Brazil Government To Investigate Hotels For ‘Exorbitant’ World Cup Prices
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Brazil’s major hotel chains are set to meet with the justice ministry this week, after the government agency demanded an explanation from the group over several complaints regarding room prices during next year’s football World Cup.
Brazil’s major hotel chains are set to meet with the justice ministry this week, after the government agency demanded an explanation from the group over several complaints regarding room prices during next year’s football World Cup.
According to the Associated Press, Accor, Choice, Louvre, Blue Tree, Nacional Inn, Wyndham, IHG and Bourbon were among the companies hauled up by the ministry last week, while the Brazilian Association of the Hotel Industry were also notified of the inquiry.
The tourism board, or Embratur, has shown that hotel rates could rise up to as much as 500 percent during the World Cup next year, prompting several consumer rights groups to demand government action.
[quote]”Tourists are consumers which require special protection because they are outside of their city or country,” said Amaury Oliva, director of the ministry’s consumer rights secretariat, in a statement. “We are working to make sure that they are well received and that the services we provide have quality and fair price.”[/quote]Related: Brazil Seeks To Calm World Cup Hyperinflation
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Although price increases are usually expected during special events such as the World Cup, consumer rights group claim that the chains might be overcharging more than usual this time.
Last month, President Dilma Rousseff also created a committee to monitor for abusive price hikes at hotels or plane tickets during the World Cup.
AP reported that the government will also look into whether MATCH, FIFA’s official accommodation agency, was involved in “cartel” practices that may lead to price hikes.
Brazil is expecting 600,000 foreigners and about 3 million local visitors travelling through the 12 host cities and the rest of the country next June, when it will host the World Cup for the first time since 1950.
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Several local airlines have also been called up to explain their ticketing prices during football’s showcase event. According to Xinhua, some airlines were charging the same for a roundtrip from Rio de Janeiro to Sao Paolo, as what it would cost for a roundtrip ticket to New York City.
