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A quantitative analysis of factors contributing to improvements of five-star hotels in China in the area of service quality

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A quantitative analysis of factors contributing to improvements of five-star hotels in China in the area of service quality
CONTENT

Chapter 1: Introduction

1.1 Background Information
For the past three decades China’s tourism industry has been booming at an exponential rate for a period (1980s-mid 1990s) and at a steady rate since 2000 (Lew, 2003).In 2009, over 124 million people visited China both on vacation and business visas, earning the country a sum of $39 billion (Breakingtravelnews.com, 2009). According to China Daily (2009), the hospitality industry is the where the visitors spend most of their money while travelling in China, earning the industry an accumulated total of $21 billion in 2009. As a result of the increase in demand for travelling accommodations, the hospitality industry in China has experienced an exponential rate of growth especially in the coastal areas and the major tourist attractions. According to Times Online (2010), the rapid rate of growth in the tourism sector in China has made the country an appealing pool of investment from the world’s largest hotel groups such as the IHG (also known as the Crown Plaza Group) and the French ACOR Group. According to the same report, the rush of investment specially from the Western countries and firms is set to make the Chinese hospitality industry the largest and most profitable in the world with the number of the start rated hotels set to increase to 10,000 by 2015 and the five start hotels increase to 500, currently 360 open and operating (Times Online, 2010).

The rapid development of the tourism industry in China not only has drive the entry of foreign hotel groups into China but also has greatly driven the development of local hotel industry in China. The rapid development of the hotel industry in China to a large extent is realized in the rapid increase in the number of hotels in China. With the increase in business activities and travelling activities in China, the sector of budget hotel has experienced rapid growth in China because budget hotels not only can provide clean and convenient



References: Amy, W.O.M, Alison, M.D. and Christopher, J.W. (1999) Analysing service quality in the hospitality industry. Managing Service Quality. Vol. 9, No. 2, pp. 136 – 143 [i.p.12-13] Armstrong, R.W, Mok, C, Go, F.M Bryman, A. and Bell, E. (2007), Business Research Methods, 2nd ed., Oxford Press, New York, NY. [i.p. 25-26] Chen, R.X Fisher, C, Buglear, J, Lowry, D, Mutch, A. and Tansley, C. (2007) Researching and Writing a Dissertation for Business Students. 2nd Edition, Pearson Education, London. UK [i.p.24] Harrington, D Kim, W.G, Ma, X.J. and Kim, D.J. (2006) Determinants of Chinese Hotel Customers’ Satisfaction and Purchase Intentions. Tourism Management. Vol. 27, No. 5, pp. 890-900 [i.p.2] Kong, H.Y Lew, A.A. (2003) Tourism in China. Routledge, London. UK [i.p.1] Ma, P Pine, R. and Phillips, P. (2004) Performance comparisons of hotels in China. International Journal of Hospitality Management. Vol. 24, No. 1, pp. 57-73 [i.p.15, 42 & 47] Pine, R Pine, R, Zhang, H.Q. and Qi, P.S. (2008) The Challenges and Opportunities of Franchising in China’s Hotel Industry. International Journal of Contemporary Hospitality Management. Vol. 12, No. 5, pp. 300-307 [i.p.2] Saleh, F Saunders, M. and Thornhill, A. (2009) Research Methods for Business Students 5th Edition. Pearson Education Limited, Edinburgh Gate, Harlow, Essex CM20 2JE, England. [i.p. 22-23 & 26] Su, J.J Suh, S.H, Lee, Y, Park, Y and Shin, G.C. (2002) The impact of consumer involvement on the consumers’ perception of service quality – focusing on the Korean hotel industry. Journal of Travel & Tourism Marketing. Vol. 6, No. 2, pp. 33-52 [i.p.11] Tsang, N Tsang, N. and Qu, H.L. (2007) Service Quality in China’s Hotel Industry: A Perspective from Tourists and Hotel Managers. International Journal of Contemporary Hospitality Management. Vol. 12, No. 5, pp. 316-326 [i.p.3 & 16] Wu, J Wu, J. (2005) Basic methods of improving the service quality of hotels in China. Journal of Scientific and Technological Management. Vol. 34, No. 6, pp. 65-70 [i.p.19, 44-45 & 49-50] Zhou, F.C

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