Industry Analysis & Industry Trends
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 declined by 2.7% and 1.8%, respectively, curbing industry revenue growth.
Foreign enterprises, which have a significant impact on the industry's development, 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.... purchase to read more
Industry Report - Industry Investment Chapter
The capital-to-labor intensity level measures the amount of labor used in the provision of services by this industry as opposed to capital costs. To calculate the ratio, wages and depreciation costs are used as proxies for labor and capital, respectively.
In the Hotel industry, for every dollar spent on wages, 81 cents are spent on capital, indicating a high capital intensity. While the industry is generally labor intensive, like all other hospitality industries, wages in China account for a relatively lower share of industry revenue compared with depreciation. Although the number of employees is large, continuous investment in fixed assets has contributed to higher levels of capital required in this industry... purchase to read more