The average daily room rate at the local branches of international hotel chains last year hit a record NT$4,195, despite relatively low occupancy rates due to the COVID-19 pandemic, the Tourism Bureau said yesterday.
The average occupancy rate at such hotels was 48.06 percent, the fourth-lowest on record, but the average room rate increased for a third consecutive year.
Rising inflation and a lack of personnel were the major factors behind the price increase, said Huang Cheng-tsung (黃正聰), an associate professor at Providence University’s Department of Tourism.
Photo: CNA
Weak demand for hotel rooms brought down prices during COVID-19 outbreaks, Huang said.
However, large numbers of domestic tourists returned to the market after the disease was brought under control, leading to an increase in room rates, he said.
Chen Chia-yu (陳家瑜), an associate professor at Shih Hsin University’s Department of Tourism, said demand for middle and high-end hotel rooms has been stable, due to the popularity of group packages among domestic tourists, propping up room prices despite the pandemic.
Many hotels have had to cap their occupancy rates at 80 percent due to severe staff shortages and have raised room rates to maintain revenue levels, Chen said.
She said that room rates at international hotels would climb further as foreign tourists return following Taiwan’s reopening in October last year.
Room rates could return to or surpass pre-pandemic levels, because there appears to be no solution to the labor shortage in the short term, she added.
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