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Empty rooms and Fifa cancellations - US hotels fear World Cup washout
TL;DR
US hotels are facing a potential tourism downturn as World Cup bookings fall significantly short of expectations. The American Hotel & Lodging Association blames FIFA for block-booking too many rooms, creating a false sense of demand.
Key points
- US hotels face low bookings ahead of the World Cup
- AHLA reports significant shortfall in hotel reservations
- FIFA claims over five million tickets sold
- AHLA blames FIFA for block-booking rooms
- Economic benefits from the World Cup may not materialize
Mentioned in this story
American Hotel & Lodging AssociationFIFA
The World Cup was supposed to provide a tourism boom for the US, but now the fear is it may never materialise.
A report, external produced by the American Hotel & Lodging Association (AHLA) has found that bookings are well below expectations in almost every host city.
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This, the AHLA said, led to artificially high pricing which, after Fifa cancelled a large number of rooms, has been replaced by a vacuum of availability.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.
Fifa bookings 'manufactured artificial demand'
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 going to be lower than predicted.
Up to 70% of rooms reserved by Fifa in Boston, Dallas, Los Angeles, Philadelphia and Seattle have been cancelled, the AHLA said.
Q&A
Why are US hotels worried about World Cup bookings?
US hotels are concerned because bookings are well below expectations, threatening the anticipated tourism boom.
What did the American Hotel & Lodging Association report about World Cup ticket sales?
The report indicates that despite FIFA claiming over five million tickets sold, hotel bookings do not reflect this demand.
How many hotels does the American Hotel & Lodging Association represent?
The American Hotel & Lodging Association represents more than 32,000 properties and over 80% of all franchised hotels in the US.
What is FIFA accused of regarding hotel bookings for the World Cup?
FIFA is accused of block-booking too many hotel rooms for its own use, which has created a false demand and contributed to low bookings.
