Beijing's tourism boom yet to take shape
Updated
As China's capital, Beijing, gears up for the summer Olympic Games and the Paralympics, the expected tourism boom is yet to take shape.
Presenter: Bo Hill
Speakers: He Zhenliang, chairman, International Olympic Committee's Culture Commission; James Wang, chief executive, China Absolute Tours International; Diane Fermin, communications manager, China World Hotel Beijing.
HILL: With the Olympic Games countdown well and truly on, the country's tourism and hotel industries are preparing for Beijing's biggest-ever event. He Zhenliang, Chairman of International Olympic Committee's Culture Commission, says Beijing is ready.
HE TRANSLATION: Although China has sponsored many grand events, we still lack experience in hosting such a large and comprehensive event which involves so many aspects. I would say now we are fully prepared for all the challenges.
HILL: The challenges, which include pollution and security, are being partly overcome by a Beijing blackout - organisers plan to shut some factories and take half the city's 3.3 million vehicles off the roads before the opening ceremony on August the 8th. They have also shut out many prospective overseas tourists. James Wang is the chief executive of Hangzhou-based China Absolute Tours International.
WANG: Unfortunately we do not accept the special reservation for the Olympic period. it is very difficult for us to offer our services. We are not sure whether we can get guides for them, or whether we can get a coach for them, so all of this is unknown.
HILL: Overseas tourist numbers to the city fell more than 14 per cent in May, the first time tourist numbers have fallen since 2005. For an event often touted as transforming the image of a host city and ultimately its tourism marketability, Beijing is not opening its arms in welcome just yet.
WANG: Not so many tourists going to Beijing during the Olympic period. The sports area itself has limited capacity, right, so it is not possible to bring millions and millions into Beijing. Our guests they have some problems at the very beginning to obtaining a visa to China, because now if they get a visa to China they need hotel confirmations and in the past this is not required.
HILL: Half a million people expected to fill 660,000 hotel beds created in the expectation of an Olympic-sized demand. But while there is an excess of rooms, it's at the lower end where most overseas visitors don't stay. James Wang from China Absolute Tours says many tourism businesses are avoiding Beijing over the Games.
WANG: We have planned our business long before with consideration of the Beijing period that we actually shift our business focus to the south of China, and to other parts of the country rather than Beijing during the August period.
For hotels in Beijing approved by BOCOG they have guaranteed high rates of occupancy over the period. Diane Fermin is from China World Hotel Beijing.
FERMIN: Our hotel has been appointed by BOCOG, as an official Olympic hotel so as such 70 to 75 per cent of the rooms inventory have already been contracted by BOCOG.
HILL: Ms Fermin says China World Hotel Beijing's rooms have been sold at a special rate to Olympic officials, slightly above normal room rates. James Wang says the high cost of rooms, as well as a lack of vacancies, reminds him of previous Olympic hotel searches.
WANG: Everybody knows that like the Olympics in Sydney and in Greece, last two times, we had a problem locating rooms in Athens, especially. When I was working in Beijing we had tour groups wanting to view the Olympics but unfortunately in the end we cancelled because the hotel was too expensive - and I think this is the same situation as will happen in China.
HILL: But Mr Wang says it's not just hotel space and rates that are keeping the tourists away.
WANG: In China this year we have had a lot of natural disasters that really hit the Chinese economy and also hit the travel business. And, number two because roaring oil prices that affect the world economy. Many people suffered from that, even the people from like United States, which is our major markets, lots of people are suffering from the high oil prices, and then they postponed their trip to next year or the year after.
