Industry Analysis & Industry Trends
The Hotels and Resorts industry has emerged from the troubled years of the global financial crisis, during which revenue stagnated due to weakened demand from both the corporate and tourist segments. Hotels and resorts have faced heavy competition from other forms of accommodation, particularly serviced apartments, which have been refined to cater for the lucrative corporate segment. Industry revenue declined by 8.3% and 3.2% in 2008-09 and 2009-10 respectively, as the global financial crisis wreaked havoc on consumer sentiment and business confidence. However, the industry has rebounded following a resurgence of inbound tourist numbers and a recovery in consumer and business confidence. For this reason, industry revenue is expected to grow by an annualised 4.0%... purchase to read more
Industry Report - Starting a New Business Chapter
The industry's barriers to entry are moderate, especially as many establishments can be leased, which provides a quick and more affordable method of entry into the industry. In addition, there are no formal qualifications required to operate in the industry, although experience and training in other aspects of the hospitality sector are desirable.
Development and investment in a good-size hotel involves significant investment for land purchase, construction and outfitting costs. Entry costs into the industry can be lowered through entering into management agreements or franchising agreements with building owners. Entry may also occur for investors investing in individual rooms or suites with guaranteed short-term returns... purchase to read more