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

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

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 200216.6 million 200320.2 million 200428.5 million 200531 million 200634.5 million 200740.9 million

12. U.S.--an increasingly popular destination for Chinese travelers  In 2007, China ranked as the 16th largest international market for the United States. 397,405 Chinese visitors $2.56 billion with average expenditure of over $6,000 per person

13. Likely Trends for Future The inbound tourism will continue to grow (UNWTO expects China will be no. 1 inbound destination by 2020). Hong Kong, Macau & Taiwan will remain as the most important source markets. Beijing 2008 Olympics & Shanghai 2010 World Expo will accelerate the development of inbound tourism.

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

15. The top ten destinations for Chinese outbound departures 2006 1. Hong Kong 2. Macau3. Japan 4. Vietnam 5. South Korea 6. Russia 7. Thailand 8. USA 9. Singapore 10. Malaysia

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

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, PhD Professor and ARAMARK Chair Global Strategy & Development HRIM FDeMicco@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

51. Travel Explosion

52. Minting Millionaires

53. According to the UN World Travel Organization China is the fastest growing travel market in the world, China is estimated to reach 100 million international travelers by 2020. China will continue to be the largest travel market in Asia.

54. Success of Asian Hospitality Industry

55. China’s Hotel Industry In 1978, China had 137 hotels with 15,539 rooms. In 2006, China had 12,80 hotels with 1,420,000 rooms.

56. Growth of Hotels by Star Rating

57. HR Challenges  Developing human resources capacity  1979– two institutions of tourism in China (one in Shanghai and one in Hong Kong)  2007– close to 2,000 institutions in China teaching tourism – Some universities develop tourism as “flagship” program for the university – Some universities specialize only in tourism e.g. Guilin University of Tourism

58. SHTMs teaching hotel to open 2010  Faculty offices  Classrooms  Laboratories  Library  290 rooms  3 restaurants  Indoor swimming pool  Spas  Conference center  Ballroom (500 seats) plus function rooms  Training restaurant

59. The Way Forward:  Understanding Asian market and consumers will be critically important for tourism industry in the U.S. and Europe.  Exchanges and collaboration between U.S. European and Asian institutions and industries will further enhance value creation to both parties.

62. 2008 Beijing Olympics One World, One Dream

63. 2008 Beijing Olympics One World, One Dream

64.  FACT: A new global middle class is rising up from poverty in emerging economies around the world. Coca-Cola's sees this market as critical to the company's future and describes the scale of the opportunity as equivalent to:  “ adding a city the size of New York to the world every three months”.

65. Olympics Cube is all ship-shape

66.  The number of Chinese citizens traveling overseas will hit 100 million a year by 2020 from 34 million in 2006, (World Tourism Organization)  Chinese visitors to the U.S. have doubled over the last decade to 397,000 last year, Commerce says. The number is expected to reach a robust 755,000 by 2017, according to research firm Tourism Economics.  The China National Tourism Administration estimates that nearly 30 million Chinese traveled abroad in the first nine months of 2007, up 17% vs. the year-ago period. Hong Kong, Macau and Japan were top destinations. But many are expected to turn their sights to the U.S.

67.  On December 11, 2007, the U.S. and China signed a memorandum of understanding (MOU) to facilitate Chinese group leisure travel from China to the United States.

68.  About 250 Chinese travelers from Beijing, Shanghai and Guangzhou ended their four-day tour in Washington D.C. on Friday, saying that they have received unprecedented high-level welcome.  Their arrivals at the International airport were awaited by a U.S. jazz band and senior officials of U.S. Commerce Department including assistant Secretary William Sutton with greeting banners.

69. Welcome! The first travel group from China

70. The first Chinese tourist travel group in the U.S. 6/19/2008

71. comments  The Chinese are no different," "They opt for bargains. They spend mostly on what they want to take back home. And they eat food they're familiar with.“  "The U.S. has always been a place that many Chinese would like to see and with agreements like this, we can safely say that many will now get their wish," said Coley Dale, Ctrip's Shanghai-based business development manager, in an e-mail interview.

72. comments  Reports and anecdotal evidence show they like visiting famous places in the U.S. in big, air-conditioned buses and buying brand- name goods at upscale shopping malls.

73. Some Culture differences 1. Chinese people use chopsticks rather than fork and knife. 2. Chinese people usually don’t tip. 3. Chinese people tend to be loud when together, especially when dining with friends or family. 4. Chinese people like to bring along cash and other valuable things such as Digital cameras and Digital Recording Devices.

74. http://www.investors.com/editorial/IBDArticles.asp?artsec=16&artnum=1&issue =20080709  The jump in personal wealth is also creating a growing class of Chinese who can easily afford to travel to the U.S.  The number of China's millionaires surged 20.3% to 415,000 in 2007, according to a Merrill Lynch and Capgemini report. The ranks of U.S. millionaires grew by only 3.7%.  "Travel is increasingly viewed as an indicator of status in China. It's something to tell your friends about when you get home," Expedia's Kjellberg said. "China also has a relatively strong currency, making international destinations more affordable."  Kjellberg says Expedia hopes to open its air, hotel and other travel inventory to Chinese tourists via its tie-up with Chinese Web travel firm eLong.

75. HRIM Strategic Plan “ To be the Innovative, International leader in HRIM teaching, research and service…” Goals: Attract new students to UD, opportunity for study abroad for our UD HRIM students, strategic global alliances for research, scholarship and continuing education for professionals

76. Asia---Taiwan 2007-2008 Signed distance learning agreement to offer a 4-course hotel certificate with : Yaun Ze University in Taipei (owned by The Far Eastern Company- Shangri- La Hotel) Soochow University in Taipei Hong Kong Polytechnic University

77. April 3, 2008 UD Student Team Visit China Market Overview Leehun Lee – China Market Executive Wendy Lo Annie Zheng

78.  As mature markets continue to exhibit slowing growth, investors are looking to Asia as a source of superior returns  Asia increasingly becoming the primary choice of investment worldwide  By 2015, China should join the United States and Japan as the three largest economies in the world; with expectation of being the largest within 40 years  It is this disparity in national growth stages – and the associated changes in consumer behavior -- that gives rise to opportunities for those who seek out global partners Opportunity in Asia

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

80. Questions? Fred J. DeMicco, PhD Professor and ARAMARK Chair Global Strategy & Development HRIM FDeMicco@Udel.edu

81. Asia---Taiwan 2007-2008 Signed distance learning agreement to offer a 4-course hotel certificate with : Yaun Ze University in Taipei (owned by The Far Eastern Company- Shangri- La Hotel) Soochow University in Taipei Hong Kong Polytechnic University

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

83. April 3, 2008 UD Student Team Visit China Market Overview Leehun Lee – China Market Executive Wendy Lo Annie Zheng

84.  As mature markets continue to exhibit slowing growth, investors are looking to Asia as a source of superior returns  Asia increasingly becoming the primary choice of investment worldwide  By 2015, China should join the United States and Japan as the three largest economies in the world; with expectation of being the largest within 40 years  It is this disparity in national growth stages – and the associated changes in consumer behavior -- that gives rise to opportunities for those who seek out global partners Opportunity in Asia

85. 85 Hainan Hong Kong Shanghai Tianjin Shandong Liaoning Hebei Beijing Shanxi Anhui Jiangsu Hubei Shaanxi Gansu Inner Mongolia Ningxia Xinjiang Xizang Qinghai Guizhou Hunan Guangdong Guangxi Yunnan Heilongjiang Jilin Henan Sichuan Zhejiang Fujian Jiangxi Chongqing The Diaspora 55 mio people GDP: USD 1000 bn The Coast 375 mio people GDP: USD 550 bn The Rust Belt 110 mio people GDP: USD 120 bn The Margins 200 mio people GDP: USD 110 bn The Hinterland 580 mio people GDP: USD 400 bn The Five Chinas

87. Pudong, Shanghai

88. 2008 Beijing Olympics One World, One Dream

89. 2008 Beijing Olympics One World, One Dream

90. Chinese tourists in Euro