Cabinet has warned of possible action against businesses unduly inflating their prices ahead of the 2010 World Cup, notes a report on the IoL site. Cabinet is concerned about the ’ill-advised move’ by some business establishments to increase their prices ahead of the 2010 World Cup in anticipation of making ’mega-profits’, said government spokesman Themba Maseko. Briefing the media following Cabinet’s regular meeting, he said these moves should be discouraged at all costs, as they had the potential to discourage many soccer fans from attending the tournament.
Businesses situated within the special exclusion zones which have been demarcated for the 2010 World Cup, will be able to continue trading as usual. According to Sidney van Dyk, the City’s Rights Protection Manager, two exclusion zones will be operational in Cape Town from May 20 to July 16. One will be around the Cape Town Stadium precinct, while the other will be at the Grand Parade, venue of the FIFA Fan Fest.
A Chinese factory has halted production of 2010 World Cup mascot toys after an investigation into alleged sweatshop conditions, the merchandise company for FIFA said. According to a Mail & Guardian report, Global Brands Group, master licensee for all 2010 World Cup merchandise, withdrew manufacturing approval after an audit of the factory showed standards had been flouted. ’The audit identified a number of non-conformances against Global Brands CSR (corporate social responsibility) policy,’ said the company.
2/3 of South African tourism businesses are polishing up their service in preparation for the influx of 2010 fans, SA Tourism said. According to a Tourism Update Online poll, 70% of related businesses were excited and looking forward to the 2010 World Cup. The Citizen reports that despite a third of tourism business saying South Africa would not be ready for the influx of tourists on time, and that it was nothing but a ’load of hype’, the poll found 64% of businesses were working on improving their services.
Aviation industry eyes 2010 opportunities 09/03/2010
The domestic aviation is set to be the only sector to benefit from this 2010 World Cup as Kenya Airways remains upbeat about the African airlines this year owing to the expected surge in passengers going in and out of South Africa. The Post Online reports that Zambezi Airlines CE Don McDonald said the airline had approached local hotels to come up with special offers for the soccer fans who may decide to camp in the country.
Adidas has released it’s fourth quarter results which show profits dipped 64% because of weaker sales and writedowns in the company’s China business. In a company online report, is says income fell to 19 million euros (25.9 million), or 9 cents a share, from 54 million euros, or 27 cents, a year earlier. The German-based company reports it sales slid 4.5% to 2.46 billion euros. Business Day reports that Adidas says its now pinning its hopes on profits generated linked to the 2010 World Cup in South Africa.
Bosses should consider allowing employees to watch 2010 World Cup matches during working hours, a health management consultant said. This would be one way of combating the expected spike in absenteeism, said Toska Kouskos, head of health management solutions at Alexander Forbes. The Witness notes that a report last year predicted World Cup absenteeism will cost SA employers R750 million.
The 2010 World Cup is expected to cause a spike in absenteeism resulting in a hefty R750m price tag for South African employers, but there are things that can be done to combat workers skiving off. According to Toska Kouskos, head of health management solutions at Alexander Forbes Health, one of the inconspicuous costs of the World Cup is the high numbers of people skipping work to watch football.
’What we have seen from other World Cups is that typically one in three workers take a day off during the event,’ Kouskos said in a statement. ’If you add that up, it comes to an estimated loss for the economy of R750m in a four week period over the World Cup.’
Johannesburg’s Fordsburg Flea Market has undergone a R9-million revamp in time for the 2010 World Cup. Nestled in the bustling city of Johannesburg is the Fordsburg Flea Market with its irresistible appeal of oriental, middle-Eastern and Indian cultures. The Times reports that the bazaar, which is said to be the Grey Street of Johannesburg, offers a medley of wares, ranging from food, spices, clothes and accessories to gifts. Now, thanks to a R9-million upgrade to the market and surrounding precinct, the square is set to become one of the prime hot spots for tourists ahead of the 2010 World Cup.
The 2010 World Cup may present some disruptions for business, according to information sharing organisation Executives Global Networking (EGN).
Some of the country’s top chief executive officers, chief financial officers and human resources executives had met to discuss how their businesses could be negatively affected and how to prepare for possible disruptions, notes a report in The Star. ’We are currently discussing, in the context of the 2010 World Cup, issues such as absenteeism, business crime, staff leave and delivery delays,’ EGN managing director Martin Humphries said.
A well-known Indian hotel group and airline will soon begin business in South Africa.
The Taj Cape Town, part of the Taj Hotels Resorts and Palaces, will open its doors at the beginning of March, and Jet Airways will begin flights between Johannesburg and Mumbai from April 14. The Times reports that Nikos Kardassis, Jet Airways’ CE, said they were delighted to be entering Africa with a daily Mumbai-Johannesburg service. ’South Africa’s reputation as a leading tourist and business destination and the fact that it will play host to the 2010 World Cup also present a huge opportunity for Jet Airways,’ said Kardassis.
There is much confusion among restaurants and bar owners since a proposed liquor policy for the 2010 World Cup has created the impression that they might have to pay R50 000 for a special liquor licence for the duration of the tournament. According to the wording of the proposal, it seems as though all ’public display areas’ which will show matches during the tournament while also selling alcohol will have to apply for the special liquor license at R50 000 per venue. According to a report on the News24 site, this would include bars, restaurants, movie theatres, stadia, open spaces, offices, building sites, oil rigs, boats or ships, buses, trains, educational institutions and hospitals.
Any pub, restaurant, hotel or university wanting to screen 2010 World Cup games and sell liquor at the same time could first have to fork out R50 000 for a special liquor licence, notes a Pretoria News report. This is according to draft legislation gazetted by the Department of Trade and Industry on January 18. According to the ’2010 Soccer World Cup Liquor Policy’ any ’public viewing event’ where matches are broadcast to an audience - ’general public or otherwise’ - will need the special licence to sell alcohol.
Businesses and individuals caught using FIFA’s trademarks illegally face harsh penalties, including having to make substantial royalty payments and possible jail time. The football governing body is investigating more than 50 cases linked to the forthcoming 2010 World Cup. Owen Dean, from Spoor and Fisher, the legal firm that handles FIFA’s trademark affairs, said those who broke the rules would be shown no mercy.
Johannesburg’s informal traders stand to score big during the 2010 World Cup if they adhere to the international soccer body’s by-laws, said the city’s 2010 office. Spokesperson Sibongile Mazibuko said: ’Though trading will not be permitted in exclusion zones around the stadiums on match days, new opportunities are being created for traders to benefit from being situated in high-fan traffic areas.’ According to a report on the News24 site, she advised informal traders to join programmes designed by the department of economic development to help coach them through the tournament.
Workers angered by foreign WC contracts- 11/02/2010
Irate workers have demanded that FIFA stops importing football World Cup-related clothes and mascots from China at the expense of local workers and manufacturers. According to a report on the IOL site, angry traders and workers led by Cosatu protested outside FIFA’s Cape Town offices yesterday and submitted a memorandum to Local Organising Committee (LOC) officials. They said clothing, scarves, fleece blankets, flags and caps were being imported from sweat shops in China. ’The manufacturing of Zakumi (the World Cup mascot) in China is the tip of the iceberg and many other products have now been discovered to have been bought outside South Africa,’ they said.
Local companies to get slice of WC cake 10/02/2010
Half the licensed products for the 2010 World Cup are being manufactured by South African enterprises, said FIFA’s licensing company. ’We have appointed 38 South African based licensees, which account for 128 different official licensed products and product categories,’ Global Brands Group general manager Paul Zacks said in a statement. According to Business Report, his comments followed claims by the Congress of South African Trade Unions that Bafana Bafana supporter apparel was being made overseas.
Business and Public sector gearing for WC 09/02/2010
Large multibillion rand conglomerates and a collection of small and medium-sized businesses surround the Nelson Mandela Bay Stadium. For each and every one there needs to be careful consideration and planning around the 2010 World Cup, especially match days. The Herald reports that over the next couple of weeks, the Nelson Mandela Bay 2010 directorate will engage with business on the implications of the event that runs from June 11 until July 11.
Cosatu will not allow the ’ false’ 2010 mascot Zakumi, which is being manufactured in China, to be sold in South Africa, notes an iFashion report. The union also warns that it will put a stop to any FIFA or 2010 World Cup related functions in Cape Town until FIFA acts ethically and insists on ethical standards in the manufacture of FIFA related products. This comes in the wake of news that T-shirts for the World Cup and Bafana Bafana, as well as the Zakumi mascot which, Cosatu says, is supposed to be a symbol of our country are not being manufactured here.
Durban street traders have been warned not to engage in ambush marketing during the 2010 World Cup or else they could face possible fines. During a public meeting between the eThekwini Municipality and street traders held at the city hall to discuss 2010 FIFA by-laws, other issues that were highlighted included illegal forms of advertising and prohibited trading areas. Malusi Mhlongo, a lawyer for the city, said street traders would continue to trade as normal during the match days at their permanent trading premises.
Concrete pump manufacturer Putzmeister South Africa (PMSA) CEO Ludwig Geyser tells Mining Weekly that, during 2009, the company, like many others, experienced a decrease in turnover of nearly 50% despite the build-up to major events, such as the construction of the 2010 World Cup stadiums and the Gautrain. PMSA was contracted to work on a R40-million project as part of the construction of the Gautrain. This project is coming to an end, and given that the economy is only just recovering, there is little clarity surrounding new projects and contracts in the future. The company has adapted accordingly to survive the downturn.
Small and medium enterprises (SMEs) looking to benefit from the 2010 World Cup could be in for disappointment, said the National Youth Development Agency. A survey on SMEs had found the promise of a World Cup windfall for South African businesses in 2010 was likely to ’fall dramatically short’. ’Especially because FIFA is known for fiercely protecting the rights of its sponsors to do business in zones surrounding match locations and as a result this counts against many SMEs,’ said the agency.
Urgent probe into 2010 mascot factory - 03/02/2010
A Chinese factory where World Cup 2010 mascot toys are reportedly being made in sweatshop conditions will be inspected immediately, the company responsible for the merchandise said. FIN24 reports that Global Brands Group, master licensee for all FIFA World Cup 2010 merchandise, promised the audit after reports of squalid conditions in a Chinese factory making light-up figures of the event’s dreadlocked leopard mascot. The group said it had contracted an independent inspector to ’conduct an immediate ethical and social compliance audit and inspection’ of the facilities of the manufacturer, Shanghai Fashion Plastic Products.
Cosatu will not allow the ’false’ 2010 mascot Zakumi, which is being manufactured in China, to be sold in South Africa. The union also warns that it will put a stop to any FIFA or World Cup-related functions in Cape Town until FIFA acts ethically and insists on ethical standards in the manufacture of FIFA-related products. FIN24 reports that this comes in the wake of news that T-shirts for the World Cup and Bafana Bafana, as well as the Zakumi mascot - which, Cosatu says, is supposed to be a symbol of our country - are not being manufactured here.
Companies intending to take advantage of the 2010 World Cup should beware. That is the message from the Competition Commission following the investigation into allegations of collusion amongst South African passenger airlines to fix prices or pricing strategies ahead of the 2010 World Cup. Moneyweb reports that the World Cup provides an opportunity for South Africa to showcase its ability to host a world class event, and will stimulate the economy. However, it could also enable businesses to use the event for their own benefit by engaging in anti-competitive behaviour.
Durban’s budding entrepreneurs are making their presence felt on the outskirts of the new Moses Mabhida Stadium. As fans rushed to the stadium to watch Bafana take on Zimbabwe in a friendly match last week, vendors selling everything from vuvuzelas to weird hats greeted them outside the stadium. One vendor told The Witness that he wanted to make some extra cash before the 2010 World Cup as he knew that FIFA had strict rules about vendors. He said that he made R2 000 at the game and would use the money to buy more stock.
Will retail industry benefit from WC? - 29/01/2010
There seems to be mixed reaction to whether the retail industry will benefit from the 2010 World Cup or will continue to face the current challenging trading conditions, notes a Business Day report. A Cadiz Securities investigation contends that the effect of the tournament will be far more ’muted than much of the current local optimism would suggest’. The research report, by analysts Shamil Ismail and Jasmine Lin, cites data from the 2002 World Cup in Korea and Japan, showing that tourism numbers and retail sales may not necessarily spike. Tourist arrivals in South Korea actually declined during the tournament. ’We believe this trend could be repeated at the 2010 World Cup in SA,’ say the analysts.
Local retailers, banks and restaurants are ready for an influx of tourists. South African retailers, banks and restaurants running point-of-sale devices are ready for the coming influx of 2010 visitors, notes a My Digital Life report. Derek Chaplin, MD of Altech Card Solutions (CS), says the company has made its recommendations to the banks on the transaction devices that will be needed to field a large number of tourists, and all of its customers have started preparing for the increase. According to Chaplin, local banks have been upping their POS capacity and upgrading their technologies to better handle the large number of expected financial transactions that will happen during the World Cup.
Counterfeit Bafana-Bafana merchandise worth around R30m has been seized at the OR Tambo International airport in the past three months, said the SA Revenue Services (SARS) Customs on Saturday. According to a report on the News24 site, consignments of fake Bafana-Bafana T-shirts, tracksuits, caps and other merchandise relating to the 2010 soccer World Cup were being brought into the country from Asian countries by those hoping to cash in on the World Cup, said spokesperson Sibabalwenathi Mfabe.
SMMEs must plan well, be streetwise and focus on sustainable business that could benefit from the massive influx of international visitors, but that would not fade upon the conclusion of the 2010 World Cup. According to a report on the iafrica.com site, that is the advice offered by Danny Jordaan, LOC CE, and by Andrι Diederichs, Old Mutual’s specialist on small, medium and micro enterprises (SMMEs). While 86% of SMME owners believed that the 2010 World Cup would be positive for the country, only 45% believed that they would benefit from the event, the SME Survey 2009 has found.
