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Hainan tour market cools
19/11/2004 17:34

Jane Chen / Shanghai Daily news

With fewer tourists planning visits to Hainan Island since October, the island tour business has remained flat and prices have fallen, the Shanghai Morning Post reported.
The cost of a five-day trip to the island has plunged by one-third to around 1,000 yuan (US$121) at the Shanghai Airlines Holiday Travel Service, a travel unit of the Shanghai Airlines Co Ltd.
The company has had to mark down prices to attract customers, an official with Shanghai Air Holiday said.
He revealed that the occupancy rate of Hainan-bound fights from Shanghai has dropped to around 80 percent from 95 percent for the same period last year, an indicator of a slipping tour business.
The low price strategy is working well to boost the market, as 80 percent of Shanghai's tourists to Hainan are on the low-priced plan, according to Shanghai Spring International Travel Service.
The packages created for seniors, with lower prices and more loosely designed schedules, have been warmly received.  The trip sells at 1,800 yuan.
However, industry analysts predict the Hainan tour business will soon heat up, as winter is setting in.  Hainan, the southernmost province of China, is a popular tourist resort in cold weather, due to its tropical climate and landscape.
The island will see a travel peak for domestic travelers next January, when the traditional Chinese Spring Festival will occur, the analysts said.