If the state-owned reforms in the fields of railway, telecom and civil aviation are oriented towards breaking monopoly and promoting competence, the state-owned enterprise transformation in the hotel fields is not only breaking the monopoly in regional market but also cultivating giant enterprise groups and increasing industrial competence on the whole after China entered WTO. This is because the hotel industry has been already dispersed highly since 20 years of market course. At present, the industrial organization with lowly market centralization cannot match the industrial competence after China entered WTO, is disadvantageous to optimize the structure of national industry or improve the integer levels. If this cannot be realized clearly, the state-owned enterprise reform and the state-owned asset regroup in the hotel industry would get lost.
Hotel group is a necessary business form after the hotel industry has developed into a mature state and is an endogenic outcome of market economy. ® It is no doubt that this institutional arrangement based on market mechanism and at the same time in company with transactions of property right, management and market, is one of the main goals of state-owned hotel transformation. In the Beijing Consensus in the first forum of “Tourism Enterprises and Tourism Listed Companies” several agreements were achieved by the leads from tourism enterprises and tourism listed companies in China. These agreements are;
“It is essential and required that tourism enterprises are developing into groups in China. The direction of the tourism enterprises is giant groups and great tourism, the industrial conformity and the mutual complement are the most important way for us to remain invincible in the world tourism market. Wide cooperation and co-prosperity are the common goals for all of us.
“It is a modern economic development rule and the essential results of market competence to grow super giant groups.
“ The international competition calls for giant tourism enterprise groups in China. Only the giant enterprise groups are able to shoulder Rincon el tibet norbulingka the important tasks to compete with the cross national tourism groups; only the sincere cooperation between giant tourism enterprise groups can make our tourism industry greater and stronger, can struggle for a place for Chinese tourism industry in the international tourism market. ”
Taking into consideration the bulwarks the transformation of state-owned hotel industry is facing in the last section. We believe that it is necessary for government to intervene and play a role in the course of the whole industry promoting the transformations and reforms. A growing path of giant state-owned hotel groups under the guidance of the government is shown in Figure 7-3 ; When China develops hotel groups, the grand hotels from the Bureau of Government Offices Administration of the Giant