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Hotel room prices to rise but not 'skyrocket'
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Beijing's hotel industry is not likely to see skyrocketing prices during the Olympic games, due to the sufficient market supply and the impact of the Sichuan earthquake, experts said.

Industry insiders previously expected hotel prices during the Olympic games to skyrocket eight to 10 times above the usual price, but a recent survey in June showed that the price may finally rise only three to five times higher than average.

Statistics from Beijing Tourism Bureau show that there are 5,892 hotels and other institutions offering 336,000 rooms and 660,000 beds during the Beijing Olympics, exceeding the supply available at the Athens and Sidney Olympics. So far, 77 percent of Beijing's five-star hotels and 44 percent of four-star hotels have been booked.

According to Li Yukai, a manager with Jinjiang Inn, one of the country's budget hotels, the booking price during the Olympic Games will range from 499 yuan to 1,599 yuan per night. And the average price for other major budget hotels during the Olympics will mostly hover around 1,000 yuan per night, in vast contrast to the usual price of 200 yuan per night.

Zhou Huaisheng, president of 7 Days Inn said the hotel booking ratio dropped by 40 percent after the Wenchuan earthquake.

(China Daily June 26, 2008)

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