The occupancy rate of Shanghai hotels was currently sitting at 40 percent - a sharp decline from the same period last year, the city's tourism authorities said yesterday, Shanghai Daily reported.

From January to October, the occupancy rate of local hotels was about 55 percent, according to the Shanghai Tourism Administrative Commission. "Once the occupancy rate is lower than 60 percent, the hotel will face a loss," said Dao Shuming, director of the commission.