Shangri-La sees mainland improvement

Shangri-La Asia is confident about its prospects this year, despite what it calls 'continuing softness' in Chinese hotel occupancy rates and a fall in long-term bookings in Hong Kong after the handover.

'The softness in the China market last year has continued into the first four months, but we are still optimistic 1997 will be a satisfactory year in China,' managing director Paul Bush said.'In recent weeks, there has been an increase in the market.' Shangri-La has nine hotels operating in China with interests in 11 more projects.

The group's China hotels, excluding the three new ones opened last year, had occupancy rates of 64 per cent in the first quarter of this year, the same as last.

Chairman Liu Tai Fung said: '[Last year] saw a slackening in business arrivals, particularly in Beijing and Shanghai, and shorter lengths of stay.

'Shangri-La hotels were affected but our experience has shown that rebounds in business can come very quickly and we will be well-positioned to take advantage of an expected recovery in demand.' Mr Bush said the group's Hong Kong hotels were full during the handover but forward bookings, particularly in the next two months, had fallen off.

He expected a pick-up in occupancy in September, when about 10,000 delegates will arrive in the territory for the World Bank/International Monetary Fund meeting.