Hong Kong’s Luxury Hospitality Industry and its Growth, Trends, Progress, Challenges, Opportunity and Upcoming Projects
Market Entry - Luxury Hospitality Industry in Hong Kong: Analysis of Growth, Trends and Progress (2015-2020)

PUBLISHED

DEC 2017

Market Entry - Luxury Hospitality Industry in Hong Kong: Analysis of Growth, Trends and Progress (2015-2020)

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About the Market

Luxury hospitality is a fast-growing market, especially with the growth of tourism and travel industry. The worldwide travel & tourism industry continued to see strong growth throughout 2015 and international tourist arrivals are predicted to grow by 3-4% per year, to reach 1.8 billion in 2030, according to the UNWTO report. Its long-term outlook ‘Tourism Towards 2030’ sees substantial potential for further growth coming from emerging economy destinations in Asia, Latin America, Central and Eastern Europe, the Middle East and Africa, growing at double the rate (+4.4% per annum), than the advanced economy destinations (+2.2% per year). In the past, raising a hotel company required enormous capital investment, but over the last two decades, many hotel groups have expanded by adopting an “asset light” model of management, rather than owning properties, by just franchising their brand to a third-party operator against a fee. Due to the continuous growth of the labor-intensive and productivity-reliant travel and tourism industry, the sector is expected to experience some difficulties in providing enough qualified talent for the forecasted 80 million new jobs created over the next ten years, according to the World Travel & Tourism Council (WTTC). Some of the major luxury hotels include Starwood Hotels & Resorts, Four Seasons Holdings Inc., InterContinental Hotels Group PLC, ITC Hotels Limited, The Indian Hotels Company Limited, Mandarin Oriental International Limited, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Kerzner International Resorts, Inc., and Marriott International Inc.

About the Geography                  

Hong Kong is a special administrative region of the People's Republic of China. It is the world’s freest and eighth largest economy. Hong Kong has no tariffs on imported goods and levies excise duty only on hydrocarbon oil, hard alcohol, tobacco, and methyl alcohol. It is the second largest recipient as well as supplier of FDI in the world. The country was ranked fifth easiest country to do business, by Doing Business.

Hong Kong acts as a bridgehead to China’s production, has an efficient banking system, favorable tax measures, excellent infrastructure, strong government, light legislations, well-educated skilled workers, and freedom of information. In 2003, Hong Kong SAR government launched CIES facilitated entry for foreign investors through investment into permissible assets, without the need to establish or join a business. Foreign companies can be set up freely, register their brands and the director of the company need not be a citizen or resident of Hong Kong. The only drawbacks are the high cost of living, elevated salaries, dependence on the financial sector, and exposure to global market risks.

With the presence of all major firms in the small region of Hong Kong, conducting business becomes very easy. Hong Kong is deemed to be the safest place to invest in the South-East Asia region.

Component Name

Unit

GDP (USD billion)

310

GDP Annual Growth Rate

1.7

GDP Per Capita

36117

Unemployment Rate

3.4

Wages

1940.53

                                                Inflation Rate

4.3

Consumer Price Index (CPI)

103

Interest Rate

0.75

Loans to Private Sector (USD billion)

996.86

Balance of Trade (USD billion)

4.137

Business Confidence

-6

Manufacturing PMI (Index Points)

49.3 Index Points

Ease of Doing Business

5

Competitiveness Rank

9

Corruption Rank

18

Consumer Confidence

87

Consumer Spending (USD billion)

51.799

Bank Lending Rate (Consumers)

5

Corporate Tax Rate

16.5

                                                                                                                                  

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

 

1. Introduction

                1.1 Scope of the Report

                1.2 Regional Analysis

                                1.2.1 PESTLE Analysis

                                1.2.2 Analysis of Ease of Doing Business

2. Market Dynamics

                2.1 Drivers

                2.2 Restraints

                2.3 Opportunities

3. Market Demand Analysis

                3.1 Socio-Economic Segmentation

                3.2 Demographic Strengths & Weaknesses

                3.3 Spending Patterns

                3.4 Target Market Identification

4. Market Size of Luxury hospitality industry by Type (USD millions)

                4.1 Business Hotels

                4.2 Suite Hotels

                4.3 Airport Hotels

                4.4 Resorts

                4.5 Others

5. Market Entry

                5.1 Market Entry: The Strategy

                                5.1.1 Types of Entry Modes, by Market Entry Objectives

                                5.1.2 Competition Analysis

                                                5.1.2.1 Market Share

                                                5.1.2.2 Strategies Adopted, Recent Events 

                                5.1.3 Pricing Strategy

                                5.1.4 Supply Chain Analysis

                                                5.1.4.1 Trade (Import-Export Analysis)

                                                5.1.4.2 Distribution Network & Retail Analysis

                5.2 Market Entry: The Administration

                                5.2.1 How to Register a Company (Flowchart)

                                5.2.2 Registration Processes 

                                                5.2.2.1 Ministries Involved

                                                5.2.2.2 Criteria and Conditions

                                5.2.3 List of Forms & Documents

                                5.2.4 Product Control Guidelines specified by the Government

6. Sources

7. Disclaimer

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