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Country Report China. Country Profile The People's Republic of China (PRC), has control over mainland China and the largely self-governing territories.

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Presentation on theme: "Country Report China. Country Profile The People's Republic of China (PRC), has control over mainland China and the largely self-governing territories."— Presentation transcript:

1 Country Report China

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). -Worlds most populous country -Worlds fastest growing economy -Worlds fourth largest country -The worlds 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 Official NamePeoples Republic of China (PRC) Conventional short formChina Capital CityBeijing AreaTotal: 9,596,961 sq km Country comparison to the world: 4 Population1,338,612,968 (July 2009 est.) Country comparison to the world: 1 Literacy90.9% 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 LanguagesMandarin, Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects CurrencyRenminbi (RMB) Time ZoneUTC +8

4 China Outbound

5 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 Motivation & Needs

6 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

7 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 Purpose of Travel

8 Purpose Of Travel


10 Established Destinations

11 Emerging Destinations

12 Reasons For Popularity Established Destinations: - politics, time, cost, cultural affinity, language, food Emerging Destinations: -status, novelty, culture, business needs, shopping

13 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) Profile

14 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

15 Source Regions South China Eastern seaboard North East Western China Xinan & Xibei Shanghai & Huadong Beijing & Dongbei Guangzhou & Huanan

16 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 Chinas provinces - People in the south prefer higher standard of services to cheap prices

17 Market Sensitivity vs. Business Factors FactorBeijingShanghaiGuangzhou Price SensitivityLowHigh Quality Expectation MiddleHigh Service Expectation MiddleHigh Brand awarenessMiddleHighMiddle

18 Seasonality 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

19 Public Holidays List of Public Holidays New Years day1 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 Day1 May (one day off) Dragon Boat FestivalJune, varies according to lunar calendar (one day off) Mid-Autumn FestivalSeptember, lunar calendar (one day off) National Day1 - 3 October (3 days off extended to 1 week)

20 Short Haul to Long Haul: Significant growing interest to less discovered European destinations; trips to South East 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

21 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.

22 Accommodation Preference

23 Information Sources

24 China Outbound: Booking Pattern

25 Mode Of Payment

26 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.

27 Chinese Inbound

28 Mode Of Transport, 2008 TotalMode Of Transport Person Growth (%) SeaAirRailMotorFoot Total130 027 393-1.405 480 22316 813 5121 613 10732 680 70673 439 845 Hong Kong78 350 1290.511 724 0021 557 856776 50427 156 24847 135 519 Macau22 966 336-0.9577 06349 8472 5501 172 88421 663 992 Taiwan4 385 591-5.24930 6941 778 03232 272680 847963 746 Foreigners24 325 337-6.832 748 46413 427 777801 7813 670 7273 676 588

29 Foreign Tourists, Mode Of Transport, 2008 TotalMode of Transport Person Growth(%)SeaAirRailMotorFoot Asia14 561 714-9.391 602 8298 558 030267 7931 345 5712 787 491 America2 581 910-5.11140 2481 725 16583 766273 508 359 223 Europe6 112 653-1.52943 7952 486 262395 1441 954 923 332 529 Oceania688 723-5.4549 049398 56727 68667 730145 691 Africa378 401-0.2012 419259 04227 36628 65850 916 Others1 936-43.4612471126337 738 Total 24 325 337-6.832 748 46413 427 777801 7813 670 7273 676 588

30 Top Ten Source Markets, 2008

31 Market Shape, 2008 NationalityTotal Meetings/ Business Sightseeing/ 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

32 Demographics, 2008 Age Distribution

33 Regions Age TotalUnder 1415-2425-4445-64Over 65 Total24 325 337985 2122 061 26311 290 9808 717 0181 270 864 Asia14 561 714518 7831 079 1597 048 0845 150 716764 972 America2 581 910178 007177 834906 8441 103 168216 057 Europe6 112 653231 656737 9252 816 9082 087 253238 911 Oceania688 72350 21545 963270 158276 72245 665 Africa378 4016 50620 292248 01398 4215 169 Others1 936459097373890 Region and Age Distribution Demographics, 2008

34 Nationality Sex TotalMaleFemale Total24 325 33715 608 9548 716 383 Asia14 561 7149 848 1924 713 522 America2 581 9101 663 432918 478 Europe6 112 6533 381 1862 731 467 Oceania688 723429 779258 944 Africa378 401285 20893 193 Others1 9361157779

35 Chinese Domestic Tourism

36 Domestic Tourists

37 Domestic Tourism (Receipts)

38 Total Online Population (000's) in 2009: 338,000 Percentage of Population Online in 2009: 25.3% 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

39 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 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 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 World Travel Fair (WTF) - Business expo - WTF 2010 : at Shanghai Exhibition Center from 27–29 May - For further details log on to Major Travel and Tourism Events

40 China Outbound Travel and Tourism Market (COTTM) - Outbound B2B event - COTTM 2010: at Beijing from 28–30 April - For further details log on to 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 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 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 Major Travel and Tourism Events

41 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

42 Forecast 10 year forecast20092019 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 jobs or 1 in every 9.9 jobs) Real GDP growth for Travel & Tourism economy 0.6%9.2% Export earnings from international visitors and tourism goods6.5% (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

43 China National Tourist Office, National Bureau of Statistics of China, China Travel Industry Blog, http://news.future-of-travel.org China Outbound Tourism Research Institute China Business Network, China Business Services and China Business Blog China Advisers Network, China…the future of Travel conference on bilateral tourism with China, China Outbound Project, China Business Services, International Forum on China Outbound Tourism China Travel Industry Blog, http://news.future-of-travel.org China Web 2.0 Review, China Outbound Tourism Research Institute ChinaContact Website, ChinaContact Tourism Advice Network Useful Links

44 References World Travel & Tourism Council (WTTC) European Travel Commission The China Internet Information Centre: China Contact Central Intelligence Agency (CIA) China Statistics Yearbook The China Outbound Travel Handbook 2008

45 Disclaimer The report is based on the information from the published sources and references mentioned and inferences drawn are from them. Stark Tourism Associates and its Parent organization, The Stark Group and the Group Companies - Stark Communications, Stark Expo, Stark World Publications are not responsible for errors/omissions that could have crept in knowingly or unwittingly.

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