Plenty of room at the inn for the Canton Fair as economy bites

Concerns over poor advance hotel bookings in Guangzhou for the biggest trade fair in China has cast a shadow over waning demand for the country's exports.

The upcoming Canton Fair, which serves as an unofficial barometer of the health of the foreign trade sector, is set to run in the city from October 15 to November 4 and will showcase products from electronics and machinery manufacturers as well as gifts, housewares, garments, and shoes.

But with the start of the fair less than one month away, the hotel industry is complaining of poor advance bookings. A sales manager of a Guangzhou hotel said the four-star hotel had struggled to attract bookings even after a significant price cut.

"Our standard deluxe rooms were fully booked during previous fair seasons even when they were priced at 1,800 yuan (HK$2,000) a night. But we have yet to secure satisfactory bookings this season with rooms now selling at 1,200 yuan per night," she said.

"Part of that is because the global economy has yet to pick up and the other factor is that China's upcoming 18th party congress is not making visa approvals any easier."

According to the sales manager, bookings were either cancelled or had yet to be confirmed under the tighter visa screenings for foreigners visiting during the period - which coincided with the once-in-a-decade leadership reshuffle in China.

"A group of our usual German guests are still waiting for their visas to be approved and they are not sure if they can get their visa on time, or at all," she said.