Severe Acute Respiratory Syndrome (SARS) first appeared in February 2002 in China’s Guangdong Province before emerging in neighbouring Hong Kong in late February. The epidemic had a negatively profound impact on tourism around the world, with particularly strong impacts on countries in South‐East Asia. This paper will present a brief SARS chronology with critical events or impacts on Hong Kong’s tourism industry.

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This paper is based on findings from a two‐year MPhil research project that aimed to examine the development of hotel chains in China since 1978 and to recommend policy and operational guidelines for their further expansion. The study confirmed the unique nature of the hotel industry in China, existing as it does in a country moving from a centrally planned economic system that is strongly influenced by communist dogma towards a Western‐style market economy. This paper identifies and discusses four main categories of barriers to chain development, namely: economic and political systems; hotel ownership; hotel management capability and resources; and competition between local and foreign firms. Massive growth in China’s hotel industry is forecast, and this presents a great attraction for hotel companies. However, the need to understand and appreciate these barriers is recommended to any company, local or foreign, contemplating doing business in this unusual but potentially very large market place.

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Franchising develops quickly in the hotel industry with the expansion and globalization of hotel chains, as it brings about advantages and sets up a very good leverage between two parties – franchisor and franchisee. Major multinational hotel corporations have entered China, but franchising is seldom used as a tool of expansion there. The continuous increase in tourism and the structural change in the hotel industry in China afford more opportunities for the growth of franchising operations and also of indigenous hotel chains. When franchising in this specific market, quality control, ownership, connection, business tradition and franchisor‐franchisee relationships should be examined carefully in order to ensure success. A full understanding of China’s peculiar social, cultural, economic and political context is essential for foreign companies, whilst existing and new indigenous companies require greater technical and operating expertise along with the necessary business acumen to operate hotel chains.

Presents the results of an empirical study of work motivation and job satisfaction among managers in Chinese restaurants in Hong Kong. The findings indicated that work environment, job itself, and rewards are critical factors in predicting managers' satisfaction in this specific catering sector. A significant relationship was found between job satisfaction and turnover intentions that has supported many studies in the discipline of social psychology. In addition, sectorial and cultural specificity is suggested to address the unique characteristic of the Hong Kong Chinese restaurant environment.