The ACCC has issued a draft determination proposing to grant authorisation for 20 years to allow Business Events Sydney and participating Sydney hotels to offer common agreed minimum terms to event organisers and delegates of international events.
The terms would be offered where the events have more than 2,000 delegates staying at 10 or more of the hotels. The terms include release, cancellation, concession, room access, force majeure, lowest rate guarantee and quote validity terms.
Business Events Sydney and the hotels applied for ACCC authorisation because this agreement between competitors would otherwise breach competition laws.
The ACCC considers the proposed arrangements are likely to result in transaction cost savings and some tourism benefits, noting that minimal detriments are likely to arise given that the arrangements do not restrict the ability or incentive for hotels to compete on price, service standards and facilities.
The ACCC will issue its final decision later this month, after taking submissions in relation to its draft.