those economic hotel chains have been established

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Fourthly, to view it from the niche market, those hotel groups who have gotten the competitive advantage in high-end products market in metropolitans, middle cities and hot tourism destinations may possibly penetrate into mid and low end product market in middle cities, mid and western China and moderate tourism destinations with their advantages in terms of capital, brand, technique and network which might make themselves industry magnet in economic hotel market. In this aspect, the top ten global hotel groups such as Cendant Corp. USA, Six Continents UK, Accor France have already made detailed market expansion plan in Chinese market with their economic hotel brands such as Days Inn, Holiday Inn Express, Country Inn, etc. If those economic hotel chains have been established, the mid and low end Chinese hotel product market will sink into the same disastrous failure of the high-end product market. At that time, the Chinese hotel enterprises may have some market share, but it will only be in the end of the industry chain or in a certain niche market with characteristic projects.

Fifthly, for the indirect impact of WTO entry on Chinese hotel industry, we can look at it from two aspects; the first is the impact on relationships of Chinese hotel industry, the second is the impact on the international business rules and industry practices. With China’s entering of the WTO, the international business rules and industry practices may influence the institutional environment of Chinese hotel industry. If we sign on any international treaty, then all the hotels must abide by the specific requirement of that treaty when dealing with international tourism products compulsorily. What’s more, the basic principles on market access, transparency, most-favored-nation treatment, national treatment and the negotiation conditions of some countries will have a crucial impact on the institutional environment of Chinese hotel industry in the aspects of market opening, enterprise system reform and adjustment of labor division system. It means that the domestic operational mode of Chinese hotel industry will be influenced more and more by international business and practices after WTO entry.”