New Chinese Tourists: The second wave of China's Outbound TourismPresentation Transcript
New Chinese Tourists The Second Wave of China‘s Outbound Tourism World Travel Market Workshop Nov. 8th 2011, 13.30 – 15.00 h
Tom Jenkins (ETOA): Chinese Outbound Tourism – European perspective Wolfgang Georg Arlt (COTRI): The New Chinese Tourist Jens Thraenhart (Dragon Trail): Social Media Marketing for Chinese outbound tourists Discussion + LUCKY DRAW (put your business card into the bowl to participate)
Followed by China Outbound Clinic 15.00 – 16.00 h Fast Track Solutions for practical problems Limited Access. Admission fee for Clinic: 100 Euro
COTRI China Outbound Tourism Research Institute
Headquarter in Heide/Germany, China office in Beijing
COTRI country partners in Italy, Spain, Mexico
Director: Prof. Dr. Wolfgang Georg Arlt FRGS Active in P.R. of China since 1978 Former owner of Inbound Tour Operator China->Europe COTRI founder and director since 2004 Professor for International Tourism Management at West Coast University of Applied Sciences Germany
China – A tale of two countries China has developed into the number one producer of many things - Gold, TV sets, Cell Phones, Solar Panels, Beer, Apples, Cars, Carbon Dioxide and much more. In cases where the country is still only number two, like tomatoes and space stations, this is going to change soon. We all know that spiel.
China – A tale of two countries TIME MAGAZINE Headlines October 2011: Hope: Can Chinese Consumers save the world economy? Despair: Be very afraid of the China Bubble
China – A tale of two countries THE ECONOMIST Headlines October 2011 Hope: Chinese tourists seem to be everywhere, yet the Chinese tourism boom is only just beginning Despair: The question is not if the Chinese economy will crash but only when
China – A tale of two countries 2012 - A critical year not only in the Maya calendar
China – A tale of two countries Survey results from Bank of China/Hurun (11/2011): 60% of all Chinese with more than 1 million Euro in personal wealth (about 1 million households) are in the process or seriously considering to emigrate … and buying property overseas like crazy to transfer assets out of the country
China – A tale of two countries “ There is a sense that we are approaching an inevitable breaking point, when the pressures in society will boil over and consume the rulers,” says one Chinese banker with close ties to a number of powerful political families. “ Almost all of the elements are in place for an uprising like we saw in 1989 – corruption is worse today than it was then, people feel they can’t get ahead without political connections, the wealth gap is much bigger and growing and there has been virtually no political reform at all. The only missing ingredient now is a domestic economic crisis.” Financial Times, Nov. 5, 2011
China – A tale of two countries So – if it obviously does not appear to be a good idea to invest in Chinese real estate or stocks just now, is it worthwhile to invest in Chinese outbound tourism? And the answer is (surprise surprise): YES! Why?
Enters the NEW CHINESE TOURIST
2011: Close to 70 mio. trips (+20%) China’s balance of Int. tourism spending 10 bio. US$ in the red
Impressive growth, but:
90% of the Mainland Chinese travelers stayed within Asia
Those who travel further concentrated mainly on the most famous sights in the most famous cities in major destinations
Spending concentrated on shopping, not on tourism services
Destinations and companies not located on the beaten track found the much-hyped Chinese tourists a Fata Morgana.
With the Second Wave of Chinese Outbound Tourism fuelled by the New Chinese Tourists, this is changing.
More self-organized travelers from China are slowing down and spreading further afield. Increasingly travel-savvy and globally connected, below 45 years and green, the New Chinese Tourist are arriving in exotic locations and are staying for more than just a snapshot. Niche products for the first time get a chance to profit from Chinese customers – and even small niches in China mean big numbers. .
“ Self-organized” travellers are not be confused with “individual” travellers in the western sense.
More experience and language skills still lead to “half-organized” trips with tour operators providing visa, air trip and maybe a few hotel bookings.
New Chinese Tourists are still Chinese : They are still happy to see signage and other information in Chinese as a sign of respect for their country, they will still rely mainly on peer group information from other Chinese travellers.
The low price, low quality Chinese outbound tourism will suffer from the pending economic crash in China, growth rates in terms of number of persons travelling will slow down. But the New Chinese Tourists will continue to travel, as the motives for international travel – prestige, networking, distinction – will stay the same.
New Chinese Tourists give new opportunities beyond the “Europe-through-the-coach-window” rush or the “4-nights-Phuket” market, but require adapted products and the usage of relevant marketing channels.
Thank you for you attention – looking forward to your questions and comments during the discussion! Contact: firstname.lastname@example.org www.china-outbound.com www.chinatraveltrends.com During WTM 2011: COTTM Stand AS 781
Lucky Draw Win a complete set of China Tourism Academy: Annual Report of China Outbound Tourism Development 2009/2010 and 2011 (English Edition), save 120 Euro! and a copy of Green Book of China’s Tourism 2011 (English edition), save 88 Euro!