What are the problems in the development of hotel industry in China?

Facing the increasingly fierce international competition after China's entry into WTO and the wave of state-owned assets withdrawing from the hotel industry after the 16th National Congress, there are too many facts about the existence and development of the hotel industry in China. After calm analysis and thinking, we think that resource integration is the urgent task for the development of China hotel industry.

First, what is resource integration

Let's look at a report first:

Shanghai Jinjiang Group and Sheng Xing Group announced at the same time on March 9, 2009 19 that the management right of Huadong Hotel in Shanghai Railway Station has been handed over, which means that the private enterprise Shanghai Sheng Xing Group invested/KLOC-0.2 billion yuan to acquire Huadong Hotel. Yu, chairman of Shanghai Jinjiang Group, also said that the group will continue to sell its remaining 65,438+08 hotels in Shanghai to make room for national expansion. ①

As the largest hotel group in China at present, Shanghai Jinjiang's action is eye-catching and its intention is straightforward. In a word, it is resource integration!

Resource integration is a word often used in economic theory and practice. What is resource integration? At the level of strategic thinking, resource integration is the thinking mode of system theory. At the level of tactical choice, resource integration is a decision to optimize allocation. In other words, resource integration is a macro-strategic thinking, an optimal allocation of social resources and an overall optimization. It is the main body of micro-market-the means of enterprise strategic adjustment, and also the daily work of enterprise management. In China, more than 85% of the star hotels in the hotel industry are still single hotels, which are in a fragmented and fragmented state. International hotel groups keep coming in, showing an invincible situation on the land of China. For those hoteliers who pay close attention to the development of China hotel industry and "fight" for defending and developing China national hotel brand, what is more important than resource integration?

Second, the necessity and urgency of China hotel industry resource integration.

(A) China hotel industry resource allocation status and reasons

According to the 2002 China Tourism Statistics Yearbook published by the National Tourism Administration (see table 1), among the 7358 star-rated hotels in China, there are 4339 state-owned hotels, accounting for 59.0% of the total number of star-rated hotels in China. 790 collective economy hotels, accounting for10.7%; 268 hotels with foreign investment, accounting for 3.6%; There are 324 investment hotels in Hong Kong, Macao and Taiwan, accounting for 4.4%. The above four types of registered hotels account for 77.8% of all hotels. In addition, there are joint ventures, joint-stock companies, private companies and other registered hotels 1637, accounting for 22.2% of the total number of all star-rated hotels.

Although the state-owned economic component is the main body of the market, it is at a disadvantage in the competition. As can be seen from the table 1, the overall competitiveness of domestic tourist hotels is not strong. The occupancy rate is only 55. 13%. According to statistics, in 200 1 year, the total labor productivity of state-owned hotels was only 57,800/person, while that of international hotel groups was13.10.2 million/person, which was 2.26 times of the former. Since 1998, at least 300,000 rooms in hotels all over the country are idle every year. According to the average investment of 654.38 million yuan per room, there are 30 billion yuan of hotel assets idle in China. Due to the serious shortage of tourists, large investment and heavy financial burden, many hotels make investors and operators fall into the predicament of living beyond their means and fall into a vicious circle of death. There are many reasons for the weak competitiveness of hotel industry in China, among which the most fundamental reason is the unreasonable allocation of hotel resources.

From the analysis of investor structure, due to the economic system, China's state-owned hotels belong to more than 400 different departments such as the party, government, military, police and commercial banks, and the market competition is not high. A considerable number of hotels are training, meeting and leisure places for industry departments. In fact, they are not responsible for their own profits and losses, have not fully entered the market, or are out of touch with the market, and do not have to bear market risks or worry about the future. These hotel assets are complex, not only with the nature of legal persons, but also with guest houses or reception bases. The separation of government and enterprise leads to local protectionism, and the division of administrative departments and regions seriously hinders the market-oriented flow and operation of hotels as assets across regions, industries and ownership structures.

From the analysis of industrial structure, the resource allocation of China's state-owned hotel industry: (1) excessive pursuit of high-grade, serious escape order. High-end and mid-range hotels in China are too concentrated, although according to the industrial concentration standard calculated by C4 method, the industrial concentration of China hotel market is far below the monopoly standard. However, in the high-end market, some well-known brands have occupied a certain market, resulting in a relative monopoly situation. The development of tourist hotels is out of control, mainly because there are too many high-end hotels and the growth rate is too fast, which leads to a negative chain reaction in the development of the industry. (2) The regional structure is unreasonable and the spatial distribution structure is unbalanced. China hotel industry is relatively concentrated in the eastern region, less in the central and western regions, and high-end hotels are highly concentrated in eastern cities such as Beijing and Shanghai. These directly lead to fierce competition within the industry and within the region. The unreasonable allocation of resources in the hotel industry has largely led to its low economic benefits.

Table1Scale and Operation Status of Star Hotels in China in 2006 5438+0

Number of hotels (homes), number of rooms (10,000), number of beds (10,000), operating income (100 million yuan) and room occupancy rate (%)

Total 7358 81.63153.5438+0 763.32 58.45.

By economic type

State-owned economy 4339 42.83 84.93 316.98 55438+03

Collective economy 790 6.3811.77 42.3438+0959.25

Joint-stock cooperative enterprises1154.245.8115.9660.438+0.

Joint venture 971.021.9310.8557.44

Limited liability company 477 5 9. 19 48.438+0 62.38

Limited by Share Ltd 276 3.84 6.98 46. 14 64.73

Private enterprises 3512.77 5.3712.83 56.52

Other domestic enterprises 32 1 2.95 5.54 20.68 59.42

Hong Kong, Macao and Taiwan invested enterprises 324 6.781.7135 38+0 64.65

Foreign-invested enterprises 268 5.8210.0712.96 64.15

According to the hotel star rating

Five stars129 5.03 7.77149.66 6508+02

Four-star 44110.619.13180.438+0 64.96.

Samsung 2287 32.74 60.56 282.96 60.34

Double star 3748 29.47 58.17140 438+02 53.35

A star 753 3.77 7.68 9.97 46.33

(Excerpted from China Tourism Statistics Yearbook 2002, China Tourism Publishing House)

(B) China hotel industry is facing fierce international competition.

The international hotel group with strong capital strength and mature management experience has entered China for more than 20 years. Although they have not reached a comprehensive market structure, it is undeniable that they have become the dominant market of China hotel industry. In addition, more international hotel groups are adopting diversified property rights trading methods, which obviously accelerates the pace of entering the China market. They are actively expanding into emerging markets and grabbing resources from low-end market segments. Let's take a look at the aggressive competitive situation of international hotel groups:

Park Hyatt Hotel, the world's largest private hotel management company and the highest-level super five-star hotel of Hyatt Group, will be built in Beijing. The specific location of Park Hyatt Shanghai is still under discussion.

Following the opening of Grand Hyatt Beijing and Grand Hyatt Shanghai, the tallest buildings in China, Ningbo, Hangzhou, Chongqing, Sanya, Guangzhou, Shenzhen, Xiamen, Shenyang and Dalian will also build or consider building another five-star brand hotel-Hyatt Hotel. In this way, the three brands of Hyatt Hotel: Hyatt, Grand Hyatt and Park Hyatt will all settle in China.

Since 2002, there have been many incidents in which international hotel giants occupied Chinese mainland, involving four-star hotels: in June 2002, Canadian Four Seasons Group purchased 265,438+0% equity of Shanghai Four Seasons Hotel Project; In February 2002, Hong Kong New World Group invested more than US$ 65,438 billion to build and renovate the four-star Xinhua Mei Hotel. In August 2002, Renaissance Riverside Hotel, the second five-star hotel in Tianjin invested by Binjiang Group and managed by Marriott Hotel Management Group of the United States, officially opened. In September 2002, Marriott International opened its 33rd hotel in China. On September 24th, 2002, Kyushu Hotel invested in the renovation of Intercontinental Hotel and acquired a new hotel. June 5438 +2003 10, Shanghai Medieval Hotel, super five-star hotel. It is a joint venture between Somali Hotel Management Group and Xintian International and is expected to open in 2004. Shangri-La Hotels Group has opened hotels in Zhengzhou, Zhongshan, Wenzhou and Sanya, and Hong Kong Peninsula Hotels Group is choosing a joint venture in Puxi, Shanghai. On June 8, 2002, Ascott Singapore, the third largest hotel service apartment company in the world, will increase its market share in Beijing, Shanghai and Tianjin from 65,438+00% to 25% in the next three years, and open new hotels in coastal cities such as Dalian and Qingdao.

Three-star hotels include: At the beginning of 2003, Accor and BTG announced that they would open 20 franchise hotels within three years and launch the three-star Mercure Hotel. In April 2002, Accor acquired the international hotel chains Century and Zenith. In addition, Accor also announced that it will independently operate its budget hotel chain "IBS" in Tianjin, Chengdu and Chongqing, and its target customers are tourism salespeople. ②

…… ……

China hotel industry is in a multi-angle competition pattern of international competition, domestic competition and international competition. Competition is related to one's own life and death, and to the industrial security of the country and the nation. The hotel industry in China has no time to cultivate and develop step by step by its own accumulation. There is an urgent need to integrate macro and micro resources.

Third, China hotel industry resources integration methods

(A) the macro-level integration of resources

With the deepening of the reform of China's state-owned assets management system, the idea of strategic adjustment of state-owned economy has become increasingly clear. After the 16th National Congress of the Communist Party of China, the state-owned assets have stepped out of the general competitive field, and the integration of state-owned resources has brought unprecedented development opportunities and challenges to the hotel industry. Hotel industry is a general competitive industry. The investors of state-owned hotels are industry management departments, governments at all levels and state-owned investment institutions, and ultimately the government. The exit object in the hotel industry resource integration has become the relationship between the central government and local governments (such as hotels invested by local governments in provinces, cities and counties), and the relationship between the departments in charge of the hotel industry of the central government and other industry departments (such as hotels operated by banking system, railway system, aviation system and military industry system). The resource integration of the hotel industry should be conducive to the development of the hotel industry and its active participation in market competition. The role of government investors is the first problem that must be solved. It must be clear that there should be a unified authoritative department and institution to make systematic, standardized, stable and orderly strategic adjustments to the assets of state-owned hotels at all levels, departments and industries.

In the case that the hotel industry market is relatively underdeveloped and the monopoly power of the administrative industry is very strong, the faster way is to take the investors of state-owned hotels as the implementation object, and promote the integration and agglomeration of state-owned hotel resources on the basis of solving the wishes of investors in government departments, that is, between state-owned hotels with strong monopoly power in the administrative industry, the government industry departments are the leading investors, and the group combination is carried out through the power of the government. After the establishment of the group, the government gradually retired to a secondary position and left it to the market to adjust. Specifically, based on the management authority of macro-powerful departments, regions and industry investors, regional and industry hotel groups can be established in regions and industries with a large number of hotels (such as more than 20), and the hotel property rights invested by industry departments can be transferred to regional and industry hotel groups (or hotel management companies) for unified management in the form of administrative allocation. After the hotel group was established, the market management was further strengthened according to the market mechanism, and the government gradually faded out. After the government withdraws, the market competition will undergo a new round of integration.

(B) Micro-level integration of resources

With the arrival of the wave of state-owned assets withdrawal in China hotel industry, China hotel industry must seize the opportunity of this historic change, integrate internal and external resources from the height of strategy and industry development, and create a new situation for the development of China hotel industry.

China hotel industry should first integrate its own economic resources and improve the efficiency of economic resources. Such resources include tangible material resources and intangible resources. Tangible resources include land, fixed assets and current assets; Intangible resources include brand resources, cultural resources, human resources, service resources, management resources, information resources, customer resources, marketing resources, government resources and so on. China's hotel industry should vigorously improve the modern enterprise system, absorb all kinds of social economic entities, improve the situation of single capital structure, make full use of China's securities market, state-owned asset management companies and other property rights trading markets and intermediaries, realize the diversification of investment entities, and realize the flow and appreciation of hotel stock assets. China hotel industry should improve and integrate the property right function of intangible resources, realize the materialization and property right of intangible resources, and upgrade its brand, service and management through resource integration, so as to enhance its core competitiveness.

Hotel industry is a labor-intensive industry. The characteristics of non-storability and non-transferability of hotel products and services, as well as the synchronization of production and sales of products (services), determine that single hotels are uneconomical in scale. Looking at the world's major hotel groups in terms of room ownership, we will find that the average room ownership of a single hotel in a hotel group is not large, mainly below 400. The scale benefit of hotel industry is mainly realized through the intensive operation of hotel groups, and the operating expenses and management costs of enterprises can be reduced through the division within the group. These expenses and costs include human resources expenses, marketing expenses, procurement expenses, unit service expenses, etc. Therefore, on the basis of integrating internal superior resources and improving internal resource efficiency, it is an inevitable direction for the development of hotel industry in China to promote the implementation of external resource integration strategy and realize the group development of hotel industry. For hotel brands with certain strength, it is urgent to actively introduce strategic investors with capital strength to promote the organic combination of capital and brand, capital and management. With the large-scale withdrawal of state-owned assets from the hotel industry, a large number of original state-owned single hotels will be pushed to the property rights trading market, and a huge buyer's market for hotel assets will emerge. The era of large-scale integration of hotel resources has arrived. Only those hotel groups with capital and brand strength can truly seize the opportunity and actively carry out strategic investment in integrating with external resources by choosing their own target markets and targets. Through the integration of resources such as merger, acquisition, lease, custody, packaging and sale, we can realize the holding, equity participation and strategic cooperation of single hotels and scattered hotel groups, and realize the extraordinary development of hotel industry groups while realizing the cross-regional and cross-industry strategic layout.

Source:

Wang Ying: Jinjiang Group Shrinks Shanghai Front, Wen Wei Po, March 20, 2003.

② Ming Army: China, an international hotel giant, staking a horse, International Finance News, February 23, 2003.

References:

Peking University China Hotel Industry Development Project Research Group: Strategic Thinking on the Development and Coordinated Management of Hotel Industry in China, China Tourism Hotel Association Network, May 2003.

Reference source website: www.gongchu.com Palace Kitchen Network

Pan, A Preliminary Study on the Competition Pattern and Countermeasures of China Tourism Hotel Industry, Tourism Research, No.2, 2003.