China Herald: International hotels should stay away from the sex trade

Newsnight of the BBC broke the news that international hotels like Kempinsky and Intercontinental are closely liked to the sex trade. Business analyst Shaun Rein warns in the same article about the impact foreign companies can feel, if they do not stay clean in China.

Newsnight:

Shaun Rein, managing director of China Market Research Group, advises foreign companies operating in China. He said that there is more that some hotels could be doing to keep the sex trade away from their doors.

"The companies should be negotiating with the landlords or the owners of the properties from day one," he said. "They should say that if we're going to run a spa, it can be owned by a third party, but it needs to be managed by our own employees, and we also have to be in charge of the hours, so it closes at nine pm, rather than later."

Mr Rein said that now more than ever, foreign companies in China should be striving to stay clean.

"There's a definite reputational risk for the brands to have hookers in the hotels, especially from the government side because they're going to crack down and go after foreign brands to show the country that they are adhering to the laws," he said. "It's much easier to crack down on a foreign brand than a local one."

A few months ago the British pharmaceutical company GlaxoSmithKline (GSK) found itself on the receiving end of just such a crackdown, accused of paying bribes to boost sales.

More at the BBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

Devestating pictures of tourist areas in the Golden week of October showed again that taking a holiday together with 428 million others is not always a good idea, even though a growing number might go abroad. The now adjusted system of Golden Week was introduced to encourage consumer spending - still high on the political agenda. But would a paid leave, where you can decide yourself your holidays, be a good alternative? Some love the ideal, others loath it. And what is worse, many Chinese would most likely not take their holidays, but try to cash in at the end of the year. That would cause consumer spending to drop. What would you do? How did you spend your holidays in October, and what would be a good alternative? Join the +China Weekly Hangout on Thursday 17 October, 10pm Beijing Time, 4pm CEST(Europe) and 10am EST (US/Canada). You can leave your remarks here, but during the event you can also ask questions and remarks using the Question tool at the event page here. At the event page you can also register for participation at the hangout. (You can read our initial announcement here.)

What do Chinese tourists want, +China Weekly Hangout asked on June 20 Roy Graff of +ChinaContact joins us to discuss the increasingly diversifying market of Chinese tourists. And yes, there is no longer one answer for basic questions. Moderation by +Fons Tuinstra of the China Speakers Bureau.