[photopress:Bund_Shanghai.gif,full,alignright]The supply of hotels in Shanghai is currently outweighing demand causing a decline in occupancy rates this year, according to a government report.
The Shanghai Tourist Administrative Commission (STAC) said last year a total of 17 four- and five-star hotels were opened, with an increase of 16.68% in the number of rooms from 2005. But demand didn’t grow at the same pace – 4.65 million visitors had overnight stays in Shanghai but this was only a 4.52% increase from the previous year.
“For the coming three years we should be very cautious about making any decision to open new deluxe hotels in Shanghai since the current facilities are almost adequate compared to demand,” said Chen Xueyu, an official with STAC.
He added that new construction and renovation projects should be strictly controlled and the number of new high-end hotels should be limited over the next few years.
Source: Shanghai Daily