Hotel performance across China has seen strong growth during the first eight months of 2006 as revenue per available room increased 8.7%, according to the HotelBenchmark Survey by Deloitte.

Average room rates have been the driving force behind this growth and are now US$10 higher than the same period in 2005, at US$111.

All cities tracked across China saw increases in average room rates over the period, with Hong Kong experiencing the highest growth at 17.5% to US$163. Following the opening of Hong Kong Disneyland last year, the city has benefited from a surge in international tourist arrivals, up 10.4% during the first eight months of 2006. Occupancy levels in the city have also seen improvements reaching 83.2%. Overall, this performance led to a 22.2% increase in revenue per available room for Hong Kong.

Preparing for the Olympic Games in 2008, Beijing's average room rates rose 13.6% to US$108. Although Beijing Capital International Airport reported increases of 20% in passenger arrivals during the first eight months of the year, hotel occupancy levels did not mirror this trend and fell by 4.2% to settle at 71.2%.

Shenzhen saw a 12.9% increase to US$90. The city continues to benefit from its world-class convention and exhibition centre, which has developed quickly over the last two years. In September 2006, the International Federation of PGA Tours announced that the 2007-2008 World Golf Championships will be held at the Mission Hills Golf Club. Up to 28 nations will participate in the event, boosting hotel performance in the city as well as launching it into the global tourism arena.

China currently boasts the title of the fastest growing economy in Asia Pacific, achieving a staggering 9.9% increase in Gross Domestic Product during 2005. According to the Economist Intelligence Unit, 2006 promises to be another successful year, as China already achieved its fastest increases in the past decade during the second quarter of 2006 at 11.3%.

For the second consecutive year, China remained in the World Tourism Organisation's Top Destinations list in terms of international tourist arrivals. With 46.8 million arrivals during 2005, China ranks in fourth position behind France, Spain and the US.