Special report: 2008 Olympic Games
BEIJING, Aug. 5 -- China's hotel industry is
experiencing unprecedented growth, driven by the strength of the economy, an
increase of disposable incomes and a global focus on large events, a leading
hotel-investment and advisory-services provider reports.
In the latest report by Jones Lang LaSalle Hotels
analyzing the country's hotel industry, seven out of the 11 markets the company
tracked were able to secure substantial revenue per available room, or RevPAR,
as well as fiscal improvements in 2007 which all indicate solid fundamentals and
good future prospects.
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China's hotel industry is experiencing
unprecedented growth, driven by the strength of the economy, an increase
of disposable incomes and a global focus on large events, a leading
hotel-investment and advisory-services provider reports. (Photo source:
Shanghai Daily/CNTA)
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"Vast infrastructure improvements are reducing travel
time and increasing mobility within the country," said Andreas Flaig, Jones Lang
LaSalle Hotels' managing director in China. "Upcoming major events such as the
Olympic Games are giving China a makeover which will have a lasting impact on
the economy and urban landscape."
According to forecasts from the World Tourism
Organization, China will be the world's largest inbound tourism market, the
fourth largest for outbound tourism and the largest for domestic tourism in the
world by 2015. This will probably translate into more than 100 million overseas
tourists and more than 2.8 billion domestic tourists in China by 2015.
Above them all, Beijing and Shanghai, the country's
two largest cities, are attracting extra attention.
In the capital city of Beijing, where the opening of
the Oymplic Games is just three days away, preparations for the games have no
doubt significantly improved the city's infrastructure, service capabilities and
quality of life for residents.
Last year, Beijing received 4.4 million overseas
tourists and 140 million domestic tourists, a growth of 11.6 percent and 6.1
percent year on year.
For the sixth consecutive year since 2001, the city's
five-star hotels saw average daily rates, or ADR, increase by 3.5 percent, while
occupancy levels decreased slightly from 73.3 percent in 2006 to 70.6 percent.
Meanwhile in the four-star sector, even stronger
growth was recorded with ADR and RevPAR up 10 percent and 8 percent,
respectively.
However, the new supply of more than 12,000
internationally managed hotel rooms in Beijing in 2008, with the coming of the
Games, has aroused growing concerns from industry experts, who believe the
enormous increase in the number of new rooms in such a short period might drag
occupancy rates down.
"This could pose a risk to the demand-and-supply
balance in 2009 and possibly 2010. But the picture remains positive for the
long-term prospects of the tourism and hotel industry in the capital city," said
Flaig.
If the outlook for Beijing remains unclear at the
moment, Shanghai, the financial center of China, seems to be enjoying a rosy
picture in the long term.
Statistics reveal that the numbers of overseas
tourists arriving in the city had a compound annual growth rate of 13.8 percent
between 2002 and 2007. In 2007, domestic visitor arrivals rose 5.4 percent from
a year earlier to 102.1 million, and domestic tourism receipts jumped 13.5
percent to 161.1 billion yuan (US$23.5 billion).
The MICE business (Meeting, Incentive, Conference and
Exhibition), together with further diversification of the city's leisure
offerings, will further boost Shanghai's tourism and hotel demand in the future,
the report said.
With the expansion of the Shanghai New International
Expo Center and the coming of the World Expo 2010, the city will further secure
its status in the MICE market both regionally and globally.
Moreover, projects such as the Green Tourism
development on the Chongming Island and the pedestrian zone near the Bund will
increase the variety of tourist attractions in the city.
(Source: Shanghai Daily)
