Shangri-La Asia expects occupancy at its Hong Kong hotels to return to normal in the third quarter, with business picking up quickly after the World Health Organisation lifted its travel advisory on Hong Kong.
Chief executive and managing director Giovanni Angelini said the occupancy rate at the two hotels - Island Shangri-La and Kowloon Shangri-La - had dipped to less than 10 per cent at the worst stage of the Sars outbreak but had rebounded to 20 per cent.
Mr Angelini said the group was also set to benefit from the lifting tomorrow of the mainland's government ban on travel between Guangdong province and Hong Kong. Mainland tourists accounted for more than 10 per cent of the group's turnover. 'The news is good for all hotels,' he said.
Mr Angelini expects the occupancy rate at the group's Hong Kong hotels to reach 50 per cent in the first half of this year, compared with about 70 per cent a year ago.
'We are now seeing some business travellers coming back,' he said.
The company's proposal to scrap its final dividend of five HK cents per share for last year yesterday won approval from shareholders. The payment would have cost the group US$13.97 million.
