After experiencing popularity in Japan for more than 3 decades, capsule inns have now entered the Chinese market. The first lodging opened near a long-distance bus station in Shanghai. The new accommodation style is attracting many visitors, but some are less than optimistic about its long-term prospects.

The capsule inn covers an area of more than 300 square meters, with 68 cubicles for guests to rest. Each room measures 2.2 meters long and about 1 meter wide.

As small as the capsules are, they provide more than enough daily necessities for visitors.

Each contains independent power sockets, clocks, lights, and flat screen televisions. People can also enjoy wireless Internet service at the dwelling. But many don't see good market potential for the industry.

A staff member tries the bed at a "capsule inn" in Shanghai, east China, Jan. 6, 2010. A "capsule inn" covering an area of more than 300 square meters with 68 cuboids where guests could rest will open near Shanghai Railway Station soon. There are independent power sockets, clocks, lights and flat screen televisions inside the cuboids. Guests could also enjoy wireless internet service at the "capsule inn". [Fan Xiaoming/Xinhua]

A local resident said, "In Tokyo, people may have fun outside and can't catch the last subway home, so they need to stay here for a night. But people in Shanghai are used to going back home no matter how late it is."

The basic fee for each capsule is 28 yuan, and guests will be charged an extra 4 yuan every hour. The maximum cost could reach 88 yuan per day.

Another resident said, "I don't think it's a good idea. Capsule inns can exist in Tokyo because the average hotel price is quite high there. But in Shanghai, there are top-level hotels, but also cheap inns."

But the manager is confident about the future of his business.

Ta Zan, capsule inn Manager, said, "It's just a matter of time, similar to Internet cafes. When they first appeared more than a decade ago, people thought they might not succeed. But now it's a common thing in our lives. If there's a chance that you do a report on the topic again in 10 years, it may not be just me, but a full industry."

Ta Zan believes that more capsule inns will open around the nation very soon.