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    Faster, higher, costlier

    By Si Tingting (China Daily)
    Updated: 2007-04-13 10:08

    Some people say sports are all about money. They are for some.

    Now major international hotel chains and tiny hostels in Beijing have one thing in common: they both plan on milking the Beijing Games for all they're worth.

    "We plan on charging guests 600 yuan ($78) per night during the 16-day Games and we have 200 beds," said the executive manager of the Zhaolong International Hostel, who preferred to be identified with his surname Li. "So do the math."

    The sum total of one entrepreneur's Olympic gold rush? A hefty 1.92 million yuan ($248,383).

    The story right now could hardly be more different.

    Even though spring in Beijing is considered by some locals to be the most beautiful season, occupancy rates are low and one bed in a six-bed room can go for as little as 60 yuan a night, said Li.

    With hoteliers struggling to let out half of their beds, they can expect to boost their incomes by up to 20 times during the Games.

    Beijing is anticipating welcoming about half a million spectators and tourists from abroad next August. Many of those who stay longer than five days will opt to stay in a budget hotel.

    Balancing costs

    "We have surveyed guests from former Olympic host countries like South Korea and the US to figure out how we should price our rooms," said Li.

    "After we consulted with other hostels in Beijing about their prices, we decided that 600 yuan per bed was pretty fair," he said, adding that there is no market regulator setting ceilings on room rates.

    For Zhang Wei, however, secretary-general of the Beijing Youth Hostel Association, this price is too high by half.

    The youth hostel association now has 30 branch hostels in Beijing capable of housing 4,300 tourists.

    "For the 30 or so hostels in my association, I would be satisfied with 300 yuan per bed per day," he said.

    "Besides, we are on good terms with some tour agencies in a number of European countries, and we have to give them preferential treatment despite the Olympic gold rush."

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