As the longest-serving expatriate hotelier in China, a title he claims since he’s been working in China since 1983, Roger Fung Chi Kin (pictured left), general manager, Meritus Mandarin Haikou, has seen a lot of changes.

His first stint was as the assistant controller of China Hotel, Guangzhou. At that time, he said, the hospitality industry had just started. “There were only three international hotels in China, namely China Hotel, Guangzhou, Great Wall Sheraton Hotel, Beijing, and Jinguo Hotel, Beijing.”

For the next 27 years, the Hong Kong-born Fung worked in various Chinese cities including Shanghai, Hangzhou, Shenzhen, Chongqing, Beijing and Tianjin. He moved to Haikou slightly more than a year ago.

The most dramatic period of change though came in the 90s, he said, when a lot of international branded hotels entered China. They brought a new meaning of hospitality for owners, employers and employees, he said.

Hainan island, he said, was enjoying the benefits of tourism growth in China. “Currently the government is planning to build up the island as an international tourism island. Thousands of tourists at home and abroad are attracted to visit the island, especially during the Lunar New Year.

“The hospitality business is booming and everything looks gorgeous – the roads, the landscaping.”

But problems have also arisen “such as inadequate infrastructure, too few international flights, over optimistic pricing, etc”, said Fung.

Having worked in China for so long, Fung has also seen a change in employee attitude with the development of the hotel industry. In the early days, staff did what they were told and had a great respect for hierarchy.

Today, Fung said, “you have to earn the respect of the young staff”.

Chinese consumers are also changing, he said. “They are becoming more and more conscious with detail and quality. Their needs may vary, but they always want excellent service.”

One of the most common mistakes made by expatriate hoteliers in China, he said, is not learning enough about the country before their arrival.

“That “culture shock” then prevents them from performing well until they’ve got used to the local policies and conditions.”

When Fung came to Meritus Mandarin Haikou, the first thing he did was to change the way staff were renumerated – from a basic salary to an incentive-based scheme.

Explaining, he said, “The basic salary remains the same in 2009 and 2010. An additional 8% is provided monthly from January till March in the book closing.

“If the quarterly operation profit is achieved, then the 8% will be payable in accordance with the incentive plan details. However, if, for example, the operation profit is achieved by only allowing 5% provision, then we will pay 5%. The whole ball game rolls over from quarter to quarter.”

Asked why he changed the system, he said, “We always believe the following golden rule “If you take good care of your employees, they’ll take good care of our customers and the customers will come back”.

“In 2009, we achieved the best business performance since the opening of the hotel. Since we believe that you should ‘celebrate the success of the team, not your own’, we offered a handsome bonus and everybody was happy.

“They now all believe that the salary increase or incentive schedule goes in line with the operation profit. They also know that the management also needs to look after owner’s profit and ROI.”

There is no doubt that Fung loves his numbers – he came from an accounting background. But it was because he knew that he needed wider experience that at one point in his career, he opted to take on the job of resident manager. Prior to that, he had worked in rooms, sales and marketing and food and beverage.

“If I had continued working with numbers, I’d have been bored. I have to admit it was lucky for me to have the opportunity to grow and learn more. Accounting helped me master the art of numbers and all the other experience I gained from other departments have made me a better general manager, I think.”

Asked to comment on some concerns in the industry that hotel companies are being run by accountants who don't understand the business, Fung said, “Accounting professionals are often misunderstood as stubborn and not flexible in business at all. But in fact, to run a hotel, first of all, you have to understand all details of hotel daily operations.

“With an accounting background, you have a whole picture in mind and can easily point out key factors and advise on sales and operation strategies accordingly.

“My main philosophy is ‘As long as the spirit of control concept/rules is not lost, accounts people should do as much as possible to support operations. Controllers should earn the respect from their peers from the sound advice they give, not the accounting rules they need people to enforce’.”

His biggest satisfaction is “working with young people and watching them progress and grow”.