CHINA’S economy may have started to show signs of a slow-down, with GDP growth slipping to 7.5 per cent in Q2 from 7.7. per cent in the previous quarter, but Starwood Hotels & Resorts is still in hot pursuit of growth through China as both a source and hotel market.
Speaking to TTGmice e-Weekly, Alison Taylor, senior vice president, sales, Asia Pacific, Starwood Hotels & Resorts, said: “We have seen dips and plateaus in many markets worldwide but we know the Chinese economy will sustain its growth. We are in it for the longhaul after all, and while China may not have the economic growth as expected, it is still strong for us.”
China ranks as Starwood’s fastest-expanding hotel market, with 120 operating hotels and more than 100 in the pipeline. This makes China the group’s second largest market, after the US (TTG Asia e-Daily, July 12, 2013).
An agreement inked by Starwood last week to open Element Suzhou Science and Technology Town in mid-2015 marks the Element brand’s entry to Asia-Pacific, as well as the presence of all nine Starwood brands in China.
According to Taylor, the presence of all Starwood brands in China is integral to the company’s effort to tap the Chinese outbound market.
She said: “The Chinese can now identify with our brand when they travel overseas, and 95 per cent of our global hotels have welcomed Chinese travellers.”
Taylor noted that outbound travel from China has grown by 20 per cent globally in 2012.
With MICE driving 20 per cent of Starwood’s overall business, Taylor said this group contributed “significant top line revenue”.
“We are now receiving bookings of 100 rooms and more from over 350 groups out of China into our Starwood properties. We are seeing growth in this market, with the US, Europe and South-east Asia being popular destinations for them.”
To cater to the Chinese, Starwood launched a programme in 2011 to make this segment of travellers feel at home. Besides providing collaterals in Mandarin, an in-house Mandarin-speaking specialist is at hand to assist Chinese travellers. Chinese-friendly menus with familiar dishes like congee are also available all-day.
