Speaking at the NYU International Hospitality Industry Investment Conference in New York last month, two of the industry’s most recognized and respected CEOs – Hilton Worldwide’s Christopher Nassetta and Marriott International’s Arne Sorenson – offered three memorable observations regarding the lodging industry.
First, growth will remain strong in the midmarket hotel segment. Second, travel from China to the U.S. will continue to grow. And 3), the U.S. would have to relax its stringent visa requirements if it is to reap the benefit of surging international tourism, driven notably by Chinese travelers.
According to Nassetta, strong growth in midmarket hotels is being fueled by the global rise in the middle class. Once people have the means to travel outside their home country, their first trips are often with tour groups that book midmarket hotels. We have seen this at our midmarket hotels in New York.
The number of Chinese outbound travelers is expected to hit 400 million a year by 2030, a significant multiple of the number just a few years ago. U.S.-based hotel brands have already rolled out customized amenities to make Chinese guests feel comfortable. Similar efforts likely will be made to cater to visitors from India and other Asian markets.
Unfortunately, U.S. delays in issuing Visas could throttle international travel to this country. It’s a politically sensitive topic because it involves national security and immigration. But, as Sorenson pointed out, foreigners who become frustrated trying to obtain U.S. visas likely will opt to visit other countries. If they do, U.S. will lose out on this lucrative market.