investing in China’s tourism future 中国旅游业发展咨询有限公司
The growth of Chinese travel and tourism:  how will it impact the global tourism industry? <ul><li>Origins and growth tren...
About the speaker <ul><li>Expertise on China business and culture as well as speaking fluent Chinese.   </li></ul><ul><li>...
 
Chinese Outbound Travel
China outbound tourism will greatly impact the international tourism industry by 2020, accounting for the single largest s...
Challenges: The ‘Open Door’ myth <ul><li>China has announced an Open Door policy. However, in the service sector… </li></u...
Popular destinations (ADS) <ul><li>Most popular destinations for Chinese  </li></ul><ul><ul><li>Reasons: politics, time, c...
Size of outbound market 12,000,000 2001 Turkey / Egypt Germany / South Africa EU / Africa UK / Russia / South America Cari...
Statistical overview <ul><li>Chinese Outbound  </li></ul><ul><li>Travel Destinations </li></ul><ul><li>(2005) </li></ul>Zh...
The nature of the Chinese outbound traveller <ul><li>Middle and high income city dwellers </li></ul><ul><li>White collar a...
Group package versus Independent travel <ul><li>Chinese prefer group travel </li></ul><ul><ul><li>Familiarity </li></ul></...
Group package versus Independent travel <ul><li>A  shift to Independent travel </li></ul><ul><ul><li>Negative experience <...
Business or Leisure? <ul><li>Business </li></ul><ul><ul><li>Paid by company/bureau </li></ul></ul><ul><ul><li>Predominantl...
 
Satisfying a Chinese client <ul><li>Attention to personal details  </li></ul><ul><li>Understanding of cultural sensitiviti...
Market entry steps <ul><li>Review and audit your services </li></ul><ul><li>Adjust and prepare suitable products </li></ul...
Chinese Inbound and domestic Travel
Overview of China’s inbound tourism <ul><li>Has been growing at 19.9% a year on average since 1990.  </li></ul><ul><li>Wil...
Photograph by very kind permission of Mr Li, Cultural Heritage Management Officer, Matisi Scenic Area Administration Offic...
Overview of China’s domestic tourism <ul><li>China has 12,930 star-rated hotels </li></ul><ul><li>International hotel chai...
 
Influences on inbound tourism <ul><li>Leading up to 2008 Beijing Olympics and 2010 Shanghai World Expo, China will receive...
 
Differences in tourist behaviour <ul><li>Chinese domestic tourist market is different: </li></ul><ul><li>Prefer to spend t...
Thanks to Silk Road hotels
Examples of tourism culture differences
Future Trends for China <ul><li>South East Asia will grow as a market for luxury travel and short breaks </li></ul><ul><ul...
 
China Travel Industry blog Total amount debited from card (UK Pounds )     £1,041.20    £1,041.20 Payment for flights book...
14 November 2007, World Travel Market, Excel, London <ul><li>The only international event outside of China designed to unl...
The China Outbound Travel Handbook “ an excellent introduction to an amazingly complex market... relevant to every sector ...
Contact Us: Roy Graff London, UK Email:   info@ccontact.com  Tel:  +44 20 78719886   Mobile:  +44 7821 093199 www.chinacon...
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World Travel CEO forum Oct07

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World Travel CEO presentation on China tourism

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  • Transcript of "World Travel CEO forum Oct07"

    1. 1. investing in China’s tourism future 中国旅游业发展咨询有限公司
    2. 2. The growth of Chinese travel and tourism: how will it impact the global tourism industry? <ul><li>Origins and growth trends in Chinese tourism </li></ul><ul><li>The impact of Chinese tourism on domestic and regional economies </li></ul><ul><li>How hard is it for foreign travel companies to succeed in China? </li></ul><ul><li>Opportunities for western companies in China's tourism sector </li></ul><ul><li>What the future holds for China's tourism sector? </li></ul>8 October 2007
    3. 3. About the speaker <ul><li>Expertise on China business and culture as well as speaking fluent Chinese.  </li></ul><ul><li>Lived in China's two commercial power houses, Beijing and Shanghai and travelled extensively to China's major cities, forging good personal relationships with key private industry leaders and public officials. </li></ul><ul><li>Served as China Director of E-commerce for Gullivers Travel Associates, overseeing all aspects of the company's electronic product distribution in China. </li></ul><ul><li>Planned and executed a high level three-day conference on modern tourism trends titled 'The Future of Travel is Here', co-hosted by Beijing Municipal Tourism Board. </li></ul>Returning to Europe in 2005, Roy founded ChinaContact  to assist tourism companies, travel providers and tourism promotion bodies eager to discover the tremendous potential of China as both market and destination.
    4. 5. Chinese Outbound Travel
    5. 6. China outbound tourism will greatly impact the international tourism industry by 2020, accounting for the single largest source of international tourism. Each and every tourism organisation and company needs to formulate a China strategy and prepare the ground work now.
    6. 7. Challenges: The ‘Open Door’ myth <ul><li>China has announced an Open Door policy. However, in the service sector… </li></ul><ul><ul><li>The government puts barriers to foreign competition to protect local business. </li></ul></ul><ul><ul><li>Business relations are based on trust and friendship built over time. </li></ul></ul><ul><ul><li>Chinese travel agents are largely ignorant of long haul destinations, therefore are weary of promoting new products. </li></ul></ul>門
    7. 8. Popular destinations (ADS) <ul><li>Most popular destinations for Chinese </li></ul><ul><ul><li>Reasons: politics, time, cost, cultural affinity, language, food </li></ul></ul>Hong Kong, Macau, Japan, Korea, Thailand, Vietnam, Russia, USA, Singapore, Australia, Malaysia France, Switzerland, USA, UK, Australia, Germany, Canada, Italy <ul><li>Top aspirational destinations </li></ul><ul><ul><li>Reasons: status, novelty, culture, business needs, shopping </li></ul></ul>
    8. 9. Size of outbound market 12,000,000 2001 Turkey / Egypt Germany / South Africa EU / Africa UK / Russia / South America Caribbean / Mongolia 16,600,000 20,220,000 28,850,000 31,000,000 34,000,000 2002 2003 2004 2005 2006 Japan / ASEAN 10,472,600 2000 Australia / New Zealand 9,232,400 1999 8,425,600 1998 5,323,900 1997 5,060,000 1996 Hong Kong/Macau 4,520,000 1995 Approved Destination Status DEPARTURES YEAR
    9. 10. Statistical overview <ul><li>Chinese Outbound </li></ul><ul><li>Travel Destinations </li></ul><ul><li>(2005) </li></ul>Zhang Qing/Byecity.com 2006 : 34 million outbound travellers Market Value : 17 Billion Dollars 2007 projected: Over 37.4 million
    10. 11. The nature of the Chinese outbound traveller <ul><li>Middle and high income city dwellers </li></ul><ul><li>White collar annual income: USD $25k on average </li></ul><ul><li>Established pattern of business trips combined with leisure holidays </li></ul><ul><li>Increased awareness of luxury destinations </li></ul><ul><li>Desire to ‘outclass’ others </li></ul><ul><li>Prefer convenience and access to range of activities </li></ul>一
    11. 12. Group package versus Independent travel <ul><li>Chinese prefer group travel </li></ul><ul><ul><li>Familiarity </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>better (perceived) value </li></ul></ul><ul><ul><li>Habit of past experience </li></ul></ul>上
    12. 13. Group package versus Independent travel <ul><li>A shift to Independent travel </li></ul><ul><ul><li>Negative experience </li></ul></ul><ul><ul><li>Growing affluence </li></ul></ul><ul><ul><li>Status symbol </li></ul></ul><ul><ul><li>Better access to information </li></ul></ul><ul><ul><li>Self confidence </li></ul></ul><ul><ul><li>Changing attitudes and lifestyle </li></ul></ul>下
    13. 14. Business or Leisure? <ul><li>Business </li></ul><ul><ul><li>Paid by company/bureau </li></ul></ul><ul><ul><li>Predominantly company of male colleagues </li></ul></ul><ul><ul><li>Convenience and time </li></ul></ul><ul><ul><li>Concentrated shopping </li></ul></ul><ul><ul><li>Appreciate flexibility and attention to time management </li></ul></ul><ul><li>Leisure </li></ul><ul><ul><li>Self financed </li></ul></ul><ul><ul><li>Small groups of friends or family members </li></ul></ul><ul><ul><li>More flexibility and interest in attractions </li></ul></ul><ul><ul><li>Allocate more time for shopping. </li></ul></ul>Most high spending still driven by business and delegations
    14. 16. Satisfying a Chinese client <ul><li>Attention to personal details </li></ul><ul><li>Understanding of cultural sensitivities </li></ul><ul><li>Knowing your Hans from your Hui </li></ul><ul><li>Knowing of regional differences </li></ul><ul><li>Being flexible - adaptable to changes in plan </li></ul><ul><li>Chinese language information </li></ul><ul><li>Exceeding expectations </li></ul>
    15. 17. Market entry steps <ul><li>Review and audit your services </li></ul><ul><li>Adjust and prepare suitable products </li></ul><ul><li>Localise your information </li></ul><ul><li>Launch and promote through the trade </li></ul><ul><li>Build relationships over time </li></ul><ul><li>Follow through on promises </li></ul>
    16. 18. Chinese Inbound and domestic Travel
    17. 19. Overview of China’s inbound tourism <ul><li>Has been growing at 19.9% a year on average since 1990. </li></ul><ul><li>Will receive 129 million inbound visitors from overseas in 2007, five million more than 2006. </li></ul><ul><li>22 million visitors in 2006 excluding Taiwan, HKG, Macau. </li></ul><ul><li>Tourism boosted by world class events (2008 Beijing Olympics, 2010 World Expo, Formula 1 racing, Tennis, Summer Davos) </li></ul>
    18. 20. Photograph by very kind permission of Mr Li, Cultural Heritage Management Officer, Matisi Scenic Area Administration Office Foothills of the Qilianshan, western Gansu
    19. 21. Overview of China’s domestic tourism <ul><li>China has 12,930 star-rated hotels </li></ul><ul><li>International hotel chains are expanding fast in China </li></ul><ul><li>Domestic tourists are projected to take 1.5 billion trips across the country, up eight percent in 2007. </li></ul><ul><li>Spend US $250 billion on developing its railway network by 2020. </li></ul><ul><li>$17.4 billion between 2006 and 2010 for airport development. </li></ul>
    20. 23. Influences on inbound tourism <ul><li>Leading up to 2008 Beijing Olympics and 2010 Shanghai World Expo, China will receive unprecedented media attention – double edged sword </li></ul><ul><li>The 2008 Beijing Olympics will show more faces of China to an international public previously not aware of China's tourism resources. </li></ul><ul><li>China will become a popular destination for incentives, conference, meetings, sports and business. </li></ul><ul><li>2010 World Expo in Shanghai will attract large numbers of short-haul visitors from Asia and enhance China's image internationally. </li></ul>
    21. 25. Differences in tourist behaviour <ul><li>Chinese domestic tourist market is different: </li></ul><ul><li>Prefer to spend time in crowded places with large groups </li></ul><ul><li>Seek comfort and convenience above exotic experiences </li></ul><ul><li>Less educated about the impact of tourism on destinations </li></ul>
    22. 26. Thanks to Silk Road hotels
    23. 27. Examples of tourism culture differences
    24. 28. Future Trends for China <ul><li>South East Asia will grow as a market for luxury travel and short breaks </li></ul><ul><ul><li>golf, sailing, gaming, shopping (short excursions) </li></ul></ul><ul><li>Europe will become fashionable as a cultural attraction </li></ul><ul><li>USA/Canada will become most popular destination when visa restrictions are eased. </li></ul><ul><li>China will become the world’s number one inbound tourist destination by 2014 according to UN-WTO. </li></ul><ul><li>http://www.cnto.org/chinastats.asp#Stats </li></ul>
    25. 30. China Travel Industry blog Total amount debited from card (UK Pounds )    £1,041.20   £1,041.20 Payment for flights booked with British Airways will appear as a separate item on your statement as British Airways PLC.     Visa Delta/Debit ,  Payment card used   **** **** **** 9865 Payment Summary 2 piece(s) Baggage allowance Premier Economy BA0038 British Airways Heathrow (London) United Kingdom Beijing China 15:10 23 Jun 11:25 23 Jun     2 piece(s) Baggage allowance Premier Economy BA0169 British Airways Pu Dong (Shanghai) China Heathrow (London) United Kingdom 07:59 17 Jun 3:55 16 Jun Total amount debited from card (UK Pounds )    £1,041.20   £1,041.20 Payment for flights booked with British Airways will appear as a separate item on your statement as British Airways PLC.     Visa Delta/Debit ,  Payment card used   **** **** **** 9865 Payment Summary 2 piece(s) Baggage allowance Premier Economy BA0038 British Airways Heathrow (London) United Kingdom Beijing China 15:10 23 Jun 11:25 23 Jun     2 piece(s) Baggage allowance Premier Economy BA0169 British Airways Pu Dong (Shanghai) China Heathrow (London) United Kingdom 07:59 17 Jun 3:55 16 Jun
    26. 31. 14 November 2007, World Travel Market, Excel, London <ul><li>The only international event outside of China designed to unlock the mystery of doing business with China’s tourism sector. </li></ul><ul><li>Full day of forums and interactive workshops for effective communication, sales and marketing methods and understanding how to navigate the market. </li></ul>Forum on China’s tourism industry
    27. 32. The China Outbound Travel Handbook “ an excellent introduction to an amazingly complex market... relevant to every sector of the tourism business... contains lots of tips and practical advice for suppliers and is written in a down-to-earth style, with a minimum of meaningless statistics...” BBT Online, Belgium
    28. 33. Contact Us: Roy Graff London, UK Email: info@ccontact.com Tel: +44 20 78719886 Mobile: +44 7821 093199 www.chinacontact.org http://chinacontacttourism.ning.com/ <ul><li>Consultancy service: </li></ul><ul><ul><li>market access, marketing strategy, public relations, deal brokering </li></ul></ul><ul><li>Localisation: </li></ul><ul><ul><li>tourism marketing materials, websites, press releases </li></ul></ul><ul><li>Event management: </li></ul><ul><ul><li>exhibitions, product launches, trade fairs, business trips </li></ul></ul><ul><li>Representation: </li></ul><ul><ul><li>local sales and marketing representatives </li></ul></ul>North America: New York Email: usa@ccontact.com South East Asia: Singapore Email: [email_address]
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