This momentum comes from the explosion of international tourism and the increasing number of business travelers and overseas vacationers who prefer high-class accommodation.
International visitors in general spend more than domestic visitors, except for wealthy Chinese tourists. Most visitors to China on visa-free basis come from developed countries with significantly higher living costs.
According to Yong Chen, Associate Professor at the EHL Hotel Business School in Switzerland, even when spending at a normal level, this group of customers still generates significant revenue for Chinese businesses.
Hong Kong (China) and Shanghai hotel groups, owners and operators of The Peninsula Hotels chain with facilities in Beijing and Shanghai, have recorded a sharp increase in foreign visitors thanks to China's visa-free policies.
The group said that the increase in the number of luxury tourists from other countries coming to China on visa-free terms has compensated for the number of rooms canceled by visitors from the Gulf countries due to limited flights in the past time.
Shanghai recorded significant growth in international visitors, while Beijing is witnessing a strong trend of diplomatic, business and resort visitors returning," shared Benjamin Vuchot, CEO of Hong Kong (China) and Shanghai Hotel Group.
At The Peninsula Beijing, the current accommodation structure is evenly divided among domestic and international tourists. The group said it is welcoming a positive number of visitors including high-level business delegations and returning vacationers from the US, UK, Australia and Mexico.
China's continuous optimization of visa policies has strongly promoted this trend. China has expanded its visa policy, currently applying unilateral visa exemption to about 50 countries and establishing bilateral visa exemption agreements with 29 countries.
According to the China National Migration Service, last year, 30.1 million foreign citizens entered the country on visa-free basis, accounting for 73.1% of the total number of international visitors and marking a growth rate of 49.5% compared to the same period last year.
According to a report released by Morgan Stanley (USA) in February, revenue per available room in the Chinese hotel industry has ended its two-year decline and recorded growth again. The report expects this positive recovery to continue in the next few quarters.
The megacities including Beijing, Shanghai and Shenzhen are the localities that benefit the most from this trend, as they are tourist centers and key gateways to China. However, according to Mr. Chen, as international tourists move to smaller cities, demand for medium-sized hotels, budget hotels and guesthouses is also increasing.
