With curbs on Chinese officials’ banquet and travel budgets, China’s anti-corruption campaign hit high-end hotels and restaurants hard in 2013. As the crackdown shows no sign of slowing down, this trend will continue in the coming year, says expert Shaun Rein in a new Wall Street Journal video interview with China wealth reporter Wei Gu.
“Four- and five-star Chinese luxury hotels” that rely on business from Chinese officials will continue to be hit the hardest, says Rein.
This may even result in hotel closures — the JC Mandarin in Shanghai has already been shuttered. However, more consumer-oriented hotels such as boutique locations will weather the storm, since they’re not frequented by bureaucrat types.
Watch the video embedded below for the full interview, including his take on whether hotels’ coping measures will prove effective.
This story originally appeared on Jing Daily, a Skift content partner.
Additional links from Jing Daily:
- Where China’s Wealthy Are Headed for Chinese New Year
- Poll: Chinese Tourists Plan To Travel and Spend More In 2014
- Luxury Hotel Groups Discover China’s Second Cities