Abstract
The purpose of this study is to find out the effect of macroeconomic variables on the hotel profitability and suggest the reasonable way to handle them. To achieve this purpose, seven macroeconomic variables were used as an independent variable. These were the index of industrial production, West Texas Intermediate, the consumer price index, the unemployment rate, the money supply, the trade balance and the exchange rate. And ROA and ROE of total hotels were used as a dependant variable respectively. As the result of regression, it was found that the index of industrial production and the exchange rate had a significant and positive effect on ROA. And West Texas Intermediate, the consumer price index and the unemployment rate had a significant and negative effect on ROA. Also the consumer price index and the unemployment rate had a significant and negative effect on ROE and the exchange rate had a significant and positive effect on ROE. Through the analysis two key variables were found to be very important ones. These were the unemployment rate and the exchange rate. So the hotel managers need to emphasize on the good price of domestic hotel products and supply the various productions and services to the guests when the exchange rate is increased. But when the unemployment rate is increased, the hotel managers should consider to supply the middle price products with the hight price products.
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