Locals crossing a bridge outside Banyan Tree's Ringha facility in Shangri-La in Southwest China's Yunnan province. [Photo/China Daily]

Singapore-based luxury company expects growth of 20 percent every year for the next five years

BEIJING - Banyan Tree Holdings Ltd, a Singapore-based manager and developer of luxury resorts, hotels and spas, is seeking to double its hospitality business by 2015, with a majority of new openings to be built in China, a senior manager said.

"We expect growth of about 20 percent every year for the next five years, with more than 30 projects currently in the pipeline under the names of Banyan Tree and Angsana brands, which will double the total number of resorts by the end of 2014," said Luca Deplano, vice-president of marketing with Banyan Tree Hotels & Resorts. He added that several of the new openings will be in China by the end of this year, including Banyan Tree Riverside, Shanghai, and other developments in Tianjin and Hangzhou. Others in Chengdu, Chongqing and Guilin will open after 2011.

The move indicates China is an increasingly popular destination for both international and domestic travelers. The company believes international travelers want to see more than just Shanghai and Beijing. They also want to visit places such as Lijiang and Ringha in Southwest China's Yunnan province.

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The newly-added developments are expected to be even more popular among local travelers.

"There is a belief that Chinese consumers have a growing interest in finding holiday destinations within China," Deplano said.

"They want to explore their own country after having been abroad. They want convenient destinations where they don't need to fly eight hours to get to, yet have hotels offering the same luxury experience with a local flavor."

Citing his own habit of seeking out a cup of espresso coffee, the Italian director said he believed the Chinese would want some good congee when they travel. "Something still sophisticated but more in tune with their own culture."

The profile of Chinese customers is changing as fast as China itself. Phuket and Bali remain popular overseas destinations while Sanya is a very well subscribed domestic seaside resort. Chinese tourists now make up the biggest group visiting the Maldives. Eighteen percent of all visitors to Indian islands are Chinese and the ratio is around 30 percent at Banyan Tree properties in that region. "It surprised us," Deplano said.

Only a few short years ago, many were told that Chinese travelers would not be interested in going to distant seaside resorts just to spend time idling on a beach like their European counterparts. Now the Chinese love spending time on the beach and scuba diving.

"It has changed very fast," Deplano said. "You have to be quick in adapting to the different patterns."

The major push for the expansion of Banyan Tree properties in China comes as a result of a recent investment drive by which wealthy Chinese investors put money into the Banyan Tree China Hospitality Fund to develop property in China - a drive that collected almost 1.07 billion yuan ($165 million).

"It is a strong indication that people here trust the brand and they are confident that the brand will grow very quickly in this region," Deplano said, adding the confidence in strengthening its presence in China comes from the nature of the brand.

"Compared with other international hospitality brands, as a Singaporean company we know the Chinese consumers better because Asia is very much in our DNA," he said. "There is an Asian feel at every single corner of our properties.

"Local consumers are more comfortable demanding an experience closer to their own culture. We are well positioned to serve sophisticated Asian travelers."

But the company is not at all Asian in its business strategies. Known as a bold first mover, the company has been comfortable in taking the risk of being the first hotel to open at a location.