French hospitality company Accor is seeing increasing opportunities arising from China’s flourishing tourism market amid the country’s intensified efforts to further tap into the growth potential of domestic demand.
Gary Rosen, CEO of Accor Greater China, said the company remains optimistic about the country’s economic trajectory and the potential it holds for its business operations. Rosen hailed China’s stepped-up efforts to further prop up the economy and boost demand, particularly in the travel and tourism sector, which he believes remains resilient despite several headwinds and external uncertainties.
“The governments, both centrally and on the provincial level, are equally looking at multiple measures to stimulate the economy and demand,” Rosen told China Daily in a recent exclusive interview.
“Looking at the travel industry, it’s pretty resilient. We’re fortunate that, one of the things that people don’t necessarily sacrifice is making trips.”
He said travel demand — both domestic and international — remains robust, positioning the industry well for future growth.
Rosen said the growing preference for outbound travel among Chinese tourists has been attributed to higher disposable incomes among those traveling abroad, while domestic travelers — especially the younger generation — are increasingly exploring smaller cities where travel costs are lower.
“I always remain optimistic about the Chinese market and especially about the Chinese traveler, who is one of the most sophisticated and educated in the world,” Rosen said, adding that the ongoing evolution in travel preferences, particularly among the younger generation, presents new opportunities for growth and innovation in the industry.
Rosen reiterated that China remains a growth engine for Accor, particularly in terms of the number of hotels and rooms in its portfolio. In the second quarter, Accor’s hotel room revenue of its Premium, Midscale and Economy divisions in China accounted for 19 percent of revenue in Accor’s Middle East, Africa and Asia Pacific.
“The next China is still China. There is no other China,” he noted. “Although China’s GDP (growth) for the last quarter didn’t necessarily meet expectations, the reality is that it’s still a heck of a lot higher than most GDPs around the world. The government is making a lot of efforts to address the challenges within the economy.”
Accor said it is committed to integrating environmental, social and governance principles into its operations in China, aligning with China’s pursuit of fostering green, sustainable and high-quality growth for the long run.
The company has been proactive in implementing stringent ESG measures across its hotels, including the elimination of all single-use wet amenities and dry amenities and the installation of systems to measure carbon output through energy.
For Rosen, Accor’s commitment to ESG is seen as a critical component of its future success in China. He said the company is also focused on leveraging digital technology to enhance its service offerings and better cater to the evolving needs of Chinese consumers. Accor has developed a China-driven digital ecosystem and IT system to improve the guest experience and drive customer loyalty.
Looking ahead, Accor remains committed to expanding its presence in China, driven by strong partnerships.
“Last year, as an example, we signed about 150 new hotels that we added to our pipeline,” he added. “I was optimistic that we would be signing on those same levels this year and we’re tracking to be able to do that.”