RWC warning against 'price gouging'
Thu, 09 Sep 2010 08:28
Looking towards 2011. (c) Getty
New Zealand's World Cup chief has warned against price gouging as the one-year countdown to the tournament began Thursday.
With tens of thousands of overseas visitors expected in New Zealand for the global showcase, Rugby NZ 2011 Chief Executive Martin Snedden urged businesses to reflect on the damage overcharging could do to the country's reputation.
"It's a time of peak demand ... during the tournament so it's perfectly reasonable that their pricing reflects that, but against that they need to ensure that they don't go overboard and start gouging," he told national news agency NZPA.
"I think the key message is that no one is going to make a fortune, but it will be very easy to make or break a reputation in the short time that the tournament's here."
Tournament organisers on Thursday launched a festival to mark 12 months until the World Cup's opening match between New Zealand and Tonga at Auckland's Eden Park.
Snedden said he sensed a growing feeling of excitement in New Zealand about the tournament and said preparations at stadiums around the country were going well.
"It's something you can never be complacent about because it's too big an event... but neither should we shy away from being confident about where we're at," he said.
"I'd rather be where we are now than perhaps where the organisers of the Delhi Commonwealth Games are," he added, referring to the troubled lead-up to next month's event in India.
Snedden said organisers tested plans to deal with a major disruption at the tournament last week, just days before a 7.0-magnitude earthquake hit Christchurch, which is due to host seven matches.
"It's just a reminder that these things are not just theory, it can actually happen," he said.
Christchurch's main stadium was not structurally damaged in the quake.
Snedden said ticket sales - the main income for Rugby NZ 2011 - have reached 500,000, bringing in revenue of about NZ$76 million (US$55 million).
He said about 100,000 of the tickets had been bought overseas.
As the Rugby World Cup approaches, there have been reports of hoteliers charging exorbitant prices for accommodation during the tournament.
The New Zealand Commerce Commission last week fined two Christchurch car hire firms more than NZ$40,000 for ripping off overseas customers and said would be closely watching the tourism sector in the lead-up to the event.
"As the country prepares for the increasing number of overseas visitors expected for the Rugby World Cup, the commission is paying particular attention to those sectors providing goods and services to tourists to encourage compliance with competition and consumer legislation," it said.
AFP
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