Shanghai Plans To Lower Hotel Operation Costs

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 China Pictures.

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 China Pictures.

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%.