Not long time ago, there was a high percentage of wealthy travelers coming from China, however nowadays there is a big percentage of middle class who can effort traveling around China or even worldwide, so it is a great opportunity for Starwood be promoted to the market.
Due to improvements in the infrastructure (roads, bridges, railroads, communications), nowadays China has been found very interesting as a country and as a tourism destination for Europeans and Americans. Starwood hotels and resorts is a great opportunity to spend holidays with.
Apart from the advantages why to invest in China's economy, there are couple of disadvantages such as :
Great cities like a Beijing, had been overbuild and polluted so some hotel chains are not interested in the investments into the hotels which will not be situated in the major cities of the country. There are also believes that China's economy and stock will fail.
The rapidly growth economy of China makes us believe, that any hotel chain should invest into tourism industry, that is why Starwood keep investing into the hotels development in China. By investing in China Starwood will maximize the profit as well as increase the tourism economy of China. The demand for hotels is great in especially in the Asia-Pacific region, where the pace of economic recovery is faster. Starwood can capitalize on this trend as its international exposure is wider than most of the other hoteliers. Around 60% of the company's 85,000-room pipeline is to be built in Asian markets. Moreover, Starwood continues to see a healthy level of development activity in Asia, where 18 out of its 39 new deals have been signed so far in 2010. Revenue per available Room Rate growth was 46% in China in 2010.€¨Presently, China is driving the recovery in global tourism and, by 2020, it is expected to be the world's largest tourism market. Since, the company is targeting various Chinese cities where the company is under-penetrated. We expect Starwood to considerably benefit from this strategic expansion.
Chinas exchange rate policy has been a contentious issue in the global economy, particularly between the China and the West. The West has long criticized China for keeping the Yuan at an exceptionally low value. They claim China enjoys an advantage position due its manipulated lower Yuan value, as it makes China exports cheaper. The US president, Mr. Obama, accused China of being a currency manipulator during his early days in office.
The Western world believes that China had pegged the value of the Yuan to the dollar. The Yuan's value has not fluctuated from its current value of ¥6.83 to the dollar since July, 2008. China denied Obama's claim and resisted pressure from him to raise the Yuan's value.(责任编辑：BUG)