According to the FIDE General Events regulations a draft invitation should reach the FIDE Secretariat at least 6 months before the start of the competitions. After the necessary amendments the invitation is approved and distributed to the National Federations.
The South African Chess Federation, because of internal matters and late procedures for Government approval, asked for an extension of the deadline for the tournament official invitation. FIDE in order to give the opportunity to the South African Chess Federation to complete all the necessary procedures agreed this request for a limited period. Finally the draft invitation reached FIDE on 13th of April (instead of mid March). FIDE answered on 16th April to the South African Chess Federation asking some changes in the invitation, mainly about the prepayments (100% was required) and the high hotel rates (about 100 euros per persons sharing a room in 3 and 4 stars hotels).
The South African Chess Federation replied to FIDE inquiries only after 2 weeks later on 29th of April. The official excuse was that the O.C. of World Youth Championship was busy with the Capablanca Open Chess Festival taking place in Pretoria.
According to this answer, the South Africa Chess Federation, insists for operational reasons that they have to receive the 100% of all payments prior to 17th July, two months before the start of the competition. According to our regulations, based also on the bad experiences of past events, FIDE allows a maximum 50% obligatory prepayment for the hotel booking. This rule is necessary for the protection of the participants and is applying with normal hotels policy.
Furthermore, the South African Chess Federation offered a slight improvement in the hotel rates, being 80 euros per person in 3 star hotels and 105 euros per person sharing a room in 4 stars hotel.
We have informed the South African Chess Federation that the rates in past youth events was a maximum 65 euros in 5 star hotels and, of course cheaper, in 4 star or 3 star hotels. With a rate of 105 euros in a 4 star hotel the travel cost of extra players and accompanying person almost will be double the usual amount and this will have big effect on participation.
FIDE will insist on its regulations and will publish a new announcement to any final resolution or decision on this matter.