China’s total travel market will shift into overdrive during the coming years, according to a PhoCusWright report.
Travel bookings in China will surpass $105 billion next year, with more than $15 billion of that made online. Between 2008 and 2013, the online-travel market is expected to grow by 500%, thanks in part to investments and partnerships among the country’s Internet and online-travel companies. “Clouds of uncertainty may hang over the global economy, but China has been a shining light for travel,” according to the report.
"Online travel is hardly new in China, yet with such strong growth for the total travel market and rapidly changing consumer behavior, online travel is experiencing the raw, meteoric growth we have typically seen only in nascent online markets," Douglas Quinby, senior director, research at PhoCusWright, said in a news release. "Online travel is also unfolding with the distinct characteristics of China's unique Internet landscape. It is shaped not only by online travel agencies and supplier websites, but also by the major media portals, social networks, online shopping malls, online payment challenges and the need for offline support and fulfillment.”
With all that expected growth, it wouldn’t be surprising to see hotel companies looking to add to their China footprint. Accor, for instance, today said it has added 6,572 rooms to its Greater China committed development pipeline since the beginning of the year.
A total of 31 new contracts, most in Tier 2 and Tier 3 cities, have been signed in the country, representing:
- 15 ibis hotels;
- nine Pullman properties;
- five Mei Jue (Grand Mercure) projects;
- one Sofitel; and
- one Novotel.
This list includes hotels such as the Pullman Zhoushan Seaview, a 22-story hotel expected to open in 2015.
“Accor has had a solid start to 2012 in Greater China, which has seen the debut of the tailor-made Mei Jue hotel brand as well as robust expansion,” Michael Issenberg, chairman and COO for Accor Asia-Pacific. “There is a sense of recalibration in the Chinese economy, resulting in the distribution of growth spreading to new economic centers and opening fresh opportunities for Accor. Accor has anchored its presence in the key cities of China and deployed an extensive brand portfolio, which has helped build its reputation, making the move beyond Tier 2 and into Tier 3 cities easier.”
A 200-room hotel will be a part of a planned $3-billion development project taking place in Queens, New York, near Citi Field, according to Crain’s New York Business.
In addition to the hotel component, the development is expected to include up to 2,500 housing units and a 1-million-square-foot retail and entertainment complex. In total, the project encompasses 5 million square feet of new development.
Related Companies and Sterling Equities are acting as developers for the project.
Portugal’s hotel revenue declined by 6.8%, primarily because of a drop off in overnight stays by Portuguese tourists, according to a Bloomberg report.
Revenue fell to €143.3 million ($180.7 million), the Lisbon-based National Statistics Institute said. During the first four months, revenue dropped 4.1% to €411.4 million ($518.6 million). Tourism represents about a 10th of Portugal’s gross domestic product, according to the Economy Ministry.
Weekly U.S. unemployment claims increased by 6,000 to 386,000 on a seasonally adjusted basis for the week ending 9 June, according to the U.S. Department of Labor.
The four-week moving average also increased by 3,500 to 382,000. The advance seasonally adjusted insured unemployment rate was 2.6% for the week ending 2 June, unchanged from the prior week's unrevised rate.
Compiled by Shawn A. Turner.
