Shanghai Plans To Lower Hotel Operation Costs

updated: 2009-04-15

The Shanghai Municipal Tourism Administration is consulting with the relevant departments to try to lower the operation costs of star-rated hotels in Shanghai to cope with the impacts of the global financial crisis.

At a symposium for expatriates in Shanghai's tourism sector, Dao Shuming, the administrator of the Shanghai Municipal Tourism Administration, revealed that public utilities fees, cable TV fees, and satellite TV fees might be included in the measures to lower hotels' costs.

Participants said that at many hotels room occupancy rates had hit historical lows, with the best being around 40% and the worse falling to 10%. If the current situation continues, some hotels might have to be closed in six months.

According to Dao the issues of electricity charges and cable TV fees have already been solved after consultation with relevant departments. Christophe Lajus, the general manager of the Crowne Plaza Fudan Shanghai, suggested that the basic rate for satellite TV fees should be adjusted to 50% or 55% of the hotel's occupancy rate instead of the current 90%.

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