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The Changing Face of
                 Chinese Outbound Travel

                  Driving Change in Travel & Tourism




Peter de Jong
President and CEO
Pacific Asia Travel Association
China over the last 10 years…..

     1997                                 2007
    • Population     1.24 billion   ==>   1.33 billion
    • Urbanized      32%            ==>   42%
    • GDP growth     9.3%           ==>   11.5%
    • GDP/capita     US$767         ==>   US$2,420
    • Travel
         -Inbound    57.6 million   ==>   132 million
         -Outbound   5.3 million    ==>   37.5 million
         -Domestic   644 million    ==>   1.4 billion




2
The total China travel equation

          1,394.0




                           125.0
                                            34.5

         Domestic         Inbound         Outbound
                     Measure (millions)




3
4
•   On Monday November 5, 2007 made its stock market debut in
        Shanghai….

    •   …and that same day became the first company in the World to
        be valued at more than US$1,000bn

    •   Second largest company in the world, ExxonMobil is valued at
        just under half that!




5
Hong Kong and Macau remain favourite
    destinations…

              13.6




                                                             12.0




          Hong Kong SAR                                    Macau SAR
                      Destination (arrivals in millions)




6
…with other Asian destinations also popular

                                                   Arrivals (millions)
                                 0.0   0.2   0.4          0.6            0.8   1.0   1.2

                   Singapore
                     Thailand
                  Korea (ROK)
                       Japan
    Destination




                     Vietnam
                     Malaysia
                         USA
                     Australia
                    Mongolia
                    Indonesia




7
New destinations are making waves

                                               Year-on-year change
                              0%   20%   40%      60%      80%       100%   120%   140%

                  Maldives
                      PNG
                  Sri Lanka
                    Bhutan
    Destination




                  Cambodia
                     Guam
                  Indonesia
                   Lao PDR
                     Hawaii
                  Myanmar




8
Scheduled air seat capacity from China has
     grown exponentially

                     900,000

                     800,000

                     700,000

                     600,000
    Seats per week




                     500,000

                     400,000

                     300,000

                     200,000

                     100,000

                          0
                               4Q00   4Q01   4Q02   4Q03    4Q04       4Q05   4Q06   4Q07
                                                     12 months ended



9
China routes to Europe in 2000




10
China routes to Europe in 2007




11
Dynamic growth is forecast




12
‘Established’ destinations will have mixed
     results…

                                               Arrivals in 2009 (mns)
                                   0   2   4   6     8      10      12   14   16   18


                   Hong Kong SAR


                      Macau SAR
     Destination




                       Singapore


                     Korea (ROK)


                          Japan


                        Thailand




13
…while ‘emerging’ destinations will drive
     growth

                                                   % change
                                  0%   20%   40%     60%      80%   100%   120%

                     Sri Lanka
                            NZ
                          PNG
                     Cambodia
     Destination




                      Maldives
                         Guam
                   Korea (ROK)
                       Canada
                    Philippines
                      Pakistan




14
Business travel is heavily influenced by
     leisure activities




15
Europe is growing as both a business and
     leisure destination




16
Relieving stress has become one of the main
     motives for taking vacations




17
Online information sources are vital




18
Booking online is becoming more and more
     important




19
The use of premium accommodation suggests,
     higher yield visitors




20
Working with Industry to Lead an Effective
     Response to Climate Change

     • PATA CEO Challenge
       • 29-30 April 2008, Bangkok
       • Leaders of private & public
         sector
       • Challenge: commit to on-
         going action plan
       • www.pata.org/ceochallenge




21

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PATA China Outbound 14 11 2007

  • 1. The Changing Face of Chinese Outbound Travel Driving Change in Travel & Tourism Peter de Jong President and CEO Pacific Asia Travel Association
  • 2. China over the last 10 years….. 1997 2007 • Population 1.24 billion ==> 1.33 billion • Urbanized 32% ==> 42% • GDP growth 9.3% ==> 11.5% • GDP/capita US$767 ==> US$2,420 • Travel -Inbound 57.6 million ==> 132 million -Outbound 5.3 million ==> 37.5 million -Domestic 644 million ==> 1.4 billion 2
  • 3. The total China travel equation 1,394.0 125.0 34.5 Domestic Inbound Outbound Measure (millions) 3
  • 4. 4
  • 5. On Monday November 5, 2007 made its stock market debut in Shanghai…. • …and that same day became the first company in the World to be valued at more than US$1,000bn • Second largest company in the world, ExxonMobil is valued at just under half that! 5
  • 6. Hong Kong and Macau remain favourite destinations… 13.6 12.0 Hong Kong SAR Macau SAR Destination (arrivals in millions) 6
  • 7. …with other Asian destinations also popular Arrivals (millions) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Singapore Thailand Korea (ROK) Japan Destination Vietnam Malaysia USA Australia Mongolia Indonesia 7
  • 8. New destinations are making waves Year-on-year change 0% 20% 40% 60% 80% 100% 120% 140% Maldives PNG Sri Lanka Bhutan Destination Cambodia Guam Indonesia Lao PDR Hawaii Myanmar 8
  • 9. Scheduled air seat capacity from China has grown exponentially 900,000 800,000 700,000 600,000 Seats per week 500,000 400,000 300,000 200,000 100,000 0 4Q00 4Q01 4Q02 4Q03 4Q04 4Q05 4Q06 4Q07 12 months ended 9
  • 10. China routes to Europe in 2000 10
  • 11. China routes to Europe in 2007 11
  • 12. Dynamic growth is forecast 12
  • 13. ‘Established’ destinations will have mixed results… Arrivals in 2009 (mns) 0 2 4 6 8 10 12 14 16 18 Hong Kong SAR Macau SAR Destination Singapore Korea (ROK) Japan Thailand 13
  • 14. …while ‘emerging’ destinations will drive growth % change 0% 20% 40% 60% 80% 100% 120% Sri Lanka NZ PNG Cambodia Destination Maldives Guam Korea (ROK) Canada Philippines Pakistan 14
  • 15. Business travel is heavily influenced by leisure activities 15
  • 16. Europe is growing as both a business and leisure destination 16
  • 17. Relieving stress has become one of the main motives for taking vacations 17
  • 19. Booking online is becoming more and more important 19
  • 20. The use of premium accommodation suggests, higher yield visitors 20
  • 21. Working with Industry to Lead an Effective Response to Climate Change • PATA CEO Challenge • 29-30 April 2008, Bangkok • Leaders of private & public sector • Challenge: commit to on- going action plan • www.pata.org/ceochallenge 21