Hotels in major Chinese cities are expected to retain their
strong momentum in the coming few years amid increased demand for
accommodation from both domestic and overseas travelers, a
newly-released American Express Consulting hotel industry report
has predicted.
Government investment in the Meetings, Incentives, Conferences
and Exhibitions (MICE) sector has also boosted the hotel market and
will continue to do so in the run-up to the Olympic Games.
In Beijing, while supply would increase by more than 10 percent
this year as anticipated by the Beijing Municipal Tourism Bureau,
demand growth will still remain very strong over the next few
years, fuelled by increases in domestic and international tourism
and the continued rapid rise of China's gross domestic product.
International MICE operators are expanding their footprint in
the city to include Financial Street, Xidan, Zhongguancun, and the
area south of Chang'An Avenue.
Meanwhile in Shanghai, which boasts the most established hotel
industry in China and has well-developed tourism infrastructure,
visitor arrivals are expected to continue to grow strongly in line
with the city's position as a global commercial center and gateway
to the thriving Yangtze River Delta economic region.
Another key driver for the market is that the municipal
government has begun to upgrade its existing tourism infrastructure
and seek new demand generators at the same time.
For instance, the city plans to renovate the Bund and promote
cruise tourism along the Huangpu River. And, when completed in
2010, the Shanghai Happy Valley will also become the largest theme
park in Eastern China.
For Hong Kong, which is said to have some of the best transport,
communication and tourism infrastructure in the Asia-Pacific
region, market prospects also remain rosy.
Its hotel occupancy levels will continue to rise with the MICE
market remaining a primary focus, the report said.
The individual visit scheme will continue to drive mainland
tourism while aggressive marketing events such as Winterfest and
attractions such as Disneyland will further boost businesses for
hotels.
(Shanghai Daily January 21, 2008)