Agreement releases hotel vacancies for Rio+20

05/18/2012 - 17h13

Following complaints and cancellations, an agreement was struck by the Brazilian government, hotels and tourism operator Terramar to reduce nightly rates by between 15 and 35 percent during Rio+20.

Terramar was chosen by Itamaraty, the Brazilian foreign ministry, in a bidding process to be the official operator of the event, responsible for all the reservations for the summit that will take place June 12 - 23.

The company said that it would waive the 25 percent administrative fee that was promised in its contract, in exchange for 10 percent commission of the rates charged by hotels.

The Brazilian Association of Hotels in Rio de Janeiro (ABIH-RJ) criticized the operator and pointed out that hotels are also reducing prices.

"The problem originated with this company, because it didn't manage to sell all of the reservations and still put together packages for seven days, requiring delegations to make reservations for a longer period," said Alfredo Lopes of ABIH-RJ.

Terramar will refund up to 3,800 rooms of the 10 thousand that were designated for hotels to sell on their own at a nightly rate.

Last week, members of the European Parliament decided not to attend the U.N. conference because of excessive prices in a moment when the continent is in crisis.

Translated by ANNA EDGERTON