A surge in Chinese investment in global hospitality Industry
As stated by the famous website Forbes.com, over the past two years there has been a surge in Chinese investment in global hospitality industry. It began during the year of 2013 when an investment of $1.09 billion was announced by Dalian Wanda Group, to construct and operate a luxury hotel in London.
The project to run a luxurious hotel in London was the first ever operation outside of china that has been taken on by the Chinese Firm. Since then, the Group has added another project which is a luxury hotel in Madrid as well as a $900 Million skyscraper in Chicago which is said to be done by 2018.
Moreover, the 8th largest insurance corporation in China known as Abang made an investment of $1.95 billion last year for the luxurious hotel in US called New York’s Waldorf-Astoria, which is the highest price paid for an existing hotel. The same year, China’s Sunshine Insurance Group Corporation invested AUS$453 Million ( US $399 Million), a high profiled hotel in Sydney; Sheraton on the Park and paid $716,000 per room. In November, Jin Jiang International Holdings Co. in Shanghai purchased the boutique Louvre Hotel Group for $1.2 Billion.
The news of the surge in Chinese investment in global hospitality Industry came after the famous tourist spot Maldives announced its second investment forum which will be held in Beijing in September of 2015 and only weeks after the Maldivian government signed a lease agreement for an island resort development to China Machinery Engineering Corporation (CMEC). Kalhufahulufushi Island in Thaa Atoll was leased to the CMEC, the largest engineering and Trade Company in China. It is also the first Chinese based company to invest in the tourism industry of the holiday destination Maldives.
Furthermore, the expansion project of Ibrahim Nasir International Airport was awarded to the Chinese Company Beijing Urban Construction Group (BUCG) during the state visit by the President of China, Xi. The project consists of a fuel farm and the expansion of the cargo terminal as well as the runaway of the main airport. Financial aid to cover a part of the cost of the Male-Hulhule bridge project was pledged with 100 Million Yuan by the Chinese Government as well.
Last year, about 30% of tourist arrivals consisted of Chinese tourists and the Maldivian Government is eager to invite more Chinese investors and boost the Maldives tourism Industry along with their help.
It is seen that the growth of Chinese Investors and brands are increasing in the tourist destination Maldives and all around the globe. As a result, strategists are predicting a boost in Chinese Investment in the Hospitality Sector.