Industry Analysis & Industry Trends
The Hotels and Resorts industry has recovered from the troubled years of the global financial crisis, during which revenue was stagnant due to weakened demand from both the corporate and tourist segments. At the same time, hotels and resorts 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 8.1% and 0.1% in 2008-09 and 2009-10, respectively, as the global financial crisis wreaked havoc on consumer travel plans and general willingness to travel. However, the industry has rebounded following a resurgence of inbound tourism and a steady domestic tourism market. For this reason, industry revenue is expected to grow at an annualised 3.6%... 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 as opposed to building and setting up a new hotel. In addition, regulatory hurdles required to operate in the industry are low, although training and licences in other aspects of the hospitality sector are often required.
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