The Arctic freeze that has hit the United Kingdom and Europe in the last three days is placing a further damper on the already depressed accommodation industry in the Cape.   Passengers making their way to Cape Town for their summer holiday are struggling to get onto planes at Heathrow in particular but also in Frankfurt.  This could cost Cape Town R 10,5 million per day in lost revenue, estimates the City of Cape Town’s Mansoor Mohamed, Director for Economic, Social Development and Tourism, reports the Cape Argus.

As if the delayed or non-arriving guests is not a bad enough blow, this summer is seeing one of the poorest occupancy levels.  The Times reports that such Cape Town’s top 5-star hotels as the Mount Nelson Hotel, Cape Grace and Table Bay Hotel are seeing occupancy levels decreased by 10 – 20 %, according to Cape Town Routes Unlimited CEO Calvyn Gilfellan.   He attributes the reduced occupancy to the opening of twelve new hotels in the past one and a half years.  

Gilfellan is quoted as saying that big events are needed for the city, to fill hotel beds.   He also said that the positive effect of the World Cup was overshadowing the recent tragic event in a township.   He said that bookings were more last-minute, and that tourists were trading down, into camping sites and staying with relatives.    A price shake-up could be on the cards, Gilfellan added.

Bed & Breakfasts and Guest House have not been spared the poor booking scenario, which has been impacted upon by the strong Rand and the poor UK economy.   Cape Town has not been booked out for the festive season period.

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