Hotels in county-level regions experience growth amid tourism surge

A staff member helps a guest check in at the Hanting Hotel, a member of H World Group Limited in Tsochen county, Ngari Prefecture, southwest China's Xizang Autonomous Region. (Photo/Qiu Mei)

With the growing number of tourists exploring county-level destinations in China, local hotels are seizing the opportunity. During this year's National Day holiday, which ran from Oct. 1 to Oct. 7, hotels in county-level regions saw a surge in visitors, highlighting a positive trend in the industry. Additionally, various mid-to-high-end domestic and international hotel chains are venturing into county-level regions, reshaping the industry's competitive landscape.

According to an executive from H World Group Limited, during this year's National Day holiday, the company's hotels located in over 60 counties with unique tourism resources, such as Litang county in southwest China's Sichuan Province, Wanrong county in north China's Shanxi Province, Longxian county in northwest China's Shaanxi Province, and Hong'an county in central China's Hubei Province, saw occupancy rates surpassing 100 percent.

Data from LY.com shows that this year's National Day holiday saw hotel booking growth rates in popular domestic county-level destinations surpassing the overall market. Close to 100 counties and county-level cities saw bookings increase by over 50 percent compared to the same period last year.

In particular, high-star hotels and mid-to-high-end chain hotels have become the preferred choice for many out-of-town travelers.

Cai Muzi, a researcher at Qunar's big data research institute, noted that these county-level destinations are close to areas known for their autumn scenery, drawing tourists primarily from first and second-tier cities. The surge in demand for upscale accommodations in these regions has resulted in a notable increase in bookings for high-star hotels in these counties.

Many chain hotels had already set their sights on county-level regions before they became popular among tourists.

A tourist enjoys sea view at a homestay hotel in Dongbi village, Sansha town, Xiapu county, east China's Fujian Province. (Photo/Xinhua)

In July this year, H World Group Limited opened its 10,000th location in China with the launch of a Hanting Hotel in Metok county, Nyingchi city, southwest China's Xizang Autonomous Region. The scarcity of local chain hotels has led to an opportunity for the company to cater to self-driving tourists who struggle to find suitable accommodations, said an executive of H World Group Limited.

In recent years, many chain hotel brands under H World Group Limited have been establishing their presence in counties. By the end of the second quarter of this year, 41 percent of the company's operating hotels were located in third-tier and below cities, an increase of 2 percentage points compared to the previous year, according to Jin Hui, CEO of the company.

Jin Jiang Hotels has established more than 2,800 outlets in cities below the third tier, strategically placing its mid-range flagship brands in crucial locations in counties. Marriott's expansion strategy in China involves allocating 30 percent of new hotel openings to third-tier and lower cities.

Industry experts suggest that with increasing consumer demands, there is a shortage of high-quality accommodation choices in numerous lower-tier markets. The advancement of cultural tourism is fueling the expansion of county markets, attracting hotel chains and businesses to grow and leverage commercial prospects.

In recent years, many tourists have started exploring off-the-beaten-path destinations to avoid crowds. Personalized and unique travel experiences are gaining popularity among consumers. Search data from platforms like Qunar show that terms like "less crowded," "offbeat," and "reverse travel" saw a significant increase in search popularity during the National Day holiday.

"Lower-tier markets have great growth potential," said executives of several chain hotel brands. China's over 2,800 county-level administrative regions, accounting for nearly 40 percent of the country's total economic output and with a total population of hundreds of millions, are attracting more travelers with their diverse cultural and natural resources, driving the continuous growth of tourism consumption in these areas.