A fall-off in bookings over severe acute respiratory syndrome (SARS) fears has forced hotels to slash room rates and send staff home on unpaid leave, industry officials said yesterday.
In response to occupancy rates as low as 40 percent, hotels are focusing on drumming up local demand.
The Westin Taipei, known for its premium business rates, has reduced its standard room prices by more than 50 percent, from NT$7,000 to NT$2,900 per night.
The Grand Formosa Regent Hotel (
"Our occupancy rate is now less than 50 percent ... the lowest since the hotel opened [in 1990]," said Daphne Wang (
Concerns over SARS have kept foreign travelers away from Taiwan, leaving hotels rooms empty.
"April used to be high season for Grand Hyatt, with many foreigner buyers coming here for international trade shows," said Luanne Lee (
Inbound tourism dropped 38 percent in the first week of April alone over last year, according to the Tourism Bureau under the Ministry of Transportation and Communications.
Normally bustling with traders, the Grand Hyatt -- located next to the Taipei World Trade Center complex -- is reporting April occupancy at 50 percent, down from 90 percent in April 2002.
Rate reductions seem to be attracting customers.
a real deal
"Numbers have rebounded since we announced the NT$3,300 per night offer," Lee said.
Standard Hyatt rooms normally go for NT$9,100 per night. Since Monday, the hotel received more than 600 new reservations.
"Sixty percent of these customers live in Taipei and only 40 percent are travelers [from other parts of Taiwan]," Lee said.
The current round of room-rate discounts is offered only to Taiwan citizens and foreigners with alien resident certificates.
Other hoteliers in Taipei, such as Evergreen Laurel Hotel (長榮桂冠), Far Eastern Plaza (遠東飯店) and Asiaworld Plaza Hotel (環亞飯店) are promoting discounts that average NT$3,000 per night.
Most promotions run will through the end of next month, while the Westin Taipei's discount will end this month.
In an effort to cut costs, several hotels have even sent staff home on unpaid leave.
Employees of the Cesar Park Taipei Hotel, formerly the Hilton International Taipei, have been asked to take four extra days off without pay in April.
"Our occupancy rate dropped from 80 percent to 40 percent after all Japanese tour groups cancelled their reservations because of SARS," said Amy Chen (
The Grand Hotel also asked its staff to take an extra two to four days of unpaid leave per month, this month and next month in an effort to reduce payroll costs.
Grand Hyatt employees are also being encouraged to take their annual leave within the next two months.
"We hope that the [slow sales] situation will gradually pick up after May," Lee said.
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