Revenues fall by 16.4 percent on tightening of luxury spending

Hospitality businesses in China have suffered from a sharp drop in revenues, with conference-related activity most seriously affected by the government's policies to curb luxury spending of public funds, an industry report has found.

Government-funded conferences revenues are reported to have dropped a dramatic 37.4 percent, according to the 2013 China Hotel Development Report released by the China Hotel Association, but with austerity being officially encouraged, demand for mid-ranged hotels has risen.