Industry Analysis & Industry Trends
Industry revenue in the Motels industry in China is expected to increase by 2.1% in 2011 to $21.4 billion, with an annualized growth rate of 6.3% for the five years to 2011. This follows an 11.9% increase in 2008 due to a jump in demand from the Beijing Olympic during the year.
There is expected to be a total of 73,957 motel enterprises operating 75,457 establishments in the industry by the end of 2011, employing about 2.2 million people with an estimated payroll of $3.45 billion.
Currently, this industry accounts for around 35% of China's accommodation sector. Around half of the sector's revenue is generated by tourism hotels, which provide better services and surroundings.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry outline the factors that may prevent a potential player from entering the industry. A key factor used to assess entry barrier is real estate prices in China, which continue to increase significantly, especially in developed cities and tourism areas. Therefore, capital required for constructing or acquiring a new motel is high.
The competition for locations in the industry is intensive. Locations that are exposed to high levels of traffic are relatively rare in the market, as most good locations are already occupied by existing participants.
Both budget hotels and family-operated hotels have developed rapidly in China in recent years... purchase to read more