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April 17, 2010

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Hotel prices set to rise next month

HOTEL prices are expected to increase next month, officials from Shanghai Tourism Administration said yesterday.

Hotel prices rose by 3 to 4 percent on average this month compared to January, while prices at 4 and 5-star hotels rose by 5 percent. "Star hotels with bigger price increase were those located in Huangpu and Xuhui districts and the Pudong New Area near to the Expo zone," said Cheng Meihong, deputy director of Shanghai Tourism Administration, told a government briefing yesterday.

"Hotel prices will rise in May due to the large number of Expo visitors, but we don't think prices will rocket since Shanghai is a mature market and hotels have the ability to judge a reasonable and competitive price."

Shanghai has 6,679 hotels with 334,000 rooms of about 557,000 beds.

There are 310 starred hotels with 61,000 rooms and 98,000 beds, 5,591 small hotels, 80 service hotels and many economy hotels.

The city received 1.71 million inbound tourists between January and March, a 23 percent increase over the same period last year.

The booking rate for local hotels was 52.9 percent in the first three months, 6.9 percent up from the same time last year. Booking rate for hotels in the Pudong New Area was 56.3 percent with a 12.9 percent increase, the highest of the six downtown districts.


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