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Www.china-outbound.com The Chinese Outbound Tourism Market: a global perspective COTRI China Outbound Tourism Research Institute Prof. Dr. Wolfgang Georg.

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Presentation on theme: "Www.china-outbound.com The Chinese Outbound Tourism Market: a global perspective COTRI China Outbound Tourism Research Institute Prof. Dr. Wolfgang Georg."— Presentation transcript:

1 The Chinese Outbound Tourism Market: a global perspective COTRI China Outbound Tourism Research Institute Prof. Dr. Wolfgang Georg Arlt London, March 26,

2 Who is talking to you? 2

3 COTRI China Outbound Tourism Research Institute 3 The world's leading independent research institute for information, training, quality assessment, research and consulting relating to the Chinese outbound tourism market Established:2004 Offices: Heide (Germany), Beijing, Shanghai, Guangzhou (China) COTRI Country Partner in:Argentina, Australia, Bhutan, Bosnia and Herzegovina, Cambodia, Chile, Croatia, England, Estonia, Finland, France, Ireland, Italy, Kenya, Kosovo, Laos, Latvia, Lithuania, Macedonia, Mauritius, Mexico, Montenegro, Morocco, Myanmar, New Zealand, Peru, Russia, Scotland, Serbia, Slovenia, Spain, Thailand, Tunisia, USA, Vietnam, Wales COTRI Germany Headquarter: Fritz-Thiedemann-Ring Heide / Germany Phone Fax COTRI China Headquarter: Suite 412 Lido Office Tower 6 Jiangtai Road Beijing Phone COTRI Office Shanghai: Suite 1512 Shui On Plaza 333 Huaihai Rd. Shanghai COTRI Office Guangzhou: Suite 2412 South Tower WTC Huanshi East Rd. Guangzhou

4 4 Prof. Dr. Wolfgang Georg Arlt FRGS First visit to Peoples Republic of China in owner of Inbound Tour Operator China -> Europe (offices in Beijing and Berlin) COTRI founder and director since 2004 Professor for International Tourism Management at West Coast University of Applied Sciences (Heide) Visiting Professor at universities in China and United Kingdom Fellow Royal Geographical Society (London) Research Fellow Japanese Society for the Promotion of Science (Tokyo) Latest publication: Editor of COTRI eBook Zhang Guangrui: Chinas Tourism Development COTRI eBook 2013 COTRI Blog at Forbes.com: Editor: China Outbound Market Intelligence COTRI founder and director

5 5 COTRI Country Partners

6 Why are we all here today? 6

7 7 CHINA – INTERNATIONAL TOURISM SOURCE MARKET NO. 1 IN THE WORLD IN TERMS OF BORDER-CROSSINGS IN TERMS OF BORDER-CROSSINGS

8 8 CHINA – INTERNATIONAL TOURISM SOURCE MARKET NO. 1 IN THE WORLD IN TERMS OF SPENDING IN TERMS OF SPENDING

9 9

10 10 10

11 The big picture 11

12 Travel has been an important part of the (self-)education process in Imperial China, but outbound travel has no tradition Xu Xiake ( ), Chinas most famous traveller, was no Ibn Battuta or Marco Polo Chinese are still learning to be an international tourist, lack of role models 12 1 History

13 Demand pushing open the gates After 1989 (Tiananmen movement and Fall of Berlin Wall) resisting the demand for outbound tourism (politically dangerous and expensive) is no longer feasible Since 2004 incremental paradigm change toward Soft Power approach of using outbound tourism 2013 new party leadership curbing official pleasure travels and conspicuous consumption, but for the first time officially encouraging outbound tourism 13 2 Demand

14 Chinese Outbound Travel will continue to grow despite bursting of credit bubble in China (Chinese GDP +2% and deflation in 2015?) Long-distance outbound travel for Top 5 percent of Chinese society is investment, not holiday Direct investment : Business travel, real estate and company investment for profit and for passports Indirect investment : Leisure travel for self-esteem and peer group confirmation of status and prestige Long-term investment : Formal and informal education, market knowledge, experiences 14 3 Investment

15 Chinese outbound traveller seek Return on Investment If international travel is investment, the products offered should be organised in a way to guarantee the Chinese visitor a good Return on Investment (ROI): Value for money and for time Guaranteed quality as seen from a Chinese point of view No more time spent as needed for prestige gain Supporting the specific bragging value of a product: famous, typical, oldest/highest/awarded, celebrities choice, unusual (but not unknown), authentic (but not against expectation), hard to get, VIP only, as seen in TV and movies Connecting fun und investment Giving face to China and all Chinese Safe and without risk 15 4 ROI

16 The Chinese outbound tourists does not exist (anymore). The four most important groups: Mass-market package tour participants, often first-time traveller, from second/third tier cities, interested in cheap trips, sightseeing and shopping for prestige More affluent and more experienced self-organised travellers, interested in value for money, intensive short experiences and shopping for lifestyle affirmation, money-rich but time-poor Business/official travellers, interested in luxury and conspicuous consumption (when nobody watches) Chinese temporarily living outside of China (Chinese expats, students), travelling themselves and receiving guests 16 5 Segmentation

17 Chinese traveller continue to embrace self-organised travel According to COTRI research, almost all adult affluent Chinese have been outside Mainland China at least once, 90% of all adult affluent Chinese have already visited Europe Each year more travel experience, higher percentage of overseas university graduates, and more information available combined with new Chinese tourism law pushes affluent Chinese to travel self-organised With the domino effect of easing of visa restrictions well under way in 2014, need to use tour operator for visa diminishes 17 6 Package Self

18 A history of waves: 100 million aspiring Chinese living in 2nd and lower tier city inhabitants are still waiting for their turn to see the Mona Lisa and to visit European brand stores with package groups for as little cost as possible 50 million more experienced travellers moving from ticking off sights and from buying the most famous brands to finding destinations, travel styles, hotels and products which fit the lifestyle of their specific peer group 18 7 Future

19 Getting happy and profitable Chinese customers Concentrating as much on direct bookings and direct (social media) marketing as on working with Chinese tour operators Providing prestige by using Chinese language, symbols, decoration, quality labels, credit card services – but in an unobstrusive way Providing services for money-rich but time-poor guests – no waiting! Turning the attraction/hotel/sight into a destination with a story – something to tell at home about Anticipating the needs of Chinese visitors – Chinese photographer for honeymoon couples, exclusive limited edition souvenirs which can only be bought on the spot or in O20 (offline to online) shops Time to learn more about your Chinese customers Action

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21 21 Thank you for your attention, looking forward to your comments and questions! Have Fun and Profit in the Wood Horse Year! Contact COTRI China Outbound Tourism Research Institute Prof. Dr. Wolfgang Georg Arlt Tel Mail Web Blog Thank You!


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