The Trends of China's Hotel Industry in 2009

2009 year is a year of both opportunities andgood hotels in economy hotels.
challenges to China's hotel industry. The financial crisisTourism hotels: the outlook is still broad
will further expand, it is a big challenge to China'sFrom the view of the entire economy, tourism has a
hotel industry, while the industry "shuffling period" hasbright future, and it is predicted that in 2010 China will
also brought development opportunities to countlessreplace Spain to the second place, surpass France
China hotels. The development of the economyand move up to the first place in 2020. The United
hotels and tourism hotels in 2009 will emerge aNations World Tourism Organization predicts that by
different situation.2015 China will become the No.1 tourist receiving
Economy hotels: they are good hotels if they cancountry, and the fourth largest tourist source country
remain in the financial crisis.in the world. The domestic travelers will reach 2.8
As the financial crisis continues to expand, the guestsbillion people, outbound tourism will reach
have reduced and the rates of hotel occupancy are100 million people, and the total tourism market will
lower, the economy hotels have also started to feelreach 30 million people. The tourism industry
"cold". Recently, seven days chain hotel, Rujia, Jinjiangassociated with 109 industries and 39 sectors of our
star and other hotels have also launched a variety ofnational economy, the development of related
disguised price cuts promotional strategies, and it isindustries will promote tourism industry in different
said to be the sharpest discount over the years.degrees. The tourism industry is an important part of
However, the vice president of China Tourismstimulating domestic demands.
Research Institute Dai Bin said that, at present theWhat's the most important is that the development
economy hotels account for 10% to 20% in the totalof China tourism is bound to drive the development
hotels proportion, which is far below the Unitedof China's hotels.
States and European countries, an average of 60%China property hotels.
to 70%. For the long run, the business volume ofMore than 500 property hotels in China will establish a
economy affect smaller than star hotels in China, due"Asia-Pacific co-management association", to resist
to the price advantages, and instead China economythe impact caused by global economic recession.
hotels will face a new round of developmentThe property hotels are a special kind of hotel
opportunities. The economy hotels should seek aoperation model, that is make the hotel room as a
breakthrough in innovative service and open marketunit, the developer will divide the separate rooms into
segments.a individual property and then sell to the investors,
China Market Research Group expects that theinvestors then entrust a hotel management company
revenues of China's economy hotels will increase byto rent all the rooms to people, in this way the
12% to 15%.investors can obtain annual profit. In recent years,
In 2009, the competition between economy hotels isthis kind of hotels have developed rapidly in China, at
still the competition of brand, service, operatepresent, the total of this hotels in China reach more
capacity and cost control. The hotels remained arethan 700 hotels.