South Africa is to investigate allegations that hotels have raised prices to unreasonable levels in a bid to exploit visiting fans during the 2010 World Cup.
The investigation comes a month after it was announced that domestic airlines will face similar scrutiny for alleged price-fixing.
Marthinus van Schalkwyk, the South African tourism minister, said: "In recent weeks we have noted allegations that accommodation establishments in the tourism industry are not responsible, and are inflating prices excessively.
"Until now, our impression has been that this is not the case, but we believe it should be investigated and the results of the investigation made public."
An internet search found that a room at a midrange hotel near Johannesburg's OR Tambo airport that would cost R1,145 (£95) on a typical weeknight will be at least a third more expensive during the Word Cup. The investigation follows an inquiry into airlines for alleged price collusion.
Tourism business leaders say the higher prices reflect higher demand. They argue that although the World Cup falls during the South African winter, usually the low season, it will be treated as the high season because of the hundreds of thousands of visitors expected.
Members of the Tourism Business Council of South Africa welcomed the investigation and said they were sure an independent inquiry would prove that most hotels are not pushing up room rates.
Jabu Mabuza, chairman of the state-owned South African tourism board, has condemned reported incidents of extortionate pricing as ultimately counterproductive.
"It is quite disturbing to us … that there are people who have reportedly tripled prices," he told reporters recently. "It is very shortsighted. I think it is, frankly, stupid."
Jaime Byrom, executive chairman of Match, the official accommodation agent for football's governing body Fifa, said this year's World Cup would not be cheap compared with previous tournaments. Travel costs have been compounded by the strength of South Africa's currency.
Byrom also claimed that any profiteering in South Africa was no different from the experience of previous World Cups. He said reports of price gouging were exaggerated. "We received fair prices and reasonable terms of business that we were able to pass on to our customers."
Plans for a tent city in Johannesburg's northern suburbs were recently announced, offering camping to around 1,500 supporters at prices ranging from £27 to £44 a night. There have also been reports of new bed and breakfasts opening in townships to meet demand.
