Hospitality Management Dissertation
"An Impact Analysis of the Shrinking Hotels in Hong Kong"
Context of the Study
Hotel and hospitality industry is one of the main resources of
revenues in Hong Kong. And the shrinking hotel industry in Hong Kong
is an alarming fact not just for the hotel owners but to its
government also. As transformation of business trends in Hong Kong is
necessary to know, as well as the impact of its shrinking hotel
industry. Hong Kong is one of the most visited destinations in Asia,
in connection to this it is necessary to know the impact of its
shrinking hotel industry since it could affect not just Hong Kong as a
destination but also the different hotels in the area and Asia region.
In many cases, investments represent a shift from operations in Hong
Kong to the mainland for economic reasons. With Hong Kong being one of
the highest cost areas for both real estate and living, combined with
its rapidly rising salary and wage cost, investments on the mainland
were sound business decisions. Furthermore, many of the investors
sought to diversify operations to prepare for 1997 when Hong Kong
reverts to Chinese authority.
By the last decade, changing economics led to a greater demand for
office space. The Hilton Hotel was replaced by the Cheung Kong Center
when property prices rendered office space more profitable than hotel
use. From the handover of Hong Kong by the British to China's hand,
there was a huge transformation mostly with the economic aspect of the
place.
In the past years, different economic, political and social issues had
affected hotel and hospitality in Hong Kong. Discussion of these
issues is necessary for the study since these events may be possible
causes of the shrinking hotel industry in Hong Kong. These major
transformations over the years speak the flux and developments of Hong
Kong's hotel industry. The possible causes and the results of the
impact of the shrinking hotel industry in Hong Kong is essential to
discussed since tourism and hotel industry is one of the economic
booster of the place.
The study focuses on the impact of the shrinking hotel industry in
Hong Kong. Most of the concern people about this are the possible
investors who would like to venture hotel and hospitality business in
Hong Kong and the hotel managers for company and industry assessment
purposes. Aside from these investors and hotel managers, customers,
hotel patrons and tourists would also benefit on this study since
facts and valuable information would be identified about their
destination such as Hong Kong and the current changes and development
in the hotel and hospitality industry in the place.
The study aims have an in-depth analysis of the impact of the
shrinking hotel industry in Hong Kong. One of the objectives of the
research is to recognize the possible causes of the shrinking trend of
the hotel industry in Hong Kong and what could be the possible remedy
for this trend if there would be any.
Literature Review
In order to present and achieve the objectives of the study,
review of related literature would be helpful. The following articles
could be helpful in presenting the research since they place essential
concepts and notions of causes of the shrinking hotel industry in Hong
Kong.
Leonard K. Cheng. Strategies for Rapid Economic Development: The Case
of Hong Kong. Contemporary Economic Policy, Vol. 13, 1995
The article discussed about Hong Kong' rapid economic development in
three periods. From the discussion, it also made an attempt to examine
the benefit and drawbacks of the Hong Kong's different development
strategies and analysis of the economic growth of the region.
Chinese Tourism Boom for Hong Kong. Business Asia, Vol. 11, September 2003.
This magazine article presents the different points as Hong Kong
boosts its tourism with Chinese visitors. The Chinese community helped
the Hong Kong's economy, as they are the biggest spenders on the
place. Different factors affected the economic spur of Hong Kong. One
of these factors is the handover ceremony of Hong Kong by British to
China. SARS outbreak may affect the whole tourism aspect of Hong Kong
but the number of Chinese mainland visitors didn't stop to rise.
Ramsay, R. Hong Kong Bouncing Back: Ip. Business Asia, Vol. 11, November 2003.
The magazine article presents concepts about Hong Kong on its way back
to make some business with the global community. It was stated that
tourism has bounced back in the business after some elements that
cause hardest hit on the economic aspect such as the outbreak of SARS.
The main theme of the article is the potential new business
opportunities for Hong Kong on its tourism aspect.
Hotels Expand as Industry Recovers. Business Asia, Vol. 11, July 2003.
The article presents the concepts of hotel expansions in the Asian
region by different international group of hotels. One of the target
areas of expansion is Hong Kong for its boosting economic aspect. Some
of these international groups of hotels are Inter-Continental and
Holiday Inn hotels which plan to expand their hotels in Asia.
Kraar, L. (1997) "The Real Threat to China's Hong Kong". Fortune, 26 May.
Kraar points out that consumer items, hotel rooms, and other
goods/services are often 50 per cent to 100 per cent more expensive in
Hong Kong than in other centers, such as New York City. The Hong Kong
dollar is clearly overvalued, and may well be forced off its US dollar
peg if the PRC devalues its currency in reaction to further lurches in
the other East and South East Asian economies. Tourism continues to
decline within these years.
After SARS, Perception Next Big Battle for Tourism. Business Asia,
Vol. 11, May 2003.
The article presents review and analysis of the tourism new trend
after the SARS outbreak in Asia. One of the most affected areas of the
SARS outbreak is Hong Kong. The article examines the effects of the
SARS outbreak on the tourism and hotel industry of Hong Kong. It also
make out about the future trends of Hong Kong's hotel industry as well
as Asia's.
Objective
There are several objectives in this study and these are the following.
· To Focus on Hong Kong's hotel industry' and its
infrastructure ratio in the past 3 decades.
· To know the changes that had been evident in the past few
years for the changes and development of Hong Kong's hotel industry.
· To know the essential transformation that is apparently
revealed before and after the handover of Hong Kong by British to
China.
The study also wishes to acquire several aims in the domain of
the topic and these are:
· To review the plot ratio Hong Kong, trend in the early 80s,
90s and before the handover
· To know how that was before and why that led to so many
hotels to close down and build into office building, and how secondary
location site for hotels in recent year.
· Another is to examine the impact of the shrinking hotel
industry in Hong Kong. And also, to compare the changes and
developments of the hotel industry in Hong Kong before and after the
handover.
Methodology
The study will gather literatures, books and articles about Hong Kong
and its hotel industry. The perception research needs different data
to support, the researcher should also use multi-method approaches in
the research. Secondary data from different materials are required in
the research. Aside from this method, the study will also use the
qualitative method of research since it aims to know the impact of the
shrinking hotel industry in Hong Kong.
In using the qualitative method, case study and observation matched
the objective of the research. The research will be more of in-depth
analysis of different hotels in Hong Kong in different period of time,
which reviews and analyzes the Hong Kong's Hotel industry in the past
three decades. Thorough evaluation of the factors and causes of the
different transformation of trends of Hong Kong's hotel industry in
relation to its economic aspect and China relations.
Secondary data is data that have been previously collected for some
project other than the one at hand. That is data that already exist,
it include findings based on research done by outside organizations,
data generated in-house for earlier studies. Locating secondary data
is called secondary research. So the secondary research spends less
time and cost than the primary research (original research performed).
It can provide clues and direction for the design of primary research.
Researcher will go to the university library or community library to
look up the materials and useful journals and models, or visit the
internet to find the journals or others past studies and research
website. This information is relevant with the literature review of
this research. Data collection is very important for the research
study. The data used in this research are gathered from articles
regarding Hong Kong and its hotel industry.
Review of Hong Kong's tourism and economic aspect is necessary for the
study. There are 3 different decades that should be taken into account
in reviewing Hong Kong's status. There are also factors to consider in
reviewing and examining the shrinking hotel industry of the area, one
is the outbreak of the SARS, and the Handover of Hong Kong by the
British to China. Upon arriving in the conclusion, a keen observation
of new potential trends and opportunities on the hotel industry in
Hong Kong could point to end the study.
Aide from these following methodologies, the researcher would like to
acquire such information for the said study through focus group,
in-depth interview and observation. Interviews with hotel managers
will be conducted and tourism observation will help the study to
obtain such details necessary for research.
References
Enright, M. J., Scott, E. E., Dodwell, D. (1997) The Hong Kong
Advantage. Hong Kong: Oxford University Press.
Go, Frank M. and Pine, Ray (1995), Globalization Strategy in the Hotel
Industry, London: Routledge.
"Hong Kong, Macao, Guangdong explore ways to develop tourism, " Xinhua
News Agency (July 14, 1998).
Howe, C. 1983 "Growth, Public Policy and Hong Kong's Economic
Relationship with China". China Quarterly 95 (September): 512-533.
Kraar, L. 1997 "The Real Threat to China's Hong Kong". Fortune, 26 May.
Smith, A. 1998 "Prices Not to Blame for Tourism Slump, Says Survey".
South China Morning Post, 26 April.
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