Page 280 - 2017 White Paper
P. 280
7 White Paper on the Business Environment in China
2.7 Consumption Products and Services
Tourism and Hospitality Between 2004 and 2007, mean growth in the number
of “Overseas Visitor Arrivals” (including residents of Hong
“In 2009, the State Council added tourism as Kong and Macau Special Administrative Regions and
another pillar industry in the 12th Five-Year Taiwan) was approximately 11 percent (although year-
Plan”, Xinhua reports. “[Tourism] is widely believed to on-year growth declined from approximately 10 percent
be the major factor that propels the country’s hotel in 2005 to only 5 percent in 2007) (The National Bureau
industry” (Yang 2011). What is today a competitive and of Statistics of China 2009). From 2007 to 2008, however,
lucrative industry on the Mainland comes from humble the total number of foreign fell by approximately one
beginnings, however: prior to the “opening-up” of China percent—a somewhat surprising result considering that
in 1978, the hospitality industry consisted primarily of the Summer Olympics were held in Beijing that year
government-run guest houses and associated services. (Ibid.).
After the decision to provisionally open China’s economy
to outside participation in 1978, the government That year there were a reported 130 million recorded
administration at the time responsible for tourism “Overseas Visitor Arrivals” in the PRC, of which 26.1
arranged eight joint venture hotels in Beijing, Shanghai million were foreign passport holders (excluding Hong
and Guangzhou (Ding 2008). Kong and Macau residents). 101.3 million were “Chinese
Compatriots From Hong Kong and Macao”, 4.4 million
While the official title of “first hotel in China” from Taiwan and an additional approximately 53 million
is apparently contested, the White Swan Hotel in “Overnight Tourists” were apparently not included in the
Guangzhou and the Jian Guo Hotel in Beijing are the 130 million total (The National Bureau of Statistics of
earliest-established joint venture hotels in the country. China 2009).
Notably, the White Swan Hotel is credited as running a
profit in its first year of operation, 1983 (Ding 2008). This large number of Hong Kong- and Macau-related
entries may account for the disproportionately high
Significantly, foreign management companies have number of visitors to Guangdong (being adjacent to both
held a role in the industry since the beginning—Hong Hong Kong and Macau)—in 2008, Guangdong received
Kong Peninsula Hotels was contracted to manage the Jian nearly five times as many overall visitors as Shanghai and
Guo Hotel from its opening, after which Sheraton Hotels more than five times the number of visitors to Beijing.
& Resorts was brought in to manage what became the Guangdong’s total number of 25.6 million visitors dwarfs
Sheraton Great Wall Hotel (also in Beijing) after two years Shanghai’s total of 5.2 million and Beijing’s 3.7 million
of unsuccessful operation under its former management (The National Bureau of Statistics of China 2009).
(Ding 2008).
More recent visitor statistics from the National
Beginning in the 1980s, construction of hotels beyond Tourism Administration indicated that entries had again
the original government-run guest houses began in declined in 2009, with a total of 126.5 million in that year,
earnest. Between 1980 and 1990, 1,784 new hotels were with the largest adjustment being a 9.82 percent growth
built, and in the decade following 8,494 more were rate in the “foreigners” category (The National Tourism
opened for a reported total of 10,481 “tourist hotels” Administration of China 2010a).
with nearly 950,000 rooms in 2000 (Ding 2008). In 2001 a
nomenclature change from “tourist hotels” to “Star-rated The first three months of 2010 appeared to show a
hotels” saw the total number of reported facilities shift recovery from this downward trend, with the largest gain,
to only 7,358 in 2001, growing to 13,583 in 2007 (The an increase of 21 percent, again being in the “foreigners”
National Bureau of Statistics of China 2009). category (The National Tourism Administration of
280
2.7 Consumption Products and Services
Tourism and Hospitality Between 2004 and 2007, mean growth in the number
of “Overseas Visitor Arrivals” (including residents of Hong
“In 2009, the State Council added tourism as Kong and Macau Special Administrative Regions and
another pillar industry in the 12th Five-Year Taiwan) was approximately 11 percent (although year-
Plan”, Xinhua reports. “[Tourism] is widely believed to on-year growth declined from approximately 10 percent
be the major factor that propels the country’s hotel in 2005 to only 5 percent in 2007) (The National Bureau
industry” (Yang 2011). What is today a competitive and of Statistics of China 2009). From 2007 to 2008, however,
lucrative industry on the Mainland comes from humble the total number of foreign fell by approximately one
beginnings, however: prior to the “opening-up” of China percent—a somewhat surprising result considering that
in 1978, the hospitality industry consisted primarily of the Summer Olympics were held in Beijing that year
government-run guest houses and associated services. (Ibid.).
After the decision to provisionally open China’s economy
to outside participation in 1978, the government That year there were a reported 130 million recorded
administration at the time responsible for tourism “Overseas Visitor Arrivals” in the PRC, of which 26.1
arranged eight joint venture hotels in Beijing, Shanghai million were foreign passport holders (excluding Hong
and Guangzhou (Ding 2008). Kong and Macau residents). 101.3 million were “Chinese
Compatriots From Hong Kong and Macao”, 4.4 million
While the official title of “first hotel in China” from Taiwan and an additional approximately 53 million
is apparently contested, the White Swan Hotel in “Overnight Tourists” were apparently not included in the
Guangzhou and the Jian Guo Hotel in Beijing are the 130 million total (The National Bureau of Statistics of
earliest-established joint venture hotels in the country. China 2009).
Notably, the White Swan Hotel is credited as running a
profit in its first year of operation, 1983 (Ding 2008). This large number of Hong Kong- and Macau-related
entries may account for the disproportionately high
Significantly, foreign management companies have number of visitors to Guangdong (being adjacent to both
held a role in the industry since the beginning—Hong Hong Kong and Macau)—in 2008, Guangdong received
Kong Peninsula Hotels was contracted to manage the Jian nearly five times as many overall visitors as Shanghai and
Guo Hotel from its opening, after which Sheraton Hotels more than five times the number of visitors to Beijing.
& Resorts was brought in to manage what became the Guangdong’s total number of 25.6 million visitors dwarfs
Sheraton Great Wall Hotel (also in Beijing) after two years Shanghai’s total of 5.2 million and Beijing’s 3.7 million
of unsuccessful operation under its former management (The National Bureau of Statistics of China 2009).
(Ding 2008).
More recent visitor statistics from the National
Beginning in the 1980s, construction of hotels beyond Tourism Administration indicated that entries had again
the original government-run guest houses began in declined in 2009, with a total of 126.5 million in that year,
earnest. Between 1980 and 1990, 1,784 new hotels were with the largest adjustment being a 9.82 percent growth
built, and in the decade following 8,494 more were rate in the “foreigners” category (The National Tourism
opened for a reported total of 10,481 “tourist hotels” Administration of China 2010a).
with nearly 950,000 rooms in 2000 (Ding 2008). In 2001 a
nomenclature change from “tourist hotels” to “Star-rated The first three months of 2010 appeared to show a
hotels” saw the total number of reported facilities shift recovery from this downward trend, with the largest gain,
to only 7,358 in 2001, growing to 13,583 in 2007 (The an increase of 21 percent, again being in the “foreigners”
National Bureau of Statistics of China 2009). category (The National Tourism Administration of
280
