Even by the super-charged development pace of modern China, the changes in the northern port city of Tianjin are phenomenally fast, in keeping with the national government's plan to give it a major infrastructural boost.
The city was one of the first economic-zone success stories singled out some 20 years ago by the national government for fast-track development. The Tianjin Economic Development Area is now established as one of the key foreign investment centers in China, particularly for electronic, communications and high- tech industries.
TEDA is currently going gangbusters, with billions of dollars of investment from blue-chip companies such as Motorola, Samsung, FAW-Toyota, Yamaha, John Deere, Otis, Coca-Cola, CitiBank and HSBC. The next phase, the Bin Hai New Area has nine zones, with Nangang Industrial Zone alone earmarked for USD 100 billion worth of investment, creating around 200,000 jobs.
International hotel groups, sensing big revenue-generating opportunities ahead, are opening properties galore in and around Tianjin, with a particular focus on the four-star and five-star end of the market.
"The rapid growth in this city has demonstrated the need for good quality hotels and international brands," says Philip Bryson, the Marriott vice-president for northeast Asia.
"We foresee the future to be very bright. This city is investing heavily in the development of infrastructure and the government would like Tianjin to be a financial hub in the northeastern of China. Bin Hai New Area, will be developed into nine industrial zones with a total area of 2,270km, a coastline of 153km and population of two million, and is expected to further attract the top 500 foreign companies to invest.
"Thus, the business opportunity in this area is expected to grow in the next three years and we are totally committed to the city and extremely positive about its future growth and the opportunities that brings."
"With the great efforts by the city government to make Tianjin a finance and industrial hub, more events and activities have been planned to be staged in the city with huge influxes of guests associated with these events. China is a country that is growing at an unprecedented rate and is a vast country with a vast population, and Tianjin is one of the fastest growing cities in the country which creates unique experiences all of their own."
That speed of growth is illustrated by the first phase of the Nangang Industrial Zone, which will have a focus on the petrochemical industry. Purpose-built port facilities will be able to handle super-large tankers and container ships.
Tianjin is already home to major chemical and petrochemical companies such as PetroChina, SinoPec, MitsuiChem and LGChem, and the new development will receive an estimated USD 30 billion of investment between now and completion of the first phase in 2015. When the entire zone is finished within the decade, planners estimate the investment will have reached USD 100 billion and Nangang's port will have two basins capable of accommodating vessels of 50,000 tons in the early stages and, ultimately, up to 150,000 tons.
As with other elements of TEDA, the planners are basing their predictions upon China continuing to expand at its current quickfire pace. Two railway lines will enable connections to all parts of the nation, with easy access to four major national highways and the close-by Tianjin Bin Hai International Airport.
The plans are part of a broader national initiative to develop Tianjin into an international port, a northern-China economic hub, an ecological city and a world financial center. The master plan for the Bin Hai New Area includes parcels of land earmarked for advanced manufacturing, high-tech industries and tourism, with all building and development work to follow ecologically-sensitive procedures.
The recently opened high speed rail link with Beijing is also part of the grand design for Tianjin to grow in importance as an industrial and transportation hub. It now takes just 30 minutes, by bullet-style express train, to make the 130 kilometer trip between the two cities, a major boon for business travelers.
"TEDA will continue to build China's new platform for economic growth," says He Shushan, chairman of TEDA Administrative Commission. "TEDA has set forth higher objectives with the aim of making new strides in economic, industrial and social development."
International companies are long established in the area, particularly those in the electronic and telecommunications fields and the automotive industry. They can tap into a highly-skilled, low-cost labor force that is fed by 55 higher education institutes; TEDA also has established talent-supply bases in some 50 colleges and technical vocational schools across China, and offers scholarships and internships.
The major international telecommunications players have significant investment in TEDA, with total industrial output valued at USD 17 billion annually. Official figures show that Motorola has a cumulative total investment of USD 3 billion, with the Samsung group's various company investments adding up to more than USD 1 billion.
Another significant investor is the FAW-Toyota automobile company, with four plants in the area and a total investment of USD 800 million. General Motors is among the other big names represented there, with more than 80 different enterprises supplying vehicle parts. The total industrial output of the TEDA automotive industry is calculated at USD 12 billion annually.
TEDA also has strong representation among companies supplying new-energy needs in the more environmentally aware climate of the 21st century. A plan is in place to provide further encouragement for companies producing solar-energy equipment, machines that generate wind-powered energy, geothermal energy equipment and green batteries.
Among the other growth areas is aviation and aerospace — the giant European consortium Airbus has an operation there — taking the total number of foreign companies in TEDA to almost 5,000 with a cumulative investment of some USD 53 billion In addition, there are almost 9,000 locally-funded ventures.
The influx of capital has also led to an improvement in lifestyle in this dynamic zone, a factor that helps lure expatriates with specialist skills to come and live and work in China. The 500-room Renaissance Tianjin TEDA Hotel and Convention Centre is a favorite with visiting executives; Other Tianjin properties under the Marriott parent group include the Renaissance Downtown Hotel, the Renaissance Lakeview Hotel and the Marriott Executive Apartments, an extended-stay property with 98 fully-furnished apartments. Rates at the properties range from USD 125 to USD 200.
Such rapid expansion in the hospitality trade comes with its own set of problems, notably finding staff who are familiar with the way up-market international hotels operate. When the Raffles Tianjin entered the market last year, it was able to fill senior positions with locally-born staff who had worked in larger cities and fancied a move back home, but that is a finite resource pool.
The big hotel brands, however, are able to lure promising youngsters by offering a real career path. Now that the major players have properties throughout the nation, it allows promising executives to receive rapid promotions. The Marriott group, for example, now has a total of 57 hotels in China.
Says Marriott executive Bryson: "We have close relationships with, and run programs at, hospitality schools and we believe very strongly in training and developing our talent. China has such great potential and a great workforce that we find responds extremely well to the culture of Marriott which makes us an employer of choice.
"Of course, with the number of hotels opening in China, recruitment and retention of great staff is critical and training is a key element of this. In every Marriott hotel, we provide the 'in the beginning' program to welcome the newcomers, for an understanding of the company's culture, history, growth, and future career development opportunities.
On job training, the on-going 'passport to success' is guiding all staff towards the development of skills and knowledge in the individual discipline.
We operate with a very low percentage of expat staff in our hotels in China – perhaps six to eight on average in each hotel.''
At the Sheraton Tianjin hotel there are seven expatriate staff, including hotel manager Robin Maivusaroko, who is on his second China posting having previously opened Le Meridien Shemei Bei Beach resort and spa in the southern island of Hainan.
"A business hotel has a completely different vibe to a resort but part of Sheraton Tianjin's unique selling points are similar to a resort environment," says Maivusakoro. "It has a pristine garden setting, providing a welcome retreat from the hustle and bustle, warm and genuine hospitality combined with first-class service and a wide range of services and facilities to help our guests unwind at the end of the day and feel at home."
The manager says the plan is to develop new market segments, in particular MICE (meetings, incentive and conference) business, capitalizing on the city's long and unique history as a treaty port. Tianjin was — and still is — the main port for Beijing. It also has a series of well-preserved European style buildings which are a lure for tourists.
Among them is the Astor, a 148-year-old landmark in the central area that was given an extensive makeover by award-winning designer Alexandra Champalimaud and re-branded with the rather lengthy title The Astor Hotel, a Luxury Collection Hotel.
Historically known as a 'diplomatic hotel', it has hosted many famous names and been the venue for historically-important treaty signings. Among the guests have been US president Herbert Hoover, Chinese leaders Sun Yat Sen and Zhou Enlai, Peking opera star Mei Lanfang and the Last Emperor, Pu Yi.
In a nation with only a handful of hotels with real history — the Peace Hotel in Shanghai is possibly the most famous — it is a major selling point for overseas guests, as general manager Leon Lee explains.
"We are fortunate to have many high net worth individuals are looking for an authentic experience when travelling," he says. "These guests obviously look for a globally recognised hotel brands but, they also want to feel that there is a strong 'sense of place' of the destination. With this in mind The Astor Hotel, a Luxury Collection hotel strongly focuses on providing our guests with a truly authentic experience.
"We are positioned to be at the top. We differentiate ourselves through the personalized service we provide. A number of hotel companies today provide great facilities, but it's really the quality of the overall experience that matters most to guests and that is what our employees so warmly and thoughtfully deliver on a daily basis.
"In terms of unique hotel amenities and signature features we have 152 elegantly-appointed rooms and suites in both classic Victorian style and more contemporary elegance. Guestrooms in the heritage Astor Wing have gorgeous views over Victoria Park. Murano glass chandeliers, floor-length silk draperies, a four-poster canopy bed and original doors and paneling highlight the period charm of these rooms."
The Astor is known locally as the museum hotel — there are rooms with displays of memorabilia from its rich past — and Lee thinks the distinguished history of the city could be a real selling point in future.
Over at the 275 room Westin Tianjin, executives are licking their lips in anticipation of full-house signs during the next few years, as business and tourism booms in the Greater Tianjin area.
"Tianjin is one of China's fastest growing cities, if not the fastest growing city," says Christian Metzner, director of sales and marketing for the hotel.
"The enormous amount of new company openings in Tianjin this year, and planned openings in the next couple of years, is just amazing and is showing that Tianjin is the place to be in China.
"Our main costumers are business travelers, who choose our hotel due to our unique central location in the city centre and our variety of food and beverage venues and recreation facilities. Around 75% of our guests are business travelers, with 55% to 60% of the guests from China."
Westin comes under the giant Starwood group, which currently has 90 properties in China and is opening a new one every two weeks this year, making it the largest market outside the United States.
At the Westin Tianjin, average rates are around USD 190, with year-round special promotions. Although the leisure market is currently small, Metzner thinks there is potential for significant growth; the city has a wealth of attractions particularly in the downtown area, where European homes, hotels and offices from the treaty-port era early last century remain in good condition.
"The population is 11 million, but still it seems to be still has a charm of a smaller city, especially the city centre with the tree-lined streets, outdoor coffee shops and cruises along the Haihe River," he says. "The people of Tianjin are very laid back and super friendly. You know your neighbors and they know you." That atmosphere of genteel charm might not last for too much longer, as Tianjin achieves its goal of becoming a major player. The size and scale of its multi-billion dollar ambitions are awesome – even by the big-picture, long-term standards of modern China.
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