China: Future Hospitality Opportunities

1. China:  Future Hospitality Opportunities Peter Lim Director, International Development Wyndham Hotel Group International Shelley Perkins Vice President, International Human Resources The Ritz-Carlton Hotel Company L.L.C. Michael Reilly Purchasing Director ARAMARK Olympic Project Dr Fred J. DeMicco Professor and ARAMARK Chair Hotel, Restaurant & Institutional Management Lerner College of Business and Economics University of Delaware

2. China: Present/Future Hospitality Opportunities for Students中国: 现在与将来 Presented at the 2008 New York Hotel Show; New York, NY Dr. Fred J. DeMicco, ARAMARK Chair & Professor of Global Strategy & Development Hotel, Restaurant and Institutional Management Lerner College of Business and Economics University of Delaware FDeMicco@Udel.edu 302.831.6077

3. 2008 Beijing Olympics One World, One Dream

5. Pudong, Shanghai

6. Pudong, Shanghai

7. Forecast for World Trade and Tourism: A shift in the “center of gravity” EUROPE ASIA NORTH AMERICA

8. “Let China sleep, for when she wakes, she will shake the world.” Napoleon Bonaparte

10.                                                                              Urbanization Rate is 10-15 Million People Cities of 1 million +       Source: CLSA 2005

11. China Outbound Departure

12. U.S.--an increasingly popular destination for Chinese travelers • In 2007, China ranked as the 16th largest international market for the United States.

13. Likely Trends for Future

14. Top 12 Foreign Source Markets of China’s Inbound Tourism

15. The top ten destinations for Chinese outbound departures 2006

16. Chinese tourists in the U.S. A group of Chinese tourists take pictures on Wall Street outside the New York Stock Exchange as New York City Police stand guard.

17. World Tourism, 2020

19. Shanghai, China

21. Exotic and Authentic

23. Howard Johnson Plaza Hotel, Shanghai The Howard Johnson Plaza Hotel is an elegant gem steps away from the Nanjing East Pedestrian Mall, a huge Shanghai Shopping District.

24. Days Hotel & Suites, Beijing

25. China:  Future Hospitality Opportunities Peter Lim Director, International Development Wyndham Hotel Group International Shelley Perkins Vice President, International Human Resources The Ritz-Carlton Hotel Company L.L.C. Michael Reilly Purchasing Director ARAMARK Olympic Project Dr Fred J. DeMicco Professor and ARAMARK Chair Hotel, Restaurant & Institutional Management Lerner College of Business and Economics University of Delaware

26. THE RITZ-CARLTON HOTEL COMPANYINTERNATIONAL OUTLOOKCHINA/OPPORTUNITIES

27. China Hotels • The Ritz-Carlton, Shanghai • The Ritz-Carlton, Beijing • The Ritz-Carlton, Beijing Financial • The Ritz-Carlton, Guangzhou • The Ritz-Carlton, Sanya • The Ritz-Carlton, Shenzhen (upcoming) • The Ritz-Carlton, Pudong (upcoming)

28. China Opportunities • LIVE leader program • Valuable experience • Exciting and dynamic environment and workforce, eager to learn • World Class product • Expertise to train local talent. Expectation that a foreigner will do so. Number one retention tool is career development.

29. Things to consider.. • Language can be a challenge • Cultural differences, leadership style and motivational factors. China culture is unique • Visa restrictions • Lifestyle

30. China Facts • 1.4 Billion People • GDP 1 Trillion, number 1 by 2050 • US 1 billion per week in foreign investment • Abundant labor, untrained talent. Low cost of labor has been China’s advantage… • Salaries increasing 7 – 8.5 % last five years • New labor law 2008

31. “Be not afraid of growing slowly, be afraid of standing still” – Ancient Chinese saying

32. Upcoming Hotels

33. The Ritz-Carlton, Shenzhen • Opening Date – Dec 2008 • Number of rooms – 275 guestrooms • Additional Information – New CBD area, across from new convention center, outstanding business location.

34. The Ritz-Carlton, Pudong Shanghai • Opening Date – Dec 2009 • Number of rooms – 276 guestrooms • Additional Information – Pudong financial area in Shanghai

35. The Ritz-Carlton, Kowloon Hong Kong • Opening Date – August 2010 • Number of rooms – 302 guestrooms • Additional Information – 118 story building, hotel occupied top 16 floors • This will become the tallest hotel in the world!

36. The Ritz-Carlton Reserve, Krabi Thailand • Opening Date – December 2008 • Number of rooms – 54 villas • Additional information – Great location, destination resort airlines from Bangkok, Singapore and Europe.

37. The Ritz-Carlton, Macau • Opening Date – 2011 • Number of rooms – 256 guestrooms

38. THANKYOU!!

39. China:  Future Hospitality Opportunities Peter Lim Director, International Development Wyndham Hotel Group International Shelley Perkins Vice President, International Human Resources The Ritz-Carlton Hotel Company L.L.C. Michael Reilly Purchasing Director ARAMARK Olympic Project Dr Fred J. DeMicco Professor and ARAMARK Chair Hotel, Restaurant & Institutional Management Lerner College of Business and Economics University of Delaware

40. Heilongjiang Jilin Liaoning Xinjiang Hebei Inner Mongolia Tianjin Beijing Ningxia Shanxi Shandong Qinghai Gansu Henan Jiangsu Shaanxi Shanghai Xizang Anhui Hubei Chongqing Zhejiang Sichuan Jiangxi Hunan Fujian Guizhou Yunnan Guangdong Guangxi Hong Kong Hainan The Five Chinas The Margins 200 mio people GDP: USD 110 bn The Rust Belt 110 mio people GDP: USD 120 bn The Coast 375 mio people GDP: USD 550 bn The Diaspora 55 mio people GDP: USD 1000 bn The Hinterland 580 mio people GDP: USD 400 bn

41. Asia and Tourism • More than ½ of world’s population • Stage of development of tourism greatly differs by countries and regions.

42. Growth of Inbound Visitors, 1978-2006

43. China’s Outbound Tourists’ Overseas Spending. USD. bn

44. 2008 Beijing Olympics One World, One Dream

45. 2008 Beijing Olympics

47. Questions?Fred J. DeMicco, PhDProfessor and ARAMARK ChairGlobal Strategy & Development HRIMFDeMicco@Udel.edu

48. Forecast for Asia: Opportunity or Threat? China as an economy: • Second-largest economy in the world in terms of purchasing power • Share of global trade up from under 1% 20 years ago to 6% today • 2025: Asia will generate 60% of global economic output (according to Asian Development Bank) • Today, China accounts for 24% of the global economic output China as a trading partner: • #1 to Japan, South Korea and Taiwan • #2 to the EU • #3 to the USA

49. GDP Growth: Asia and World’s Advanced Economies