The Future of Chinese Tourism: Banyan Tree Holdings Founder Predicts a Strong Rebound

Chinese Travelers Expected to Return, Says Banyan Tree Holdings Founder

Banyan Tree Holdings founder Ho Kwon Ping expressed optimism about the return of Chinese travelers, stating that their absence should not be a cause for concern. Speaking at the Milken Institute’s Asia Summit, Ping explained that the decline in Chinese tourism is only temporary. He added that the hospitality industry had predicted a rebound in Chinese tourism around this year or the next. While mass group tours have decreased, individual travelers willing to pay higher airfares are still coming to their hotels.

Bullish on China’s Tourism Market

Ping also expressed confidence in the tourism market within China. He highlighted the Chinese government’s focus on consumption-based growth and its recognition of the positive impact of tourism on the economy. He emphasized the significant trickle-on effect generated by tourism.

Ping dismissed concerns about China’s real estate market, which accounts for approximately 30% of the country’s economy. He reassured that the Chinese banking system is not at risk of collapse because it is primarily Chinese banks that provide lending. He cited the example of Country Garden, a Chinese property giant, narrowly avoiding default. He also highlighted the high demand for modern housing in China, indicating that there is still room for growth in the real estate sector.

“We’re comfortable with a China real estate story, because we had a number of hotels in China which were all sold prior to the property bubble.”

Ho Kwon Ping

Banyan Tree Holdings

Ping also discussed the geopolitical tensions between China and the United States, suggesting that Singapore could play a role in easing these tensions. He emphasized that the rise of China should not be viewed as a threat to the West but rather as the rise of an entire civilization. He argued against the zero-sum game mentality and emphasized the need to recognize the coexistence of multiple great civilizations in the future. He emphasized that the criteria for judging a country should go beyond politics and economics.