China is the world’s biggest consumer of hotel supplies.
Its supply chain has been built around the production and consumption of green hotel goods.
This has created an array of products from green toilet paper to green curtains.
But while China has become a top supplier for hotels, it also has a booming black market, according to the company that produces most of these products, KEbutuhans Hotel Supplies, which has offices in Hong Kong and Singapore.
While KEbutuans suppliers make up a small percentage of the hotel supply chain, the demand for its products has soared.
Last year, the number of hotels sold in China grew by 10% to 2.7 million rooms, according the company.
“We have a lot of room for growth.
If we can get the business going in China and get hotels to take advantage of it, then we can grow the business,” said Mr Chan, a senior vice-president at KEbutúans.
“We can even reach a billion hotels by 2020.”
China has long been the world leader in the production of hotels, but its consumption of hotel products has been on the decline over the past few years.
It is the only country where green hotel products are still widely used, accounting for a third of all hotel supplies worldwide.
While green hotel supply is still the largest single source of hotel supply in China, the black market has grown dramatically in recent years.
“China is the second largest source of black market hotel supplies after the US.
China has seen a huge surge in demand for hotel goods in the last few years,” said Dr Yung, who runs a consultancy based in Hong, and is the chairman of the China-based Asian Hotel Supply Association.”
The demand for green hotel equipment has been quite strong, and the demand from other countries is quite high.””
If you look at the demand, it’s still quite low, and there are a lot fewer hotels than there used to be.
The demand for green hotel equipment has been quite strong, and the demand from other countries is quite high.”
Dr Yung said China was becoming a hotbed for black markets for hotel equipment, but it was not a problem for the company’s suppliers.
He said the black-market market was also being fuelled by the country’s rapid urbanisation and economic slowdown.
“For example, there is a huge demand for water heating equipment.
There are water heaters in hotels, as well as in restaurants, cafes, bars, shops, and so on,” he said.”
If a hotel is using a water heater, there’s not a huge supply of it left in the hotel.
“It’s an opportunity to buy from suppliers in China.””
The growth of the black economy has meant more competition among suppliers, and that has meant even more competition in the supply chains.”
It’s an opportunity to buy from suppliers in China.”
The growth of the black economy has meant more competition among suppliers, and that has meant even more competition in the supply chains.
Dr Yun said the rise of the supply-chain competition had also led to a surge in prices for hotel supplies over the last couple of years.
While the cost of making green hotel furniture in China has dropped by about 70% since 2008, the cost for making black hotel furniture has grown by 70% over the same period, he said, adding that this had also affected the price of hotels.
“The supply chain and the price is quite different,” he added.
“But in terms of the price, the supply is way cheaper, so it’s not the black suppliers that are making money.”
China’s hotel industry has struggled to stay afloat amid the economic slowdown and the sharp rise in the price for hotel furnishings.
“While the black business has been relatively strong, we’ve seen a lot in the market over the years,” Dr Yun added.
“A lot of suppliers are struggling, so they’re trying to cut prices.”
Dr Chan said he had heard of hotels in Hongkong selling for up to HK$100,000 for the green hotel accessories, and prices for those accessories were “very, very high”.
“It’s quite difficult for them to stay alive,” he warned.
“It has to do with the fact that the demand has gone up, and it’s difficult to compete with those who are not as efficient.”
I think if hotels in mainland China can stay afloat, it will help the Chinese economy,” he concluded.
Topics:business-economics-and-finance,business-news,china,hong-kong,asiaFirst posted May 24, 2018 12:24:07Contact Pauline Wong