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Over-priced hotels and tighter visa restrictions amid tight security due to terrorist threats are casting a dampener on the much-anticipated hotel boom for the Olympic Games, due in just over three weeks.

Average bookings had witnessed “a slight drop” leading up to the Aug 8-24 Games with four-star hotels less than half booked, a city tourism official said Tuesday.

“At the end of May, five-star hotels had an average reservation of 77.6 per cent for the Olympics and bookings of four-star hotels were 45.5 per cent while hotels below three-star were 50 per cent taken,” Xiong Yumei, Beijing tourism administration deputy director told a news conference.

Xiong said there were more five- and four-star hotels compared with last year and average rates had dropped compared with March prices.

Games spokesman Sun Weide said he had not heard of competition tickets being returned by foreigners because they were unable to obtain visas.

He said the visa policy was to ensure the security of the Games and China would take all steps for a peaceful Games.

An hotelier at an international chain five-star establishment blamed over-priced rooms although stricter visa screenings have affected demand.

“Many hotels are out to make a fast buck. Some are charging as much as us although they don’t have the service or facilities to match,” said the hotelier who declined to be named.

A check with a five-star hotel located close to the city’s main Chang’an Avenue revealed that a standard room costing 1,000 yuan including taxes will be 8,000 yuan excluding taxes from Aug 7 until the Games are over. (RM1=2.1 yuan)

Xiong said the average price of a four-star room in May was going for 2,185 yuan or 42 yuan, cheaper than in March, while a three-star room starts at 1,523 yuan, lower by 33 yuan.

She expects occupancy to be higher during the Games because many locals from outside Beijing have not made their hotel arrangements yet.

Beijing is expecting some 450,000 foreign visitors for the Games from 420,000 last August, with the majority being Olympics spectators.