Beijing foreign tourist numbers drop ahead of Games

By Jason Subler and Ben Blanchard

BEIJING (Reuters) - The number of foreign tourists visiting Beijing fell nearly 20 percent in June from a year earlier, suggesting that Olympics-related visa restrictions and bad publicity are keeping a significant number of people away.

According to data published on the website of the Beijing Tourism Administration, 299,000 overseas tourists visited the Chinese capital in June, down 19.9 percent from a year earlier and extending a streak of dwindling numbers seen since April, when 385,000 people visited from overseas.

The figures support anecdotal evidence that a storm of bad publicity in the run-up to the Games, including violent unrest in Tibetan areas and the massive earthquake in Sichuan, has put off more than a few potential visitors.

Some hotels in the city have dramatically cut their room rates, travel agents say, and city officials have conceded that booking rates for the August 8-24 Olympic period remain low -- below 50 percent for four-star hotels.

"It's an accumulative effect," said Bruce McIndoe, president of iJET Intelligent Risks Systems, a travel and asset risk management firm, explaining why Beijing may not get Olympic visitors in the numbers it was expecting.

"I think the hassle of getting into the country is probably the big hurdle, and then hearing of the discord and other issues, like pollution, heat and congestion. I believe it's the sum of all of those that weigh on people who say 'Do I really want to deal with all this?'"

Tighter restrictions on visas for both tourists and business travelers, which officials say are meant to help ensure the security of the Games, have made it more difficult for people to get into the country.

Shanghai and other major cities have recently stopped approving business visas for all but essential travel until the Games are over, prompting criticism from foreign business groups that say such measures are detrimental to their interests.

HOTELS, AIRLINES HIT

Chinese budget hotel operator Home Inns & Hotels Management Inc (HMIN.O) said last month that it expected the boost from the Olympics to be offset by reduced business activities, as well as restrictions on traffic and entry into the country during the period of the Games.

Air China (601111.SS) (0753.HK) and China Eastern Airlines (600115.SS) (0670.HK), two of the country's largest carriers, have also reported drops in passenger numbers, blamed in part on heightened airport security checks ahead of the Olympics.

But Zhang Huiguang, head of the Beijing Tourism Administration, on Friday tried to put a positive spin on the weak hotel booking numbers. "Accommodation has been a big concern of many ahead of the Games," Zhang said. "These numbers tell us that Beijing's hotels can easily meet the challenge of the Games."

Beijing expects to play host to between 400,000 and 500,000 overseas visitors during the Games, compared with the 420,000 who came in the same period last year.

Officials had previously pondered putting tourists up at hotels in the provinces surrounding Beijing, when it appeared the city could be overwhelmed with visitors and before China began its pre-Olympic clampdown on visas.

Zhang, who made no mention of the visa issue, has previously admitted that the negative publicity this year could keep some people away from the Games. Still, she said Beijing would welcome foreigners with open arms.