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(American Hotel & Lodging Association, 2007)
In the work entitled: "Hotels in China, India and Mexico are Capturing the Imagination and Resources of the Hotel Industry" it is stated: "Take a look at the headlines these days and you will realize that overseas expansion for the hotel industry is hot, particularly in developing markets. In the last month alone, Starwood Hotels & Resorts Worldwide, UK-based InterContinental Hotel Group, Hong Kong's Shangri-La hotels and Marriott International announced major expansion plans in China. Starwood has plans to grow from 57 hotels in China, Hong Kong and Taiwan to 100 Greater China hotels by 2010.
InterContinental has 51 hotels now in China and intends to develop 74 more by the 2008 Summer Olympics. Shangri-La has 20 hotels and plans for 17 more by 2008. Marriott plans to expand its 26 hotels in China to 35 by 2008 and 100 by 2010.
India represents another rapidly developing market for the industry. InterContinental and Wyndham Hotel Group officials both announced at the Lodging Conference last month that they are focusing on China and India as target growth regions. Some speakers likened India to the U.S. In the 1950's before the Interstate Highway System was built, predicting that the many highways being built there will eventually make a huge difference in terms of the ability to travel." (Butler, 2007)
The following chart illustrates some of the challenges that Butler states in terms of doing business in these countries and the difficulty of conducting certain aspects of business as compared to the United States. The following chart lists the 'Ease of Doing Business' by country and ranking assigned to India, China, Mexico and the United States.
Ease of Doing Business in India, China, Mexico and the United States
Source: Butler (2007)
As one can clearly see in the above chart the difficulty of doing business in terms of starting a business in India is rated at 134th hardest in the world in which to start a business while China ranks 93rd hardest and Mexico 43rd as compared to the United State's ranking of 3rd hardest country in which to...
Mexico ranks very close to the United States in the category of 'dealing with licenses' at 30 with the United States ranking at 22nd hardest country in which to deal with licensing issues.
While China does rank better in some categories than Mexico and India ties in a couple of categories with Mexico, overall, the ease of doing business in these countries as compared to the United States equates Mexico to be the choice among the three of India, China and Mexico, in ease of doing business.
SUMMARY & CONCLUSION
The growth in all three countries in the hotel industry were at record levels for the years of 2005 and 2006 which shows great potential for those entering the hotel industry in either one of these three countries. However, due to the lessening of ease of doing business in both India and China, the hotel brand desiring to enter the hotel industry in one of these countries would be well advised to enter the hotel industry in Mexico because of the overall ease of doing business in Mexico as compared to the ease of doing business in either China or India.
Bibliography
Amann, Wolfgang (2003) the Impact of Internationalization on Organizational Culture a Comparative Study of International U.S. And German Companies" Dissertation Nr. 2791 Difo-Druck GmbH, Bamberg 2003 aus Deutschland. Online available at http://www.unisg.ch/www/edis.nsf/wwwDisplayIdentifier/2791/$FILE/dis2791.pdf
Butler, Jim (2006) Hotels in China, India, and Mexico are Capturing the Imagination and Resources of the Hotel Industry. Hotel Job Resource. 2007 Online available at http://hoteljobresource.com/trends-detail-sid-24867.html
Butler, Jim (2006) Hotel Online. News for the Hospitality Executive. News for the Hospitality Executive. Online available at http://www.hotel-online.com/News/PR2007_1st/Jan07_IndiaHotels.html
Scoviak, Mary (2008) New Territory. Hotels. Business Franchises - Buyer Zone 2008.
2007 Lodging Industry Profile (2007) American Hotel and Lodging Association. Online available at: www.ahla.com.
Internalization Within the Hospitality Industry
Bibliography
Amann, Wolfgang (2003) the Impact of Internationalization on Organizational Culture a Comparative Study of International U.S. And German Companies" Dissertation Nr. 2791 Difo-Druck GmbH, Bamberg 2003 aus Deutschland. Online available at http://www.unisg.ch/www/edis.nsf/wwwDisplayIdentifier/2791/$FILE/dis2791.pdf
Butler, Jim (2006) Hotels in China, India, and Mexico are Capturing the Imagination and Resources of the Hotel Industry. Hotel Job Resource. 2007 Online available at http://hoteljobresource.com/trends-detail-sid-24867.html
Butler, Jim (2006) Hotel Online. News for the Hospitality Executive. News for the Hospitality Executive. Online available at http://www.hotel-online.com/News/PR2007_1st/Jan07_IndiaHotels.html
Scoviak, Mary (2008) New Territory. Hotels. Business Franchises - Buyer Zone 2008.
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