Hotel Industry in China
Global activity strengthened during the second half of 2013, as anticipated in the October 2013 World Economic Outlook (WEO). Activity is expected to improve further in 2014–15, largely on account of recovery in the advanced economies. Global growth is now projected to be slightly higher in 2014 at around 3.7 percent, rising to 3.9 percent in 2015, a broadly unchanged outlook from the October 2013 WEO. But downward revisions to growth forecasts in some economies highlight continued fragilities, and downside risks remain.
General Facts about Chinese Economy:
China's GDP grew 10.0% in 2003, 10.1%, in 2004, and even faster 10.4% in 2005 despite attempts ...view middle of the document...
3 percent in real terms, while that for urban residents gained 7 percent.
The Gini coefficient, an index reflecting the rich-poor gap, eased to 0.473 from 0.474 in 2012.
Hotel Industry in China:
China’s gross domestic product might have softened last year, but hoteliers’ optimism for the emergent market has scarcely waned. And with early indictors suggesting a faster year-on-year pace of growth for the first quarter (8.1%) compared to the fourth quarter’s 13-year low of 7.8%, the outlook for the country’s hotel sector is looking brighter than ever. There’s literally more new economic growth in China today than anywhere else on the planet. And in the end what drives growth in the hotel business, what drives the expansion of our footprint is business activity, the number of people and the availability of capital. China has all three of those in a way that is literally unprecedented. For hotel industry, infrastructure development is one of the biggest drivers.
China’s hotel market has grown rapidly in recent years, and future growth prospects also look good, but there is also rising competition in the market. While the number of Chinese people travelling for work and leisure has increased, driving the dramatic increase in new hotel openings, hotel chains now face catering to the needs of an increasingly diverse range of travel needs and differentiation among hotel users.
In the five years through 2014, the Hotel industry in China has been growing 9.3% on average to an estimated $47.7 billion. However, growth has been slowing over the period. A particularly bright year for the industry was 2010, due to the Shanghai Expo and the Guangzhou Asian Games, which resulted in a surge in foreign tourists entering the county. In 2012 and 2013, the number of international tourists is estimated to decline by 2.7% and 1.8%4, respectively, curbing industry revenue growth.
In accordance with China Hotel Industry Report, 2012-2015 released by Sino Market Insight, the sales of Chinese hotel industry will reach RMB 308.6 billion in 2015 (50.38 billion US $).
The economic development and the residents’ rising demand for business travel will further promote the development of Chinese hotel industry in the future. On the one hand, China has a huge population base and the residents are changing their consumption concept and will increase their expenditure on tourism; and on the other hand, the Chinese government has introduced a string of policies concerning tourism & hotel industry and provides support in capital, technology and human resources.
China’s hotel industry has experienced meteoric growth. Some analysts suggest the market is reaching its saturation point, but when compared with hotel penetration rates in mature markets—the United...