Australian hotels need to start tailoring their product to Chinese travellers or risk missing out on the huge growth from the market, senior property executives have warned. 

David Gibson, chairing a panel discussion at an industry conference in Sydney this morning, said that while the industry had been “dazzled” by arrivals out of China, the growth to Australia was below par.

Outbound travel from China had  grown from 10.5 million people in 2000 to 54 million in 2010 – compound growth of 22%. Yet Australia had only attracted 8% compound growth from China over the past five years, Gibson said. The figures prompted Patrick Imbardelli, chief executive of Pan Pacific Hotels Group, to accuse Australia of resting on its laurels.

“Australia hasn’t been as proactive as it could have been,” Imbardelli said. “We haven’t put as much time or effort in the Chinese market developing the product as we did in the 80s for the Japanese market.”

Initiatives introduced in the 80s, such as dedicated breakfasts and coordinators for Japanese travellers, should serve as a blueprint for the industry, he told delegates at the Australia, New Zealand and Pacific Hotel Industry Conference. However, efforts need to go beyond just “putting congee on the table at breakfast”. “We’ve become a bit immune to diversity of product and I think we need to go back to some fundamentals,” Imbardelli said.

“They really want to have their own product while also experiencing a local product.” Jan Smits, chief executive Australasia for InterContinental Hotels Group, said hotels need to better understand the experience sought by Chinese travellers in Australia.

“I’m being general, but a good holiday for the Chinese is not lying on the beach and swimming and doing water sports. It’s more about nature and history and culture,” he said. “We really need to know what each segment wants and make sure we design the products to cater for them.”

Imbardelli said the diversity of China’s visitors is underrated. “We’ve got to stop thinking of it as one market – a midscale market or a mass market – there are many markets,” he said.

Editors Comments: Fighting the human tendency for complacency and doing things the same way as they've always been done is a must in these modern tourism times.  We have such a wealth of options for people to experience, but if we don't get the message across in the right way, then they will simply go somewhere else.  Innovation is the key!