Chinese travelers are returning to Banyan Tree Holdings hotels, it’s founder told CNBC.
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A dearth of Chinese travelers is nothing to “worry about,” said Banyan Tree Holdings founder Ho Kwon Ping.
“They are definitely going to come back,” he told CNBC’s Chery Kang at the Milken Institute’s Asia Summit on Wednesday.
“China is just a temporary blip,” he said. Most hospitality professionals predicted that Chinese travel would start to recover around this time last year, or next year. Ho, who is the CEO of Banyan Tree Holdings which has more than 60 hotels spread across 17 countries, said that “Chinese Tourism
is coming back very strongly.” He said that the “mass groups tours” are missing, as they provide the numbers but don’t visit our hotels.
“So, you’ll have more individual travelers who can afford the higher airfares, etc. He is also optimistic about the Chinese tourism market.[is] “The Chinese government has made it clear that they do not want a heavy investment-led development, but rather a consumption-based one, and tourism equals consumption.”
“The banking system will not collapse because Chinese banks are lending money,” he said.
China’s property market
Ho dismissed concerns over turmoil in China’s real estate market, which accounts for 30% of its economy.
Ho Kwon Kwon Ping
Banyan Tree holdings
“So that’s the reason you see things like Country Garden… near to going bankrupt, yet not going bankrupt,” he explained, referring the Chinese property giant who narrowly avoided a default. There is still a great deal of demand for modern housing in China. He said that his company was not concerned about the Chinese property bubble because it had sold a number hotels in China before. “
Not just two superpowers
Ho said he believed Singapore, where his hospitality brand is headquartered, can help soothe geopolitical tensions that have escalated between China and the United States. “
The Western psyche has been too absorbed by the Cold War, which was a zero sum game, he said.
Even though the West has been dominant for the last 300 years, one global dominant power is not sustainable into perpetuity, he said. He said that the West’s dominance over the past 300 years is no longer sustainable. “I use the word civilization because it’s not just about economics. “