[photopress:hotels_economy.jpg,full,alignright]There is a long and detailed report in 4Hoteliers dealing with economy hotels in China. It is very comprehensive and some of the facts are fascinating and surprising. For example, despite all of the activity and profitability dealt with in the report one fact stands out:
Currently, economy hotels represent just 10% of the overall hotel industry in China. Which means it has a long, long way to grow.
The report states that since the first opened in 1997, economy hotels in mainland China have spread far and wide. To a small extent his is because of tourism, both from overseas and, more importantly, domestic.
China has become an important tourism destination in Asia and the fifth-largest tourism country in the world. However, domestic tourism alone generated US$781.9 billion last year, nearly 20 times the revenue of 2000.
A study conducted by the Chinese Academy of Social Sciences (CASS) Tourism Research Center showed that 90% of economy hotel guests are domestic travelers and 10% are inbound travelers.
This study also reported that business travelers are the major demand generators for economy hotels, representing roughly 65% of the economy hotel market in 2006.
The meeting and group contingent comprised 9% of the total, and leisure demand generated the remaining 26%.