 Jim Khoo Wei Kwan is General Manager of the 443-room Howard Johnson International Trade Centre Plaza hotel, which will open in downtown Chongqing in December.
Born in Singapore, he has lived and worked in China for 12 years, including stints in the Beijing, Wuhan, Qingdao and Shenyang hospitality sectors. He is currently interviewing and recruiting the 600+ staff needed for the hotel’s opening.
What are the similarities/differentiating factors in Chongqing's hospitality sector compared to other Chinese cities?
JK: There is still a lot of development required. In a mature market, hotels of the same star category compete with integrity. However, in Chongqing, five-star hotels are sometimes competing with three- and four- star hotels, especially during the Golden Week holidays when demand is low. As for hotel food and beverage, most locals still prefer to go for local cuisines, like hotpot, instead of trying new cuisines. They haven’t yet opened up to more international cuisines. Most consumers also still prefer stand-alone restaurants, so hotels are limiting the number of outlets in order to minimize cost. Things are changing slowly, however. Most local consumers are becoming more internationalised, as can be seen from the style and design of the new nightspots in the city.
How do you see Chongqing's hospitality sector developing over the next five years?
JK: Chongqing and Chengdu have recently been selected by the Central Government as a New Special Zone to coordinate rural and urban development in all sectors. As the two cities are taking initiatives in pushing forward comprehensive reforms, this will attract more international and locally managed hotels into the market. However, bringing up room rates will be the main concern for hotels, as most business travellers to the city are currently middle-level managers with limited budgets. Hotels have been adding a lot of benefits to a buyer’s market and this has been a continual trend as a negotiation tool from hotel consumers. Hence, hotels are competing purely on rates in order to maximise market share. But dropping rates is a difficult strategy, as you still have the same fixed costs.
I do not see a significant jump in year-on-year occupancy for the coming five years, as supply will continue to outstrip demand. There will be more experienced professionals coming into the market once the hotel industry starts to get more mature, and this will be an advantage for young hoteliers to learn new ways of managing hotels. The government has a role to play, and should focus more efforts in generating big international events for the city o boost its profile. An opportunity the government could also consider is to create an area within the city that could provide dormitory-style accommodation to enable the hotel industry to bring more trained staff from the various hospitality schools around the country.
How will the Howard Johnson ITC Plaza position itself in the marketplace?
JK: We will provide unique facilities to meet the positioning objective of sourcing multiple market segmentations, for which our competitors may have limitations. The hotel’s configuration allows it to increase and decrease its capacity to move between corporate, MICE and leisure demand.
The standard room type offers 42 sq m, which is above the average across all markets in China. We also have 68 suites with full kitchen facilities, so we can create a long-stay community within Jiefangbei district, offering all the added expectations of a five-star hotel. The hotel also features a 900 sq m pillarless grand ballroom, which will be the largest in Chongqing, and allows a strong positioning opportunity for all large weddings, conferences or exhibitions.
The hotel will also feature a unique ladies floor, providing the comfort expected by today’s ever-growing number of female executives. As well as a category of rooms for the business traveller that features an in-room computer with complimentary broadband, we will have the highest executive club lounge in the city, to assist in marketing to high-end corporate executives.
What are the key challenges to opening a new hotel in Chongqing?
JK: Recruitment is the greatest challenge of all hotels at this time. Finding the right person for the right position at the right time in the right environment. If you were to compare the situation to the property industry, you can divine a buyer’s and a seller’s market. Potential employees for the hotel industry are in the seller’s market; they are clearly in demand and they know that great opportunities exist for them. As new international brands enter the market, potential employees know that hotels are seeking experience. Therefore, potential staff will ask for a high salary and benefits even if they have minimal experience, and they seek faster promotions. Those with international hospitality experience still like to go away from the city to work as local expatriates in other Chinese cities.
What issues does the city of Chongqing need to address in order to increase the volume of MICE business?
JK: The municipal government and tourism bureau need to put an immense amount of effort into creating attractive and innovative solutions for increasing MICE business. The government needs to encourage more direct international flight arrivals, as well as encouraging and supporting professional and experienced staff to set up and develop significant MICE infrastructure. They need also to improve the city’s road infrastructure, as well as develop and maintain good tourism attractions and nightspots.
Howard Johnson International Trade Centre Plaza Hotel is located at 66 Qingnian Road, Yuzhong District, Chongqing. www.hojochina.com
Last update : Monday, 10 September 2007
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Jim - good luck with the hotel - look forward to visiting your hotel in the not too distant future. 
Director
By: Peter Crowhurst (Guest) on 24-09-2007 02:52