Accor charts ambitious plan for hospitality sector in nation
French firm bets big on pent-up travel demand in booming tourism market
French hospitality company Accor is betting big on the burgeoning Chinese market, anticipating substantial growth in its thriving tourism sector as the country plans to become the world’s largest tourism market by 2035.
“China is moving closer to becoming the world’s biggest tourism market by 2035,” said Gary Rosen, CEO of Accor Greater China.
Pent-up demand for travel after the COVID-19 pandemic has continued among Chinese consumers, he added.
As China gradually shakes off the impact of the pandemic, Accor has witnessed robust growth in its China business, with many areas registering double-digit growth last year, said Rosen.
“Last year, as an example, we signed about 150 new hotels that we added to our pipeline,” he told China Daily in an exclusive interview recently.
According to Accor’s full-year 2023 results, hotel room revenue in China accounted for 19 percent of revenues in Accor’s Middle East, Africa and Asia-Pacific region. The recovery continued with marked revenue per available room growth in China in the fourth quarter. Business overall in 2023 is slightly higher than the level seen in 2019.
Rosen noted the profound shift in people’s perspectives after the pandemic, with an emphasis on seizing the moment to explore the world.
He said today’s era is witnessing a transformation where individuals are no longer deferring travel plans for another day, but are embracing the opportunity to immerse themselves in diverse cultures and experiences.
“The younger generation, in particular, is driving this trend, viewing travel not just as leisure activity, but as a means of personal growth and cultural enrichment,” he said.
Data from the Ministry of Culture and Tourism showed that traveler number as well as tourismrelated revenues reached record highs in China during this year’s eight-day Spring Festival holiday.
According to the ministry, the domestic tourism market saw 474 million trips during the holiday, up 34.3 percent year-on-year and a 19 percent increase compared with the same holiday period in 2019 before the onset of the pandemic.
Domestic tourism-related revenues reached 632.69 billion yuan ($87.98 billion) during the holiday, an increase of 47.3 percent year-on-year and up by 7.7 percent from the same holiday period in 2019.
Rosen expressed strong confidence in China’s economic prospects, saying the Chinese government is taking effective measures to stimulate the economy.
“People are understanding the stimulus that’s being put in the market because we don’t see a pullback in people’s decisions to travel,” he said. “So that leaves us quite optimistic that 2024 will be even better than 2023.”
According to the latest Government Work Report, China will strive to foster new areas of consumption including cultural and recreational tourism and hasten the recovery of inbound tourism.
Looking ahead, Rosen said Accor plans to expand its footprint in the country and further diversify business growth in the region, employing more people and investing more resources in its infrastructure in the China market.
“China is one of our top markets in terms of growth around the world,” he said. “It plays a significant role for us as a company, and we will always be focused on growth here.”
Drawing upon insights from Bain & Co, Rosen said he believes that “China still is the best consumer story in the world”.
“As the economy grows … that opens the door for more companies around the world to have the opportunity to continue to or start to invest in and grow their business in China as a part of their global portfolio,” he said. “The market is continuing to rebound from the last couple of years, and I think that only presents great opportunities for foreign companies in the future.”