Dennis Lee

Opinion | Hong Kong tourism must level up to draw quality travellers

If Hong Kong wants to breathe new life into its tourism fortunes, it must tap the best minds in the industry and their vast experience

Reading Time:4 minutes

Why you can trust SCMP

Dennis Lee

Published: 9:30am, 13 Aug 2024

Imagine a high-end hotel in a top-tier Chinese city winning all sorts of awards and accolades, including “best hotel” and “best restaurants” in the past. One would think the hotel would outperform its competitors and survive through the most challenging times because of its sophisticated hardware and software.

Unfortunately, the reality is often more cruel and complicated. The Opposite House, a luxury lifestyle hotel in Beijing, closed its doors in June after 16 years in operation.

Many reasons might have contributed to its demise, including the Covid-19 pandemic, competition from online accommodation platforms such as Airbnb or changes in tourism demands. Like any commercial product, the decision always comes down to financial performance. When the hardware no longer maximises revenue generation, it is hard to justify its continued operation.

When I learned of the closure earlier this year, I was not surprised but contemplated how much energy and resources had been invested in the project so the venue could open before the 2008 Beijing Olympics. It was personal for me as I was the project manager for the Kengo Kuma-designed hotel in the heart of the Sanlitun area in Beijing.

For 22 months, a team of managers, designers, consultants and contractors worked tirelessly around the clock to make the deadline before the auspicious Olympics opening date of August 8, 2008. The successful launch validated the team’s hard work and collaborative effort, and we thought the iconic hotel would serve as a living legacy for as long as the brand exists.

This is not an obituary of the death of a commercial product, only a reflection of the reality of the high-end hospitality market in mainland China. Hong Kong is no exception to this challenge. On the surface, the Hong Kong hospitality sector’s overall average occupancy rate of around 80 per cent seems to indicate a healthy recovery. However, if we discount the low-to-mid-end products, luxury hotels’ occupancy rate stands at about 54 per cent, meaning they are only half-full.