Any international hotel chains with properties in China, along with the global tech vendors they rely on, may be unknowingly violating Chinese data privacy laws, warns Ireckonu. At the heart of the issue are China’s data residency requirements, which mandate that guest data collected within the country must remain there. According to Ireckonu, a middleware and guest data platform provider for hotels, a significant number of global hotel tech providers are still storing or processing this data outside of China, exposing their clients to serious legal and financial risks if regulators decide to step in.
Both international hotel groups and Chinese operators have expressed a growing concern about the possibility of a government crackdown. In today’s geopolitical climate, regulatory measures could arise at any time, potentially in response to foreign trade or data policies, which might result in fines, reputational impact, or, in extreme cases, affect the operation of their properties.
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