German hoteliers face World Cup anticlimax

14 June 2006 by
German hoteliers face World Cup anticlimax

Extravagant forecasts surrounding the Football World Cup may not materialise and could actually leave German hoteliers with disappointing results during what should be a boom period, new research warns.

The report by DIW Berlin, the German Institute for Economic Research, claims many tourists and business bookings may stay away because of predicted surges in prices and crowds.

But so far the World Cup has not led to above-average rises in occupancy rates, according to TRI Hospitality Consulting, and many German hoteliers fear they won't reap the predicted rewards.

"There has been no significant increase in reservations," said Alexander Schreiter, general manager of Hamburg's Crowne Plaza hotel.

He added: "We will only have a full hotel for two to four nights of the World Cup and since Hamburg is hosting five matches we would have expected 100% occupancy for at least eight nights."

The report also warned that hotels which invested in extensions to meet predicted extra demand could be left counting the cost and facing an oversupplied hotel market after the tournament.

By Matthew Batham

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