Companiesandmarkets.com

Chinese hotel market to increase at an annualised rate of 7.4%

Press Release   •   Dec 09, 2013 10:28 GMT

The Chinese hotel market has grown by 6.9% on average over the past five years to reach an estimated value of $44.1 billion in 2013.

However, growth has been volatile over the period due to a number of macro-economic conditions like the global recession in 2009 and non-economic factors like natural disasters and strict visa limits during the 2008 Beijing Olympic Games.

The number of international tourists is expected to decline by 2.2% and 2.7% in 2012 and 2013, respectively, curbing industry revenue growth together with tightening of government spending and economic slowdown.

Foreign enterprises have a significant impact on the industry's development, and have introduced brand and chain management concepts and high service standards to China.

They have strong and dominant positions in the high-end market, but have recently started moving into the lower-star rated segments.

Many foreign hotel management companies have started developing hotels with four- and three-star ratings to capture a larger spectrum of customers and strengthen market positions.

According to a recent market report, 'Hotels in China,' 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.

The Chinese hotel industry will continue to expand over the five years through 2018, driven by rapid growth in China's economy and the development of the tourism sector. Demand is expected to grow in terms of number of tourists and of average per-guest expenditure.

Industry revenue will increase at an annualised rate of 7.4% to reach a value of $63.1 billion over the next five years.

For more information on the Chinese hotel market, see the latest research: Chinese Hotel Market

Follow us on Twitter @CandMResearch

Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.