China Tourist Hotels Association has released its latest report on the performance and financial situation of China's hotels. The 2003 report was compiled in line with international practice, the first time the Chinese hotels industry has adopted international reporting standards.
The 2003 study was based on a sample of 300 hotels drawn from each Chinese province. The study surveyed hotel revenue, occupancy rates, fixed and recurring costs, expenditure, reservation systems, and rates.
Analysis showed that in 2003, hotel profits depended primarily on occupancy. Five-star hotels in Beijing and Shanghai were found to be the most efficient and profitable. The China Tourist Hotels Association believes that the report accurately reflects the situation in the country's hotel industry.
It also provides the basis for developing strategies to overcome the legacy of SARS. Xin Tao, vice chairman of China Tourist Hotels Association, said, "In the future, both investors and hotel management will pay close attention to these statistics.
With this information, they will be able to plan the best strategies for the industry and the hotels they manage. "The Association plans to release the report of the kind each year, making the statistics available to the global hotel industry. This will give the industry a much better picture of the state and development of the hotel business in China.
(People's Daily July 16, 2003)
