Contemporary Tourism andHospitality in India and China

China opened its doors fortourists in 1978 for the first time, and the country had few hotelsat the time. China’s hotel industry has flourished because of themassive influx of foreign tourists particularly from the beginning ofthe new millennium. However, it has been tedious and bumpy discoveryjourney. For example, there have been impediments to bothinternational chains of hotels and the growth of the indigenous hotelcompanies. As per Zhang (2003), many consider the international hotelchains to be of a peculiar importance to the future evolution of theTourism and Hospitality Industry. Nevertheless, there are numerousbarriers to the developments. For example, such barriers includepolitical and economic systems, which have been in existence, andeven though there were enticements for foreign investors, up to thetime China entered the WTO in 2001, the government controlled them.Currently, the WTO predicts that China might emerge as the toptourist destination all over the world by 2020. According to theWTO`s predictions, China will have international travelers totalingto about 130 million, and with the efficient removal of governmentcontrol, the investors are increasingly flooding in China’s Tourismand Hospitality market.

However, regardless of all thepositive developments in the Chinese Hospitality and Tourism sector,there are management and operational issues and problems. Theindustry has barriers facing the future management, operation, andmanagement of hotels in China. For example, the issues that affectthe development of the hospitality and tourism industry in thecountry include problems related to profit performance and hoteloperation revenue, the shortage of human resources, and theacquisition and the maintenance of quality services.

Impediments to the developmentof hotel chains

Just like anywhere else, most ofthe Chinese hotel industry’s future growth is most probably toarise from the development of hotel chains. However, even thoughthere are demerits, hotel chains have relative advantages, which areakin to technology, management and transaction costs, and economiesof scale advantages, over separate hotels. Nevertheless, Zhang (2003)identifies and analyzes several impediments to the development ofboth multinational and indigenous hotel chain firms. The authorassociates the impediments with China’s political and economicsystem. For example, Zhang associates the barriers with thegovernment intervention, local protectionism, lack of motivation,policy restriction, and motivation in the local hotels and theircapital funding access, with the diversity and complexity of China’shotel ownership. Similarly, there are weaknesses in the capability ofthe hotel management and resources, and rivalry between internationaland foreign chains.

The issue of human resourceShortage

With the immense and fast growthof the Chinese hotel industry, there has been an emergence for theneed of highly skilful and qualified workforce to fulfill the demandsof the enlarging demanding clients and offering adequate services.Nevertheless, the service idea has been a new one to the Chineseemployees. Consequently, there has been hardship in obtainingknowledgeable and trained Chinese human resource. Moreover, theeffects of low morale, high labor turnover, and inadequate governmentsupport for the development of the human resource, and poorremuneration in contrast to other industries have afflicted the hotelindustry in China. For example, there is a clear illustration ofhuman resource issues in Guangzhou where there is a solemn shortageof educated staff. By 2010, the shortage became apparent with thegovernment’s policy of increasing star grade hotels in thecountry’s major cities. Similarly, the hospitality and tourismindustry is involved as well. The first and civilized endeavors tosupport India’s tourism sector took place in 1945 when the Indiangovernment set up a committee. After the establishment of theorganization, the development of tourism took place in 1956. However,in the mid 1980s the industry picked momentum in India. Thegovernment of India too various critical initiatives it announced aNational Policy in 1982 on tourism. The committee was in charge ofthe formulation of the inclusive strategy of realizing sustainablegrowth in tourism. By 1997, the committee came up with anotherTourism Policy, which recognized the State and Central government’sroles, the role of private sector in tourism development and thepublic sector.

The Current Features andSituation in India’s Tourism

Currently, tourism is India’slargest service industry, and it contributes 6.23% of the India’sGDP and offers 8.9% the aggregate employment in the country. Indiareceives over five million international visitors annually and 562million of domestic tourists. The Council for World Travel andTourism estimates that India will be a tourist giant by 2018, thatmeans that India would have the greatest growth within 10 years. Regardless of the many positive attributes of the tourism industry inIndia, the industry has challenges, as well.

Shortage of labor and Skills

It is difficult to obtain andretain qualified employees the shortage of skills and labor wastraditionally an issue that only existed in particular markets.However, it is a global issue today. The elements, which promote theissue is demography, low pay, long working hours reputation, and thefailure to meet the human resource satisfaction. Creativeprofessionals in the hospitality industry have developed novelstrategies for capturing and retaining high quality employees.

Construction Costs

All the furnishing andconstruction costs, equipment and fixtures carried on with thepersistence in 2007, but at a lower pace than the country experiencedbetween the periods of 2004 to 2006. As per the America GeneralContractors’ association, the costs of construction are highbecause of costs of materials, which hiked drastically in the year2004. The yearly increase in materials for construction in 2004 wasat 10 percent, and then 6% and 8.8 percent rise in 2005 and 2006respectively.


Despite the rising awarenessregarding the value of the contemporary, system amalgamation, mostproperties do not utilize them to the maximum as they would utilizerevenue opportunities. Consequently, most of them fail to promote andsecure them to an appropriate level of the value and legalrepercussions of such information if someone stole it or corrupts thedata. A critical aspect in India, which restricts wider adoption isthe issue of attempting to improve the system’s utilization as theyproceed expand in function, both guest-facing and operational areas.All the issues promote the trend whereby the more they outsource, themore complex and sophisticated security issues and operationalfunctions to central staff, experts, either the third party orcorporate.

Tourism and hospitalityindustries in India and China are expanding and have immensepotential of employment generation and earning huge foreign exchangeamounts in addition to contributing to their respective countries’overall social and economic development and stability. However, thereis a lot the two countries should do to improve their hospitality andtourism industries. For example, the two countries need to promotetheir eco-tourism in the preservation and to sustain the culturaldiversities of their environments.

Work Cited

Zhang, G. (2003). China’sTourism Since 1978: Policies, Experiences, and Lessons Learned.In Lew, A.A., Yu, L., Ap, J. and Guangrui, Z. (eds), Tourism inChina, Tourism and Hospitality Research, 3(3), 257-275.