China Daily (Hong Kong)

Chinese travel the world — hotels, tourism industry just love it

- By PAUL WELITZKIN in New York paulwelitz­kin @chinadaily­usa.com See page 14 See page 14

More Chinese than ever are traveling to the United States and other foreign destinatio­ns — and hotels in China are going with them.

In 2015, more than 2.5 million Chinese came to the US, and that figure was expected to rise significan­tly last year, which was designated “2016 China-US Tourism Year”.

One hotel group seeking to capture those tourists is Shanghai-based Green Tree Hospitalit­y Group. It has five hotels in Arizona and California in the US.

Kevin Brooks, a co-managing director, said the company operates more than 2,000 hotels in China that range from budget or limited-service options to five-star designatio­ns. He said that a Green Tree budget or limited-service hotel in China is similar to a Holiday Inn Express in the US.

“About 18 months ago, the company decided to expand in the US; and last year, we converted five hotels to our brand,” Chris Petroff, co-managing director, said in an interview. “In 2017, we have embarked on franchisin­g.”

Petroff said the company is hoping that existing franchise operators in China will consider a US location to help spread the brand.

Brooks said Green Tree intends to build on its familiarit­y in China to spur growth in the US. “We currently have a loyalty program in China that has 12 million paying members,” Brooks said. “We are seeing strong demand for US travel from that group.”

Driven by a rapidly growing middle class, Chinese outbound tourists are expected to reach 150 million in 2020 from 122 million in 2016, with an estimated average annual growth rate of 5.09 percent, according to the China National Tourism Administra­tion.

Travelers have many incentives for visiting other countries. In addition to a vacation, business or family considerat­ions may require a trip from the Chinese mainland.

“There have been several articles on the growth of what is called the ‘beliesure’ group,” said Petroff. “That is a fastgrowin­g segment that combines business and leisure travel by taking a week before or after a business trip to visit prominent places.”

Another growing segment of overseas travelers from China are parents sending children to study in the US, said Petroff.

Brooks said Alex Xu, the founder and chairman of Green Tree, envisions the company as a global brand. “We are also exploring other countries in Asia and Europe for expansion,” he said.

In addition to traditiona­l inns, online marketplac­es like Airbnb, which enables homeowners, renters and others to offer accommodat­ion to trav- elers, are also expected to benefit from rising Chinese outbound tourism.

“To date, there have been more than 3.5 million guest arrivals by Chinese travelers at Airbnb listings all over the world,” company spokesman Nick Papas said in an email. “While we have not focused on building our community in China, we’ve seen more and more Chinese hosts organicall­y sign up to share their space. There have been nearly 1 million guest arrivals at Airbnb listings in China to date.”

Many of those are young people, especially the group referred to as millennial­s, according to a study for Airbnb conducted by the research concern GfK last fall. Millennial­s surveyed in China, the US and the United Kingdom say that when they think about the next five years, traveling is as important as (or more important than) purchasing a home, paying off debt, or purchasing a car.

About 18 months ago, the company decided to expand in the US; in 2017, we have embarked on franchisin­g.” Kevin Brooks, a co-managing director of Green Tree Hospitalit­y Group

Chinese tourists celebrate Lantern Festival at a hotel in Los Angeles.

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