|News from around Greater China region, Oct 29.|
Monday, 29th October 2012
Source : HVS International
Hotel, industry and travel news from around the Greater China region; this week: China's growth slows but boosts Taiwan, Mission Hills & Marriott form JV and more....
CHINA REPORT SLOWER GROWTH IN Q3
China’s National Bureau of Statistics states that China's economy expanded 7.4 percent year-on-year in the third quarter of 2012, slower than the previously reported 7.6 percent in the second quarter and 8.1 percent in the first quarter. The sluggish growth rate has persisted for the seventh straight quarter. Challenged by global economic woes, China lowered its full-year growth target for 2012 to 7.5 percent in early March- after its economy grew 9.2 percent year-on-year in 2011.
EFFORTS URGED TO FULFILL RAILWAY INVESTMENT PLAN
China's National Development and Reform Commission, the country's top economic planner, has called for increasing efforts to reach this year's railway investment target. China sets itself a target to invest 500 billion Yuan (US$79.4 billion) in railway infrastructures this year. However, in the first three quarters of 2012, fixed-asset investments on railway infrastructures only amounted to around 344.2 billion Yuan, which means it has to catch up with the rest 31 percent in the fourth quarter. China aims to complete the construction of the high-speed railway network with a total operating length of more than 40,000 km by the end of 2015.
CHINESE TOURISTS BOOST TAIWAN ECONOMY
According to China Daily, business opportunities through stable Cross-Straits relations in the last four years have provided a much-needed positive stimulus for Taiwan’s struggling economy. Mainly boosted by mainland Chinese tourists, the number of incoming tourists to Taiwan will rise to a record of 7 million in 2012. The number of incoming visitors has increased by 1 million every year after the island welcomed mainland Chinese tourists. According to statistics released by Taiwan's Mainland Affairs Authority, a total of around 4.3 million mainland tourists had visited Taiwan by August 2012, creating revenues of approximately 216.7 billion new Taiwan dollars (about US$7.4 billion).
HOTELIERS CONTINUE EXPANSIONS DESPITE ROOM GLUT IN CHINA
According to Wall Street Journal, China remains the primary country for growth for hotel companies like Accor, Hilton, Marriott and InterContinental Hotels Group. In the coming years, each hotel groups aim to open more than 100 properties in the country. Accor states that China’s cooling economy has decreased the company’s revenue growth per available room in China to 6-8% in the past three months from 12-15% in the first half of 2012. However, Accor has signed contract to open up 100 more hotels in China with the focus on its Ibis budget brand. Hilton has 110 hotels in its pipeline in China. IHG aims to add 150 hotels and to promote its new Chinese-only brand, Hualuxe- targeting the “upper midmarket” Chinese clientele. Marriott is bullish on domestic leisure spots and is developing resorts in Yunnan province and the Yellow Mountain region of Anhui province.
MISSION HILLS AND MARRIOT HAIKOU JOINT VENTURE TO OPEN IN 2015
Mission Hills Group announced its joint venture with Marriott International, which will see the development of The Ritz-Carlton and Renaissance Hotels at Mission Hills Haikou. A total investment of approximately 1.3 billion Yuan, the two hotels will open to the public in 2Q2015. The Ritz-Carlton will offer 180 rooms and 20 villas whereas The Renaissance will have over 300 keys. It will be the first golf hotel project operated by Marriott International in the Greater China region.
CHINESE PROPERTY COMPANIES START TAKING BIG STEPS IN GLOBAL REALTY MARKETS
Though international investors remain unsure about moving ahead in the Chinese realty market, their Chinese peers are getting ready to take big steps in the global arena. Vantone Holdings Co Ltd provided the momentum for Chinese realty moves in 2009 by becoming the first corporate tenant of the new World Trade Center in New York. By current estimates, there are some ten major Chinese property developers who have made international investments. Prominent among them are property development and investment enterprises such as Vantone, Vanke and State-run construction corporations like China State Construction and China Railway Group Ltd. Today the footprint of their investments cover nations as diverse as Australia, the Republic of Korea, Iceland, United States, Russia, Nigeria, Chile and the Bahamas.