A Chinese economic boom is changing the way Asia’s hotels are run, with room rates skyrocketing in many countries. In this article, The Economic Times discusses how China’s economic boom is impacting Asia’s hotels, and how these changes are having a ripple effect on the rest of the world.
Economic boom in China
As China’s economy booms, hotels in Asia are feeling the effects. In Hong Kong, occupancy rates have decreased by 10 percent since the start of the year, while in Bangkok, prices for rooms have increased by 10 to 20 percent.
“Economic growth in China is having a ripple effect on hotels throughout Asia,” said Keiichi Hiratsuka, an economist at Nomura Holdings Inc. “Hoteliers are having to adjust their pricing and occupancy rates in order to remain competitive.”
The boom in Chinese tourism has created a number of new opportunities for hoteliers operating in these countries, but it has also created new challenges. For example, many hoteliers struggle to find staff who are able to speak Mandarin. This has forced some hotels to offer higher salaries in order to attract and retain qualified employees.
While the slowdown in Chinese tourism may cause short-term pain for some hoteliers, it seems likely that the sector will eventually rebound as more people become aware of the new opportunities that have arisen. “Asia’s hotels will continue to benefit from a burgeoning Chinese travel market,” Hiratsuka said.
Impact of the Boom on Asia’s Hotels
Since the beginning of China’s economic boom in the early 2000s, hotel occupancy rates in Asia have increased significantly. In 2001, occupancy rates for Asia’s hotels were just over 50%. By 2013, this number had quadrupled to over 150%.
This boom has had a number of significant impacts on Asia’s hotel industry. Firstly, it has resulted in an increase in the demand for hotel rooms throughout the region. This has driven up hotel prices and made it more difficult for smaller hotels to compete. Secondly, it has led to an influx of tourists into Asia, which has caused a spike in demand for accommodation and services such as tourism guides. Finally, the boom has led to a rise in the number of Chinese tourists travelling to other parts of Asia, which has affected the economies of countries such as Thailand and Cambodia disproportionately.
Largest Lobby Group in Asia
As China’s economy continues to boom, the country’s hotel industry is feeling the effects. According to a report by the Asia Hotel Forum (AHF), China now boasts the largest lobby group in Asia with 850 members, representing over $1 billion in annual revenue. Meanwhile, Thailand ranks second with 565 members and Japan third with 494 members.
According to AHF President and CEO Dato’ Sri Jayasuriya, these numbers underscore the importance of the hotel industry in connecting Asia’s economies. “Asia’s hotel sector is essential for facilitating trade and investment, as well as facilitating regional cooperation and integration,” he said.
The growth of China’s hotel industry has been nothing short of meteoric. In 2016, Chinese tourists spent an estimated $47 billion in hotels worldwide, making them the world’s number one tourist destination. This influx of cash has had a ripple effect on the rest of Asia, with many countries seeing their economies boom as a result. In Thailand, for example, visitor arrivals increased by 10 percent last year due to Chinese tourists.
While China remains the primary driver of