TABLE 3: FORECAST FOR NEW HOTEL OPENINGS IN CHINA Hotels


2013 (f)


2012 (f) 2011 2010 2009


380 542 796 966 565


Source: Lodging Econometrics


TABLE 4: TOTAL CONSTRUCTION PIPELINE Q4 2011 – TOP FIVE COUNTRIES Country


China


United States India Brazil


United Kingdom Source: Lodging Econometrics


Projects 1,384 2,753 388 217 193


Rooms 112,858 112,530 121,833 136,812 89,301


Rooms


399,438 334,712 71,270 34,008 25,726


from China will reach 100 million by 2020. According to Prof. Dr. Wolfgang Georg Arlt, founder and Director of the China Outbound Tourism Research Centre (COTRI), Chinese tourists have become a major target for destination marketing groups around the world. As published in Essential China Travel Trends 2012, Arlt comments: “...A new challenge awaits destinations and travel suppliers who have only just learned from experience that Chinese group tourists have their own distinct expectations, needs and behaviours and that success in this market requires careful product adaptation, new forms of marketing and differentiated means of fulfillment.” Hotel groups, it seems, have already


caught on to this, with many revealing that their new Chinese-oriented brands will eventually be developed internationally, enabling the travelling Chinese to have the same experience abroad. While its potential and growth is evident, China is of course not without its challenges. Labour is no longer regarded as ‘cheap’, and there are concerns over human resources with the country’s one child policy limiting the supply of new talent. And those who do make the grade, are too often poached by higher paying service industries such as


retail and airline cabin crew. Hotel investment too, is cause for concern with Jones Lang LaSalle Hotels reporting that investment volumes into Asia Pacific from around the world fell by 45% in 2011 compared to 2010. Asia Pacific outbound investment increased by 54% in the same period. According to the firm’s report, Asia Pacific Investment Highlights, published in March 2012, transaction volumes are expected to remain steady in 2012. The country is also experiencing a


slowdown in economic growth. In the first three months of 2012, growth slowed to 8.1%, down from 8.9% in the previous quarter. And while this is a concern for analysts, put into perspective with the rest of the world these are figures that Europe can only dream of. And fortunately, the hospitality industry is not deterred. China is expected provide significant opportunities for 10 to 20 years to come, particularly through mergers and acquisitions, and the outlook remains positive. In 2013, STR Global expects the Asia Pacific region as a whole to open 526 properties with 116,632 rooms. So as the centre of gravity continues to shift East, China will remain one of the fastest growing hotel sectors in the world.


...A new challenge awaits destinations and travel suppliers who have only just learned from experience that Chinese group tourists have their own distinct expectations, needs


and behaviours... Prof. Dr. Wolfgang Georg Arlt, China Outbound Tourism Research Centre


Sleeper China 2012


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