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Chinese Government Sets up Prices for Hotels in Hainan

News Recently, strict measures have been announced for hotels and buffets located in Hainan, a beautiful tropical island and a popular resort. The measures will act during the weeklong Spring Festival, which starts on February 10.

According to the provincial government, hotels should reduce their room rates at least by 10%. The government was very dissatisfied with the rates of the previous year, many of which were too high. The document also contains the highest permitted rate – the daily cost for a standard guestroom cannot exceed 5,000 yuan ($802) including all fees. If hotels want to sell their rooms higher than 5,000 yuan per night, they will need to get an approval from the government. The price of buttes also has a limit – it shouldn’t exceed 400 yuan per person. It is mentioned that these limits do not concern luxury suites and villas.

Every year, Hainan, and especially the city of Sanya, attracts numerous visitors to want to enjoy warm sun and wonderful weather. Spring Festival is the hottest time, and so there’s no wonder that prices raise significantly during that period. For example, as Huang Rongjian, a local tour guide who lives in Hainan for more than 10 years, mentions, even small hotels increase their rates for the Spring Festival by 200%. Rooms that normally cost 150 yuan per night can be offered at the price of 800 yuan during the festival.

The position of the province government is understandable. Many tourists call rates during the festival “unacceptable” and say they will refrain from visiting Hainan if the prices do not drop. However, some experts say that the government control may not work as expected. This is quite a harsh measure as in previous years the price limit was 8,000 yuan.

Meanwhile, many hotels have still not changed their rates in accordance with the new limit. For example, a room with an ocean view in Sheraton hotel in Sanya costs 5210 yuan for February 9, and the hotel’s staff have not received an order to reduce the price. Even though the declines may be made, they are unlikely to be large as the demand is high. In 2012 more than 1.35 million visitors arrived in the island during the Spring Festival.


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