Consuming China

The world hottest hotel development shows that hoteliers and development executives agree 2012 is likely to be another underwhelming year for occupancy and ADR in China. The International brands opened a hotel in China every four days in 2011.

China is 30 biggest markets between the end of 2010 and 2013, according to Jones Lang LaSalle Hotels in China. China has a pipeline of about 172000 guestrooms in various stages of development; which would represent an increase of 13.4 % over existing inventory.

After that, the Chinese government committed to tourism as a focus of economics growth within the country`s 12<sup>th</sup> five- years guideline, which establishes state priorities through 2015. An aim of the Guideline is to enhance China`s consumption-driven economic growth, which should accelerate expansion of the burgeoning domestic travel market.

China`s national occupancy rate was 61% through the first three quarters of 2011, according to STR global, leading some to worry the market is overheated. Few analysts argue supply is not outpacing demand overall. Given the seismic shifting of the country`s demographic landscape, though, there is confidence that projects that may seem difficult to justify today will be obvious relatively soon.

In conclusion, China must increase domestic tourism and fill the beds designed to go up and continue with their good earnings numbers despite the crisis we are experiencing worldwide. For this the government will have to invest in internal marketing of domestic tourism.