Money
Parking lot operators: Fee hikes put us on spot, too
By Shi Jing (China Daily)
Updated: 2010-04-08 07:52
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Parking lot administrators in Beijing's major shopping areas fear the city's increase in parking fees this month could kill their businesses.
Parking fees were raised April 1 in the 13 retail districts of the capital. Fees have risen to 10 yuan per hour from 5 yuan in the lot off Huayuan Street in the Xidan area, a major commercial area.
The fees have risen to 10 yuan per hour from 2 yuan at another lot south of the Xidan intersection.
While car owners are frowning upon the rising parking fees, lot owners are worried about their financial survival because they expect fewer people will park in lots where the fees have increased significantly.
Ever since the fees went up, administration companies have been paying 35 yuan daily for each lot they operate, up from 15 yuan before April.
Some administration companies said the parking fees they receive every day cannot even meet the lot charge.
If the deficit cannot be addressed, some companies will be forced out of the market.
"It is hard to say when business will pick up again. But it can be said for sure that it will not recover within a short time," said a director surnamed Yu from the administration company of the New World Department Store parking lot.
"Nobody will park their cars if we charge them 10 yuan per hour. Our company has 200 lots. Ever since the fees were raised, our daily income can only reach 4,000 yuan per lot, at most. We are losing money every day," said Yu.
Yu also said the company has also been paying more for the land the lots occupy ever since the parking fees grew. The company's operating costs per lot amount to as much as 7,000 yuan every day, excluding employee salaries.
"If there is no improvement, the company will go bankrupt," said Yu.
The Beijing Municipal Commission of Transport said that it cannot predict how administration companies will be affected by the increase in parking fees.
The government will undertake a one-year trial to charge the 35-yuan car lot fee and examine the results next year.
If the companies do not see better returns by that time, the government will eliminate the fees, according to the commission.
