South African homeowners have collectively lost hundreds of thousands of Rands after they signed up with FIFA's travel partner MATCH who have cancelled bookings just weeks ahead of the World cup.
Homeowners signed up with MATCH's local agent Classic Hospitality to rent out their flats or houses during the World Cup and had to pay a deposit of R5000.00 and get their homes to a four star rating standards at an extra cost to the homeowner.
On average each homeowner was told that they stood to earn up to R50 000 (almost $6400 USD)
MATCH had booked out all local hotel rooms but with so few people traveling to South Africa the surplus rooms which would have been provided by Classic Hospitality are no longer needed.
Effectively MATCH sold too few rooms and Classic Hospitality's arrangement of setting up hospitality villages in Johannesburg was no longer viable.
"I've bought those wall panel heaters, I've got DSTV which I probably would never have got, and done just general maintenance in and around the house," one homeowner said.
"I'm supposed to be moving out this Saturday. I've organised accommodation with my family for the next six weeks. Of course, there are also the financial implications," another woman told Johannesburg's talk Radio station 702.
Another woman said that she had lost R4500 to date and expected to lose more.
Each client has lost potential income of between R30 000 and R50 000.
Classic Hospitality's staff was retrenched on Tuesday and their offices shut down. Their website however is still live and is still gauranteeing homeowners a minmum of R 30 000.00 for those that join.
The company's management said they could not speak to the media because of contractual restrictions with MATCH.
FIFA General Secretary Jerome Valcke said on Wednesday there would be no compensation for those who lost money due to failed deals with MATCH Hospitality.
Around a dozen foreigners, who had already taken occupation of private apartments in Fourways and Lonehill, were moved to hotels.
An estimated 600 homeowners in northern Johannesburg were affected by the failed deal.
Valcke said there was no breach of agreement from MATCH’s side
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