China's tourism authorities are hoping that the country's burgeoning economic growth will mean big business for the nation's accommodation sector, but have warned against any complacency.
Speaking at the 7th Annual China Hotel Development and Financing Conference in Beijing, China Tourist Hotels Association president Zhang Run Gang said that whilst optimistic, the country's hotel industry was still concerned with rising inflation, labour shortages and costs and fallout from the disaster in Japan.
This cautious assessment was echoed by China National Tourism Administration deputy director general Liu Shi Jun, who is lobbying the industry to address low pay levels, which he says remain an obstacle in attracting and retaining talent.
According to STR Global Asia area director Jonas Ogren, the Average Daily Rate (ADR) of hotels in China is now at RMB 478, with key markets Shanghai, Hong Kong and Beijing witnessing ADR growth in 2010 of 47 per cent, 32 per cent and 28 per cent respectively.
Mr Ogren added that in the next 3 to 4 years, China will account for around 56 per cent of all new hotel rooms in Asia, with the country's hotel room inventory expecting to increase by about 16 per cent.
According to Stephen Green, head of research for Standard Chartered in Greater China, 2010 saw a 10.3 per cent increase in China's gross domestic product (GDP), which accounted for 10 per cent of the world's total GDP. External source: To continue reading 'Click Here'.