As post-election political stormclouds hover over the nation, five-star hotels are receiving fewer bookings than expected for this month, which used to be a boom season for the sector, industry officials said yesterday.
With a fall-off in bookings over SARS fears one year ago, hotels had pinned their hopes on this month, when a number of trade shows are held in the capital, and expected a jump in occupancy rates.
"But because of the ongoing demonstrations over the presidential election result, especially in front of the Presidential Office building, the hotel business is not good now," Duke Nam, the general manager of The Westin Taipei, said yesterday.
"The business only grew by 20 percent compared with March last year," Nam said.
As the hotel sector finally broke away from the shadow of SARS, it nevertheless suffered again after the bird flu outbreak and now from political instability, he added.
"We hope that the [slow sales] situation will gradually pick up after May," he said.
Nam said many Japanese tourists have postponed their trips at this point. "They won't come until May 20," when the presidential inauguration ceremony is held, he added.
Grand Formosa Regent Hotel relies heavily on Japanese clients, who account for 45 percent of its customer base.
"The business is down by around 10 percent compared with the same period in 2002. We expect Japan's `golden week,' which starts April 26, will bring in more tourists and raise revenues," Ellen Chang (張筠), marketing and communications manager at Grand Formosa Regent, said.
An official with Caesar Park Taipei Hotel shared her view.
"The Japanese tourism market has not returned to normal. But I believe the post-election effects are only short-lived, and we expect the situation to improve this week, more than half a month after the election," said Amy Chen (
All three officials agreed that the political uncertainty has a bigger impact on leisure tourists, while the corporate client market is growing strong.
As a result, these hotels are refitting their in-room facilities with the hope of further consolidating their corporate client base.
"We have forked out nearly NT$22 million to install 130 42-inch plasma display panel (PDP) televisions in 60 percent of the rooms and wireless Internet services to offer high-quality in-room entertainment for those on business trips," Nam said.
"Westin Taipei aims to become the most digital, top-notch business-oriented hotel in Taiwan," Nam added.
Grand Formosa Regent is also upgrading its services by introducing the "All Butler Service," which means that corporate clients who stay in the "Tai Pan" -- a traditional Chinese-language term for CEO -- suites on the 18th and 19th floors of the hotel can use the services of a personal valet. The hotel has also installed lounges and changed the furniture on the floors, and plans to inaugurate the "hotel within a hotel" concept on May 1, Chang said.
To reflect costs, all the hotels have raised room rates by an average 3 to 5 percent this year.
"We don't think customers will be scared away by the rising rates, as better services are now available," Chen said.
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