Tight security, visa restrictions and high fares deter Olympic tourists

Tight security restrictions and higher prices are hampering domestic demand for Olympic package tours in China and reducing the number of overseas visitors, travel agencies and hotels have warned.

The Chinese government has made security a top priority for the games, but some of its stringent measures are deterring people. A clampdown on visas has cut the number of international business travellers, while tour companies reported that Chinese people had been put off by the security checks and cost.

"Fewer people are going to Beijing because the ticket prices are too expensive and there are too many strict rules to get into the city," said an employee at the China Travel Agency in Chongqing.

Hospitality industry insiders report that several large hotels are running at anything from 50-70% occupancy while some smaller places are struggling to book more than 50% of their rooms. Even the state newspaper Shanghai Daily reported that the appetite for Olympic trips was considerably lower than expected.

Zhang Lei, a spokesman with the Shanghai-based Spring International Travel Service, told the paper that its special packages had met "a slack response", with only 1,000 customers taking up the offers - around half the number expected.

Yin Jun, manager of the Jiangsu provincial branch of China Travel Service, blamed the prices of accommodation and tourist buses, saying the cost of packages had tripled to above 6,000 yuan (£440).

Officials have forecast that about half a million foreign visitors, and an even greater number of domestic travellers, will come to the city for the games.

But asked if tourist numbers were lower than expected, an official at the Beijing Tourism Bureau declined to comment yesterday. "The government will not talk about anything negative," said the man, who gave his name only as Mr Song. "If the matter was something positive, then maybe we could talk about it more."

At the higher end, many four- and five-star hotels are booked out for the games. A staff member at the Hilton said it would be full next month because it was hosting six countries' national organising committees. But she added: "There have been fewer guests in the period before the Olympics."