[photopress:Bric.jpg,full,alignright]Margaret Bowler, director Global Hotel Relations at HRG (Hogg Robinson which was founded in 1845), said in a survey of the world: ‘The hotel industry reported strong performance in 2007 – although not to the levels of 2006 with many key cities achieving single as opposed to double digit growth.’
Only five of the 50 cities surveyed for the global average room rate listing recorded a decline in rates in 2007, none of them in China.
Growth in average room rates in China is comparatively low, with the market lagging behind its BRIC (Brazil, Russia, India and China) counterparts. The illustration shows the four countries with a neat pun on BRIC.
Significant hotel openings, particularly in the country’s financial capital Shanghai and in Beijing, have served simply to ‘mop up’ increased demand from Western hotel brands, with occupancy rates falling marginally as a result in many cities.
This effect is expected to balance out with the Olympics.
‘The Chinese market operates very differently from other markets; Chinese business travellers prefer to stay in branded hotel chains that they recognize.
As such, Western hotel chains are scrambling to establish a presence in China to encourage the growing number of Chinese business travelers to stay in their hotels whilst traveling overseas.
As the industry continues to grow there is a marked increase in the shortage of rooms with availability posing an ongoing challenge in certain cities.
Source: MICE BTN