China Tourism Report

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.

China Fact SheetOfficial Name People’s Republic of China (PRC)

Conventional short form China

Capital City Beijing

Area Total: 9,596,961 sq km Country comparison to the world: 4

Population 1,338,612,968 (July 2009 est.) Country comparison to the world: 1

Literacy 90.9%

GDP - per capita note: data are in 2008 US dollars

$6000 (2008 est.) Country comparison to the world:133 $5,500 (2007 est.)$4,900 (2006 est.)

Major Languages Mandarin, Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects

Currency Renminbi (RMB)

Time Zone UTC +8

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

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

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

China Outbound: Purpose of Travel

China Outbound: Purpose of Travel

China Outbound: Purpose of Travel

China Outbound: Where? Established Destinations

China Outbound: Where?Emerging Destinations

China Outbound: Why?

Reasons For Popularity

• Established Destinations:

- politics, time, cost, cultural affinity, language, food

• Emerging Destinations:

-status, novelty, culture, business needs, shopping

• 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?

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

China Outbound – From where?

– South China

– Eastern seaboard

– North East

– Western China Xinan & Xibei

Shanghai & Huadong

Beijing & Dongbei

Guangzhou & Huanan

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

Market Sensitivity vs. Business Factors

Factor Beijing Shanghai Guangzhou

Price Sensitivity Low High High

QualityExpectation

Middle High High

ServiceExpectation

Middle High High

Brand awareness Middle High Middle

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

China Outbound: When?

List of Public Holidays

New Year’s day 1 January (one day off)

Spring Festival (Chinese New Year)

Varies according to lunar calendar (3 days off extended to 1 or 2 weeks)

Tomb Sweeping Festival

5 April (one day off)

Labour Day 1 May (one day off)

Dragon Boat Festival June, varies according to lunar calendar(one day off)

Mid-Autumn Festival September, lunar calendar (one day off)

National Day 1 - 3 October (3 days off extended to 1 week)

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

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.

China Outbound: Accommodation Preference

China Outbound: Information Sources

China Outbound: Booking Pattern

China Outbound: Mode of Payment

Payment Preference While Travelling Abroad

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.

China Inbound 2008: Mode of Transport

　 Total Mode Of Transport

　 （ Person ） Growth(%) Sea Air Rail Motor Foot

Total 130 027 393 -1.40 5 480 223 16 813 512 1 613 107 32 680 706 73 439 845

Hong Kong 78 350 129 0.51 1 724 002 1 557 856 776 504 27 156 248 47 135 519

Macau 22 966 336 -0.95 77 063 49 847 2 550 1 172 884 21 663 992

Taiwan 4 385 591 -5.24 930 694 1 778 032 32 272 680 847 963 746

Foreigners 24 325 337 -6.83 2 748 464 13 427 777 801 781 3 670 727 3 676 588

Foreign Visitors 2008: Mode of Transport

Total Mode of Transport

（ Person ） Growth(%) Sea Air Rail Motor Foot

Asia 14 561 714 -9.39 1 602 829 8 558 030 267 793 1 345 571 2 787 491

America 2 581 910 -5.11 140 248 1 725 165 83 766 273 508 359 223

Europe 6 112 653 -1.52 943 795 2 486 262 395 144 1 954 923 332 529

Oceania 688 723 -5.45 49 049 398 567 27 686 67 730 145 691

Africa 378 401 -0.20 12 419 259 042 27 366 28 658 50 916

Others 1 936 -43.46 124 711 26 337 738

Total 24 325 337 -6.83 2 748 464 13 427 777 801 781 3 670 727 3 676 588

Foreign Visitors to China 2008: Top Ten Source Markets

Foreign Visitor Arrivals 2008: Market Shape

Nationality TotalMeetings/

BusinessSightseeing/

Leisure

Visiting Relatives & Friends

Worker & Crew

Others

Total 24 325 337 5 677 694 12 039 585 67 910 2 431 908 4 108 240

Asia 14 561 714 3 239 586 6 372 280 62 221 1 633 431 3 254 196

America 2 581 910 655 577 1 510 989 2 430 121 333 291 581

Europe 6 112 653 1 491 317 3 554 335 2 284 610 741 453 976

Oceania 688 723 140 097 428 218 777 40 076 79 555

Africa 378 401 150 771 173 116 153 26 304 28 057

Others 1 936 346 647 45 23 875

9%4%5%

46%

36%

Under 14

15-24

25-44

45-64

Over 65

Foreign Visitor Arrivals 2008: Demographics

Age Distribution

Foreign Visitor Arrivals 2008: Demographics

RegionsAge

Total Under 14 15-24 25-44 45-64 Over 65

Total 24 325 337 985 212 2 061 263 11 290 980 8 717 018 1 270 864

Asia 14 561 714 518 783 1 079 159 7 048 084 5 150 716 764 972

America 2 581 910 178 007 177 834 906 844 1 103 168 216 057

Europe 6 112 653 231 656 737 925 2 816 908 2 087 253 238 911

Oceania 688 723 50 215 45 963 270 158 276 722 45 665

Africa 378 401 6 506 20 292 248 013 98 421 5 169

Others 1 936 45 90 973 738 90

Region and Age Distribution

Foreign Visitor Arrivals 2008: Demographics

NationalitySex

Total Male Female

Total 24 325 337 15 608 954 8 716 383

Asia 14 561 714 9 848 192 4 713 522

America 2 581 910 1 663 432 918 478

Europe 6 112 653 3 381 186 2 731 467

Oceania 688 723 429 779 258 944

Africa 378 401 285 208 93 193

Others 1 936 1157 779

36%64%

Male

Female

China: Domestic Tourists

China: Domestic Tourism (Receipts)

Total Online Population (000's) in 2009: 338,000Percentage 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

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

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

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

China: Forecast10 year forecast 2009 2019

Contribution of Travel & Tourism to Gross Domestic Product (GDP)

9.8% (CNY 2,993.7 bn

or US$ 449.3 bn)

9.7% (CNY

9,679.2 bn or US$

1,597 bn)

↓

Contribution of the Travel & Tourism economy to employment 7.8%

(60,841,000 jobs

or 1 in every 12.8 jobs)

10.1% (83,519,000

jobsor 1 in every

9.9 jobs)

↑

Real GDP growth for Travel & Tourism economy0.6% 9.2% ↑

Export earnings from international visitors and tourism goods 6.5% (CNY 707.6 bn or US$ 106.2

bn)

6.2% (CNY 2,071 bn or US$ 341.7 bn)

↓

According to United Nations World Tourism Organisation, outbound travel from China will grow, possibly reaching 100 million outbound visits by 2020

China National Tourist Officewww.cnto.org

National Bureau of Statistics of Chinawww.stats.gov.cn China Travel Industry Bloghttp://news.future-of-travel.org

China Outbound Tourism Research Institutewww.china-outbound.com

China Business Network www.thechinabusinessnetwork.com

China Business Services and China Business Blogwww.chinabusinessservices.com

China Advisers Networkwww.china-advisers-network.com

China…the future of Travel conference on bilateral tourism with Chinawww.future-of-travel.org

China Outbound Projectwww.china-outbound.com

China Business Serviceswww.chinabusinessservices.com

International Forum on China Outbound Tourismwww.outbound-tourism.cn/english/intro.asp

China Travel Industry Blog http://news.future-of-travel.org

China Web 2.0 Reviewwww.cwrblog.net/

China Outbound Tourism Research Institutewww.china-outbound.com

ChinaContact Websitewww.chinacontact.org

ChinaContact Tourism Advice Networkhttp://network.chinacontact.org

Useful Links

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