The World Cup was expected to boost tourism in the US, but there are now fears this may not happen.
A report by the American Hotel & Lodging Association (AHLA) indicates that bookings are lower than expected in almost every host city.
The AHLA represents over 32,000 properties and more than 80% of all franchised hotels and stated this does not align with FIFA’s statement that more than five million tickets have been sold, creating a risk that “the anticipated economic lift may fall short”.
FIFA’s Booking Policy Under Scrutiny
The AHLA partially blames FIFA, accusing the governing body of block-booking too many rooms and creating artificial demand.
According to the AHLA, this led to artificially high pricing, which has been followed by a vacuum of availability after FIFA cancelled a large number of rooms.
FIFA has rejected this accusation.
Hotels suggest high match ticket prices, local transport and tax costs, and the political climate have discouraged visitors.
Economic Impact Threatened
The AHLA said hotels have spent years preparing and have made “significant investments” based on official projections.
A FIFA-commissioned study predicted the World Cup could create 185,000 jobs in the US, adding $17.2bn (£12.7bn) in gross domestic product.
The hotels were anticipating an influx of international travellers, who typically book longer stays and spend more.
The AHLA suggests that fewer overseas fans “threatens the broader economic impact” with just over three weeks until the opening game on 11 June.
Room Cancellation Claims and FIFA’s Response
The AHLA claims that FIFA’s large-scale bookings in all cities “shaped revenue forecasts, staffing plans and preparations”.
They added that 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, according to the AHLA.
FIFA stated that all room releases were conducted in line with contractually agreed timelines with hotel partners, which is standard practice for an event of this scale.
A FIFA spokesperson stated that room releases were often made ahead of established deadlines to further accommodate requests from hotels.
FIFA maintains that its accommodations team consistently discussed room block adjustments, rates, room types and regular reporting with hotel stakeholders, supported by town hall meetings and ongoing communication.
Prices spiked after the draw was made, as soon as fans knew which cities th.
For the hotels, this World Cup could fall flat.