Dongguan Hotels Suffering, Occupancy Down 90% After Sex Crackdown
Posted: 04/25/2014 9:14 amMore than two months into Dongguan’s sex trade crackdown, the once bustling city is currently suffering from dwindling visitor numbers and a tepid hotel business that used to generate RMB 300 million ($48 million) in revenues annually, Time Weekly reported on April 24.
Visitors at Houjie, one of the main red light districts in Dongguan, have dropped 50 to 60 percent since the February crackdown, said one cab driver surnamed Li. Meanwhile, a downtown center in Houjie called Kangle Nan Lu has seen an 80 to 90 percent drop in visitor traffic. Li estimated that at least 80,000 people have left the town after the crackdown.
One person associated with a 5-star hotel in Houjie said, “The hotel business has entered a cold winter.” The city’s number of 5-star hotels is the third largest nationally after Beiing and Shanghai, but the crackdown has put a brake on investments towards its hotels.
Another reason Dongguan hotels are expecting more lean times is due to the government clampdown on extravagant government spending. Five-star hotels were often the venue on which government officials splurged public spending on lavish meals.
Despite government’s hardline stance on the sex trade, some brave souls have managed to keep the old business afloat. One person called Ah Jing still ferries prostitutes to different hotels. Currently managing 15 prostitutes, Ah Jing drives the xiaojie to the customer’s hotel for the special service.
It is hard to predict how long the aftermath of the crackdown is going to effect the city. However, it seems the effect is continuing to ripple wider and wider at the same time the city is also battling dwindled export figures as the country’s economy slows.
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