The Chinese Ministry of Commerce has recently published a document titled Guidance on Accelerating the Development of Accommodation Industry, which states that the government will issue policies to support the development of economy and budget hotels.
The goal set out in the document is to create a batch of large-scale hotel corporations with annual revenues of more than CNY10 billion and featured hotels with annual revenues of over CNY1 billion.
Currently local economy hotel brands include Home Inns, 7 Days Inn, Hantian Inns & Hotels, and Jinjiang Inn. Jinjiang Inn is a subsidiary of Jin Jiang Hotels.
The document states that the government will promote the branding and chain operation of economy hotels and will improve the proportion of economy hotels to the total market from the current less than 10% to 20% of the current market in two or three years.
The whole accommodation industry is to strive to achieve the goal of increasing its turnover by 10% annually and, by 2012, should be creating 300,000 new jobs each year.
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