Hotels in Hong Kong have cut room rates up to 40 percent to attract visitors during mainland China’s coming Golden Week holidays, Sky Post reported Thursday.
A survey released by Hotels.com shows Hong Kong remains the top destination for mainland tourists.
Still, it showed hotel rates have fallen 21 percent from a year ago to an average of HK$882 per night between Sept. 26 and Oct. 4.
Prices at three-star hotels fell more sharply.
For instance, Dorsett Hospitality International Ltd. (02266.HK) cut room rates at Silka Far East Hotel in Tsuen Wan to about HK$850 per night during Golden Week, 40 percent lower than the HK$1,500 per room it could charge in high season in the past.
Michael Li Hon-shing, executive director of the Federation of Hong Kong Hotel Owners, said only 50-60 percent of hotel rooms have been booked for Golden Week so far, and prices are expected to drop 15-20 percent.
Leung Tai-wai, founder of the Hong Kong Guesthouse Association, expects an occupancy rate at hostels of 75-80 percent in Golden Week, down 10 percent from last year.
Guesthouses in non-traditional areas like Tsuen Wan were fully booked during the long holiday in the past, but so far, their booking rate is only 55 percent on average, he said.
To attract tourists, some three-star hotels are offering free breakfast or prepaid SIM cards for their mobile phones, the newspaper said.
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