Overall, AmCham China member companies in the Hospitality, Travel and Leisure industry are slightly more optimistic in their assessment of the current business climate in China than foreign business in other sectors. Half of respondents in the industry forecast their 2015 earnings before interest and tax (EBIT) margins as higher than their 2014 EBIT margins.
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To read more about how Tourism companies do business in China, visit the AmCham China Business Center.
Two-thirds of industry respondents report profitable financial performance in China in 2015 with only 2 percent reporting a financial loss. Foreign companies in this industry overwhelmingly view their company’s branding and their ability to develop a unique business strategy as areas in which they enjoy competitive advantages over domestic competitors. Nevertheless significant challenges remain. Rising labor costs and shortage of qualified employees remain the top two businesses challenges for the industry sector in China. High expectations of salary or expat benefit packages remains the top human resources challenge.
Key Points of this Report:
- 82 percent of industry respondents view the quality of China’s investment environment is improving or staying the same.
- 79 percent plan to increase investment in China operations for 2016.
This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.