Hainan Island received 67.45 million tourists in 2017，Hawaii received 9 million tourists last year。But Hainan’s tourism revenue is only 81.1 billion yuan，Per capita contribution is only 1,200 yuan，Hawaii’s annual tourism revenue exceeds $16 billion，Per capita consumption reaches more than 11,000 yuan。The gap between the two major island travel destinations is worth pondering。

At the "Second International Island Tourism Industry Summit" jointly organized by Zhihui and Qulv on May 10，Zhao Hui, Vice President of Development and Strategic Alliances of Wyndham Hotel Group Greater China, raised this difference。He believes that this is influenced by the structure of customer sources，There are also deficiencies in the layout of coastal accommodation formats。

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Zhao Hui thinks，Mature islands with unique natural resources, accurate positioning and comprehensive service facilities are suitable for development and layout at the first time，At the same time，The layout of accommodation formats in coastal destinations should be based on local nature、Humanities、Travel、The current status of real estate development is unified by the government、Plan and cooperate with excellent brands with comprehensive development and operation capabilities to promote brand hotels、Vacation Apartment、Property Hotel、Vacation Rental、Timeshare、Comprehensive accommodation business portfolio including homestays，The model should be based on the specific location of the project、Positioning、Featured resources、Consider development capabilities and other factors comprehensively instead of blindly imitating and innovating。

As of the end of 2017, Wyndham has approximately 1,400 hotels in China，Become the international hotel group with the largest number of hotels opened in China，High star rating in Hainan Island、More than 16 mid-range hotels，Expanding at an average rate of two hotels opened per year，What is Wyndham’s logic for expansion in the accommodation industry？How it’s done？Zhao Hui focused on the situation of China’s island tourism market in his speech，In-depth sharing based on Wyndham’s practice。

The following is the full text of Zhao Hui’s speech:

Dear guests here，Dear participants，Good morning everyone！I am honored to be invited to participate in this island forum。When the issue of island development is brought up，I’m still thinking，The current domestic tourism market has also been segmented to such an extent。Tourism for an island，Including comprehensive industrial solutions，So many industries participated in the discussion，Including some media are paying attention to this industry，I feel very excited and relieved。

Before starting today’s topic，Let me briefly introduce myself，I have worked in the tourism industry for more than 20 years。Previously worked in HNA Group, a Fortune 500 domestic company，Currently working for Wyndham Group, 188bet online sports betting one of the world's largest hotel groups。My career experience happens to be almost all involved in food, accommodation, travel, shopping and entertainment，Including the entire process of investment, financing, management and withdrawal of assets。Today I want to explore with you the six elements of food, accommodation, travel, shopping and entertainment，What can the accommodation industry bring to the construction of island or coastal tourist destinations。

If we want to talk about China’s island accommodation business solutions，We have to do some benchmark research，It may have some enlightenment for us。

Previously Mr. Liu Zhaohui talked about a lot of macroeconomics including big tourism、Very comprehensive information on China’s outbound travel。The content I talked about is relatively microscopic，We will start from the comparative study of benchmarks，Including the development and model of the accommodation industry in China’s domestic island tourism, let me share and discuss it with you。

Research on Hawaii Island Accommodation Industry

Share a set of latest data，Provided by Hawaii Tourism Authority。Hawaii is undoubtedly a very important destination in international island tourism。

These two data are very interesting，First，Hawaii received 9 million tourists in 2017，Tourism revenue generated is 16 billion US dollars。According to the current exchange rate, it is just over 100 billion yuan。Do a simple calculation，Per capita income contribution exceeds RMB 11,000。

Second，From the perspective of the composition of accommodation formats on Hawaii’s tourist destination islands，The area of ​​Hawaii is 1.670,000 square kilometers，About half of Hainan Island，There are only 1.2 million permanent residents。There are currently four major types of accommodation industry on this island，Hotel、Apartment、Timeshare、Vacation Rental，There are also a few other business types，For example, Airbnb。The hotel industry has more than 80,000 rooms，Accounting for the vast majority，Over 55%。If plus apartment、Timeshares and Vacation Rentals，Accounting for almost 99% of the island’s accommodation industry。This shows that standardized service accommodation is the absolute mainstream in this kind of mature island accommodation。

If you take a closer look at the statistics of the number of projects in Hawaii’s overall accommodation industry in 2017，We will find that the vacation rental industry has the largest number，A total of 1123 projects accounted for more than 65%, indicating that well-managed but small-scale vacation rentals are widely distributed to meet the needs of a wider range of tourists。At the same time, we see that the number of Airbnb B&Bs has decreased in 2017 based on the growth in number，Explains that the development of non-standard accommodation and lack of services is not ideal。

We often talk about the positioning of the hotel or accommodation industry，It is positioned based on price。Analyze the price range of all accommodation types in Hawaii，We found that more than 70% are concentrated in the high-end and ultra-high-end range。This may be a reason，Why 9 million tourists created more than 100 billion yuan in revenue。When comparing this data with the corresponding data of domestic islands，It will have some inspiring effects。

New opportunities for the accommodation industry in island tourism

There are about 4,500 islands in our country, but there 188bet app download are few large islands，Many small islands。There are currently only more than 450 islands that are actually inhabited by people。Although there are so many islands，But it can be provided to us for development or residence、The number of islands to travel to is limited，Nevertheless，This also contains huge development potential。

When talking about islands in the country, we have to mention Hainan Island，Hainan Island has been a province since 1988，Later developed into the largest special zone in China at that time，Proposition of the National Strategy for International Tourism Islands in 2009，Until the 2018 Boao Forum，The central government proposes to support the construction of a free trade pilot zone on the entire island of Hainan，Support Hainan to gradually explore and steadily promote the construction of a free trade port with Chinese characteristics。The 30th anniversary of the founding of Hainan Island so far，Now the development of Hainan Island is in the ascendant。I believe many of you here are tourism-heavy asset investors，There are also many upstream and downstream enterprises in the tourism industry，Everyone should pay attention to the development of Hainan Island。

What is the development status of the entire Hainan Island, especially the development of tourism？The area of ​​Hainan Island 3.440,000 square kilometers，Nearly twice that of Hawaii，Permanent population 9 million。2017 data shows that Hainan Island received 67.45 million tourists last year，As mentioned earlier, Hawaii has only 9 million people。But our tourism revenue is only 81.1 billion yuan，Per capita contribution is only 1,200 yuan，Hawaii’s tourism revenue last year was 16 billion US dollars，The per capita income mentioned above is more than 11,000 yuan。This is a very interesting phenomenon，But it makes us have to think。

What is the reason for this difference？First，From the perspective of customer source structure，Hawaii’s guests are mainly from the mainland United States、Canada、These high-income and high-consumption areas in Japan。The number of people entering Hainan Island in 2017 was 111.940,000，Although there is a substantial increase，But the foreign exchange income it creates is only 6.USD 800 million。This proportion accounts for a very low proportion of Hainan Island’s tourism revenue。This is a challenge，But at the same time, it is a very big opportunity。

I just talked about a lot of policy dividends，Including the new “visa-free access to 59 countries” introduced this year，And extend the visa-free period to 30 days，Expanded from team visa exemption to individual visa exemption”，These policies will provide a huge boost to inbound tourism to destinations including Hainan，Thereby changing the structure of tourist sources and increasing tourism revenue。At the same time, consumption in Hainan Island is changing from conventional sightseeing tours、Low-price travel moves towards high-end travel，We have seen that the proportion of parent-child tours with children has reached 38%，The proportion of couples traveling reaches 20%。At the same time, the characteristics of multi-day tours in Hainan are also worthy of attention，In fact, one of the most important factors for the tourism industry is the average length of stay，It is only possible to expand or increase the average stay time of tourists and provide sufficient tourism consumption，In order to create conditions for driving tourism revenue。

188bet online sports betting I just looked at the price range ratio of Hawaii’s accommodation industry，And the proportion of accommodation industry categories，Let’s take a look at the situation in Sanya, the most typical city in Hainan。

The proportion of star-rated hotels or tourist accommodation in Sanya is in the shape of a dumbbell or gourd，Small in the middle and big on both sides，It has a high proportion of high-end and ultra-high-end，At the same time, the ratio of low-end local family hotels is higher，The accommodation industry is divided into two levels and is decentralized and low-end.。It is worth noting that there are many B&Bs in Hainan now，Many family hotels，There are many high-star luxury hotels，But it is precisely the mid-to-high-end products aimed at the middle class that are very, very inadequate。This is the current situation and opportunities that exist in the future that everyone needs to understand。Especially when comparing the absolute advantage of Hawaii’s high-priced accommodation formats before, but at the same time, what enlightenment the distribution ratios in different price ranges can bring to the positioning and development of Hainan’s accommodation industry is worthy of thinking and further research。

What is the development layout logic of Wyndham’s island accommodation business?

 Told so much，What exactly has Wyndham Group done or can do in terms of island tourism or island accommodation solutions？First of all, please allow me to briefly introduce Wyndham Group。The parent company of Wyndham Hotel Group is called Wyndham Worldwide，Formerly Shengteng Group, the largest tourism group in the United States。

Wyndham Worldwide has three major business segments，Hotel is one of them，The other two pieces are timeshare exchange、Vacation rental sector and timeshare development and operation sector。These three fields are NO in different markets around the world.1。

Wyndham Hotel Group is the world’s most diversified hotel group，Has 19 hotel brands，Approximately 8,400 hotels in 82 countries，Over 700,000 rooms，Across different markets around the world。Currently the world’s largest market is in North America，There are more than 5000 hotels。The second largest market is in China。Number of hotels opened in China，There were about 1,400 hotels by the end of 2017，We are also the international hotel group with the largest number of openings in China。

After Wyndham enters China，Although it is an international brand company，But we have also done a lot of localization work。Starting to establish “all-star rating” in 2013，Multiple brands，China’s development strategy of “widening and crossing borders” and gradually establishing three major development orientations。

First of all, it established the positioning of the franchise leader with a full range of international brands open，Wyndham is also the undisputed leader in the global hotel industry in the hotel franchise model。Currently in China we start from the highest-end Wyndham Supreme、Wyndham to lifestyle Wyndham Garden、Jueyi Wyndham、Weijing Wyndham、Micro, Wyndham and Ramada、Dai Si、Howardson、Super 8 and other brands，All franchises can be opened to owners，We can allow owners to combine the rights to invest in hotels and operate hotels，Use the quality and operation management system of international hotel brands to improve the hotel’s operational service level while obtaining the premium effect of international brands。

Secondly，Due to Wyndham Group’s advantages in the development 188bet sports betting app download and operation of comprehensive tourism accommodation format，We also hope to provide a comprehensive accommodation industry development and operation solution for China’s cultural tourism industry, especially tourist destination developers，Not just a hotel，Including the development model of the entire accommodation comprehensive business and the characteristics suitable for different project tourism purposes。

Third，We cooperate with our peers，At the same time, there will also be a very large space for cross-industry cooperation。Wyndham’s strategic alliance platform is the first to be launched in the country，We transform the traditional management company thinking into the alliance platform thinking based on brand as the core，This is also an innovation of the international hotel group in China。We are flying pigs with Ali、China’s largest IP commercial converter、Large air transport companies and others become strategic partners，Use the comprehensive advantages of these strategic partners through the value-added services of the platform to cooperate with owner brands, including the development of the tourist destination accommodation industry, to create greater value for partners。

Last，Let us take a look at the current status of Wyndham in the development and operation of island accommodation business。We will introduce Wyndham’s development in Hainan Island as an example。

Wyndham officially entered the Chinese market in 2008，Less than 10 years，A high-star hotel opened in Hainan Island, the largest island tourist destination in China、More than 16 mid-range hotels，Expanding at an average rate of two hotels opened per year。This is why we feel that being rooted in coastal destinations or island destinations is very important for the accommodation industry or tourism industry。Now in Hainan Island，Several large bays in the east and west，Both Wyndham high-star and mid-range hotel layouts，Almost comprehensive coverage of Wyndham Supreme、Wyndham、Weijing Wyndham、Ramada、Howardson、Dess and other mid-to-high-end brands have maintained good operations and profitability。

From the perspective of the specific comprehensive accommodation development and operation model, today I would like to share with you a practical case that we believe can provide solutions for island comprehensive tourism destinations, especially developers。

This is a five-star hotel that has been open for two years in Sanya Bay, Hainan，The drive from Phoenix Airport to this hotel is less than 15 minutes。Building A of the hotel contains 401 hotel rooms，is a five-star hotel managed by Wyndham brand franchise。Building B is an apartment with 142 rooms，Sold to small owners through small property apartments and then leased back by the hotel operator。At the same time, the owner also planned a shopping mall in the middle part of the hotel and apartment、Small commercial parts including cinemas as supporting facilities。

For owners，The current actual operating results are firstly due to the hotel operating benefits being very good due to the cooperation with the Wyndham brand，The average annual occupancy rate of such a hotel last year exceeded 75%，Income exceeds 100 million yuan and GOP level is high。At the same time, due to the hotel’s stable passenger flow, including regular guests from small owners，Driven the underlying business part of the comprehensive tourism industry to form a unique tourism destination comprehensive profit model that is mutually integrated, 188bet app download complementary, and win-win。

We are in hotel investment，The core indicator is the return on investment IRR，But if you only look at the return on investment of the hotel itself, it may be very one-sided。High-star hotels usually have a long return period due to their large investment, especially for hotels in tourist destinations，The average return rate of five-star hotels in our country is more than 20 years。The investment is so high that it can cost hundreds of millions or billions，But it has to go through a 20-year payback cycle，This is for investors or financial institutions，They are all uneconomical。Of course we know that the premium of hotel brands includes room for future asset securitization，This is the way out for Gao Xing Hotel to finally invest in financing and management to withdraw。For projects in tourist destinations，It is particularly important to accurately position the project, design a comprehensive accommodation product portfolio in the early stages of planning, and find partners with brand premium capabilities and comprehensive solutions。

We think Wyndham can provide real estate developers in Chinese tourist destinations, especially island tourist destinations、Comprehensive solutions for cultural and tourism developers’ accommodation formats to improve comprehensive income levels，Shorten the payback cycle and increase the return on investment，And bring greater value to investors through brand premium and innovation in development and operation models。

China’s island resources are relatively rich，What kind of island resources are suitable for development and layout？

First，China is rich in island resources but has few large islands、There are few mature islands with good service facilities. This is the problem we are currently facing。

Secondly，Mature islands with unique natural resources, accurate positioning and comprehensive service facilities are suitable for development and layout at the first time，As I mentioned today, Hainan Island and the islands surrounding core cities and several major bay areas are worthy of attention and layout。

Third，The layout of accommodation formats in coastal destinations should be based on local nature、Humanities、Travel、The current status of real estate development is unified by the government、Plan and cooperate with excellent brands with comprehensive development and operation capabilities to promote brand hotels、Vacation Apartment、Property Hotel、Vacation Rental、Timeshare、Comprehensive accommodation business portfolio including homestays，The model should be based on the specific location of the project、Positioning、Featured resources、Consider development capabilities and other factors comprehensively instead of blindly imitating and innovating。

June 7，Zhihui will hold the 3rd China Cultural Tourism Consumption Innovation Summit in Beijing，Many cultural and tourism guests from the industry gathered，Multidimensional、Decoding the development logic of China’s cultural tourism industry from multiple perspectives。

Long press to identify the QR code of the picture below，View the summit speaker list and summit agenda。