HONG KONG - With hotel occupancy rates bouncing back to
pre-SARS figures, several leading hotels here said they are
ready to increase their room rates again.
Giovanni Angelini, Shangri-La Hotels and Resorts CEO and
Said that after decreasing their room rates for the past
"two to three years because of falling demand", they are in
a position to start increasing their rates again based on
the occupancy rates stats in the past few months, which
indicated that demand is in the upswing again.
Tour operators said that high hotel costs would compound
the problem of scarcity of rooms.
There are those, however, who saw the situation as
market forces at work.
"Whether the price is increasing or decreasing, the
level of sales will determine the outcome," said Paul Chiu,
managing director of PC Tours & Travel. "If the market
is receptive, then market will try until there is
He said other suppliers, such as land transportation,
have started increasing their rates although minimally.
Since the rates have been falling for the past two to
three years, "it is only fair that everybody looks at
better rates until market settles down," he said.