According to Australian Hotels Association Western Australia, hotels in Western Australia have reduced their room rates by as much as 68% during the current economic slowdown.

Since March 2009, hotels have reported a decline of 10% in occupancy and 15% in revenue and it was estimated that there was almost a 50% drop in the visitor arrivals from Japan, Britain and the United States as compared to the same time period in 2008.

The association expects the discounted room rates to persist for a few months and it is likely to affect investments in the industry in the short-term.

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