China - Expansion Opprotunity or Just a False Down

China-expansion oppprtunity or a false dawn?

Introduction

China is the 4th largest country with most population(1.338 billion) in the world which occupies 9,596,961 square kilometers land area in eastern Asia (Central Intelligence Agency, 2010). China has 56 ethnic groups and 4000 years continuous culture, the multi-culture and long history bring up many attractive heritages(BBC，2010). In recent years China's economy has developed substantially, many industries have presented massive prosperity, particularly for China's hospitality industry. Beyond prosperous situation, many doubts have been debated in public whether it is an opportunity for expanding or a false dawn. Therefore, this study will:

 Firstly overview the development and future trend of China's hospitality industry

 Secondly indicate fragments of delighted macro-environment which can promote development of Chinese hospitality industry.

 Thirdly demonstrate critical issues and risks for Chinese hospitality industry.

Overview of China's hospitality

In recent years, China's hospitality industry has a booming expansion. According to statistics from China's Ministry of Commerce in 2007 total retail market increased 17.4% which was valued RMB 298.36 billion, while the hospitality sales occupied 14.1%(Klako Group, 2008); also The China National Tourism Authority (CNTA) published in total 14,000 start rated hotels were in operation . Moreover in 2008 hospitality sales expanded 23.6% which reached RMB 368.73 billion compare with last year (Shanghai New international Expo Centre, 2008). Year to May 2010, Chinese hotels presented excellent development trend which was displayed by the hotel room occupancy rise 20.1%; RevPAR(revenue per available room) achieved 31.0% (See Table 1 bellow).Furthermore Table 2 indicates 1087 hotels which consist of 310,438 rooms are planned to build by 2010 in all over China(Chao , 2010) .