Page 308 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
Dream Cruises has been advocating such positive scenic areas of Beijing have been closed due to
impact as part of its guiding principle in rebuilding rainstorms. Domestic tours and rural homestays
the cruise economy for every homeport where are gaining popularity among Chinese consumers,
cruise operations can resume (CIN). who aspire to get away from the hustle and bustle
of the city and embrace nature, while attaching
Hotels and Accommodations more importance to the quality and cleanliness of
the shared homes they rent. The revenue of the
Personalized or customized travels, some country's homestay services sector reached 15.8
emerging niche destinations as well as safe billion yuan (US$2.4 billion) in 2020, down 29.8
and flexible tours, are expected to have gained percent year-on-year due to the pandemic. There
popularity among Chinese tourists in the second is huge room for growth of the vacation rental
half of 2021. About 94 percent of respondents to a market as travelers are willing to try something
May 2021 survey conducted by the Chinese branch different, like homestays during a trip for get-
of Airbnb were planning or had already booked togethers, reunions and to improve parent-child
their trips in the second half of the year, of which bonding and communication. Compared with
45 percent respondents have booked at least one hotels, the recovery of the vacation rental market is
trip. The survey interviewed 1,200 Chinese adults slower, due to its non-standardized management
aged from 18 to 50 who have traveled in the past methods and community-based services (Fan).
two years and would like to travel in the next six
months. Most travelers preferred personalized According to analysts at Lodging Econometrics
and tailor-made travels and some off-the- (LE), the total China construction pipeline stands
beaten destinations. Meanwhile, they paid more at 3,454 projects/661,043 rooms. At the end of the
attention to safety and tended to make flexible second quarter, the 2021 construction pipeline
plans during trips. On average, people planned was up 2% by rooms year-over-year (YOY) and just
to spend about eight days on their summer trips, below the region’s all-time high project count of
and 84 percent of travelers planned to have mid- 3,574 projects/647,704 rooms set in the second
to-long haul trips and visit other provinces. The quarter of 2020. This is the fourth consecutive
survey noted that 70 percent of the respondents quarter China’s pipeline has increased. In mid-
considered homestays or short-term rentals 2021, China had 2,401 projects/437,731 rooms
as accommodations for summer travels, and under construction, up 5% by projects and 7%
cleanliness and safety of accommodations were by rooms YOY, while projects scheduled to start
the top priorities for Chinese tourists. Generation construction in the next 12 months were down
Z, the young consumers born between the mid- 6% by projects and 11% by rooms, standing at
1990s and the early 2010s, are becoming the 556 projects/103,958 rooms. Projects in the early
main force for summer travel and they are more planning stage were at an all-time high, up 10%
interested in night-time activities and experiences. by projects and 12% by rooms YOY and standing
Parents are planning to travel with their kids during at 497 projects/119,354 rooms at the end of Q2.
the summer period, and they consider traveling The increases in projects in the under construction
as precious learning opportunities for kids. They and early planning stages can be attributed to a
care more about qualified facilities and services, record number of new upper upscale, upscale, and
and would like to visit rural areas, historical sites upper midscale projects recorded during Q2'21.
and museums, as well as get patriotic education. Previously delayed projects that had been on
At a time when the country's short-term vacation hold due to COVID-19 were finally advancing and
rental industry is picking up due to the better expected to increase into 2022 as construction in
control of COVID-19, the recent sporadic cases China resumes. Chengdu led China's pipeline at
of COVID-19 in some parts of the country, as the end of Q2'21 with 138 projects, a record-high
well as rainstorms, typhoons and other natural number of projects, having 28,009 rooms. Shanghai
disasters have posed challenges to the short- follows with 123 projects/23,891 rooms. Next was
term vacation rental sector. For instance, some Guangzhou, standing at 121 projects/24,836 rooms,
rural homestays in the suburbs and mountain then Wuhan with 101 projects/14,064 rooms, and
Xi'an with 93 projects/16,395 rooms. The three
308
Dream Cruises has been advocating such positive scenic areas of Beijing have been closed due to
impact as part of its guiding principle in rebuilding rainstorms. Domestic tours and rural homestays
the cruise economy for every homeport where are gaining popularity among Chinese consumers,
cruise operations can resume (CIN). who aspire to get away from the hustle and bustle
of the city and embrace nature, while attaching
Hotels and Accommodations more importance to the quality and cleanliness of
the shared homes they rent. The revenue of the
Personalized or customized travels, some country's homestay services sector reached 15.8
emerging niche destinations as well as safe billion yuan (US$2.4 billion) in 2020, down 29.8
and flexible tours, are expected to have gained percent year-on-year due to the pandemic. There
popularity among Chinese tourists in the second is huge room for growth of the vacation rental
half of 2021. About 94 percent of respondents to a market as travelers are willing to try something
May 2021 survey conducted by the Chinese branch different, like homestays during a trip for get-
of Airbnb were planning or had already booked togethers, reunions and to improve parent-child
their trips in the second half of the year, of which bonding and communication. Compared with
45 percent respondents have booked at least one hotels, the recovery of the vacation rental market is
trip. The survey interviewed 1,200 Chinese adults slower, due to its non-standardized management
aged from 18 to 50 who have traveled in the past methods and community-based services (Fan).
two years and would like to travel in the next six
months. Most travelers preferred personalized According to analysts at Lodging Econometrics
and tailor-made travels and some off-the- (LE), the total China construction pipeline stands
beaten destinations. Meanwhile, they paid more at 3,454 projects/661,043 rooms. At the end of the
attention to safety and tended to make flexible second quarter, the 2021 construction pipeline
plans during trips. On average, people planned was up 2% by rooms year-over-year (YOY) and just
to spend about eight days on their summer trips, below the region’s all-time high project count of
and 84 percent of travelers planned to have mid- 3,574 projects/647,704 rooms set in the second
to-long haul trips and visit other provinces. The quarter of 2020. This is the fourth consecutive
survey noted that 70 percent of the respondents quarter China’s pipeline has increased. In mid-
considered homestays or short-term rentals 2021, China had 2,401 projects/437,731 rooms
as accommodations for summer travels, and under construction, up 5% by projects and 7%
cleanliness and safety of accommodations were by rooms YOY, while projects scheduled to start
the top priorities for Chinese tourists. Generation construction in the next 12 months were down
Z, the young consumers born between the mid- 6% by projects and 11% by rooms, standing at
1990s and the early 2010s, are becoming the 556 projects/103,958 rooms. Projects in the early
main force for summer travel and they are more planning stage were at an all-time high, up 10%
interested in night-time activities and experiences. by projects and 12% by rooms YOY and standing
Parents are planning to travel with their kids during at 497 projects/119,354 rooms at the end of Q2.
the summer period, and they consider traveling The increases in projects in the under construction
as precious learning opportunities for kids. They and early planning stages can be attributed to a
care more about qualified facilities and services, record number of new upper upscale, upscale, and
and would like to visit rural areas, historical sites upper midscale projects recorded during Q2'21.
and museums, as well as get patriotic education. Previously delayed projects that had been on
At a time when the country's short-term vacation hold due to COVID-19 were finally advancing and
rental industry is picking up due to the better expected to increase into 2022 as construction in
control of COVID-19, the recent sporadic cases China resumes. Chengdu led China's pipeline at
of COVID-19 in some parts of the country, as the end of Q2'21 with 138 projects, a record-high
well as rainstorms, typhoons and other natural number of projects, having 28,009 rooms. Shanghai
disasters have posed challenges to the short- follows with 123 projects/23,891 rooms. Next was
term vacation rental sector. For instance, some Guangzhou, standing at 121 projects/24,836 rooms,
rural homestays in the suburbs and mountain then Wuhan with 101 projects/14,064 rooms, and
Xi'an with 93 projects/16,395 rooms. The three
308
