Chief executives of Chinese travel companies addressing the World Travel and Tourism Council Summit in Hainan dismissed the idea that a slowdown in China’s growth could hurt the country’s travel sector.
However, the heads of several hospitality groups highlighted challenges facing the industry in China.
Xiao Qianhui, general manager of the Shanghai Spring International Travel Service Group, said: “We have no need to worry too much. The slowdown is unavoidable. We could not grow at such a high rate forever.
“The economy is slowing down but travel is still growing. We are very optimistic about the airline and travel market in China.”
Chenchao Zhuang, chief executive of Qunar, added: “I don’t think such minor events will impact in any way.”
He stressed the main drivers of travel demand in China – the size of the country’s population and the fact that internet penetration is still growing.
However, Mandarin Oriental Hotel Group chief executive Edouard Ettedgui said: “We are all mesmerised by the opportunities, but the biggest risk in our industry is overcapacity and most cities in China are over-supplied [with rooms].
“That is a critical risk today. In my company we try to avoid going into any places that are over-supplied.”
Clement Kwok, managing director and chief executive of luxury hotel operator Hong Kong and Shanghai Hotels, said: “There is a great wish to see more luxury hotel projects in China, but in the short term the economics can be challenging.
“Trying to find the balance between investment and return is a challenge. There is also a challenge knowing when luxury will grow in secondary cities. China’s domestic market is not fully developed.”
InterContinental Hotels Group chief executive Richard Solomons added: “It’s early days. China is a very big business destination, but it is not in a lot of people’s minds as a leisure destination. The hotel market is very much domestic. Our business is 80% domestic.”
Solomons also stressed: “China is not for the get-rich-quick market. You can’t come here and think China is just going to become more westernised.”