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SBD Global/May 31, 2013/Events and Attractions
Hotel Prices Concern 2014 World Cup LOC, Government Calls On Hotels To Self-Regulate
Published May 31, 2013
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NO PRICE CONTROLS: It is an even bigger challenge because the Brazilian government has no real control over hotel prices. Even though Brazil is the host, the World Cup is a FIFA event, and as such FIFA and its hospitality partner are in control of the majority of hotel rooms in the host cities during the event. Vieira said, "FIFA has a partner, Match, which is entitled to 60% of the hotel bedrooms in the host cities during the games. Match will sell, and the Brazilian government has no control whatsoever over their prices. It’s a deal that every host country has to sign -- South Africa had to, and Germany before it." He added, "Having said that, the Ministry of Tourism has been encouraging the hotels to self-regulate: we know there is an impulse to increase prices beyond what’s reasonable, and everybody should also know that is bad for business, since we want the tourist to come back in the future. That is why the main hotel associations in the country have signed a dealwith the Ministry in January committing themselves to monitoring prices."