Demand and supply condition and competition structure of luxury hotels in Xiamen

Under rapid economic development and especially development of conference and exhibitions, Xiamen tourism as well as the hotels industry develops astonishingly. These will drive hotel investment fever not only in recent years but also in the future years. The article examines present situation of the room supply and demand of luxury hotels in Xiamen. Analysis of situation is mainly from two aspects: present situation of hotel industry and the source of tourists market. The result shows that Xiamen hotels confront keen competition. The article utilizes Porter's competition model "five-action models" to analyze the development situation and competition structure of the hotel industry in Xiamen. The analysis will provide the policy-making basis for the enterprises in strategic and management adjustment.