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Blackstone’s Jonathan Gray is bullish on Chinese consumers bringing a travel boom to the region, world

  • Hong Kong and Macau are already benefiting from China’s travel demand, which will soon spread to the rest of the world, Blackstone’s president and COO says
  • The New York-based alternative investment firm is eyeing sectors with ‘tailwind’ such as rental studio spaces and hotels

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Tourists walk along Canton Road in Tsim Sha Tsui on the first day of full border reopening between Hong Kong and mainland China on February 6. Photo: Jelly Tse
Mia Castagnone
Investors should closely follow the latest data and trends, particularly the travel boom that is going to come from pent-up demand from Chinese consumers, according to Jonathan Gray, the president and chief operating officer of Blackstone.
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“One trend that is coming, is travel from mainland China, and it is going to explode,” said Gray, who spoke at the first distinguished speakers series event of the year organised by the Hong Kong Academy of Finance on Thursday.
The academy, which brings together academic professionals, industry leaders and the regulatory community to develop financial leadership, plans to hold a number of such events this year. Last year it held four, featuring Sequoia China founder and managing partner Neil Shen and Prudential chairwoman Shriti Vadera.

The tourism sectors in Hong Kong and Macau are already benefiting from China’s reopening, and this will spread to the rest of the region and the globe, Gray added.

Blackstone’s Jonathan Gray says this year may see higher interest rates, which would lead to a slowdown in economic activity. Photo: Reuters
Blackstone’s Jonathan Gray says this year may see higher interest rates, which would lead to a slowdown in economic activity. Photo: Reuters

Gray said the New York headquartered Blackstone, which has nearly US$1 trillion in assets under management, is turning to sectors with “tailwind”, including rental studio spaces because of the rise of content creation, and hotels as a result of pent-up travel demand, generating room for growth and pricing.

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Hong Kong’s tourism sector is seeing early signs of revival following the full reopening of the border with mainland China earlier this month, which has led to a sharp influx of travellers. High street retailers in the city are likely to see rents rise as much as 10 per cent this year, as a surge in Chinese tourists leads to a revival in the luxury market.
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