Post-2010 FIFA Soccer World Cup: oversupply and location of luxury hotel rooms in Cape Town

Abstract

An excess of hotel rooms in cities preparing to host a mega-event such as the FIFA Soccer World Cup is not a new occurrence. Between 2007 and 2010 the number of five-star hotel rooms in Cape Town increased by 50% and four-star hotel rooms by 20%. A spatial database of three-, four- and five-star hotels was compiled for the hotel sector of Cape Town. This paper reveals the global–local nexus of luxury hotel development in Cape Town (South Africa) and three different contexts in which the oversupply of hotel rooms must be understood. First is South Africa as a developing country engaged in hosting a hallmark event and engrossed in concomitant inflated tourism-related expectations. Second is the vulnerability of Cape Town's hotel sector with its overdependence on long-haul holiday tourists from a narrow northern-hemisphere market experiencing the worst economic recession since the 1930s. Third is the favourable economic trends in South Africa from 1999 to 2007 that have trapped hotel developers in a ‘fallacy of composition’.