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Bathhouses may close after price increase

By Meng Jing (China Daily)
Updated: 2009-11-19 08:04

A car wash in Chaoyang district. Many car-washing businesses in Bejing do not believe they will suffer from the price adjustment.[China Daily]

Some of Beijing's 2,000 bathhouses may be forced to close after water prices are increased from tomorrow.

The Beijing municipal commission of development and reform announced on Tuesday that the price of water for commercial use would be increased by as much as 48.6 percent, based on the type of industry.

The price hike for the bathhouse industry is one of the sharpest. The price will be increased from 61.50 to 81.68 yuan ($9.01 to 11.96) per cu m - a hike of 33 percent.

He Peiyun, secretary-general of the Beijing Bath Trade Association, said it would be a disaster for the bathhouse industry in Beijing.

According to He, bathhouses are a necessity in many people's daily life. More than 100,000 people work in the industry.

She said only 25 percent of the bathhouses are profitable and about 30 percent are struggling.

"Most of the bathhouses can barely make money with the current price of 61.50 yuan per cu m, let alone 81.68 yuan."

Liu Decai, manager at Yunshuijian Spa and Bath Center in Mentougou district, said on average, one cu m of water is only enough for two customers.

"We charge customers between 40 - 50 yuan, plus we need to pay for the electricity, staff and also offer food and drinks. We can not make a profit if we don't raise our prices," Liu said.

Under the new pricing structure, the cost of water for car wash companies jumped from 41.50 to 61.68 yuan per cu m.

However, many car-washing businesses in Beijing do not believe they will suffer.

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Liu Yajuan, owner of West Sea in Haidian district, which receives up to 80 cars per day, said the new price is understandable because Beijing is suffering from a shortage of water.

"From the view of sustainable development, we cannot waste water on car washing. It's not environmentally friendly."

"In our shop, we use a water-recycling system so that we can reuse the water about three times. So the increase in price will cost me an extra 10 yuan every day."

The Beijing municipal development and reform commission will select 10 citizens to participate in a panel that will decide on a new price of water for residential use. The time has not yet been decided.

Beijing raised water prices for four times between 2000 and 2004. The current water price for residential use is 3.7 yuan per sq m.