China’s ‘outdoor barbecue capital’ Zibo joins cities capping hotel room rates ahead of May Day holiday

Zibo in Shandong province has become the latest Chinese city to put a cap on hotel room rates ahead of the upcoming holiday, also referred to as ‘golden week’
The city, which recently found online fame for its barbecue restaurants, is limiting the increase to 50 per cent

China economy

Elise Makin Beijing

Published: 10:05am, 27 Apr 2023

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Zibo in Shandong province has become the latest mainland Chinese city to put a cap on hotel room rates ahead of the upcoming May Day holiday, also known as “golden week”.

Local authorities in the eastern city have stepped in to rein in prices during the five-day national holiday that starts on April 29, allowing a maximum 50 per cent increase.

The little known eastern city suddenly emerged as a popular destination this year after being dubbed the “outdoor barbecue capital”, sparking an online craze. Hotels in the city centre are “basically fully booked” for next week, local authorities said on Wednesday.

The city became a trending topic on social media again when a tourist said he was informed by the Hilton Garden Inn Zibo Zhangdian hotel that the room he had booked for over 1,000 yuan (US$144) on May 1 would now only cost 571 yuan. The manager explained to him that the government is trying to stop hotels overcharging and has put in place measures to regulate prices.

A member of staff at the hotel confirmed the policy to the Post, saying the current prices are the normal rates.

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Chinese city of Zibo named new ‘outdoor barbecue capital’ sparked by online craze

At Hampton by Hilton Zibo Zhangdian, another hotel under the franchise, a staffer surnamed Zhang said “the government allows room rates to be adjusted within 50 per cent of the original price.”

The hotel is asking 658 yuan for a room per night during the holiday, up from 498 yuan previously.

In comparison, room rates at Hampton by Hilton Jinan High-Tech Zone in the neighbouring city of Jinan start from 1,098 yuan per night. Other cities such as Tianjin and Suzhou have seen prices double or triple between May 1 and May 3.

Zibo is not the only recent example of Chinese authorities intervening in the hospitality market to keep prices in check ahead of the golden week.

On April 21, market regulators in Dali, a popular destination in southwestern Yunnan province, told guest house operators to “make prices transparent” and not to “raise prices arbitrarily” during the holiday.

Officials in Changsha in Hunan province, Yanbian in Jilin, Jining in Shandong as well as Jiangsu province have issued similar warnings.

Zibo is seeing a huge influx of visitors who are drawn by the open-air barbecue stalls there. On Wednesday, local authorities warned that the city is beyond its capacity to receive so many visitors.

The city’s move to regulate room rates gained a lot of praise on social media, in the wake a recent public outcry over guest houses across China cancelling bookings and hiking their prices for the holiday period.

“Although hoteliers are unable to tap ‘quick money’ during the golden week, the city is working on improving its tourism industry, and the hotel occupancy rate will still go up during the low season. This is still a good business deal,” one user wrote on Weibo, China’s popular social media platform.

“Zibo, I owe you a train ticket and a barbecue meal. I will return the favour soon,” the user added.