The document provides a comprehensive overview of tourism in China, highlighting its rapid economic growth, increasing outbound travel, and various demographics and preferences of Chinese travelers. It details motivations for travel, popular destinations, and the impact of government policies on tourism. Additionally, it forecasts significant growth in outbound travel, with expectations for visits to reach 100 million by 2020.

1. China Tourism Report

2. Country Profile The People's Republic of China (PRC), has control over mainland China and the largely self-governing territories of Hong Kong (since 1997) and Macau (since 1999). - World’s most populous country -World’s fastest growing economy -World’s fourth largest country - The world’s third largest trading nation China, is now also the second most prolific consumer of oil - By 2014 the IMF expects China to account for about twelve percent of world trade.

3. China Fact Sheet UTC +8 Time Zone Renminbi (RMB) Currency Mandarin, Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects Major Languages $6000 (2008 est.) Country comparison to the world:133 $5,500 (2007 est.) $4,900 (2006 est.) GDP - per capita note: data are in 2008 US dollars 90.9% Literacy 1,338,612,968 (July 2009 est.) Country comparison to the world: 1 Population Total: 9,596,961 sq km Country comparison to the world: 4 Area Beijing Capital City China Conventional short form People’s Republic of China (PRC) Official Name

4. Travel Motivation Rising Incomes Travelling abroad for business and education inspires them to return to the same destinations for leisure Travel (especially to Europe) as a status symbol Curiosity Travel Needs Safety of a destination Ease of getting a visa Other factors: -Natural Scenic Beauty -Well-known landmarks -Friendly local people China Outbound: Motivation & Needs

5. China Outbound : Purpose of Travel Official: - Travel by people employed in government or public service upon invitation of a related organisation in the destination country Business: - Incentive travel, visiting exhibitions and inspections or technical visits Private: - Leisure is the sole purpose Private travel is in Groups or as FITs - Group: First time visitors and travel in groups, given the language barriers and unfamiliarity with the destinations. They belong to the rising middle classes - FITs: Has a high income and big purchasing power,more likely to speak other languages and are experienced travellers, can be quite demanding to their agent and supplier

6. China Outbound: Purpose of Travel Business Paid by company/bureau Predominantly company of male colleagues Convenience and time Concentrated shopping Appreciate flexibility and attention to time management Private Self financed Small groups of friends or family members More flexibility and interest in attractions Allocate more time for shopping Most high spending still driven by business and delegations

7. China Outbound: Purpose of Travel

8. China Outbound: Purpose of Travel

9. China Outbound: Where? Established Destinations

10. China Outbound: Where? Emerging Destinations

11. China Outbound: Why? Reasons For Popularity Established Destinations: - politics, time, cost, cultural affinity, language, food Emerging Destinations: -status, novelty, culture, business needs, shopping

12. Young (20-39 years old) Well educated (with tertiary education) With higher income Working professionals and semi-professionals Top management of companies and government bureaus Small groups on an incentive trip Tech-savvy and fashionable (interested in cutting-edge gadgets and latest fashions) 4:2:1 (3 generations – grandparents, parents and single child) China Outbound: Who?

13. Outbound 2009: 50 million (estimated) Outbound 2008 : 45.8 million trips 90% inside Asia; 10% outside Asia Outbound 2007: 41 million trips China Outbound: 1995-2009

14. China Outbound – From where? South China Eastern seaboard North East Western China Xinan & Xibei Shanghai & Huadong Beijing & Dongbei Guangzhou & Huanan

15. Characteristics Of Major Generating Regions Northern China (Beijing and Northeast China) - Most of the official travel is from Beijing - Beijingers are engaged in politics and love socialising - Work comes second to friends and family Eastern China (Shanghai and the Coastal Provinces Zhejiang and Jiangsu ) - Regions with a history of overseas travel, resulting in relatives abroad - Wealthiest in terms of average income - Shanghainese are trendy and internationally oriented - Very price-driven, shrewd business people who drive hard bargains South China (Guangdong Province and Neighbouring Provinces) - Guangdong benefits from its proximity to Hong Kong as the commercial gateway into China - Its capital city, Guangzhou, is a major trading and commercial centre - Consumer spending is the highest among China’s provinces - People in the south prefer higher standard of services to cheap prices

16. Market Sensitivity vs. Business Factors Middle High Middle Brand awareness High High Middle Service Expectation High High Middle Quality Expectation High High Low Price Sensitivity Guangzhou Shanghai Beijing Factor

17. Chinese Outbound: When? Outbound mainly for business and official travel, hence not reliant on peak seasons Private travel is mainly concentrated during the public holidays and school vacations - School vacations take place around Chinese New Year (4 weeks in Jan/Feb) and in summer (July and August) - Preferred destinations are domestic destinations and South East Asia - October is chosen for long haul destinations - 5 to 15 days paid holidays are available since 2008

18. China Outbound: When? List of Public Holidays 1 - 3 October (3 days off extended to 1 week) National Day September, lunar calendar (one day off) Mid-Autumn Festival June, varies according to lunar calendar (one day off) Dragon Boat Festival 1 May (one day off) Labour Day 5 April (one day off) Tomb Sweeping Festival Varies according to lunar calendar (3 days off extended to 1 or 2 weeks) Spring Festival (Chinese New Year) 1 January (one day off) New Year’s day

19. Short Haul to Long Haul: Significant growing interest to ‘less discovered’ European destinations; trips to S.E. Asia, Japan, Korea and Oceania still popular Group Tour to Independent Travel: More Chinese travellers are able to apply for individual visas (as long as they showcase sound financial and employment status) Multi-Country Packages to Hybrid Tours: Travellers are interested in in-depth travel rather than multi-country packages. They are keen to return to destinations enjoyed the first time . The Chinese ‘top priorities’ in life are keeping fit & healthy, professional development and spending time with family & friends. In terms of holidays, taking domestic holidays is at least ‘quite important’ for 80% and ‘extremely important’ for 9%. Foreign holidays are regarded as at least ‘quite important’ for a smaller proportion (61%) and ‘extremely important’ for 10%. China Outbound: Travel Preferences

20. China Outbound : ADS Policy Approved Destination Status (ADS) Policy is a bilateral government agreement defining the arrangement between the Chinese Government and a foreign destination whereby Chinese tourists are permitted to undertake leisure travel in groups to that destination. Business and official travel to overseas destinations are not included. Was first introduced in the early nineties for destinations in Southeast Asia such as Singapore, Thailand and Malaysia. Countries without an ADS agreement are not allowed to receive tourism groups from China or to promote their destination in China for tourism and are restricted to business and official travel groups only. More than135 different countries and territories have been granted ADS. The EU Member States, Switzerland, Norway, Iceland, USA, Canada, Australia and New Zealand are some of the major countries with ADS agreement.

21. China Outbound: Accommodation Preference

22. China Outbound: Information Sources

23. China Outbound: Booking Pattern

24. China Outbound: Mode of Payment Payment Preference While Travelling Abroad

25. China Outbound: Marketing Tips National and Regional tourism boards can use a local travel consultancy to deliver tailor-made marketing strategies before they embark on establishing their own branch. Profitable cooperation may come through designing a joint promotion and marketing with certified international travel agencies. Working with one of the on-line hotel reservation centres will bring the benefits of their local knowledge and market reach at minimal marketing expense. Local media, with travel agent support, will be the most effective. Press tours are more effective when combined with familiarisation tours for travel agencies. High profile press events and direct contact with the trade through newsletters promoting new itineraries and products is required. Chinese place high value on famous brands. Joint promotions with famous brands have a higher chance of success. Reach the affluent, corporate and incentive travelers with assistance from local specialist consulting companies, trade groups, clubs, associations and government bureaus.

26. China Inbound 2008: Mode of Transport 3 676 588 3 670 727 801 781 13 427 777 2 748 464 -6.83 24 325 337 Foreigners 963 746 680 847 32 272 1 778 032 930 694 -5.24 4 385 591 Taiwan 21 663 992 1 172 884 2 550 49 847 77 063 -0.95 22 966 336 Macau 47 135 519 27 156 248 776 504 1 557 856 1 724 002 0.51 78 350 129 Hong Kong 73 439 845 32 680 706 1 613 107 16 813 512 5 480 223 -1.40 130 027 393 Total Foot Motor Rail Air Sea Growth(%) （ Person ） Mode Of Transport Total

27. Foreign Visitors 2008: Mode of Transport 738 337 26 711 124 -43.46 1 936 Others 3 670 727 28 658 67 730 1 954 923 273 508 1 345 571 Motor 3 676 588 801 781 13 427 777 2 748 464 -6.83 24 325 337 Total 50 916 27 366 259 042 12 419 -0.20 378 401 Africa 145 691 27 686 398 567 49 049 -5.45 688 723 Oceania 332 529 395 144 2 486 262 943 795 -1.52 6 112 653 Europe 359 223 83 766 1 725 165 140 248 -5.11 2 581 910 America 2 787 491 267 793 8 558 030 1 602 829 -9.39 14 561 714 Asia Foot Rail Air Sea Growth(%) （ Person ） Mode of Transport Total

28. Foreign Visitors to China 2008: Top Ten Source Markets

29. Foreign Visitor Arrivals 2008: Market Shape 875 23 45 647 346 1 936 Others 28 057 26 304 153 173 116 150 771 378 401 Africa 79 555 40 076 777 428 218 140 097 688 723 Oceania 453 976 610 741 2 284 3 554 335 1 491 317 6 112 653 Europe 291 581 121 333 2 430 1 510 989 655 577 2 581 910 America 3 254 196 1 633 431 62 221 6 372 280 3 239 586 14 561 714 Asia 4 108 240 2 431 908 67 910 12 039 585 5 677 694 24 325 337 Total Others Worker & Crew Visiting Relatives & Friends Sightseeing/ Leisure Meetings/ Business Total Nationality

30. Foreign Visitor Arrivals 2008: Demographics Age Distribution

31. Foreign Visitor Arrivals 2008: Demographics Region and Age Distribution 90 738 973 90 45 1 936 Others 5 169 98 421 248 013 20 292 6 506 378 401 Africa 45 665 276 722 270 158 45 963 50 215 688 723 Oceania 238 911 2 087 253 2 816 908 737 925 231 656 6 112 653 Europe 216 057 1 103 168 906 844 177 834 178 007 2 581 910 America 764 972 5 150 716 7 048 084 1 079 159 518 783 14 561 714 Asia 1 270 864 8 717 018 11 290 980 2 061 263 985 212 24 325 337 Total Over 65 45-64 25-44 15-24 Under 14 Total Age Regions

32. Foreign Visitor Arrivals 2008: Demographics 779 1157 1 936 Others 93 193 285 208 378 401 Africa 258 944 429 779 688 723 Oceania 2 731 467 3 381 186 6 112 653 Europe 918 478 1 663 432 2 581 910 America 4 713 522 9 848 192 14 561 714 Asia 8 716 383 15 608 954 24 325 337 Total Female Male Total Sex Nationality

33. China: Domestic Tourists

34. China: Domestic Tourism (Receipts)

35. Total Online Population (000's) in 2009 : 338,000 Percentage of Population Online in 2009 : 25.3% China Online Environment Mobile Internet: China has the highest mobile usage in the world (649 million users). Mobile internet users reached 155 million (up 32%) in the first half of 2009. Most Popular Web Sources : For travel information- Search engines, destination sites, hotel/accommodation sites, airline sites, tour operator sites and travel portals. For reference for planning trips- Tourism authority websites, leading travel portals and travelogues from other visitors

36. China International Travel Mart (CITM) - Organised by the China National Tourism Administration (CNTA) - Focuses on domestic and inbound tourism - CITM 2010: at Shanghai from 18–21 November - For further details log on to www.citm.com.cn Beijing International Tourism Expo (BITE) - International exhibition for business and leisure tourism - BITE 2010: at Beijing International Exhibition Center (CIEC) from 25–27 June For further details log on to www.bitechina.com.cn Guangzhou International Travel Fair (GITF) - Focuses on domestic travel for the most part, it attracts mainly regional interest and Hong Kong companies - GITF 2010: at Guangzhou Jinhan Exhibition Centre from 25–27 March - For further details log on to www.gitf.com.cn World Travel Fair (WTF) - Business expo - WTF 2010 : at Shanghai Exhibition Center from 27–29 May - For further details log on to www.worldtravelfair.com.cn Major Travel and Tourism Events

37. China Outbound Travel and Tourism Market (COTTM) - Outbound B2B event - COTTM 2010: at Beijing from 28–30 April - For further details log on to www.cottm.com China Incentive and Business Travel Mart (CIBTM) - Exhibition for the global meetings and incentives industry - CIBTM 2010: at China National Convention Center, Beijing from 31 August–02 September - For further details log on to www.cibtm.com IT&CM China - Meetings and incentive travel show - Exhibitors are mainly hotel chains and destinations appealing to corporate travel buyers - IT&CM China 2010: at Shanghai Mart Expo from 07–09 April - For further details log on to www.itcmchina.com Asia Luxury Travel Mart (ALTM) - Pan -Asian event for the luxury travel industry - ALTM 2010 : at Shanghai Exhibition Centre from 14–17 June - For further details log on to www.altm.com.cn Major Travel and Tourism Events

38. Tips For Prospective International Exhibitors To maximize your exposure, effectively market your products and reduce your costs you should focus on one or two fairs that cater to your target market and plan your visits to China around them, including follow up visits to potential clients Prepare to invest in an eye - catching design and Chinese signs/posters Use a local company to convert your brochures, website etc. to Chinese and employ an interpreter with travel industry experience Invite high potential clients to lunch or dinner stressing socializing rather than business talk Chinese are cautious with new business contacts and do not normally conclude business at fairs. They regard travel exhibitions as a place to pick up new ideas and begin a dialogue with prospective suppliers

39. China: Forecast According to United Nations World Tourism Organisation, outbound travel from China will grow, possibly reaching 100 million outbound visits by 2020 ↓ 6.2% (CNY 2,071 bn or US$ 341.7 bn) 6.5% (CNY 707.6 bn or US$ 106.2 bn) Export earnings from international visitors and tourism goods ↑ 9.2% 0.6% Real GDP growth for Travel & Tourism economy ↑ 10.1% (83,519,000 jobs or 1 in every 9.9 jobs) 7.8% (60,841,000 jobs or 1 in every 12.8 jobs) Contribution of the Travel & Tourism economy to employment ↓ 9.7% (CNY 9,679.2 bn or US$ 1,597 bn) 9.8% (CNY 2,993.7 bn or US$ 449.3 bn) Contribution of Travel & Tourism to Gross Domestic Product (GDP) 2019 2009 10 year forecast

40. China National Tourist Office www.cnto.org National Bureau of Statistics of China www.stats.gov.cn China Travel Industry Blog http://news.future-of-travel.org China Outbound Tourism Research Institute www.china-outbound.com China Business Network www.thechinabusinessnetwork.com China Business Services and China Business Blog www.chinabusinessservices.com China Advisers Network www.china-advisers-network.com China…the future of Travel conference on bilateral tourism with China www.future-of-travel.org China Outbound Project www.china-outbound.com China Business Services www.chinabusinessservices.com International Forum on China Outbound Tourism www.outbound-tourism.cn/english/intro.asp China Travel Industry Blog http://news.future-of-travel.org China Web 2.0 Review www.cwrblog.net/ China Outbound Tourism Research Institute www.china-outbound.com ChinaContact Website www.chinacontact.org ChinaContact Tourism Advice Network http:// network.chinacontact.org Useful Links

41. References World Travel & Tourism Council (WTTC) European Travel Commission The China Internet Information Centre: www.china.org.cn China Contact Central Intelligence Agency (CIA) China Statistics Yearbook The China Outbound Travel Handbook 2008