Hotels slash prices as Beijing tourist numbers drop

By Simon Rabinovitch

BEIJING (Reuters) - Hotels in Beijing are slashing room prices for the Olympics by as much as half because reservations have fallen well short of expectations.

Hoteliers had hoped for a bonanza from the Games, which open on Friday, but have been disappointed by low visitor numbers, as people have shied away because of visa restrictions and bad publicity about China.

Asked on Monday whether they could take a 10-room booking for the coming weekend, including the night of the much-hyped opening ceremony, a series of four- and three-star hotels said they had plenty of availability and were willing to give big discounts.

The Bamboo Garden Hotel started by offering rooms with a view of its courtyard and bamboo groves for 3,000 yuan ($438.5) per night but quickly agreed to cut the rate in half.

The Oriental Peace Hotel said over the phone that it would lop 30 percent off its 1,480 yuan nightly rate and would consider a better deal in person.

"All of our rooms were renovated earlier this year, just before Spring Festival. If you come by to see them, I'm sure you'll be satisfied," said the hotel's manager.

Compounding hotels' troubles, a building boom has left the capital with an excess of rooms. There are at least 20 more hotels competing for business than this time last year, the Beijing tourism bureau estimated.

Visitors have been put off by worries about pollution in Beijing, threats of terrorist attacks and the sheer difficulty of obtaining visas. In the run-up to the Games, tourist numbers were down by 20 percent from the same time last year, the Beijing Tourism Administration said.