Empty rooms and Fifa cancellations - US hotels fear World Cup washout

Bookings for the World Cup in US host cities are well below expectations, creating concern that the anticipated economic lift may not materialize. The American Hotel & Lodging Association reports that bookings do not match FIFA’s claim that more than five million tickets have been sold. The hotel association partially blames FIFA for block-booking too many rooms for its own use, which allegedly created false demand and artificially high pricing. After FIFA cancelled many rooms, hotels faced a vacuum of availability. Hotels also cite high match ticket prices, local transport and tax costs, and the political backdrop as factors discouraging visitors. Hotels say they made significant investments based on official projections, while a FIFA-commissioned study previously predicted major job and GDP gains.

"The AHLA said this does not align with Fifa's statement that more than five million tickets have been sold,, external and it creates a risk that "the anticipated economic lift may fall short". The AHLA is the largest hotel association in the US, representing more than 32,000 properties and over 80% of all franchised hotels. Its report partially puts the blame at the door of Fifa, accusing world football's governing body of block-booking far too many rooms for its own use and creating false demand."

"This, the AHLA said, led to artificially high pricing which, after Fifa cancelled a large number of rooms, has been replaced by a vacuum of availability. Fifa said it does not recognise this accusation. Hotels said high match ticket pricing, local transport and tax costs, and the political backdrop have put visitors off. For the hotels, this World Cup could fall flat."

"The AHLA said hotels spent years preparing and have made "significant investments" based upon official projections. A study commissioned by Fifa,, external released last year, predicted that in the US the World Cup could create 185,000 jobs, adding $17.2bn (12.7bn) in gross domestic product. The hotels were planning for an influx of international travellers, who book longer stays with a higher spend."

"But the AHLA said fewer overseas fans "threatens the broader economic impact" with just over three weeks until the opening game on 11 June. The AHLA said the large-scale bookings made by Fifa in all cities "shaped revenue forecasts, staffing plans and preparations". It said this booking policy "manufactured artificial demand" and masked the fact that tourist flow is goi"

Read at www.bbc.com