With the World Cup now approaching its final phase, it is possible to assess its impact on the hospitality and property sector.

Lanice Steward, MD of Anne Porter Knight Frank (APKF), says it has to be said that the likely benefits to these sectors were exaggerated, not only by FIFA but 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, 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.”

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LANICE IS FULL OF SHIT!

Replying to a series of questions from Marc da Silva, a UK based journalist, Lanice Steward, MD of Anne Porter Knight Frank, said that winning the right to host the 2010 World Soccer has already had an impact on the South African property market and will continue to do so for four or more years.

“The immediate benefits for the hospitality industry at the time that the event is held will obviously be huge but the country’s entire economy is already benefiting from the R100 billion infrastructure development programme put into effect to get us ready for these games.”

This, said Steward, has contracted 12 to 15 years development into three years and has, thus far, played a big role in keeping the South African economy out of the recession that has hit so many other countries.

The residential property market, said Steward, will benefit in both the short and the long term.

“We are now seeing a demand for B & Bs, guesthouses and hotels – and we know from the experience of other countries that have hosted major world events that tourism and holiday home buying continue to feel the effects of such events for four or more years.”

Equally significant, Steward said, is the probability that at least some of the 400,000 people visiting South Africa for the World Soccer Cup will become aware that this is a country in which the entrepreneur still has many opportunities and is not hampered by red tape. – Joris