Expanding hospitality and leisure systems into China has been a focus for many western companies through the past 20+ years. It’s a unique challenge that some companies are able to meet, while others struggle to find a footing.
For the many who have failed to meet the grade, it comes from misdirection in their focus. Often the thought is that success in the West will bring success in China, as long as a proper language-adaption is made.
Companies that have been successful in making the transition into China, however, have found it’s much more than adaption to language differences. It is also adapting to a very different set of cultural and business rules.
Through the past 20 years, I have come across dozens of people who have been able to adapt and thrive in China. One of the more successful international golf club managers I’ve been fortunate to know is David Kurniawan, General Manager at China Hospitality Synergy (CHS).
David has been a successful manager of multiple golf clubs and resorts in China, as well as starting his own consulting firm. I’m pleased to chat with him about golf & club systems in China, and how his background lead him here.
G&L: Where are most of the China clubs sourcing their management software systems from? Are the systems coming from China or overseas?
DK: In China’s golf clubs and city clubs, I must say that around 85% of the management software systems being used are locally developed solutions. The simple reason is that the local software developer is familiar with the local policies in terms of taxation and invoicing. It’s also easier for them to integrate with the other nationally accepted social media and marketing systems, which are expanding very quickly in China. Language is another issue, as most of the software users & operators are Chinese-speaking people.
G&L: What trends do you see in golf & club technologies regarding bookings, payment methods, etc.?
DK: Banking system, social media and advertising through smartphone Apps are growing very fast in China. This rapid growth continually affects the dynamic marketing strategies of the clubs and resorts in China. I believe, in the near future, smartphone software development in China will be able to support the efficiencies of their management operations. As a growing number of middle level business owners are using smartphone Apps throughout their day, the development of such Apps will continue to expand.
G&L: How have smartphones, tablet computers, and social media impacted communications with members and guests?
DK: We cannot avoid this and we must adjust our vision to utilize these advanced technologies to support and improve our operations. Communications with members and guests require these efficiencies now, so we must adjust in the near future. All CRM ideas and efforts must be considering using and growing with smartphone technologies.
G&L: Are there technologies on the horizon that you feel will benefit, or alter, the way clubs manage?
DK: In China, the Wechat-based application is very popular. It provides many features needed to operate a golf club and can be implemented easily and at a very reasonable price. Some other new technologies are being developed by Baidu.
G&L: We’ve met on numerous occasions in China and Bali to discuss efforts in China and throughout the region. For our readers, I’d like to cover some of your background on what lead you to China. You’ve spent much of your career in hospitality management. Could you give us a background on how you got your start?
DK: I studied in Bali Tourism School (previous called BPLP) in Nusa Dua. After graduation, I started my career with Hilton International opening the Bali Hilton as Front Office Manager. Hilton gave me many training experiences where I learned the principles of running 5-star hotels.
Five years later, I thought that I would try a different experience by running boutique resorts, which were, at that time a new concept in Bali, pioneered by Amanresorts. joined its sister company called GHM (General Hotels Management) opening The Chedi Ubud as an Executive Assistant Manager. Running a boutique hotel is a totally different approach than running big hotels like Hilton.
G&L: Golf clubs and resorts have been a large part of your professional career. How did that start?
DK: GHM assigned me to be a Resident Manager to support the General Manager at its first operations in mainland China, the Fuchun Resort. Fuchun Resort has villas, hotel, and an 18-hole members-only golf club. GHM had 2 properties to operate in China – the Fuchun Resort in Hangzhou and a T8 Restaurant in Xintiandi, Shanghai. Both properties were trendsetters for China’s boutique resorts and restaurants.
Though China is a huge country with massive developments in IT and real estate, back in 2000 they didn’t have any high-end resorts with a focus on the quality of service. They are a country with a rich culture, but hadn’t developed the levels of hospitality acceptable to international guests. Fuchun Resort and T8 offered the first resort in China with the higher international service level. This was totally unique approach; for example, the resort offered simplicity in the experience of international living in China. Aside from the expat, many of the wealthier Chinese prefer to have luxury, glamorous and modern European lifestyle.
I then built China Hospitality Synergy (CHS) in mid-2011, a company based in Shanghai. I am the Chairman and CEO of the company. Our first project was in Qingdao, where we took over the management of Tiantai Golf Club and Tiantai Hot Spring Resort. CHS was the managing company of the golf club until end of 2014.
G&L: In the past, new clubs and resorts hired managers from overseas to assist in opening and managing clubs. Is this a policy that has been changing?
DK: I have been in China since 2000 and have witnessed rapid changes in resort and golf club development. An increasingly greater number of the international resorts have localized their management team. I believe this represents a growth in the knowledge and experience of locals in the hospitality industry. Local management teams are now prepared to take over key positions throughout many golf clubs and resorts. There are some international resorts that still prefer to hire international talents as the General Manager. In resorts and clubs where most of the customers are locals, I tend to agree that the management opportunities should be offered to qualified locals.
We appreciate David’s insight into his years of experience in the Asian golf & resort market, where it was fifteen years ago and where it is now. China particularly is a difficult market for foreigners to address. David has done it well for more than fifteen years.
Based in Bali, Bill Healey has been consulting, installing, and supporting solutions in the global golf and leisure industry since 1982. He has been involved with over 1,000 systems installations in 40+ countries from North America to Africa to Asia and Australia.