Capacity in the Beijing Hotel Market after the 2008 Beijing Olympics - Dissertation Example

Download file to see previous pages Beijing is a city that has seemingly limitless potential for tourism operators. From the city itself, millions of tourists can find quality lodging and still be able to explore regions outside of Beijing and return the same day. The variety of tourist attractions, world-class shopping malls, entertainment facilities has turned it into a regular holiday destination for people throughout the region, Asia, and internationally. As such, the demand for lodging in the budget and luxury categories alike continues to grow. Developers, however, must be constantly leery of reaching a situation of overcapacity. As Chapter 2 will discuss, other cities throughout China have already experienced the economic ramifications that come with reaching such a phenomenon, so the industry would be wise to consider this moving forward. Given the saturation of relatively new properties built throughout the city for the Olympic games in 2008, there will not likely be a situation that sees older hotels ‘retired’ or converted into other uses. As such, studies need to be conducted to determine if more developments are needed, or if there is already a sufficient inventory of rooms available for the travelling public.

Another consideration is the business travel end of the tourism business. Beijing is a major hub of not only China but also all of Asia. As such, even before the tourism boom began in the late 70s, there has been an almost steady development of hotels to accommodate this important travel sector. Meeting, convention, and incentive travel is alive and well in Beijing. This is a major lifeline of the hotel industry in general because these travellers provide a source of auxiliary revenue that is generally realized from the leisure traveller. Not only do such professionals occupy hotel rooms, but they are also consumers of meeting room space, catering services, and numerous other aspects of the hotel industry that directly creates revenue. As will be demonstrated in this project, some developments in Beijing cater exclusively to the business traveller and they often receive more income from certain auxiliary services that from room occupancy themselves. ...Download file to see next pages Read More