A slew of high-end hotels that will soon be opened in Shanghai and neighboring cities are set to raise the bar in the city's effervescent hospitality industry.
Despite the global economic slowdown, hoteliers have not hesitated to unveil their latest offerings to entice the affluent, with industry experts estimating an addition of 3,000 new luxury hotel rooms to Shanghai between 2016 and 2018.
Many of these rooms will come from Shimao Hotel in Sheshan, the world's one and only quarry hotel that is still under construction, the W Hotel in Shanghai and the ultra-luxury J Hotel in Shanghai Tower by China's State-owned hospitality group Jinjiang International.
The Shanghai Disney resort which opened last June and the National Exhibition and Convention Center will be the two key growth engines for the luxury hotel sector in Shanghai, according to HVS, a global hospitality services provider and consultancy. HVS also said that these two factors will drive occupancy rate in Shanghai's five-star and luxury hotels up by 2.5 to 3.5 percent over the next two to three years.
HVS data also showed that the average occupancy rate of Shanghai's five-star hotels has steadily grown from 59 percent in 2011 to a forecasted 68 percent this year. The average room rate per night in the city during the same period, however, experienced a drop from 1,042 yuan ($151) in 2011 to 907 yuan in 2013. It is expected to rebound to 1086 yuan this year.
A report by real estate consultancy Colliers International pointed out that turmoil in several key international tourist destinations in Europe could also provide a major boost to domestic tourism.
According to the United Nations World Tourism Organization, China has been the world's largest source of outbound travelers since 2012, and it is also likely to surpass the United States and France to become the top tourism destination for international travelers.
Fifteen cities in China now allow 72-hour visa-free entry for nationals of certain countries. Travelers from 51 countries, including the United States, who are visiting Shanghai as well as the neighboring provinces of Jiangsu and Zhejiang can enjoy up to 144 hours of visa-free transit in the Yangtze River Delta.
