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Corporate Social Responsibility & Sustainability in China

Corporate Social Responsibility in China

Hotels In Guangzhou Disregard Price Limit Rule

October 11, 2006
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News

Ignoring government pricing limits, several hotels in Guangzhou are found to have raised their room rates before the Guangzhou Trade Fair.

Conference Hotel Pazhou is one of such hotels. As a 2-star hotel, the standard room rate should be lower than RMB439, and even twin bed room rates can not be above RMB483 according to the government's price limit. However, the hotel has increased its twin bed room price to RMB870 per night.

In addition, several other hotels, including Huashi Guangdong Hotel, have added service surcharges in their room rates. The upper limit for Huashi Guangdong Hotel's price should be lower than RMB1331, but its pricing for the fair was RMB1500 per night. A representative from the hotel has told local media that they added a 15% service charge on top of the price becasue the government's rules do not limit the adding of this charge.

Because the local pricing department only sets limits for standard rooms, several hotels, including some international 5-star hotels, said that they do not have standard rooms on October 19 and 20 and only offer deluxe executive suites which are priced above RMB2500.

According to local media, the high room rates have had a negative effect on the Guangzhou Trade Fair. Some exhibitors say that they might consider renting apartments when they attend the fair next year.

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