Airbnb no threat to hotels, says hotel chief
by Leon Gettler
Bob East, the chief executive of the Mantra Group of hotels has played down any talk of Airbnb putting hotels out of business.
The focus on Airbnb is a distraction, he says, and hotel owners shouldn’t worry about it.
Instead, they should be focusing on the surge of Chinese tourists coming to Australia.
He said he was “not at all concerned” about the rise of Airbnb.
"Consumers have lots and lots of choice," he told the Australian Financial Review.
Mr East’s comments come after Australia’s peak accommodation body, Tourism Accommodation Australia, called for "urgent regulation" of commercial short-term accommodation operators, particularly Airbnb.
It cited concerns about safety and said Airbnb contributed little back to the economy.
Mr East said this was the wrong approach.
"Local and state authorities could look at regulation, but to be honest I truly believe the sharing economy is an important part of our visitor economy going forward, and which will continue to prosper,” he said.
The Mantra Hotel Group is Australia’s second largest hotel group, It has more than 125 properties and nearly 15,000 rooms under management,
Mr East said the industry was booming.
"We're very bullish about how the market will go,’’ he said. “Tourism is an astronomical growth story. By 2020 nearly 2 billion people will be flying around the world visiting other countries. It’s a global theme.”
He cited the extraordinary growth in spending from Chinese tourists. It had increased 43 per cent to September last year.
“The market we are chasing is the high-net-worth individuals that will spend $300 to $600 a night. People don't realise how significant that market is going to be," he said.
22nd February 2016
