Li Hua-sheng: Distinguished predecessors, experts and colleagues, have the opportunity to make a speech on this stage. This will be an important writing in my career. The organizing committee has given me a great topic. It reminds me of a year and a half ago when I was in Beijing for the first time in 50 years since the World Associationfor International Visitors was founded. I had a deep feeling that after the opening of the door to globalization in China, we spent 20 years learning the management and service technology of foreign hotels. Today, however, our brand is in Investment, in capital, our industry has been very backward, in that annual meeting, the theme is the Oriental Express destination China. Leaders of the world's tourism and hotel industry have been emphasizing with great interest how to win the Chinese market in two days. By 2020, China will be the world's largest tourist destination and the world's fourth largest tourist destination. Our compatriots spend more than $30 billion overseas. However, we did not earn 10 Fen because we did not have a restaurant outside. The first choice for foreigners to travel to China is the overseas brand hotel, which is a major industry failure, which reminds us of the automobile industry. We traded for a little market at the expense of brands. In this sense, I accepted the interview of the hotel modernization, after the media coverage, caused the attention of colleagues, I am very happy, this forum is still concerned about the theme of the internationalization and localization of Chinese hotels, I am very grateful to the industry experts and media for three days, with great sincerity to pay attention to this market. Development. The question I want to talk about is the underlying issue of this topic, which is the rise of China's local hotel brand, or the rise of the hotel industry behind the things I worry about. I focus on five major issues: first, the trend of brand change in China's local hotels and the trend of China's national hotels; second, the issue of local brand strategy and corporate hotel system; third, the standards of Chinese hotels; fourth, the issue of industrial system and talent; and fifth, the perception of loss in China's Hotel industry. .
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The rise of China's National Hotels has already existed objectively. The question is what we are concerned about behind this growing part. After the scale and speed of the rise, our products, our marketing, our cancellation, whether our brand is correspondingly upgraded, whether we have the ability to resist competition from overseas, the 2005 Conference On top of that, I felt the loss of the local hotel.
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Cake, but because we are badly prepared, the share of the market will be quickly taken away. Small Sanya, in just two or three years, there are 40 five star hotels. At this rate of international brand expansion, our local brands will lose high-end markets and hotels within a few years. In addition, the international brands of hotels above four stars have been fully entered, and their expansion mode is very fast. After the completion of management and monopoly, brand entry and the plundering of talents, the cavitation of the national industry of Chinese hotels will be realized. The data show that more than 60% of our hotels have experienced operating losses. Of the profits we earned, 80% were created by 20% of the hotels, and 60% of the hotels were managed by foreign companies. A large number of foreign mergers and acquisitions of our hotel, through the participation of our hotel shares, our cash flow will be a large part of the transfer out, this time is the national industry hollow, in our prosperity behind, we will appear as thin as a blade of profit. Similarly, the profit margins of China's travel agencies are less than 1%. The hotel industry is also facing losses.
The problem I'm talking about today may not be related to Yuehai, because Yuehai is a professional group under Yuehai Holdings. Yuehai is a very profitable enterprise, the hotel sector is developing very well, I focus on the situation of the industry as a whole.
The second problem is the lag of the local brand strategy, as well as the lag of corporate strategy, we learned 20 years, we just spent a long time in management and service technology, no one paid attention to our strategy, in our 22 hotels five years ago, there is no real brand awareness.
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