengths as a destination i.e. food and wine. We are focusing our efforts and resources on the “dream” and “conversion” part of the customer journey – assuming that the choice to come to Cape Town is not an obvious one and expensive to get here. We have to reinforce the awareness created during the World Cup, but move to conversion with good value for money offers. From an eMarketing perspective we are adding bookabilitytoourweb-platforms by July this year, starting with accommodation and then introducing it for tours and activities as soon as the new module is built. Through the new marketing alliance with Joburg and Durban we should be able to leverage some of SAT’s marketing spend, this will be a key focus for us in the next 4 months.

Whilst we continue our investment and reinforce our presence in traditional international leisure markets, we are investing in domestic tourism, using mainly some key events as draw-cards and working with the business sector to start changing negative perceptions around our business brand. Both the domestic and business markets are complex issues and will take a long-term approach to turn the tide against seasonality.

We are hosting a series of product workshops within the next few months on value, price, packaging and marketing alignment aimed to assist the industry to become more competitive and mitigate some of the risks faced within these tough economic times.

We will all have to work very hard together, under a powerful and united destination brand, to change the current trends and grow tourism into a more sustainable, year-round industry with a more healthy balance between international leisure, business and domestic tourism.

We are making a few significant changes to our marketing strategy and as soon as the plan is finalised and partners confirmed we will share it with the industry.”

We call for a heavyweight Marketing professional to be appointed, to drive Cape Town Tourism’s marketing of Cape Town. Ms Helmboldhasbeen running “Brand Cape Town” workshops for the past three years, and she is still asking workshops what Cape Town stands for.  Surely by now she and her team should have decided on a unique positioning for Cape Town that would be universally applicable in communication with all the sectors it wishes to attract to Cape Town.  Ms Helmbold’s article sounds like a city marketing organisation that is overwhelmed by the problems its tourism industry is facing, and that does not know the way forward – a very scary situation indeed!

POSTSCRIPT 10/6:  The only response from Cape Town Tourism is this sarcastic Tweet from its PR Manager Skye Grove:  @MariettedTHons le, sit, loop, rol rond op twitter.. tsk tsk.. mar (sic) ek belowe ek sal more bietjie werk.. @SoniaCabano1

POSTSCRIPT 10/6:  Yesterday Cape Town Routes Unlimited CEO Calvyn Gilfellan was reported on Eye Witness News to have urged ‘hotels and industry suppliers to reduce their rates to make travel more affordable for locals’.  He said “I think the industry must really wake up and make themselves more affordable if they want to remain competitive in a very cut-throat industry”. 

POSTSCRIPT 12/6: A business tourism event with a difference was the hosting of the global Playboy editors’ conference, which took place at the Mount Nelson Hotel earlier this week, reports the Weekend Argus .  The group of fifty met for three days.

POSTSCRIPT 13/6: The Bureau of Economic Research sent its results for the confidence in the Services industry today.  Of the service sectors surveyed, Accommodation has by far the lowest Business Confidence Index at only 25% (the next lowest is Real Estate at 41%).  Accommodation bookings are expected to decrease by 56% in the second quarter of 2011, relative to 2010, which was out of the ordinary for bookings due to the World Cup.  For the third quarter of this year, bookings are expected to be down by 23 %.  Trend information supplied showed that the last period of growth for the Accommodation industry was the fourth quarter of 2007.

POSTSCRIPT 13/6:  The provincial Minister of Tourism, Alan Winde, has announced that his plans to consolidate a number of marketing agencies for Western Cape businesses into an Economic Development Agency are back on track, and the Agency is expected to be launched in November, reports the Cape Argus today.  Perhaps this is the agency that can do the business marketing of Cape Town.  However, Cape Town Tourism is no longer on the Minister’s list of agencies which he wants to consolidate, his plans to do so originally causing a huge outcry.  The agencies to be consolidated include Wesgro, Cape Town Routes Unlimited, the Cape Craft and Design Institute, the Cape Film Commission, Calling the Cape, the Cape Town Boatbuilding and Technology Initiative, the Cape Music Industry Commission, the Cape Town Fashion Council, and ten others.    

POSTSCRIPT 14/6:  One company that is benefiting from the tourism slump is the Protea Hospitality Group, which is leasing and buying hotels that have ‘over-extended themselves and are now struggling to survive due to the current slump in the local hotel industry’, reports Southern African Tourism Update.  Protea’s CEO Arthur Gillis predicts that ‘many of South Africa’s 80 hotel brands will disappear’.  Gillissaid that he doubted whether there will be a tourism boom ‘unless it gets more bums on airline seats’. He suggests that SAA should fly routes in the interest of tourism, whether profitable or not.

POSTSCRIPT 14/6: Gillian Saunders of tourism consultancy Grant Thornton said about the tourism industry recently: “It’s really tough out there”.  She blamed this on the recession, the strong Rand, increased costs such as electricity and labour, and an oversupply of accommodation, reported the Cape Times.  City Lodge Hotels CEO Clifford Ross said: “It’s probably the worst I have known for 32 years”.  He added that no one “expected the drop-off after the World Cup to be so severe. There will be casualties in the market. Quite a few (hotels) are teetering on the brink”. 

POSTSCRIPT 17/6: Southern African Tourism Update  reports that the Minister is to have also said at the FEDHASA Cape AGM that local tourism authorities should not market internationally, as SA Tourism is doing so already, and that they should focus on local marketing instead.  He quoted the example of KZN Tourism, which has a marketing office in Gauteng.  Was he addressing Cape Town Tourism and Cape Town Routes Unlimited? 

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com  Twitter: @WhaleCottage

It is surprising how little has been written about the new Consumer Protection Act No 68 of 2008, which comes into operation on 1 April.   It gives tremendous power to consumers in their dealings with businesses, and will put every business on its toes, the punitive fines of R1 million or more being a strong motivator.

The Act itself runs to just under 100 pages, and whilst written to be understood, it is a volume of information to comprehend.  We bought the book written by Advocate Neville Melville, ‘The Consumer Protection Act Made Easy’, to guide us in evaluating our business in terms of compliance with the new Act.   It is frustrating that there are many grey areas, as the author had to write the book as broadly as possible, to be applicable to every South African business and industry.   I have written this blogpost with a focus on how the new Act will affect the hospitality industry, not as an expert by any means, as an hospitality business owner.   Accommodation provision is most specifically identified as a type of Service covered by the Act, whereas restaurants are not mentioned as such, but the Act applies to the provider of “Goods”, which includes anything “marketed for human consumption”.   Any contracts entered into before 1 April 2011 are excluded from the provisions of the Act.

The Act is introduced as follows: “To promote a fair, accessible and sustainable marketplace for consumer products and services and for that purpose to establish national norms and standards relating to consumer protection, to provide for improved standards of consumer information, to prohibit certain unfair marketing and business practices, to promote responsible consumer behaviour, to promote a consistent legislative and enforcement framework relating to consumer transactions and agreements, to establish the National Consumer Commission…”. 

It has been designed with the express purpose to protect the poor, and vulnerable and historically disadvantaged consumers, and to ‘promote their full participation as consumers’.  It also aims to apply ‘internationally recognised customer rights’, and seeks to ensure transparent ‘redress’ for consumers subjected to ‘abuse or exploitation in the marketplace’.  From a consumer perspective, it will certainly lead to improved customer service and better quality products, as complaints about service and product quality, as incorporated by the Act, can be taken to the newly established National Consumer Commission.   The penalties that businesses can face are R1 million or 10 % of the annual turnover, whichever is the higher figure.   Advocate Melville advises that businesses must ensure that they have sufficient public liability insurance.  

The Consumer Protection Act ascribes eight rights to consumers:

!.   The Right of Equality

     A business may not exclude or unfairly discriminate against any person, or category of persons, prioritise one set of persons over another, or charge certain types of persons more than another.  This raises an important issue about the “Right of Admission” signs in hotels and restaurants.  Le Quartier Français in Franschhoek, in banning patrons from its establishments, may fall foul of the new Act on this point.  

One may not contract with a minor, or with mentally challenged persons. 

2.   The Right to Privacy

   Consumers have the right to reject or block unwanted direct marketing or any other communication via e-mail, telephone and sms.  Allowable contact times for direct marketing may be specified in future.   Newsletters, for example, must have an ‘unsubscribe’ option, to allow recipients the right to not receive them in future, especially if they are deemed to be for ‘direct marketing’ purposes. 

3.   The Right to Choose

Products may not be bundled together with another product or service linked to it, and therefore a supplier or retailer cannot make it mandatory to buy another (possibly unwanted) product as part of a package.   Consumers also have the right to ‘examine goods’, yet cannot be held liable for damage in doing so, a bizarre ruling – however ‘gross negligence, recklessness, malicious behaviour or criminal conduct of the consumer’ is chargeable. 

By agreement, the consumer and supplier can agree how, when and by whom the product or service will be delivered.  If it is not specified, it is implicit that the supplier must deliver the product within a reasonable time period.   The consumer has the right to check the goods on delivery, to ascertain whether they meet the specifications of the order.   

4.   The Right to Disclosure

     All documentation must be written in plain and understandable language (the tenancy clause in the Taj Cape Town ‘legal document’ when one checks in will not meet this criterion in the Act!).  The advertised or marked price is the one that must be honoured, even if it is an error.   A brand name or trade mark must not attempt to mislead consumers.  “Grey market goods” must be identified by the sellers as such.  Important to note is that a ‘written record of the transaction’ must be provided, and must contain the following prescribed information:

*   Supplier’s full registered business name and VAT registration number

*   Address

*   Date of transaction (could be two dates for accommodation establishments, if a deposit is taken to make the booking.  The transaction date will differ from the actual accommodation dates, so there could be three sets of dates)

*   Description of goods and services provided

*   The unit price

*   The quantity supplied

*   The total price before tax

*   The VAT amount – few establishments separate this amount, as all transactions are VAT inclusive

*   The total price. 

The right to disclosure also would include information about anything that can affect the consumer’s use of the product, in containing potentially hazardous or harmful ingredients (e.g. Reuben’s at One&Only Cape Town correctly specifies which of its dishes contain nuts, alcohol, and pork).

5.   The Right to Responsible and Fair Marketing

     Marketing must be honest.   One may not over-promise, exaggerate, mislead or make false claims, so as to lead the consumer to have a different expectation.  One must honour one’s commitment to have a specified product or service available on the date/time that was agreed.  Restaurants, for example, may not claim that their dishes contain ingredients that they do not, or that they are imported when they are sourced locally.  Advertising must realistically portray the benefits of the product or service.  

Loyalty programs are specifically mentioned, and the ruling is that the promised reward must be available to the consumer.  The communication of how the loyalty programme works must be clear. 

6.   The Right to Fair and Honest Dealing 

The Act uses the word ‘unconscionable’, a complex word Melville writes, given that the Act itself calls for ‘plain language’ in all dealings with the consumer!  This clause calls for positive conduct with the consumer, and does not allow a supplier to use ‘undue influence, pressure, duress or harassment, unfair tactics or any similar conduct’ in getting payment due to the supplier, or goods returned.   As a hospitality supplier, it would be great if the Act protected suppliers against such abuse and blackmail too!

The supplier may not withhold material facts about the product or service (e.g. renovations taking place at a guest house), nor imply a benefit of the product or service that does not exist, or fail to correct a misunderstanding that the consumer expresses about the product or the service.   Reasonable availability of the product or service must be accurately communicated, as must be the availability of parts for repairs.   Pyramid schemes are expressly forbidden. 

Overbooking, with the express purpose of taking more bookings than one has the capacity for, based on the knowledge that not all booked customers will arrive (e.g. airlines, hotels) is no longer allowed, as one must have the service/product available if it has been booked.   Any such overbooking and therefore inability to honour a booking calls for a refund of the cost of the booked service as well as the costs involved in cancelling the booked service (e.g. loss of business suffered by the customer), which could become very costly for the supplier!   However, the supplier may make an alternative arrangement on behalf of the customer, and that customer is reasonably expected to accept the alternative arrangement.

7.   The Right to fair, just and reasonable terms and conditions

       The Act regulates ‘agreements’ (not calling them contracts) between suppliers and consumers.  One may not contract with minors, and those that are mentally unfit.   Information in the agreement must be in plain understandable language.  Repairs must be pre-quoted.    Some agreements will be specified by the Minister to be in writing.  The sales record must contain the required information (as specified above).  Any risk to the consumer that may lead to serious injury or death must be highlighted (does a pool count?).  Any other potential risks associated with the product or the service must be highlighted.   A ‘fair’ price must be offered, and the terms must be ‘fair’ and reasonable, although ‘fair’ is not defined.  “Unfair” is however defined as agreements which are one-sided in benefit to a party other than the consumer, or are based on misleading information.  No clause in an agreement can be in contravention, or cancel any provisions,  of the Consumer Protection Act.   PIN codes and ID books may not be kept by the supplier, and only copies may be made of the ID book and the PIN code used for a transaction.

A contentious provision for businesses is the right to a cooling-off period, which allows the consumer to return bought goods within five days of purchase, and must be refunded in full within 15 business days.  The notice of cancellation must be in writing.  Melville uses the word ‘good’, and not ‘service’, so it is not clear if this applies to bookings made for services such as accommodation, for which a 50 % deposit is likely to have been taken.   Even more uncertain is how the provision that a consumer can return a ‘good’ if he/she did not have a chance to see the product beforehand, but only of it is not hazardous to the public health (which would exclude food and beverages) or if it has been tampered with.  Such a clause could apply to accommodation too, being an unsighted purchase (but is defined as a ‘service’), so this may not be applicable.   

Consumers have the right to cancel an advance booking or order, ‘but may be liable for a charge for doing so’.   A supplier may “require payment of a reasonable deposit in advance and impose a reasonable charge for the cancellation” . The ‘reasonable’ is not defined, but Melville writes that it should be decided on the basis of the following:

   *   The nature of the products and services

   *   the length of notice of the cancellation

   *   the “reasonable potential for the service provider, acting diligently, to find an alternative consumer between the time of receiving the cancellation notice and the time of the cancelled reservation”. 

   *   The general practice of the industry concerned

In the case of the death or hospitalisation of the person making the booking, the deposit paid must be refunded in full, but this does not apply to a family member’s death or hospitalisation. 

Should a supplier close a service facility (say a guest house which decides to close over winter), 40 business days’ notice must be given to the customer, and the deposit payment must be refunded within 5 business days after the service facility has closed. 

8.  The Right to fair value, good quality and safety

Any good, or element within a good, that can cause harm, injury or potential death to the consumer must be spelt out to the consumer.   These risks can include those that the consumer may not ordinarily have expected, especially those which can lead to serious injury or death.   At Whale Cottage we have evaluated our operation relative to this clause, and have changed our breakfast menu to highlight all nut-based cereals, and have changed the content of one of our Huguenot Fine Chocolates’ turn-down chocolates, which previously was a hazelnut praline.

Products that are available to or sold to the consumer that may contain hazardous substances must have the warning and description on the pack or available separately (e.g. we stock Tabard insect spray in our guest bedrooms, with instructions and health warnings on the pack). 

The Act calls for compensation to consumers if the products bought caused harm to themselves and/or their property.  Not only the direct supplier is liable, but also the importer, the retailer, the manufacturer, the distributor, and the installer can be sued for damages within a three year period from the date of the loss or damage.

A further requirement is that products and services should be of a quality that consumers are ‘generally entitled to expect’.  It states that industry association codes and practice would guide what this reasonable level of quality would be.  For the accommodation industry, the Tourism Grading Council guidelines and requirements probably would be a good quality guide.  Timing of the delivery of the service is once again highlighted as having to be ‘reasonable’, and suppliers must give consumers ‘reasonable’ notice (timing undefined) of ‘unavoidable’ delays.   A good requirement, for anyone dealing with builders or repairmen, is that the property must be left in the condition it was when they first started their work.  Suppliers of repair services must safeguard the consumers’ goods in their care, and this includes deposits that may have been paid.

Products bought must deliver on what they are expected to perform.  They must be in good working condition and free of defects.  So, for example, a toaster used in a guest house can not be expected to perform the same service compared to one used domestically, and the consumer must declare the usage, so that he/she can make the most suitable purchase.  If the product does not perform, the consumer can return the product within a six month period, and can demand a new replacement product, money back, or repair of the item.   The consumer has the right of choice in this regard, not the supplier.  This places a responsibility on suppliers to stock enough of any products to be able to replace products, especially if the items might be discontinued!   Repaired goods have a three month warranty period through the Act.   No ‘voetstoots’ clause applies for any purchase any longer.

The Consumer Protection Act is a lengthy piece of legislation, and each business is advised to check its practices and communication to customers, to evaluate its compliance with the new Act.  It could become an explosive minefield if opportunistic consumers were to try to exploit the provisions of the Act, especially for the service industry, where things are not always black or white.  However, the protection it affords consumers is welcomed, and the improvement in the level of service and quality of products one can expect as a result is too.

POSTSCRIPT 26/5:  This afternoon I attended a Consumer Protection Act workshop at the Radisson Blu hotel, organised jointly by Cape Town Tourism and FEDHASA Cape.  The first part was presented by a lawyer from Webber Wentzel, the most boring speaker, who quoted clauses from the Act and had assumed that the audience knew nothing at all about the Act.  He had misread his audience completely.  He was followed by FEDHASA legal consultant Peter Cumberlege, who was far more entertaining as well as informative, but with strong views that FEDHASA Cape appears to rely on, without robust debate!  The key points made:

*   nothing in the Act is new – we all treat guests fairly

*   the most contentious statement was that the hospitality industry should NOT have a standardised cancellation and refund policy – all establishments are unique.  However, the Chairman of the National Consumer Tribunal said in Franschhoek recently that the hospitality industry should form an industry body, and should standardise its cancellation policy, given that the Act regularly refers to standard industry practice.

*   Establishments must try to resell cancelled rooms, and should try not to charge for these.  If there is a charge, it should be to recover expenses, and not a full room rate, especially if the establishment is not fully booked on the day of the cancellation- this is a contentious view of Cumberlege, and many would disagree with him.

*   SQ prices must come off restaurant menus

*   Invoices can no longer be handwritten, given the invoice requirements in the Act

*   All websites and brochures should be checked for accuracy of claims.  Avoid overclaims.

*   If one overbooks one’s accommodation, the guest must be given equal or better accommodation, or one must refund: interest on money held plus monies paid plus cost of cancellation to the client

*   One is responsible for guests’ belongings on one’s property

*   Disclaimers and waivers are now meaningless in contracts

*   Sites representing a number of establishments must state the rate of the establishment and the percentage commission that they have added = full disclosure

The Consumer Protection Act Made Easy, Adv NJ Melville, 2010.  Exclusive Books.

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com  Twitter: @WhaleCottage

One could see it coming!   With numerous reports over the past month indicating that ticket sales for the World Cup were not as brisk as they should be, especially from non-South African countries, it has now been announced that prices of category 2 and 3 tickets have been slashed by FIFA, reports the Weekend Argus.

Instead of costing up to R 840 a ticket, category 2 and 3 tickets will now be sold exclusively to South Africans at R 140, on the www.fifa.com website, at FNB branches, or telephonically at 083 123 2010.

Furthermore, the number of category 4 tickets, the cheapest tickets, and offered at a special low rate to South Africans, will be increased, to boost sales, and to ensure that the stadiums are full on match days.   “The plan to discount tickets comes as Fifa admitted that projected inflow of tourists coming to the World Cup would be much less than expected”, writes the newspaper.   FIFA’s General Secretary, Jerome Valcke, told a British newspaper that it was trying its best to get more South Africans to buy tickets.

While the ticket price reductions make the tickets more affordable to South Africa’s soccer fans, those that had bought tickets already are angry that they bought them at the higher prices.  

No arrangements appear to have been made to encourage more ticket sales from other African countries, where soccer fans have complained that technological contraints in booking tickets via the internet, as well as general lack of credit card ownership, are impeding sales in those countries.

WhaleTales speculated that in a “FIFA flop”, ticket prices would drop, and that more South Africans than international soccer fans would watch the matches, a disaster for the hospitality industry, as the accommodation, restaurant, and other related services would not be required by locals, and would not be affordable to many of them, given that pricing had been set at 2010 summer rates + 10 – 20 % for the international market.

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com