Urban Forum (2009) 20:7791

DOI 10.1007/s12132-009-9050-4

Homing in(n) on the Economic Benefits of 2010 FIFA

World Cup: Opportunities for and Misgivings
of Bed-and-Breakfast Operators in Gauteng, South Africa
Dan Darkey & Andre Horn

Published online: 5 February 2009

# Springer Science + Business Media B.V. 2009

Abstract This study examines the perceived potential benefits of the 2010
Fdration Internationale de Football Association (FIFA) World Cup Football
Tournament for bed-and-breakfast (B&B) establishmentsan integral part of the
tourism accommodation sector in South Africa. From responses to a questionnaire
sent to a sample of B&B proprietors in Gauteng, the major centre for the tournament,
it is clear that they have serious reservations. The basis for their misgivings appears
to be the manner in which FIFA has managed accommodationprovision agreements
and the role played by South African government agencies, the Local Organising
Committee and the tourism sector.
Keywords Mega sports events . Tourism industry .
Bed-and-breakfast accommodation . Poverty alleviation

Introduction
The hosting of international mega-events, specifically sports events and their related
tourism activities, presents the host country and its region with a unique opportunity
to boost economic growth and social development in both tangible and intangible
ways. Hosting such an event in the developing world is often strongly linked to a
developmental agenda, with impacts already discernible during the preparation for
the event and continuing for some time after. Preuss (2000) lists the following
incentives, amongst others, to host mega-sports events in the developing world:
putting the country on the map; showcasing the region; promoting the political
system; creating new trading partners; attracting investment; boosting tourism;
creating jobs and business opportunities; urban renewal and building a legacy of
D. Darkey (*) : A. Horn
Department of Geography Geoinformatics and Meteorology, University of Pretoria,
Pretoria 0002, South Africa
e-mail: daniel.darkey@up.ac.za

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D. Darkey, A. Horn

sports infrastructure. The award to South Africa in May 2004 to host the 2010
World Cup tournament of the Fdration Internationale de Football Association
(FIFA) has presented this country with such an opportunity.
With specific reference to the 2002 FIFA World Cup (FWC) in Korea and Japan,
Kim and Petrick (2005, p. 25) conclude that organisers and authorities of megaevents tend to show a great interest in economic criteria, whereas they tend to
ignore social and cultural impacts One possible explanation for this is that, to
promote the worth of an event to citizens of a host city, province, country or region,
economic outcomes are more useful tools for organisers and politicians than social
and cultural impacts (Lee and Taylor 2005). Another possible explanation is that
economic impacts are more tangible and easier to assess than social and cultural ones
(Delamare et al. 2001; Getz 1997). A third possible explanation is the need to avoid
drawing attention to the negative social and cultural impactssuch as alcoholism,
smuggling, prostitution, congestion, insecurity, additional political cost and
corruption (Deccio and Baloglu 2002). Ritchie (2000) cautions against an overemphasis on short-term gains and advocates comprehensive legacy planning that
prioritises destination and community development, thus ensuring that residents
continue to benefit from the event long after its staging.
South Africas bid to host the 2010 FWC is underpinned by a developmental
agenda (Pillay and Bass 2008, p. 339). Based on this agenda and stemming from the
experience of the failed Cape Town Olympic bid, the 2010 bid plan has a
meaningful developmental agenda aimed at stimulating economic growth, job
creation and functionally integrating the apartheid city (Pillay et al. 2006). South
Africas Bid Committee projected to FIFA and the world at large what the country
would stand to gain by staging the tournament: an income of R3050 billion with
over R7 billion accruing to the government in taxes; between 129,000 and 160,000
new jobs and a massive boost to the construction, tourism, telecommunication,
broadcasting, housing and employment sectors (Hendricks 2008). However, there is
a body of thought that posits that for the 2010 tournament to have been deemed
successful, the primary beneficiaries must be the poor, marginalized and
impoverished (Pillay and Bass 2008, p. 342).
Winning the 2010 bid, coupled with a government-driven programmethe
Accelerated and Shared Growth Initiative of South Africa (ASGI-SA)established
to advance economic growth and alleviate poverty, has created huge expectations.
The tourism-and-hospitality industry, in particular, is positioned to benefit from
international exposure: a key ASGI-SA portfolio has been allocated to the
Department of Environmental Affairs and Tourism (DEAT) and, further, there is
the Expanded Public Works Projects initiative, which is intended to promote the
second economy (that part of the economy sidelined by apartheid era policies) in
the environmental, tourism and cultural sectors in general and to support and
promote emerging small, micro and medium enterprises (SMMEs) in the tourism
industry in particular.
In March 2007, FIFA, sympathetic to South Africas developmental agenda,
announced that, for the first time in its history, it would sanction accreditation of
non-hotel accommodation in the SMME sector, such as guesthouses and bed-andbreakfast (B&B) establishments. This initiative was welcomed by the deputy
director-general of South African Tourism: the inclusion of non-hotel offerings will

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79

definitely boost the second economys involvement in the worlds biggest sporting
event (Gadebe 2007, p. 2). However, not everybody shares this positive outlook. As
pointed out by Matheson and Baade (2004), the net gains from hosting mega-events
are in most cases grossly over-estimated. Many of the studies conducted on megasports events internationally, including that of Fredline and Faulkner (2002), have
identified two key factors for the success of such events. One is the extent of the
impact of the event on the quality of life of local residents. The other is the
correlation of local residents perceptions of the event pre- and post-tournament. In
relation to these two factors, there is a fast-growing body of literature questioning
the positive impact of mega-sport events on host countries and communities.
Closer to home, there are growing reservations about the socio-economic success
of the 2010 FWC. Swart and Bob (2004) doubt that hosting mega-events in South
Africa can play any role in alleviating poverty. A Human Sciences Research Council
survey in 2006 found that 47% of its respondents strongly agreed or agreed that
preparations for, and hosting of, the 2010 FWC would delay the provision of basic
services to poor areas (Pillay 2006). Moreover, anticipated attendance figures are
continuously being scaled down: from three million initially (South Africa.info
Reporter 2008) to 500,000 (official government figures), to 400,000 (FIFA 2007)
and to 200,000 (Pillay and Bass 2008). Although Hendricks (2008, p. 8) is of the
view that hosting 2010 FWC will create many temporary and some permanent
employment opportunities for South Africans, especially at the lower end of the
spectrum where levels of unemployment are extremely high, he cautions against
raising expectations beyond what is practically achievable. South Africa has, in the
view of Pillay and Bass (2008), clearly lost a unique opportunity to promote its
developmental agenda through hosting the World Cup. This could possibly have
been averted, they suggest, had the authorities paid attention to and responded to
public misgivings about proposed interventions to achieve their developmental
objectives. Furthermore, they report that there was a disjuncture between what
people on the ground are and have been saying and feeling about 2010 and the way
this is and has been articulated by their leaders and representatives (Pillay and Bass
2008, p. 44). This observation forms the basis of the study presented in this article.
The B&B industry in Gauteng province was the focus of this study. Although it is
the smallest province, with a land area of 18,760 km2 (1.6% of South Africa),
Gauteng contributes 32.4% to the countrys gross domestic product, is home to 15%
of the countrys population (Tours and Travel 2008) and boasts two of South
Africas major cities: Johannesburg, the countrys economic capital and largest city,
and Pretoria, the administrative capital. Little surprise, then, that this province was
chosen as South Africas pivotal province for the 2010 tournament. Three of the ten
designated stadiaEllis Park, Lotus Versfeld and Soccer Citydesignated to host
21 of the 64 matches, including the opening and final matches, are located in
Gauteng; Soccer City, the premier stadium, will also stage the opening ceremony.
For this reason, it is expected that most of the 2010 tourists will choose Gauteng as
their home away from home for the duration of the tournament. The aim of this
research was to unravel the seeming lack of coherence between governments plans
to promote SMME enterprises, on the one hand, and the perceptions and
expectations of B&B operators on the other. To this end, our study focused on a
sample of B&B operators in Gauteng, on their relationship with the major 2010

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D. Darkey, A. Horn

FWC stakeholders, on their expectations and concerns, on their state of preparedness

to host 2010 FWC tourists and on their suggestions as to how their participation as
hosts could be enhanced.

Bed-and-Breakfast Industry
In the tourism sector, the commonest form of accommodation, other than hotels and
guesthouses, is the B&B establishment, a concept which originated in Europe
(Nuntsu et al. 2004, p. 518). Traditionally, B&Bs were farm cottages providing an
additional source of income to a main and more regular income (Webster 1998).
Economic factors may, however, not necessarily be the driving force for setting up
such operations, as a recent New Zealand study has shown (Hall and Ruster 2004).
The original focus on rural and nature tourists was a general international trend (Pina
and Delfa 2005), but this has changed considerably over the past two decades, with
the urban segment of the sector having become more dominant (Lee et al. 2003).
South Africas tourism accommodation sector has seen a rapid growth in B&Bs
since the 1980s (Visser and van Huyssteen 1999), more particularly since 1994, after
the end of apartheid (Rogerson 2002). The B&B industry is increasingly recognised
as one of the fastest-growing small-enterprise sectors in South Africa (Blignaut
1997; Fleischer and Felsenstein 2000; Jubasi 2002), with immense potential for the
tourism sector in general and, more specifically, for previously disadvantaged
individuals, by contributing to economic growth and, in so doing, assisting in
addressing the countrys economic inequalities (Visser and van Huyssteen 1999;
Woodgate 1998). This notwithstanding, there is a relative paucity of empirical
research in the field (Nuntsu et al. 2004). Much of what research there is has focused
on the hotel industry because structurally, South Africas tourism economy is
dominated by a small group of locally owned large tourism organizations, led by
Sun International, Protea and Southern Sun enterprises (Rogerson 2004b, p. 273).
The Tourism Grading Council of South Africa (TGCSA) defines a B&B
establishment as: Accommodation provided in a family (private) home and the
owner/manager lives in the house or on the property. Breakfast must be served.
Bathroom facilities may or may not be en suite and/or private. In general, the guest
shares the public areas with the host family (TGCSA 2008, p. 1). There is,
however, no absolute clear-cut description of what constitutes a B&B and B&Bs are
not uniquely different from other non-hotel types of tourism accommodation; for
instance, there is no sharp operational distinction between a B&B and a guesthouse
(Rogerson 2004b). This explains why individual small-scale accommodation
providers use a variety of terms for what they consider appropriate for their
operationguesthouse, lodge, cottage, boarding house, villa, manor, hideaway, inn.
The unique features of B&Bs that set them apart from hotelspersonal service,
unfussiness, relative quiet and opportunities to meet and interact with the local
community (Zane 1997)are unlikely to attract soccer supporters (Thomas 2000).
Soccer supporters are more likely to prefer large hotels, for their hustle and bustle,
for their pubs and restaurants, for large spaces where they can interact with other
soccer tourists, to share with other soccer tourists and to affirm their membership of
the soccer-supporter subculture (Green and Chalip 1998).

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As with most economic enterprises in South Africa, the B&B sector is predominantly
white-owned. As already mentioned, ASGI-SA has taken steps to redress this situation,
to ensure more equity in the industry. Involving the DEATwhose main objective is to
devise strategies to enhance participation of B&B enterprises, more particularly blackowned, in the hosting of 2010 FWC touristsis one such step. The DEAT had, in fact,
been promoting black entrepreneurship in the tourism industry even before ASGI-SA
was established: in July 2000, together with the Business Trust, it launched a 4-year
Tourism Enterprise Programme (TEP) to create employment in the tourism industry.
This programme, following its good performance, received additional funding and was
extended. By April 2008, it had assisted in the creation of 43,700 employment
opportunities in the tourism industry and in generating more than R3.4 billion in sales
from 4,166 tourism SMMEs (Whittaker 2008).
The B&B industry had been led to believe that it would benefit significantly from
the 2010 FWC, both during and after its staging, based on FIFA accommodation
agreements that had been reached and on government initiativesASGI-SA and the
involvement of the DEATthat had been launched. Apart from direct economic
benefits, it was believed that B&Bs and other small-scale accommodation providers
could benefit also through establishing second- and third-generation guests. Studies
of B&B operations in Texas in the year 2000, for example, found that 24% of guests
were second generation or referrals. This type of loyalty fosters stability within the
industry and cushions against seasonality and recession (Lee et al. 2003). It must be
remembered, though, that South Africa is a long-haul destination in relation to the
developed world, so it is unlikely that many 2010 visitors would return.
This notwithstanding, it is not difficult to understand the high expectations of
both the South African public and the government with regard to the possible gains
from the 2010 FWC. What is more difficult to understand is the apparent lack of
coherence between government and the B&B industry on the economic benefits of
the 2010 FWC. A partial answer appears to lie with how official 2010 FWC
accommodation agreements have been managed, to which we now turn attention.

2010 Accommodation
Since democratisation in 1994, two of the main economic development thrusts
dominating policy development and implementation issues in South Africa have
focused on the SMME sector and empowerment of previously disadvantaged
individuals (PDIs). FIFA and its local 2010 FWC partners have a crucial obligation
to contribute to these thrusts. Our focus in this section is on the networking between
FIFA and its partners, on the one hand, and the relationship these bodies have with
the B&B accommodation sector on the other.
In March 2007, FIFA appointed its designated local partner, MATCH, to manage
accommodation and other aspects of the 2010 World Cup. For FIFA accreditation of
accommodation establishments through MATCH, FIFA stipulated that these be
subject to grading by the TGCSA. The value of FIFA accreditation is that it
guarantees their quality and allows their display on the official FIFA website, with
the resulting free advertising. Initially, FIFA was prepared to consider only TGCSAgraded hotels for FIFA accreditation. However, since the South African Government

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and its agencies had already called for a significant role for the B&B sector in the
provision of accommodation for 2010 FWC touristsin order to promote ASGISAs developmental agendaTGCSA insisted that small-scale enterprises also be
eligible for accreditation as FIFA-designated accommodation providers. As already
mentioned, MATCH acceded to this demand in March 2007 (South Africa 2007b).
To assist in promoting PDI enterprises, special concessions were made through TEP.
These include a 12-month period of grace for ungraded SMMEs, particularly those
owned and managed by PDIs, to obtain TGCSA grading; financial assistance for
TGCSA grading and for upgrading of facilities to meet the required TGCSA
standards; permission to file applications through postal agencies rather than through
the internet, if preferred (South Africa 2007a).
In all other respects, PDI-operated B&Bs are expected to compete on the same
terms with the more well-established and experienced operators. In fact, FIFA
stipulated that a group of qualified and experienced travel companies from around
the world be selected by FIFA on a non-exclusive basis to host 2010 FWC tourists
(FIFA 2008b, p. 11). In order to achieve this goal, FIFA launched the Tour
Operators Programme, also administered by MATCH. It could be argued that by
establishing this programmewhich, in the words of FIFA General Secretary Jerome
Valcke, is a landmark project in FIFA World Cup historyFIFA is guarding against
any possibility of mediocrity in terms of accommodation and security provision, for
example. Moreover, the 2010 FIFA World Cup Accommodation Agreement
specifically states: The property hereby acknowledges that should the Propertys
grading lapse or fall below the grade notified to MATCH, MATCH shall be authorized
to terminate the Agreement with immediate effect upon giving notice in writing
(FIFA 2008a, p. 5). This could be seen as indirectly discouraging PDI operators
despite the stated developmental objectives implicit in the bid.
Moreover, the lengthy accommodation agreement includes clauses such as:
(Clause 1.1) The Property shall reserve for the exclusive use of MATCH during
the period beginning 6 June 2010, five (5) days prior to the first match, and
ending 13 July 2010, two (2) days after the last match, of the 2010 FIFA World
Cup (the Reservation Period) no less than eighty percent (80%) of its entire
inventory of guest rooms (the FIFA World Cup Rooms).
(Clause 1.3 d) MATCH will additionally charge a fee from each guest reserving
their accommodation at the Property through MATCH. This fee (calculated
as 30% on top of the Net Payable FIFA World Cup Rate, comment by the
authors) together with the Net Payable FIFA World Cup Rate shall constitute
the FIFA World Cup Rate.
The agreement also specifies room type, bed size and other accommodation
features and configurations in such minute detail that many established B&B
operators, let alone start-up operators, will be wary of signing up.
By late 2007, it was clear that MATCH would have difficulty reaching its target
of 55,000 rooms. Hence, with less than a thousand days to the 2010 FWC, the
TGCSA, in collaboration with MATCH and the TEP launched 2010 Accommodation Sign-Up to contract rooms to MATCH. According to the new CEO of TGCSA,
this was a massive national campaign to prepare accommodation establishments

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83

across the country to receive the estimated half a million foreign visitors who are
expected to descend on South Africa (Kunene 2008, p. 1). MATCH and local
organising committee (LOC) remain confident of their accommodation strategy. This
cannot, however, be said for B&B operators, to judge from their comments in the
media that MATCH contracts are totally one-sided and hold operators to ransom
(Sunday Times 2008a). More recently, cracks in the official accommodation strategy
appear to be widening with the universities, colleges and schools being approached
by MATCH to make rooms available for the tournament. The official 2010 FIFA
World Cup website lists 278 establishments that had signed accommodation
agreement with MATCH as at 31 August 2008. Cape Town and Johannesburg led
the field, with Durban third, whilst Pretoria, the capital city, had a dismal 18
properties signed up. MATCH had contracted 30,000 rooms as at that date (10,000
of these in non-hotel establishments), still showing a shortfall of about 25,000 rooms
which they hoped to reduce by approaching universities, colleges and schools
(Sunday Times 2008b). By November 2008, the relationship between the local
tourism industry and MATCH appeared to have reached an unprecedented low.
According to reports (Sake24 2008, p. 6), the chairperson of the MATCH advisory
committee had threatened accommodation enterprises that government could boycott
establishments that had not signed up by the end of November 2008.
A few points that should be highlighted at this juncture are:
1. The tension between the government and its developmental agenda on the one
hand and FIFAs primary aima successful 2010 FWCon the other, with the
LOC in the middle
2. The lack of an integrated strategy from the very beginning to integrate non-hotel
operators into the principal accommodation agreement, which resulted in a late
start for the B&B industry
3. Conflict between governments developmental agenda and MATCHs strictly
capital-oriented accommodation agreement
4. Disparity between official views and what people were experiencing and saying
on the ground

Case Study: Gauteng

Table 1 shows that a total of 84 properties (9,921 rooms in total) in Gauteng, the
main 2010 FWC centre, had signed up with MATCH by 31 August 2008. This
figure includes a mere 14 enterprises (44 rooms in total) falling within the definition
of guest house, B&B or smaller (less than five rooms).
In order to obtain a better insight into why the local B&B industry is unconvinced
by the media-generated propaganda around the 2010 FWC, we approached B&B
operators in Gauteng directly. This investigation sought to understand their
perceptions of and attitudes to the 2010 FWC, as well as their state of preparedness
to host 2010 FWC tourists. An attempt was made to survey all (as far as one could
establish) 238 B&B operations in the province. Of these, 201 had been officially
graded by the Tourism Grading Council of South Africa, whose website provided
details such as addresses and contact numbers. An additional 37 non-graded B&Bs

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D. Darkey, A. Horn

Table 1 Gauteng properties in accommodationprovision agreement with MATCH

Region

Enterprises

GS (Gauteng South)
GN (Gauteng North)
GS
GN
GS
GN
Total

Larger
Larger
Medium
Medium
Bed-and-breakfasts
Bed-and-breakfasts

Number

Rooms

52
14
3
1
13
1
84

8,346
1,474
43
13
41
4
9,921

was added using secondary sources. A questionnaire with self-addressed return

envelopes was sent to all 238 B&Bs. This was followed up with e-mails,
questionnaires attached. Within the first 2 weeks, 73 replies (only 11 electronically)
were received. Weekly reminders by way of e-mail and telephone calls were then
made to non-responders for three consecutive weeks. In all, 142 of the 238 B&Bs
initially identified (approximately 60%) responded to the questionnaires within the
survey period 14 July 2008 to 31 August 2008.

Information on Principal Owner

Of the 142 respondents, 6% (9) were black, 2% (3) coloured and 92% (131) white.
According to the Tourism Grading Council figures, only 10% of the 201 graded B&Bs
were owned by non-whites. This does not augur well for the South African
governments policy objective of changing the ownership of small-scale tourism
enterprises to reflect, more equitably, the demographic makeup of the country. The
positive, in terms of the policy objective of women empowerment, however, is the
relative dominance of female participants in the sector. A notable 63% of owners were
female (Table 2). Perhaps, because of the nature of the business, a large part of which
has to do with providing a homely environment for tourists, women tend to be better
equipped to manage B&Bs than men. It is worth noting, though, that 91% of the
female respondents were averse to the idea of inviting 2010 FWC tourists through
MATCH, to their homes for reasons such as:
B&Bs are also our homes and we like to deal directly with guests or reputable
travel agents. Before taking a booking we need to know who we are dealing with.
I will not allocate rooms unless I have full details of guests (owner/manager of
Rutland B&B, Craighall Park).
Table 2 Age and gender profile of entrepreneurs
Age

Male

Female

Total

<35
3550
5165
>65
Total

4
17
23
8
52 (37%)

7
27
42
14
90 (63%)

11
44
65
22

(8%)
(31%)
(46%)
(15%)

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85

Another feature is the high percentage of elderly proprietors: 61% were older than
50 years (Table 2), this in spite of the fact that it was a retirement option for only
13%. For one respondent in the over-65-years-old category, the owner/manager of
Thulani Lodge: it is a nice way to stay in the trade with less stress; to another
proprietor in the 51 to 65 age group: the children have left home, we need company
and there are three extra rooms to use. Regarding marital status, 76% of
respondents were married, 13% divorced or separated, 8% never married and 3%
widowed. It would seem that the nature of the B&B business suits family units,
hence the high percentage of married people involved in it. Most were well
educated, all 142 of them having at least a secondary-school education and almost
80% some tertiary-level education. However, only 23% (32) of them had had any
formal training in the hospitality and tourism business.

Characteristics of the Bed-and-Breakfast Industry in Gauteng

One of the most significant findings of this study is that the B&B industry in Gauteng
Province is well organised, with a network of local and national associations linking
participants. Through these myriad marketing, educational and advertising networks,
information is shared and co-operation enhanced. A high percentage of the
respondents (74) were affiliated to at least one industry-related organisation. Of the
sample, 62% belonged to at least one local associationfor example, the Rosebank
regional B&B and the Centurion B&B and Guesthouse Associationand 57% to
national organisations such as the National Accommodation Association. Some were
affiliated to as many as six different industry-related organisations. A number of
benefits are derived from such affiliation including advertising on association
websites, so that some of the enterprises were able to advertise on as many as six
different websites. With regard to how these businesses advertise, the Internet had
become a key medium for all but nine of the 142 respondents. More surprising was
that word of mouth still played an almost equally significant role (33%) in their
advertising (Table 3). This is, however, consistent with the finding that 60% of
respondents serve clients from the same institutions more often than not, referred to
in the tourism industry as second- and/or third-generation guests and also referred to
by respondents as regular customers or returnees.
In terms of employment, the sector employs on average three people per facility.
The total number employed by the 142 enterprises (including owner/managers) was
Table 3 Main means by which the business is advertised
Medium of advertisement
Through the Internet
Brochures and pamphlets
Newspapers and magazines
Word of mouth
Others
Total
More than one response per operator allowed

Responses

Percentage

133
97
24
130
10
394

34
25
5
33
2
100

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D. Darkey, A. Horn

Table 4 Number of guest rooms per facility

Number of guest bedrooms (x)

Total (xy)

Number of respondents (y)

36

61

12

17

583

426 (Table 6). The number of bedrooms per facility varied from two to seven, with
an average of four rooms (Table 4). The total number of beds for the 142
establishments was 852, giving an average of six beds per facility (Table 5) and
approximately one employee per every two B&B beds (Table 6). It must be noted
that, typical of family businesses, it is possible that, in some cases, family members
contributing in the hosting of guests were not considered as employees.
Accommodation rates per night including breakfast the following morning (Table 7)
varied from as little as R200 per person to more than R900 for the more luxurious
facilities. It should be noted that these figures are per person averages and do not
distinguish between single, double, en suite and other categories within the
establishments. Although the overall mode was between R501 and R600, it is worth
noting that the rates of black-owned B&Bs (all six that responded were in Soweto)
were between R190 and R350, with an average rate per person per night of R272. The
calculated figure, which is far lower than the overall average, is in all likelihood
demand-relateda conclusion based on the fact that the Soweto-based B&Bs reported
an occupancy rate of approximately 40%. This was far lower than the overall average,
which was 70% for more than half the enterprises.
In relation to type of business ownership amongst respondents, single proprietorships
dominated, accounting for 56% of ownership. Only 11% considered their enterprises
family businesses, this in spite of the finding that 76% of respondents were married and
that guests shared common facilities with host families. Half the businesses were
mortgaged properties; half were fully paid for. Start-up capital had been acquired
through four main sources: personal savings (47%), re-mortgaging of property (27%),
bank loans (16%) and pension payouts (10%). Another finding was that a significant
73% of the businesses had been set up in the 10-year period between 1995 and 2005,
with the 5-year period between 2001 and 2005 contributing 46% of the total. This 5-year
period was marked by steady economic growth in South Africa and a period of rapid
increase in the number of foreign tourists visiting the country.
For 67% of respondents, operating a B&B was their main source of income. This
high percentage is probably explained by political transformation and the current
economic situation in the country, which induces white people to take earlyretirement packages and to embark on a new non-public sector career such as a B&B
proprietor. For the other 33%, the enterprise was to supplement income from a
variety of mainly formal professions, such as teaching, lecturing, quantity surveying,
church ministering and others. For 47% of respondents, the enterprise was seen as an
Table 5 Number of beds per facility
Number of beds (x)

10

11

12

13

14

Total (xy)

Number of respondents (y)

13

22

21

28

17

852

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Table 6 Number of people employed per facility

Number employed (x)

Total (xy)

Number of respondents (y)

12

27

57

29

13

426

investment opportunity and for 16% as a supplement to their retirement income; for
10%, the primary reason for starting a B&B enterprise was a passion for people.
So, for about 90% of respondents, the fundamental intention of opening up their
houses to visitors was to take advantage of potential economic opportunities in the
growing tourism industry.

Perceptions and Apprehension of Bed-and-Breakfast Entrepreneurs of 2010 FWC

This aspect of the research, again, yielded some surprising results. Respondents were
asked whether they felt they stood to gain any economic benefits from 2010 FWC.
Only 44% (63) responded in the affirmative. The response of 23% (32) was that they
would certainly not benefit; if anything, the effects would be adverse (see responses
below). Another 33% (47) were uncertain what the effects would be. Of those who
responded positively, 28 (20% of the total number of respondents) intended making
special preparations towards hosting 2010 FWC guests. These would take the form
of special packages for World Cup guests for 12 respondents (8%), more advertising
for nine respondents (6%) and extension and/or addition of rooms for seven
respondents (5%). Clearly then, in spite of the high occupancy rate the sector already
enjoys, respondents preferred to increase advertising and to repackage their
operations to attract visitors rather than to increase the number of rooms.
Some of the reasons given by respondents for not anticipating significant positive
outcomes of 2010 FWC for their businesses include:
Too many small accommodation establishments are currently mushrooming,
therefore the existing legal ones will battle to fill their rooms as those illegal
ones are offering low prices. At the end of the day the public is not interested in
your credentials graded or not
The house is normally 80% occupied. I am scared of misuse of alcohol on the
premise so I am not welcoming them
The cautious attitude of respondents toward the 2010 FWC is revealed in
comments such as those quoted above, together with the assertion by the majority of
B&B owners responding that their businesses were profitable, even without a mega-

Table 7 Average rates per person per night

Amount in rands <200
Number of
respondents

6 (4%)

201 -300 301 -400 401 -500

6 (4%)

12 (8%)

501-600

40 (28%) 42 (30%)

601 -700 701 -800

12 (8%)

>900

18 (13%) 6 (4%)

88

D. Darkey, A. Horn

event such as the soccer World Cup: a good 87% of respondents considered their
businesses profitable and worthwhile ventures, with 66% declaring an average
monthly turnover of more than R50,000. What was also quiet unexpected was that as
many as 71% of the respondents of non-graded B&Bs affirmed that they did not need
grading by the grading authority and only 29% intended applying for gradingin
spite of the services provided by the grading council, such as advertising, education
and training. None of the non-graded respondents gave cost of receiving grading as
the reason for their non-graded status. The high occupancy rates (referred to earlier) of
establishments, graded or not, may well be an indication of profitability.
Importantly, in relation to the 2010 FIFA World Cup, 56% of respondents were
not aware of the benefits to be derived from receiving FIFA accreditation; 63% were
not familiar with the accreditation criteria to become a designated 2010 World Cup
host, and 56% did not know whether they met the criteria. Of those who were
familiar with the accreditation criteria, 11% acknowledged that they did not meet
these criteria, 33% that they did and 66% unsure. Although 71% of the 142
respondents were aware of the role that MATCH is designated to play, only 12% had
applied or intended to apply to become FIFA-designated World Cup hosts; 38% did
not know how to apply, and 50% stated categorically that they had no intention of
applying. The reasons given for these positions provide an insight into the
perceptions and attitudes of these small-scale accommodation service providers
towards FIFA and its designated representative MATCH. The following comments
of Gauteng B&B proprietors encapsulate these perceptions and attitudes:
Unknown agents trying to tie B&Bs down to allocate rooms to unknown guests
from unknown countries, and dictating what prices to charge
My main obstacle to benefiting from the 2010 World Cup tournament is FIFA.
They want to rip us off.
Currently, third parties want to be beneficiaries. Match (sic) proposal is not fair
as they want more. They want us to fix our price current (2007 +17%) but they
need 30% commission (too high).
It seems that communication between these small-scale accommodation service
providers and government (provincial and local) is not healthy either. Only 12% of
respondents are aware of any provincial government and 7% of any local government
initiative to support and promote B&Bs towards 2010 FWC. Proprietors were also asked
for their views on the effects of crime, of the political situation in the country and of
xenophobia on the number of guests likely to visit their establishments during the 2010
World Cup. For 47% of respondents, crime was perceived to be the major threat to
visitor numbers; for 44%, it was political uncertainty and for 33% xenophobia. Clearly,
the perceived major threat to their operations, after crime, was political uncertainty.

Conclusion
The two salient constraints for the small-scale tourism sector that have been
identified in a number of government policy documents and by researchers are the
lack of demand for services and inadequate financial resources (DEAT 2000;

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89

Nemasetoni and Rogerson 2005; Rogerson 2004a). Rogersons (2004a, p. 254)

research on township tourism development in Johannesburg, for instance, reported
that: Among (this) group of B&B entrepreneurs finance for marketing of their
business and the upgrading of premises was the most important need Contrary to
these, the findings of the current study are that Gautengs B&Bs, predominantly
white-owned, are not handicapped by lack of finance or by a limited market. Despite
the potential benefits, 56% of respondent B&B proprietors were not enthused by the
economic prospects of 2010 FWC. Furthermore, more than 60% of respondents who
had been in the industry for more than 5 years anticipated a negative impact on their
operations of the 2010 event. Amongst the reasons given for their apprehension was
the nature of the soccer touristperceived by some respondents to tend to drink to
excess and/or to be immoral and unrulyand therefore to be avoided. Furthermore,
some opined that their businesses would be disadvantaged by the disruption that the
event would bring to the tourism industry. Other respondents were suspicious of
FIFA and its partner, MATCH, which they saw as positioning themselves to unfairly
exploit tourism accommodation providers.
Thus, it is evident from this study that, although the tournament may hold positive
socio-economic spin-offs for South Africas tourism accommodation sector, maximising these remains problematic. Subject to proper planning and implementation,
small tourism enterprises could use the event to endear themselves to first-generation
visitors, who in turn could become second- and third-generation visitors. However,
many of the B&B entrepreneurs were unenthusiastic about the financial prospects of
the 2010 event. The apparent source of their disquiet was FIFAs rigid stance on
quality control and pecuniary issues, as well as the potential negative effects of the
event on their regular customersas crowding out effects result in the cancellation of
trips to South Africa during the duration of the tournament. Thus, only a few
enterprises had made or intended to make any significant and special preparations
towards the 2010 FWC tournament, which should be of some concern to the local
organising committee, FIFA and the South African government. The degree and
severity of crime, coupled with political uncertainty, were also of concern. Finally,
there is a need for better communication of the processes, procedures and benefits of
hosting 2010 FWC tourists to all potential beneficiaries, particularly the smaller-scale
tourism service providers. Without this, governments objective of empowering the
small-business sector through the 2010 FWC may not be realised.

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