Narrow Results

This chapter examines and analyses the transformation of the lodging sector in China by applying three economic concepts of development and trade: Structural change, catch up and internationalisation. It discusses the structural change in China's lodging sector affected by the structural change in China's overall economy by reviewing China's economic reform and development since 1978. It analyses the catching up efforts by the Chinese hotel industry to improve operating efficiency and service standards and the emergence of Chinese domestic hotel chains. The internationalisation of hotel firms, as reflected first in inward foreign direct investment of equity and human capital and then in outward foreign direct investment by Chinese domestic firms, is examined to identify current hotel development trends, strategies and challenges in the global economy. It concludes with an assessment of future development prospects of China's hotel industry when China becomes globally the leading tourism importer and exporter and has the largest domestic tourism market in the world.