The Study On The Establishment Of China's Hotel Strategy Cost Management System

The Study on the Establishment of China' s Hotel Strategy Cost Management SystemOver the past 20 years, the Hotel Industry in China has made great achievements from the beginning, to consistent development, to modernization, which covered 100-year history of the development of the world Hotel Industry. There are 10,481 tourism hotels with more than 948 thousands rooms and capital assets of RMB 253,2 billions at the end of the year of 2000. And the total income of tourism hotels was RMB 86. 2 billions and 4. 4 billions for sales tax. But tourism hotels, the one of three mainstays of the tourism industry have to face unprecedented challenge including the growing number of hotels, vehement market competition and decline of economic benefits etc.With the advent of 2lth century and China' s access to WTO, many international hotel groups are forestalling our market, which brings challenge and impact to our tourism hotels. The previous management notion and style are undergoing unprecedented change. Thus effective strategy management has become the chief topic to the hotel development for the change of hotel managing environment. At the same time, the thought of strategy management has gradually permeated every functional field of marketing, production, finance, human resources and so on.If hotels want to get out of the difficulty of operation and management, they should pay more attention to cost management, which is an important ingredient of enterprise management. Cost management can reduce the cost of operation and management and enhance market competitiveness. The function of the traditional system of cost control management is limited for new situation and environment. So it is necessary to adjust the contents of hotel cost control management and establish a new system of strategy cost management to meet the needs of the time.Strategy cost management is new for the field of management cost in China. The thesis discusses the foundation of theory of strategy cost management in details including the concept, the theory, the contents, the characteristic, and procedure of strategy cost management. According to the traditional thoughts of strategy management in "Art of War" , the thesis focuses on the objective of strategy costmanagement--hunting the cost advantages in competition, and draws out a system ofstrategy cost management by four sections of the culture of hotel cost, the environment of hotel operation and management, hotel human resources investment, and hotel organization and managing policies.