China's Visa Policy Threatens Olympics Tourism

By David Barboza | The New York Times
June 24, 2008

The plush lobby of Beijing's Kerry Center Hotel is usually crowded with foreign guests, many of them listening to jazz and sipping martinis in Centro, the hotel's fashionable bar, or lining up for taxis after dinner at the Horizon restaurant.

But Thursday evening, Centro had only a sprinkling of guests in a hotel whose occupancy rate is typically close to 100 percent this time of year. That night, the duty manager, said it was 63 percent.

"Something strange has been going on," said Sun Yin, the duty manager. "I really don't know what happened."

With the Beijing Olympics less than two months away, hotel operators, travel agencies, and foreign businessmen say new Chinese visa restrictions are proving bad for business, casting a pall over Beijing during what was supposed to be a busy and jubilant tourist season leading up to the Olympic Games.

Chinese authorities acknowledged putting new visa restrictions in place in May -- after foreign embassies reported fewer visas being granted and tighter, sometimes seemingly arbitrary, restrictions. The government did not release guidelines detailing the changes in policy; it often does not. But a foreign ministry spokesman, Qin Gang, said in May that they would be temporary.

On Monday, Hu Bin, a visa official at the foreign ministry, said the ministry had no statistics on the number of visa denials, but that the new policies were put in place for "security considerations."

Travel business analysts had forecast that the Games would bring 500,000 foreign visitors and an extra $4.5 billion in revenue to Beijing this summer. But now, even though some five-star hotels are fully booked for the Olympics, many economists are beginning to doubt the city will get the kind of economic windfall it was hoping for.

Many hotels in Beijing are struggling to find guests; some large travel agencies have temporarily closed branches; and people scheduled to travel here for seminars and conferences are canceling. The number of foreign tourists visiting Beijing fell sharply in May, dropping by 14 percent, according to the city's statistics bureau.

Beijing residents, meanwhile, are complaining that heightened security measures could spoil what was supposed to be Beijing's long anticipated coming-out party. Despite years of careful preparation -- including teaching taxi drivers English and instructing locals in how to wait in a line (not common here), and spending billions on mammoth building projects for these Games -- Beijing is starting to appear less welcoming to foreigners.

"Business is so bleak," said Di Jian, the sales manager at the Capital Hotel in Beijing. "Since May, very few foreigners have checked in. Our occupancy rate has dropped by 40 percent."

Many other cities in China are also feeling the pain of fewer tourists, including Shanghai, where some hotels say occupancy rates are down 15 to 20 percent.

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