Chongqing - Chongqing's hotel market is experiencing a lively revival, driven by domestic and international travel trends. Jasmine Ma, Head of Consulting at Cushman & Wakefield’s Chongqing Office, highlighted that China's 144-hour visa-free policy for foreign tourists greatly enhances the hospitality sector, especially in emerging Tier-1 cities like Chongqing.

The latest report from Cushman & Wakefield, "China Hotel Market Investment and Value Insights," indicates a notable shift in new hotel supply from traditional Tier-1 cities to emerging ones like Chongqing. Over the past decade, the compound annual growth rate in Chongqing reached 7%, nearly double the 3.8% observed in Tier-1 cities.

This policy, which allows foreign travelers to stay in China for up to six days without a visa, is projected to have a long-term impact on Chongqing's hotel sector. 

“Chongqing is well-positioned to benefit from the visa-free policy, and we anticipate a corresponding uptick in international arrivals, particularly at high-end hotels offering globally-oriented services and unique cultural experiences,” said Ma.

This influx is anticipated to persist as more international tourists benefit from the visa-free policy.

Jasmine Ma is the head of the consulting department at the Cushman & Wakefield Chongqing Office. (Photo/Jasmine Ma)

During China’s National Day holiday this year, inbound tourism surged, with Ctrip reporting an 80% increase in the daily number of foreign tourists. Over half of these visitors stayed in China for more than seven days, and one in four was a returning traveler.

Chongqing has emerged as one of the top 15 most popular destinations for international tourists. In the first half of this year, Chongqing Customs processed over 80,000 foreign visitors, marking a 3.6-fold year-on-year increase, while more than 340,000 foreigners stayed overnight in the city—nearly six times higher than the previous year.

Stilted houses and hot pot dining enhance hotel experiences

Ma also noted that although inbound and outbound tourism is slowly recovering, domestic tourists continue to be the primary driver of hotel demand, thanks to the ongoing resurgence of domestic leisure travel.

The recovery of leisure travel has sharply increased hotel occupancy rates. According to Fliggy, during this year’s National Day holiday, bookings for high-end hotels in China increased by nearly 40% year-on-year, and bookings for travel packages, which include flights, hotels, and dining, also grew by almost 40%.

Chongqing is a top domestic travel destination for National Day bookings on Fliggy, with popular hotel areas including Jiefangbei Pedestrian Street, Jiangbei International Airport, Guanyinqiao Pedestrian Street, People's Liberation Monument, and Hongyadong. Wulong is also seeing significant growth in travel bookings, along with Taxkorgan Tajik in Xinjiang and Lingshui in Hainan.

To address the sharp increase in market demand, Chongqing's hotel industry is poised for significant innovation. Diversified operations are becoming the norm, with hotels integrating dining, entertainment, and other services to offer guests a comprehensive one-stop experience beyond just accommodation.

Ma cited examples such as incorporating local culture—like stilted houses or hot pot dining experiences—into architectural design and interior décor. Ma explained that these enhancements are crucial as hotels face heightened competition and evolving guest expectations.

Additionally, AI technology will drive the digital transformation of the hotel industry. Through online booking, smart customer services, and data analysis, hotels will better understand market demand, improve operational efficiency, and upgrade service quality.