By Olivia Toth
shanghai Accor is expanding its presence in the China market, with the January opening of the Hotel Ibis Tianjin and a score of new properties slated to open across the mainland in 2005.
According to Accor Asia Pacific chairman David Baffsky, the launches form part of a clear strategy to pioneer internationally branded hotels in China.
"The Ibis Tianjin is a case in point — running 90 per cent occupancy from day one. We have a very clear strategy which is to be multi-branded," he told CEI Asia Pacific.
Set to launch two more budget-targeted properties in 2005 — the Hotel Ibis Chengdu and Hotel Ibis Qingdao — in line with Shanghai's soon-to-open Formula One circuit in the Jiading district, Accor will also open the 450-room, five-star Sofitel Anting. Aligning with the surroundings of Anting — a special automotive economic zone — the hotel marks the third of a trio of properties in Shanghai including Sofitels in Pudong and Nanjing Road.
Despite expecting "significant growth in profitability in the Asia Pacific region" and outlining its potential for Accor in 2004 and 2005 as "outperforming the rest of the world" for the group, Baffsky admitted that the level of demand for CEI-related activities such as incentive travel — by local corporations in China — was not yet well-developed.
"I don't think that the level of (incentive) demand, other than from the large multinational corporations in China, or government related events, is very significant."
"But all eyes are on China — you need infrastructure, facilities, access and all the basic issues to make it a truly efficient market," he said, adding. "China is on a very steep learning curve and they'll get there without question."
Earmarking the recent launch of the 'Minimum Standards' initiative, which mirrors a similar scheme for Japanese tourists staying at Accor hotels, Baffsky highlighted a focus on the internal and growing outbound China travel market: "'China Minimum Standards' is about allocating Chinese tourists someone who can deal with their needs and make them feel welcome, even outside their own country."
On the targeted CEI facilities of Accor properties such as the Sofitel Boao Hotel on Hainan Island, Baffsky said: "People aren't yet aware of the (CEI) facilities that exist here, but the visibility of what China can offer inbound corporate groups is growing as a result of the Boao Forum."
In addition to China, he earmarked India as the next big growth market, both for inbound and domestic travel, and one where Accor was currently exploring joint-venture opportunities.
China expansion cements regional strategy for Accor
Accor is expanding its presence in the China market, with the January opening of the Hotel Ibis Tianjin and a score of new properties slated to open across the mainland in 2005.