Hotels To Set Plan For Fair Room Rates
Sydney Morning Herald
Monday September 27, 1993
Sydney hotel chiefs will meet tomorrow to work out a strategy for handling the rush for accommodation for the 2000 Olympics.
They will discuss room prices and the agreement between the Sydney bid organisation and the International Olympic Committee, which includes an agreement in principle on fair accommodation rates.
But hotels, led by the Australian Hotel Association (AHA), have already promised there will be no uncontrolled rush to grab quick profits through inflated charges.
The AHA chief executive, Mr Greg Knapp, said Sydney wanted to "get away from the excesses of Barcelona", the site of the last Olympics, which was criticised for exorbitant hotel charges.
Mr Knapp added that there also would be no repeat of the situation during the Bicentennial year, during which hotel room rates in Sydney were increased three or four times.
The AHA has already asked all hotel general managers to hold back from confirming bookings until advance room rates and strategy can be worked out.
Since the announcement of the successful bid last week, hotels have been inundated with requests for bookings from overseas.
But hotels will have to wait for the formation of the Games organisation committee by the State Government in about four weeks before any firm decisions can be taken.
The agreement with the International Olympic Committee on hotel prices involves capping room rates in 1998, with any increase between then and 2000 kept to an average of increases in the Consumer Price Index.
There would be a "tremendous opportunity" for everyone to benefit from this without the need for anyone to make a grab for quick profits, said Mr Knapp.
© 1993 Sydney Morning Herald
