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Hong Kong is world-renowned for its first-class hotels. But increasingly, thereis a need for the systematic application of Total Quality Management (TQM)in Hong Kong's hotel industry because its labour turnover is unacceptablyhigh, the cost of hotel labour is rising, and competition is increasing. TQMwas first introduced in the local hotel industry during the late 1980s. Data on the present status of TQM in Hong Kong's hotel industry are interpreted within the context of the Chinese family business. The paper concludesby contrasting two case-studies to demonstrate the most effective implementation of TQM in Hong Kong hotels.
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