Abstract The paper figures that the state-owned hotel in the hotel industry is magisterial, and the market structure is complete competition in china. The dominant of state-owned hotel result don't adapt to the complete competition, so the performance of hotel industry is bad. By the conclusion, the paper advances the hotel industry in china must be dominated by the non-state-owned hotels and the market structure of the hotel industry must be monopolization competition. So the ways of ameliorating the performance of hotel industry are must to be cut down the proportion of the state- owned hotels and to build up hotel group.
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Received: 29 November 2006
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