Beijing's hotel rates are expected to rise by 21% this year due to the 2008 Olympic Games and the Asia-Pacific region's increasing demand for guestrooms.
From 2007 to 2008, Beijing plans to add 14,000 guestrooms; and Shanghai has plans for an additional 11,400; while Hong Kong will add 9,240, representing the growth rates of 11.3%, 16.8% and 19.6% respectively.
In 2008, China will become an important player in the global MICE sector. Hotel rates in Beijing, Shanghai, Hong Kong, and Macau are estimated to increase by 21%, 8%, 17% and 10.19% respectively this year. Beijing will take advantages of the 2008 Olympic Games and investment from government; Shanghai as an international business center with a prime geographic location has lots of new city planning projects; Hong Kong is spurred by increasing tourists from the mainland; and Macau relies on its fame as "Asia's Las Vegas" to attract more tourists.
In the first half of 2007, the occupancy rate of Beijing's five-star hotels was 70%, and that of four-star hotels was 75%. A new exhibition and conference center being built in Beijing Shunyi District and Capital International Airport's expansion also expected to drive new hotels development in the surrounding area.
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