A Study On Composite Index Of China's Economy Hotel Industry

According to Economic Cycle Theory, the operation of the national economy is in accordance with the form of up and down cycle. In order to inspect the national economy better, we established the Macro-Economic Composite Index to avoid the impact of fierce dramatic changes in external environment. Tourism industry is also Composite to both economic and nature environment; any social environmental issues can impact the tourism industry profoundly. So it is necessary to establish a system to monitor, inspect and predict the industry. Hospitality is an important component of Tourism Industry, and Economy Hotel is a new specialization of hotel markets. Economy Hotel in China is being normal rapidly, but it still has a long way to go compared with the grand hotels. Since the whole industry is yet to be perfect, to establish a warning system is necessary to help with its development.In the article we tried to establish the Composite Index of China's Economy Hotel Industry. Based on the research and study of relate articles, we studied some important indexes and summarized the procedure and methods to establish the indexes. Then take the factual conditions of China's economy hotel industry into account, we explained the detail procedure which were used to establish the Composite Index of China's Economy Hotel Industry, which including forming the indicators system, choosing the base term, removing the uncertain factors, using relate models and establishing the forecasting system. In the forth chapter we made an empirical study based on the Inntie company's index to find out the defects and also propose some measures to refine it. In the study we use the software SPSS 11.0 to deal with the data, determine the weights of every single indicator and calculate the index using the CI method.At the end we analyzed the outcome of the study, make a conclusion of China's economy hotel industry development and forecast the prospects, then forecast the problems that our economy hotel industry is going to face and give relate proposals.