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Tourism Bureau to probe BOT hotel's rates

The government's efforts to lure foreign tourists by building lower cost hotels has hit a bump, with the Miramar Garden Taipei, a build-operate-transfer (BOT) project,accused of charging higher-than-allowed rates.

Miramar Garden Taipei, which opened in late May, is required by contract to cap its average room rate -- excluding breakfast and service fees -- at NT$2,300 (US$71.2) a day for the first three years of the contract. That is almost half what five-star hotels in Taipei charge.

In its fourth year of operation the hotel can apply to the Tourism Bureau to increase its rates in line with market conditions.

However, when making reservations on ezTravel.com (易遊網), one of Taiwan's top three online travel agencies, the lowest rate listed for a double room at the hotel is NT$3,199 and rates go up to NT$5,499.

The hotel defended its policies yesterday, saying the NT$2,300 rate could be met through discounts to tour groups and that rates might fluctuate by season.

"At the moment we are adhering to the contract signed with the Tourism Bureau," Roger Huang (黃崧瀚), Miramar Garden Taipei's public relations manager, said in a telephone interview yesterday.

However, Huang refused to detail the range of the discounts available, citing confidentiality.

Local tour agencies have complained about the hotel's rates and questioned whether the contract was honored.

"We've contacted the Miramar Garden Taipei but the room rates given are all more than NT$3,000 per night. Besides, how could you book rooms without purchasing breakfast, which would push the prices even higher?" said Jack Lin (林健興), manager at South East Travel Service Co (東南旅行社).

Considering the sky-high rates that Taiwan's hotels charge, it is difficult to attract foreign tourists, let alone Chinese tourists or backpackers, he said.

Miramar Garden Taipei outbid six rivals in November 2003 to obtain a 50-year lease to develop a parcel of state-owned land at the intersection of Jianguo N Road and Civic Boulevard for NT$27 million and 8 percent of the revenues.

The costs saved by not having to buy the land was supposed to be reflected in the room rates.

The Tourism Bureau said yesterday that it had not amended the contract and it would launch an investigation to determine if the contract had been breached, bureau section chief Chu Chuen-wai (朱傳緯) said.

The bureau signed another 50-year BOT deal in January with Leofoo Development Co (六福開發) to build a three-star hotel in Taipei.

The company is required to pay a royalty of NT$32 million and 4 percent of the revenues for the contract -- and cap its rates at NT$2,300 a night.

The project is expected to be completed at the end of 2008.

"We hope this new hotel can really offer low rates as stipulated. Otherwise, no matter how many slogans the government devises, tourism is unlikely to be boosted," said a tour agency executive who refused to be named.
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