BEIJING - THE expected Olympic visitor boom has not materialised, and some Beijing hotels have started to slash room rates by up to half in a last-ditch attempt to attract guests.
According to China's largest online travel service website, Ctrip.com, the average rate at a three-star hotel has fallen to 400 yuan (S$80) a night, from 700 yuan in May and June.
Four-star hotels have, on average, cut rates to 800 yuan a night, down from 1,500 yuan previously. Five-star hotels, however, are faring better due to the assured attendance of top-end corporate clients coming to watch the Games.
Mr Harry Tan, a Singaporean who owns the master franchise of US hotel chain Days Inn in China, told The Straits Times: 'A year ago, we were very gung-ho.
'But the security and visa restrictions kicked in. When I saw all that, I knew that (business) would not live up to our expectations.'
Mr Tan runs two three-star hotels in Beijing.
But there could be other reasons, beyond the granting of fewer business and tourist visas, for the higher-than-expected number of empty rooms at three- and four-star hotels.
July is traditionally a slow month for hotels, said Mr Andreas Flaig, managing director of Jones Lang LaSalle Hotels, which offers hotel investment and advisory services.
Another reason is that Olympic visitors who plan to stay in Beijing for more than two weeks may have opted for serviced apartments and rented houses instead, Mr Flaig said.
Despite the gloomy picture, Beijing's hotel industry is set for 'unprecedented growth' right after the Olympics and in the coming years, a study by Jones Lang LaSalle Hotels shows.
The consultancy predicted that tourist numbers to the city would continue to grow by some 10 per cent annually, just like in the past decade, and more companies would hold large meetings and exhibitions in the Chinese capital after the Games is over.
This would help allay fears that Beijing could face a guestroom glut due to the recent surge in hotel construction, said Ms Lily Ng, senior vice-president of Jones Lang LaSalle Hotels.
Meanwhile, at least one hotel in Beijing can boast that it will be fully occupied next month.
All 171 rooms at the Singapore-managed Raffles Beijing Hotel have been booked for the duration of the Games.
Its guests include some of the most important people attending the event, such as International Olympic Committee (IOC) president Jacques Rogge and IOC executive board members, including Singapore's Mr Ng Ser Miang.
The luxury hotel has drafted in 22 top-notch staff from the Raffles Singapore and its other hotels in the region, said Mr Gino Tan, the hotel's resident manager.
Among them is Ms Grace Keong, 23, a senior butler with the Raffles Singapore. She arrived two weeks ago and will be Mr Rogge's personal butler during his one-month stay.
Ms Keong, who has spent the past weeks reading up on her guest and the Games, said: 'I aim to make sure that he has nothing to worry about outside of work.'
TRACY QUEK