Business

Govt warns on 2010 profiteering

12 March 2010

The South African government has warned of possible action against businesses unduly inflating their prices ahead of the 2010 Fifa World Cup™.

"[The] Cabinet is concerned about the ill-advised move by some business establishments to increase their prices ahead of the 2010 Fifa World Cup in anticipation of making mega-profits," government spokesman Themba Maseko said on Thursday.

Briefing the media following the Cabinet's regular meeting on Wednesday, he said these moves should be discouraged at all costs, as they had the potential to discourage football fans from attending the tournament.

This would have a negative impact on future tourism in the country.

"[The] government calls on all South Africans to resist the temptation to unduly inflate their prices during the 2010 Fifa World Cup."

Tourism Minister Marthinus van Schalkwyk had commissioned a survey to look at the pricing structure in the sector ahead of the cup. This study would identify the extent of the problem and make recommendations about possible steps that could be taken in this regard.

A report would be submitted to Cabinet shortly, Maseko said.

Sapa



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