CAPE TOWN — South Africa's government warned Thursday that inflated World Cup prices could discourage football fans and damage tourism.
"We want to suggest to business people in South Africa, don't try to rip people off. We'll lose out on business opportunities and we'll damage our reputation," Trade Minister Rob Davies told journalists.
South Africa's tourism ministry is probing prices being charged during the football extravaganza, which starts on June 11. The country's Competition Commission is investigating airlines suspected of colluding on pricing for domestic routes.
"If there are cases of price collusion by groups that are contrary to the competition act, rest assured, we will be following up on those," said Davies.
South Africa has spent 33 billion rand (about 110 dollars) on World Cup projects since 2005. Davies said the chief economic benefit would be establishing South Africa as a "tourism and investment destination of choice".
"We're asking people to think long-term," he said.
South Africa's cabinet has called on businesses to "resist the temptation to unduly inflate" costs for visitors.
"These moves must be discouraged at all cost, as they have the potential of discouraging many soccer lovers from attending the tournament and could have a negative impact on future tourism in the country," said a cabinet statement.
Hotels and other accommodation establishments have increased their rates between June and July, but no formal allegations of price fixing have been made.
Finance Minister Pravin Gordhan called on South Africans to be reasonable and charge fair prices.
"Sending a signal which says we're trying to exploit people is not the right signal at this particular point in time, when you want foreigners to actually come to this country," said Gordhan.
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