Hainan Hotel Rates Capped for 2012-2013 Holiday Season

Authorities in Hainan Province have announced price-control regulations for the 2012-2013 winter holiday season. According to the policy, the overall price level for tourist services this year should be 10% lower than that for the previous year, and caps for charges such as hotel rates are set.

The cap for luxurious hotel rooms is ¥5,000 ($802.11) per room per night. Evidently this will not have an effect on most hotel rooms. Also, for a buffet breakfast a hotel cannot charge more than ¥300 ($48.13); for a lunch, the cap is ¥400 ($64.17).

In recent years spending the winter holidays in the sunny, warm Hainan Island has become increasingly popular among Chinese vacationers. This has driven up the hotel rates in popular destinations such as Sanya dramatically, causing complaints about profiteering. In response to the criticism, the Hainan provincial government has resorted to price-control measures.