The Hotel Industry in Canada 1. Industry Being Analysed The hotel industry in Canada is made up of a large number of suppliers, providing lodging and associated services for business and leisure travelers across the country. The industry has a supply of 439,818 rooms across the country with a concentration of rooms in metropolitan areas, Ontario has the most rooms, followed by British Columbia, the province with the least is the Northwest Territory (HAC (d), 2007; Rushmore (a), 2006). The industry was worth $17.9 billion in 2007 and employed 378,000 people (HAC (a) 2007). 2. Threats from New Entrants There is a relativity high level of threat from potential new entrants. Generally the hotel industry in Canada is doing well, demand is increasing, and while there are no abnormal profits to attract new entrants, the increasing demand is a pull factor, with Canada seeing a 4.2% increase in the demand for hotel room in 2006 compared to 20051, especially for hotel chains that are in mature or saturated markets, particularly many hotel chains in neighboring US. When this increased is matched with only a 1.2% increase in the supply of rooms there is a demand which is growing faster than the supply (Rushmore (a), 2006). It appears demand is likely to continue increasing giving positive projections, a recent survey indicated that the number of Canadians planning to travel within Canada increased by 11% for 2007 compared to 2006, with a generally positive trend, in 2005 57% of Canadians said that they planned to travel in Canada, in 2006 this was 67% and in 2007 it rose to 78% (HAC (b), 2007), this makes the industry more attractive to new entrants, seeing the potential growth. Revenues are also projected at increasing, the average room rate 2007 w