The hotel industry, already suffering from a fall-off in bookings, is expected to be further crippled after the government announced a two-week ban on travelers from Hong Kong and China as a result of the outbreak of severe acute respiratory syndrome (SARS).
"The decision may cause our business to go from bad to worse," Chen Lieh (陳烈), general secretary of the International Tourist Hotel Association of Taipei (台北觀光旅館公會) said yesterday.
PHOTO: AFP
Hotel occupancy in Taipei, averaging 40 percent in early April, reportedly slipped to 10 percent last week after Westerners and Japanese cancelled trips because of SARS fears.
Chen made the remarks after Premier Yu Shyi-kun announced an immediate halt in issuing visas to people from SARS affected areas, including Hong Kong, China, Singapore, Vietnam and Toronto.
The decision is expected to impact three-star hotels in Taipei, which are popular with visitors from Hong Kong and China.
"Of course our business will be hurt following the decision," said an official surnamed Chiang at the Cosmos Hotel (
Nearly 80 percent of the hotel's customers are from Hong Kong and China.
Chinese visitor numbers had already plummeted ahead of the announcement, he said.
Only one group tour from China arrived at the hotel yesterday, while five to six groups checked in daily in April last year, Chiang said.
After the start of the SARS outbreak in Taiwan in late March, five-star hotels began seeing arrivals of their key clientele -- Americans and Europeans -- nose-dive.
In response, hotels slashed prices on room rates.
The Westin Taipei, Grand Hyatt Taipei and other first-tier hotels reduced standard room prices by more than 50 percent in an effort to attract business from local residents.
While most hotel promotions were scheduled to run through the end of April, Chen predicts the price cuts will continue.
"We originally expected that the spread of the outbreak would be controlled and hotel business would be better in May," Chen said. "But, this now doesn't seem to be the case," she said.
Taiwan reported its first SARS-related death yesterday.
Many hotels may continue the promotions, but "for the long-term, in order to survive we will have to seek help," Chen said.
Hoteliers are considering asking the government for financial assistance such as short-term loans.
"Next week we may make an appeal to the government through the Tourism Bureau," Chen said.
Meanwhile, a major trade show organizer said yesterday that the ban's impact on attendance should be limited.
"Foreign buyers from the US and Europe are the nation's major clients, while few visitors come from across the Strait," said Chao Yung-chuan (
Last year, Chinese comprised only 590 out of a total of 20,000 foreign buyers at the nation's top trade show, Computex Taipei, he said.
This year the show runs from June 2 to June 6.
A recent survey of potential Computex visitors showed that nearly 20 percent will skip this year's show because of SARS fears. Another poll of the same group is expected to come out in the next few days.
If the response is gloomy, the council may postpone the show, Chao said.
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