Hotels in Beijing are slashing room rates for this month’s Olympics
as the demand for hotel rooms are not as high as expected. It’s
been reported that some hotels are cutting their price by 10-30% as demand
falters, but I think the price cut came a bit too late.
How hotel rates have changed for the Olympics
Hotel
|
Price in Feb 2008
|
Price in Jul 2008
|
Prime Hotel
|
£616
|
£391
|
Wellington
|
£542
|
£330
|
Spring Garden Hotel
|
£339
|
£230
|
Howard Johnson Paragon
|
£314
|
£237
|
Best Western Premier
|
£289
|
£212
|
Double Happiness Hotel
|
£259
|
£142
|
Beijing now has more than
800 star-ranked hotels, but the high demand expected has not materialised. While the tighter security and visa rules have contributed the lower
demands, the hotel businesses should really blame themselves for
overambitious pricing at the very beginning.
Hoteliers are blaming the lack of visitors on increased security measures and
the tightening of visa rules, even for travellers who hold tickets for the
Olympics. New visa requirements introduced in April mean that foreign
visitors must now have proof of their accommodation and return flight when
applying to enter, while the government has increased its military presence
in the capital.
Security measures include installing missile launchers close to Olympic
venues... setting up checkpoints on the outskirts of Beijing and flying
unmanned drones around the city during the Games.
Fears that the Olympics might be a target for terrorists have been heightened
after explosions on buses in Kunding and Shanghai in recent weeks and a
foiled plot to blow up a China Southern aircraft in March. Other concerns
include China's handling of the Tibet situation, fears over pollution, the
aftermath of the earthquake and the impact of the credit crunch.
Airlines have been forced to cut prices by up to 50 per cent in
an attempt to attract last-minute visitors to the Olympics in Beijing.
In February, the cost of return flights to
Beijing during the Olympics started at around £1,200 with Air China and
£1,500 with British Airways. Emirates is now offering return flights during
the Games from as little as £497, Air China from £503 and BA from £972.
I had been planning to visit Beijing,
but gave up the idea because of the high accommodation costs. Some of
the three-star hotels were charging £200 per night, which was quite
outrageous by any standard. As much as I wanted to be in Beijing, I’m not ready to being ripped off like that… and I believe
there are lots of other foreigners who are being scared off by the
price as well.
It’s not the end of the day for these hotels though, despite a
lower-than-expected occupancy, they should still be able to make
handsome profits because of the high pricing. But overall, I’m afraid
it’s the country’s image that is being dampened… the Chinese should see
the Olympics to promote China to the world, and not just a short term
event to bank in some money.
It's a shame really.