China's hotel market to surpass US market in 5-10 years

Apr. 24, 2009 (China Knowledge) - China's hotel market will maintain rapid growth in the future despite the negative effects of the global financial crisis, said Michael D. Johnson, dean of Cornell University's School of Hotel Administration, in Shanghai on Wednesday, the Shanghai Securities News reported. 

The number of hotel rooms in China is expected to increase to 5 million from the currently 2 million in the next five to seven years, boosted by the upcoming Expo 2010 in Shanghai and the growing travel and leisure market in the second- and third-tier Chinese cities, according to Johnson.

Johnson holds a positive view towards China's hotel market and noted that it is very likely to surpass the U.S. market in five to ten years.

However, he warned the hoteliers to be cautious about the current expansion, adding that they should take into consideration of long-term market demand when launching a new hotel.

Businesses of luxury hotels worldwide decreased around 30% amid the global financial crisis, according to Johnson. However, there is also bigger room for the middle and low-end hotels to grow during the period.