The future of the State-owned hotels in China: Stay or go?

Lui Ming Mak

Research output: Journal article publicationJournal articleAcademic researchpeer-review

40 Citations (Scopus)


Hotel sector was the first one to employ joint venture in China after its 'Open Door Policy' in 1978. In transition from production unit to business unit, the operating system of China's State-owned hotels (SOHs) has changed greatly. Though its hotel industry has become more open, many of the tourist hotels are still State-owned enterprises (SOEs) today, and they account for over half of the loss of all hotels in the country. This study aims to find out: first, critical issues causing those problems facing the SOHs; second, factors affecting the development of SOHs, and third, their future. Government ownership and its related problems, such as complicated ownership, bureaucratic structure and control, add difficulty to restructure SOHs. The future of the SOHs in China regarding whether to stay or to go very much depends on government policy and commitment on restructuring the industry which is vital to success and sustainability of SOHs in the socialist market economy environment.
Original languageEnglish
Pages (from-to)355-367
Number of pages13
JournalInternational Journal of Hospitality Management
Issue number3
Publication statusPublished - 1 Sept 2008


  • Economic reform
  • Hotel ownership
  • Privatization
  • State-owned enterprises (SOEs)
  • State-owned hotels (SOHs)

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management


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