Harry Tan, CEO of Days Inn China

Harry Tan, CEO of Day Inn China
 

By: Ben DeGeorge

First Published: Sunday, April 20, 2008 

Harry, born in Singapore, has worked in the hotel industry for the last 25 years. He is now settled in Beijing with his family, operating Days Inn China. He spoke to our American University Business Class on our trip to China. Along with my trip roommate, Pierre Etienne-Paris, I sat down with Harry the next day over breakfast to conduct a VIP interview. Harry has an incredible humor, smile and management talent that greets guests and employees alike. It’s no wonder Days Inn China is rapidly growing. It is notable that the five-star, Beijing Days Inn was the highest quality hotel I have ever stayed in. ~ BD
 

 

VIP: How do you define success?

Harry Tan: If you are talking about a very narrow term, many people define it financially. But, success is more than financial. You must be happy with what you are doing. If you are rich, you may not be happy at all. Is this success? I don’t know. I doubt it. You must be happy.  

 

VIP: Why did you choose to go into hospitality?

HT: Every day is a different challenge here. I love the job as CEO of Days Inn China. I was a Forex broker before. That was good paying but not a happy job. I could not imagine myself working behind a desk doing the same thing every day. When I was young I was a flight attendant. I called it a paid holiday. All of a sudden, I realized I liked hospitality. You meet new people and have new challenges. Every two or three years you get a new posting. However, after a while I got tired of having to move my family around so much. I wanted stability, so this is perfect. My children go to school in Beijing. It’s great.
 

Inside Beijing Days Inn room
 

VIP: What are some of your hobbies?

HT: I like to spend time with my family. We watch DVDs and we go on outings. Weekdays are for work while weekends are family time.
 

VIP: If you could build a hotel anywhere, where would it be?

HT: In Tibet. I spent two years there. I was there in 1987 when tourists were just coming in. I am looking at managing a franchise in Tibet. We could provide good accommodations for tourists and we could teach the people there and help them develop. They could learn some hospitality skills and spread it outward. Other places do not need me.
 

VIP: What do you consider your strengths as a hotel operator?

HT: I think my inborn strength is that I like to provide service. I like to get in touch with people.  

 

VIP: How many children do you have?

HT: Two. Ages 11 and 14.
 

VIP: If you could meet any three people, who would they be?

HT: First, The Beatles. Fantastic music. Second, the father of Singapore, Lee Kuan Yew. He is still alive, and is probably 80+ years old. He ran Singapore from 1959 to 1990. He did a phenomenal job. He also used to be the liaison between Taiwan and China. Two years ago he went to Beijing and then Taiwan to carry messages between the two. His English name is Harry. I am named after him. I have a twin, my father named us after two great politicians. Thirdly, I would like to meet the Dalai Llama.
 

Inside of Beijing Days Inn China 

VIP: Is there anyone in particular who has inspired you?

HT: People have inspired me to become more out looking, more sincere and more generous. Mother Teresa has inspired everybody. Nelson Mandela has inspired everybody. I grew up in the ‘70s’. The ‘70s’ social movements inspire me.
 

VIP: What advice would you give to someone going into hospitality?

HT: It is a very tough industry that does not pay enough for your hard work. If you work in a bank or in finance you will make three times or five times more than in a hotel. You must love your job; you must have a passion for your job. Otherwise you will be frustrated. I don’t have a beamer or a Ferrari.
 

If you want to come to work in China you should take 6 months off to learn Chinese full time. That is the only way to really work in China. There are two big opportunities for you when investing. China and India. But I feel there are better opportunities in China.
 

Do you know Steve Wynn the Las Vegas developer? He was at a convention as a keynote speaker. At the end of his speech he started talking in Chinese. And he said, “If I were you I would take the next flight to China and see what I can do there.” China has two hundred million newly rich people. They need a lot of stuff. They need clothing, they need recreation. China is the biggest mobile phone user in the world. It has 500 million mobile phones. Most consumers have two or three phones. They send billions of text messages everyday. No one has even 1% market share in the food industry. How many McDonalds do you have in the United States? 10 thousand or so. The population here is four times the US population. How many McDonalds are here? Not many in comparison.
 

VIP: What do you see as the future for investment here?

HT: Well China is still growing and developing. You just have to find your niche, find the right partners and head in the right direction. And like I say, I just want 5% market share for my hotel.
 

VIP: What are your goals with Days Inn?

HT: I would like to offer value for their money for a customer. Not everyone can afford $300 per night for a Hilton. Students and family stay at Days Inn. We have lower priced options. It is about 60 or 70 dollars in some of our locations in China. In New York, similar quality hotels are $200. In London it is $300 for the same hotel. In Vegas If I get a bottle of water it costs $3.75. Here I get it for 2 Yuan (~$.30).

 

VIP: How many employees do you have?

HT: We have 50 employees in our corporate office here. At every hotel we have a couple of hundred staff. At this hotel we have 500 staff members. We have a couple of thousand total employees and multiplying.
 

VIP: Do any of your employees ever steal?

HT: Not as much now. It was rampant in China a while ago.
 

VIP: What would you say is one of your secrets to success?

HT: One important factor is Guangxi — Relationships. It gets things done. There is a big emphasis on your relationships here in China. As long as you do not use them for illegal things it is ok. You can accomplish a lot using your relationships. You need to know the system and play the system. People do something for their own people that they do not do for other people. If I do not know you well, I will not go to karaoke and drink with you. So therefore if you work in China you need a local partner.
 

 

VIP: Would you say there is corruption here in China?

HT: There is corruption in every Asian society. It is just a question of, “How corrupt?” Let’s say you are a business man. You make millions of dollars. I am a government official, making $200 a month. Of course I look at that and say, “Uhhh…” However, the central government is trying very hard to eradicate this, while, many governments in the world are not even trying.
 

VIP: What is your favorite food?

HT: Chinese food. There are many ways to cook it. It is delicious. It can take many hours of preparation. The sauce makes the difference. You marinate it, you simmer it, and you double boil it. It’s the sauce.

 

VIP: What is your favorite literature?

HT: Well I am reading Jeffrey Archer right now. But, I don’t read so much. I read magazines and newspapers.
 

Inside Beijing Days Inn room

VIP: Beside the Beatles, what is your favorite music?

HT: I have seen Phantom of the Opera thirteen times. I love Andrew Lloyd Webber.
 

VIP: If you could travel anywhere, where would you go?

HT: Egypt. I have seen everything, but not the pyramids. I would love to go to Mexican beaches. I would like to see Nice in France. I like Paris a lot. I went there for the first time last year. People tell me that the French are very unfriendly. I found them friendly. I did not enjoy Rome. But I was surprised to find that there are no wash rooms. I’m a tourist, come on!
 

VIP: Do you have a connection with most other hotel operators in China?

HT: We all know each other. The market is huge and growing. Everyone has something to eat at this point. In the United States and Europe the market is saturated, so everyone competes.
 

VIP: If you could say anything to the world, what would it be?

HT: China has to grow at its own pace and in its own direction. I don’t think anyone should tell China how to grow. Politicians around the world should try to engage China, not push it. The Chinese need to change at their own pace. If you push them it becomes very messy. Do business with China and work with China. I am not Chinese, I am an outsider. I have been here for 25 years. It is changing and growing so very fast. If you want to work in Asia there are two places; China and the rest of Asia.
 

VIP: Do you think China will overtake the US economy?

HT: No way. The United States is so big and always will be. China should be viewed as an opportunity, a challenge, and a friend, not a threat.

 

VIP: As students, what advice would you give to us?

HT: Find your passion. If you like politics, go into politics. If you like hospitality, go into hospitality. I have been in hospitality for 25 years. I am happy. I get up every day and am happy. I take stock at the end of every year and feel like I did something.