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Occupancy at star hotels grew 5% in Oct

Star hotels in the capital reported a nominal 5 percent growth in room occupancy in October - the peak tourist month, compared to October 2011. They, however, reported significant growth in revenue during the month.

Hoteliers say the vibrant Chinese market saved their business after visitor arrivals from Europe -- the major market for city hotels - slowed during the month.

The number of Chinese tourists to Nepal have been growing rapidly since 2011 when the number of visitors from the northern neighbor increased by a whopping 80 percent. Senior officials at star hotels said increasing purchasing capacity of Chinese tourists, who rank among top three nationalities in majority of star hotels, contributed to revenue growth during the month.

“Chinese nationals were considered budget tourists till a year ago,” Bharat Joshi, resident manager at Hotel Yak and Yeti, said. “This perception, however, has changed now.”

The hotel reported 86 percent occupancy in October, posting a rise of 6 percent compared to October last year.

“The revenue side, however, looks stronger. Our revenue grew by around 15 percent,” said Joshi.

Similarly, occupancy at the 260-room Radisson Hotel Kathmandu stood at 82 percent in October. Although the occupancy is lower by 3 percent compared to last year, the overall business can be considered good as the hotel added 100 new rooms this year only.

“The overall business was good. The revenue side and the movement of Chinese tourists were significant throughout the month,” said Karuna Manandhar, public relation executive of Radisson Hotel Kathmandu.

Gokarna Forest Resort also reported 30 percent growth in revenue during the month. “Comparatively, the occupancy does not look overwhelming as we received some last minute cancellation,” Rojin Shakya, business development manager of the resort, told Republica. “Nevertheless, we had 85 percent occupancy, a growth of 4 percent compared to October, 2011.”

Amir K Pradhananga, director of sales at The Everest Hotel, echoed Shakya. “Though occupancy growth was minimal, the revenue side was encouraging during the month," said, adding, “We have observed a remarkable growth in the movement of high-end tourist compared to other time."

According to hoteliers, the movement of tourists from Japan and European countries was down this year because of weakening economy in those countries.

source: republica,1 Nov 2012