Comments on: The Iniquitous Practice of Two Tier Pricing

By: Yandisa

Yandisa — Fri, 25 Jan 2008 14:29:08 +0000

Compelling arguments, indeed….
As Ralph rightfully pointed out, prices in the free market economies like SA are as a result of the interaction between supply and demand forces. It is apparent that SA is one of the most sought after tourism destinations in the world and due to this, prices will inevitably escalate. Unfortunately SA is one of the most (if not the most) unequal societies in the world, due to this, higher prices mean that a considerable part of the society (less privileged majority) is unable to enjoy some of the country’s resources. In my view, the quasi-government entities like SANParks, Voortrekker Monument, SA Apartheid Museum, KZN Ezemvelo and many others are correctly applying two-tier pricing so as to enable those less privileged to experience and enjoy our historical and natural resources.
However, for private entities, I am not certain if the two-tier pricing is justified. I am of the view that discriminate pricing (of any shape or form) within the free market economy not only distort the functioning of the markets but also results in the inequitable allocation of resources.
Private companies can contribute positively in the upliftment of the disadvantaged communities through (passionate and unconditional) skills development programmes. This country needs entrepreneurs (particularly tourism entrepreneurs) who realize that the sustainable future of this country is deeply entrenched in the upliftment of the previously marginalized majority. Any attempts by them to uplift these communities (directly or indirectly) would bring about prosperity and stability in our country. There’s no evidence that these entrepreneurs are currently doing that…the industry employment demographics will reveal the relevance of my statement.
That, in my view, is the most effective and sustainable way of bridging the gap between the haves and have nots than the two-tier pricing.

By: Ralph Pina

Ralph Pina — Sun, 30 Dec 2007 19:15:53 +0000

As I understand the workings of a competitive market, the price will settle at the price that the market will bear i.e. what customers are prepared to pay. As international travellers are generally able, and prepared, to pay more, prices for African destinations and products will converge to a price that is higher than most locals could afford, for all the reasons that distinguish a developing country from a developed country. Locals are thus unable to enjoy the attractions in their own backyards, and that is a dangerous state of affairs when land use and development vs conservation issues arise.

So rather than frame two-tier pricing as “discrimination against” international travellers, I would rather position it – in such cases where locals are offered prices that ensure that they also enjoy the utility of local destinations – as a positive promotion of local tourism.

Under these circumstances, two-tier pricing is entirely justified, in my opinion.

By: Clarissa

Clarissa — Tue, 04 Dec 2007 08:08:41 +0000

Thanks Bruce. Yes, I hadn’t really extended the principle to visa fees before, but I think you’re right. There are probably some government/state security/diplomatic reasons that we’re unaware of but from a marketing perspective it doesn’t gel. From the layman’s viewpoint it appears that the application of visa fees is somewhat tit-for-tat and administered with a fundraising fervour. In my mind it opens up an entirely different debate and that runs along the lines of by “punishing” certain segments one ends up by being “punished” in unforeseen and subtle ways back. Or to put it another way, discrimination backfires on the discriminator.

By: Bruce

Bruce — Wed, 28 Nov 2007 15:27:48 +0000

I absolutely agree with you Clarissa, but how do you perceive different visa fee’s for different natinalities?! The British seem to be hit especially hard, perhaps for obvious reasons? I’m a New Zealander and my Mother a South African so it never interfered with my experience, although I must say getting into Zimbabwe from Zambia was by no means easy or inexpensive.