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Hainan Hotels Face Empty Rooms
June 16, 2006 |
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| Category: Industry News
The sharp decrease of tourists following the May Day holiday has put all star-grade hotels in Hainan Province on alert.
According to the latest data released by Hainan Provincial Tourism Department, there are 232 star-grade hotels in Hainan Province, and most of them are clustered around top travel destinations like Haikou, Sanya, and Wanning.
The rapid increase of hotels has exceeded the market demand, and at present, only half of the over 10 million beds in Sanya have been booked.
Analysts quoted in local media say that the main reason for this over-supply is a lack of systematic planning.
In February 2006, 62 two-star and higher grade hotels in Hainan's Haikou signed a four-party agreement on hotel room rates with the Haikou Hotel Association, Haikou Tourism Bureau and Haikou Pricing Bureau. The agreement requires all signatories to price hotel rooms no less than their cost price, and hotels that violate the agreement shall be punished by the pricing and tourism department.
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