CHINESE VISITORS TO CALIFORNIA

PREPARED BY

Beijing K&D Consulting Company in partnership with East Communications Inc.

FOR

California Travel and Tourism Commission

980 9th Street, Suite 480 Sacramento, California 95814

PH: (916) 319-5400, FAX: (916) 319-5401

FEBURARY, 2009

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TABLE OF CONTENTS

Executive Summary 3

Chinese Market Overview 4

o China’s GDP growth over the past 5 years 4 o Rate of projected GDP growth in 2009 5 o Growth rate of China outbound travel market since the millennium 6

Key Findings Overview 7

Survey Background and Methodology 10

o Introduction 10 o Survey Objectives 10 o Questionnaire Content 10 o Background of Informant of Consumer Survey 10

Sex and Age 10 Occupation 10 Monthly Household Income 10

o Background of Informant of Tour Operators 11 Mainland China Tour Operators 11 California Receptive 11

o Background of Informant of Chinese Media 11 o Survey Operations 11 o Figure1 12 o Figure 2 12 o Figure 3 13 o Figure 4 13

Analysis and Key Findings 14 Destination Information 14 o Chinese Residents Arrivals at California Ports of Entry 14 o California MSAs Visited 15 o California’s Major Competitors on China Market 17

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Trip Planning 19 o Advance Trip Decision 19 o Package Price 20 o Sources Used to Plan Trip 21 o Preferable Season to Travel 22 o Travel Companions 24 o Constraints on Chinese Visitors to California 25

Trip Characteristics 26 o Use of Travel Agents 26 o Types of Chinese Tourism 27 o Purpose of Trip 28 o Incentives of Travelling to California 29 o Chinese Tourists’ Impressions on California 30 o Chinese Travelers’ Favorite National Park and Theme Park in California 31

Chinese Travelers’ Characteristics 32 o Length of Stay 32 o Type of Lodging 33 o Lodge’s Aspects 35

Conclusion 36

Recommendation for California 38

o Consumer Perspective 38 o Media Perspective 40 o Tour Operator Perspective 42 o What can CTTC help 43

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EXECUTIVE SUMMARY CHINESE VISITORS TO CALIFORNIA

Over the past two decades or so, China’s tourism has experienced three main stages, namely, inbound tourism only, combination of inbound and domestic tourism, and comprehensive tourism including domestic, inbound and outbound tourism sectors. The industry, one of the fastest growth points of the national economy, is playing a crucial role in the country’s development. Up to now, China has become one of the world top ten countries in terms of international departures according to UNWTO.

The rapid growth of outbound tourism indicates the further opening of the country, and its tourism development has begun to follow the normal track, and the industry has become more mature. Outbound leisure tourism made by the Chinese residents started from early 1980s, and has been seen an amazing increase in the volume of tourists since late 1990s. This phenomenon has drawn wide attention from home and abroad. In the meanwhile, business travels increase steadily owing to the booming international cooperation in economy, culture and other fields. The UNWTO estimates that 100 million Chinese will travel abroad in 2020, double the 46 million in 2008. However, outbound tourism is still in its infancy, and it has much room to develop. Now the granting of ADS to America in 2008 has opened a door to tap in this enormous market. California, one of the most visited destinations both domestically and internationally, is wise to launch the promotional campaigns on the Chinese market to boost the visits at this rosy moment in the tourism industry. This survey was conducted in response to the need for solid data and extensive information on the travel volume, characteristics, travel patterns, and many other aspects of Chinese travelers. It is meant to provide CTTC with guidelines for its campaigns in China. In this report, various aspects of the characteristics of Chinese travelers to California will be covered and analysed according to the data collected. Recommendations will be made from the point of view of the three kinds of informants. Lastly, the summarized feedbacks from the informants for CTTC’s information are included.

CHINA MARKET OVERVIEW

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• China's GDP growth over the past 5 years1

China has an average GDP growth of 10.6 percent over the past five years, thanks to its blistering export growth and strong investment. Although its economy experienced a moderate slowdown in 2008 but its strong domestic demand has helped it stayed resilient amid a weakening world economy.

Year 2004 2005 2006 2007 2008 Total rate of growth GDP 10.10% 10.40% 11.10% 11.40% 9.90% 52.90%

• Rate of projected GDP growth in 20092

1 Source: National Bureau of Statistics of China

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Although the latest GDP numbers from China's statistics bureau confirmed that the Chinese economy has continued to slide in 2009 to an average 7.5 percent, the country’s economy growth still remains one of the strongest in the world.

China Japan South Korea Mexico India 7.50% 0% 2% -1.50% 4.30%

2 Source: National Bureau of Statistics of China, The Japan Times Online, The central Bank of Korea (BoK), International Monetary Fund

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• Growth rate of China outbound travel market since the millennium (unit: million)3

China’s outbound tourism market is getting wider and wider since the turn of the century. This sector is believed to have huge potential, as the World Tourism Organization forecast it would grow into the world's fourth-largest source of outbound tourists by 2020. By then, 100 million Chinese will travel overseas annually. Last year, 46 million Chinese traveled overseas, up 12 percent from 2007.

It is forecasted that the number of outbound travelers is expected to increase 9 percent to 50 million this year.

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Number of travelers 10.47 12.13 17 20.22 29 31.03 35 40 46 50

Growth rate 13.40% 15.60% 36.80% 18.90% 42.70% 43% 11.30% 18.60% 12% 9%

KEY FINDINGS OVERVIEW

3 Source: National Tourism Administration of The People’s Republic of China

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1. Destination information:

• Chinese Residents Arrivals at California Ports of Entry: There were 176,631 Chinese travelers who arrived in the U.S. by air as of November, 2008 (26.3% increase from 2007). Approximately 17,000 (10%) of these Chinese travelers visited California during their U.S. trip in 2008.4

• California’s MSAs Visited: The most common Metropolitan Statistical Areas (MSAs) visited by Chinese visitors to California included Los Angeles (48%) and San Francisco (42%), followed by Hollywood /Melrose (33%), Santa Monica (17%), San Diego (12%) and Monterey /Carmel (11%). This is similar to the findings in the tour operator and media survey. Los Angeles and San Francisco are the most well-known cities in California. However, there are many Chinese travelers travel to San Diego as well according to the tour operator survey.

• California’s Major competitors on China Market: Asian Pacific region (17%) such as Japan, Thailand, Singapore and South Korea are currently Chinese tourists’ favorite travel destinations. At the same time, Hawaii (15%), European countries (11%), Australia (10%), Canada (10%), and other coastal cities in South Asia (9%), and cities on the east coast of America (9%) are also California’s major competitors. This is similar to the finding from the tour operator and media survey. New York and Hawaii are the major competitors of California in the U.S.

2. Trip Planning

• Advance Trip Planning: It is usually 2-6 months (34%) beforehand for a traveler to consider a destination to visit. Some takes an even longer period of time as 6-12 months (32%) to decide.

• Package Price: According to the tour operator survey, the average price of their tour package is USD1000 (20%), USD$1500 (60%), and USD$2000 (20%).

• Sources Used to Plan Trip: 57% of Chinese travelers obtain the major information resources from websites which are mainly the online tour operators and portals, while 39% from the newspapers, 38% from tourist advertising and TV shows respectively.

• Preferable Season to Travel: Travelling season for the Chinese is in summer (32%) and fall (34%). Winter (6%) comes last. The result is same as the finding in the tour operator survey.

• Travel Companions: Chinese leisure tourists prefer to travel with friends (31%), spouse (23%) or their children (22%).

4 Source: Report of “Non-Resident International Arrivals at California Ports of Entry, 2007-2008” California Travel and Tourism Commission

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• Constraints on Chinese Visitors to California: High travel expenses (48%), language barrier (26%), safety and security issue (e.g. negative news about gunfire on campus) (24%), long haul flight (20%) and visa refusal (18%) are the first five reasons that keep the Chinese travelers from going to California.

3. Trip Characteristics

• Use of Travel Agents: 69% of Chinese travelers report travel agent usage is necessary when booking their air trips, accommodations and planning of the itineraries.

• Types of Chinese Tourism: Package tour ranks first with a 51% of Chinese travelers who are in favor of the all-inclusive tour model while only 28% prefer to take FIT vacations.

• Purpose of Trip: Most of the Chinese travelers travel overseas for Business purposes. And MICE travel (20%) is blooming in China owning to the flourishing national economy in China. 10% of Chinese travelers travel overseas for leisure/recreation purposes.

• Incentives of Travelling to California: The major “pull factor” of Chinese traveler to California is the accessibility of numerous tourist spots (72%) and big occasions or events around the year (66%)

.

• Chinese Tourists’ Impressions on California: Generally, as a travel destination, California has the charm to the Chinese consumers (61% of the people polled think California is very attractive/fairly attractive). California’s natural scenery (45%) is very impressive to them, whether or not they have actually visited the state. This is similar to the findings in the media survey. 100% of Chinese media think that Chinese audience has interests in California. The Chinese media described California as a shopping paradise (85%) and it is sunny (80%), dynamic (60%), beautiful (75%), and entertaining (70%).

• Chinese Travelers’ Favorite National Park and Theme Park in California: Sequoia National Park / Kings Canyon National Park (47%) are the Chinese travelers’ favorite National park while Disneyland (51%) is their favorite theme park. Both media and tour operator think that theme parks and national parks & world heritage in California are the most appealing to Chinese travelers.

4. Chinese travelers’ characteristics

• Length of Stay: Chinese visitors to California stayed an average of 5 nights in California (100%). Some of them will stay 7 days (66.7%-China’s tour operators and 53.3%-US receptive).

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• Type of Lodge: The majority of Chinese travelers will stay in a hotel or motel (79%) while in California. Most of them will stay in 4-stars hotels, such as Sheraton, Holiday Inn, and Crown plaza (100%).

• Lodge’s Aspects: Chinese travelers will consider price (100%), location (100%), and hotel facilities (66.7%-China’s tour operators and 73.3%-US receptive) when choosing the hotel.

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SURVEY BACKGROUND AND METHODOLOGY

• INTRODUCTION This report on Chinese visitors to California is based on the research data collected from three Chinese major cities which outlook of outbound tourism is promising - Beijing, Shanghai and Guangzhou. The research was conducted among the Chinese consumers, media and tour operators through questionnaires covering four categories, namely, destination information, trip planning, trip characteristics, and Chinese travelers’ characteristics.

• SURVEY OBJECTIVES The report focuses on the growing marketplace for China tourism industry and evaluates the current market trends and growth prospects of the tourism industry in China. It will help CTTC to analyze the leading-edge opportunities critical to the success of the global tourism industry (in general) and Chinese tourism industry (in particular).

• QUESTIONAIRE CONTENT The survey questionnaire is designed to obtain the responses from Chinese mainland residents. The questionnaire contains the questions about travelers (e.g., age, sex, family income, previous travel experience, etc.) It also contains many basic questions about the current trip (e.g., type of air ticket, nights away from home, travel party composition, trip purpose, etc.) The distinguishing features of the questionnaire are the complete itinerary and the trip expenditure data items. These items collect more complete data on these areas than are available elsewhere. Every major destination visited is covered, as is the length of stay.

• BACKGROUND OF INFORMANT OF CONSUMER SURVEY o Sex and Age: We polled 949 Chinese consumers in Beijing, Shanghai and Guangzhou.

55% are female while 45% are male. (Figure 1 & 2) o Occupation: The respondents are mostly office staff, managers, freelancers. (Figure 3) o Monthly Household Income: 45% of the informants earn 10,000-14,999RMB each

month (USD1,463-USD2,194) (Figure 4)

• BACKGROUND OF INFORMANT OF TOUR OPERATORS

o Mainland China Tour Operators

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15 tour operators have been polled- 5 each city - in the three richest cities of China, Beijing, Shanghai and Guangzhou where the major portion of the outbound tourists is from. They are among the biggest and the most authoritative in the industry, such as CTS, CYTS, CITS, etc. As the tour operators involved are the wholesalers of the region, some of them having branches nationwide, they de facto represent most of the retailers.

o California Receptive 15 major receptive companies were polled in San Francisco and Los Angeles.

• BACKGROUND OF INFORMANT OF MEDIA 25 leading Chinese media, both national (e.g. National Geographic) and regional (e.g. Guangzhou Daily), with headquarter in Beijing, Shanghai and Guangzhou, were sent the questionnaires for the survey.

• SUREVEY OPERATION Quantitative research about outbound Chinese consumers’ attitude towards California travelling and their travel habits and other aspects was conducted by street interviews in Beijing, Shanghai and Guangzhou. 949 respondents were polled. While research of the media and the tour operators, it was through questionnaires that the information and data have been collected. Questionnaires were distributed to 25 major media (Chinese national/local media outlets) and 30 leading tour operators (who are dominant on the tourism industry of mainland China and the U.S.).

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Figure 1

Sex and Age

Figure 2

• Age

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Figure 3

• Occupation

Figure 4

• Monthly Household Income

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ANALYSIS AND KEY FINDINGS

1. Destination Information

• Chinese Residents Arrivals at California Ports of Entry5

:

The number of Chinese travelers to California is increasing, yet moderately (26.3% of increase from 2007). The chart confirms that summer is the high season of travelling for the Chinese tourists.

5 Source: Report of “Non-Resident International Arrivals at California Ports of Entry, 2007-2008” California Travel and Tourism Commission

Chinese Residents Arrivals at California Ports of Entry

0

5000

10000

15000

20000

25000

2008 17454 13826 13709 14123 17395 14558 21158 19398 18039 13593 133782007 14028 11036 10337 9420 11690 11038 17703 15956 14581 12784 11228Rate of Increase 24.4 25.3 32.6 49.9 48.8 31.9 19.5 21.6 23.7 6.3 19.1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

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• California MSAs Visited The most common Metropolitan Statistical Areas (MSAs) visited by Chinese visitors to California included Los Angeles (48%) and San Francisco (42%), followed by Hollywood /Melrose (33%), Santa Monica (17%), San Diego (12%) and Monterey/Carmel (11%). Similar results applied to the three cities polled. This is similar to the findings in the tour operator (both China and the U.S. tour operators) and media survey. Los Angeles and San Francisco are the most well-known cities in California. However, there are many Chinese travelers travel to San Diego as well according to the tour operator survey.

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Mainland C hina T our Operators ' mos t familiar c ities in C alifornia

100 100 100

0 0 00

20

40

60

80

100

120

Los Angeles SanFrancisco

San Diego High Sierra OrangeCounty

CentralValley

C alifornia C hines e T our Operators ' mos t familiar c ities in C alifornia

100 100 100

13.3 6.7 6.7

020406080

100120

LosAngeles

SanFrancisco

San Diego HighSierra

OrangeCounty

CentralValley

Chinese Media most familiar cities in California

100 96

36

0 0 00

20

40

60

80

100

120

LosAngeles

SanFrancisco

San Diego HighSierra

NorthCoast

ShastaCounty

City

Perc

enta

ge

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• California’s Major Competitors on China Market

Generally, Asia Pacific countries are the main competitors of California. This is true to all three cities polled. The next rival differs. For Beijinger, Hawaii and South Asian countries take the second place while for Shanghainese European countries and for Guangzhou people Hawaii. This is similar to the finding from the tour operator and media survey. New York and Hawaii are the major competitors of California in the U.S., where Australia will be the competitors outside the U.S.

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Ca l i fornia 's major competi tors (From the media 's point of view)

16 1620

24

8

16

05

1015202530

New York

Hawaii

Nevada

Australia

Europe

No Competitor

Perc

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C alifornia's major c ompetitors (F rom C hina tour operator's point of view)

33.340

33.3 33.3

24

0

10

20

30

40

50

New York Hawaii Nevada Australia Europe

C alifornia's major c ompetitors (F rom US rec eptive point of view)

33.3

43.2

16.7

0 00

10

20

30

40

50

New York Hawaii Nevada Australia Europe

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3. Trip Planning

• Advance Trip Decision The median time period for Chinese visitors’ decision to travel was 2-6 months before the actual trip. Respondents from Beijing had the longest planning time frame with a median of 6-12 months.

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• Package Price According to the tour operator survey, the average price of their packages is USD$1000 (20%), USD$1500 (60%), and USD$2000 (20%).

Average Package Price of the tour operators

20

60

20

0

10

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30

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50

60

70

USD$1000 USD$1500 USD$2000 Package Price

Perc

enta

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• Sources Used to Plan Trip China has the largest number of netizens so there is no surprise to find that logging online (57%) to plan trips is the major source used by the Chinese travelers. However, it is worth noting that the Shanghainese reports that magazines (43%), the travel magazine in particular, are their main sources, paired with websites and Ads (42% for each).

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• Preferable Season To Travel Fall (34%) and Summer (32%) are generally the high season to travel for the Chinese. Winter is the least likely for Chinese travelers to go overseas because of the weather and the Chinese New Year when everyone is going home for annual reunion. This is similar to the finding in the tour operator survey. Most of their customers will travel in summer (46.7%-China’s tour operators and 33.3%-US receptive) and fall (33.3%-China’s tour operators and 26.7%-US receptive).

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P erferable T ravel S eas on (F rom C hina tour operator's point of view)

23.3

46.7

33.3

13.3

0

10

20

30

40

50

Spring Summer Fall Winter

P erferable T ravel S eas on (F rom US rec eptive point of view)

26.7

33.3

26.7

16.7

05

101520253035

Spring Summer Fall Winter

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• Travel Companions Chinese travelers in general are more likely to travel with friends (31%), followed by Spouse (23%) and their children (22%).

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• Constraints on Chinese Visitors to California Near half of the respondents (48%) polled reported one big constraint on them to California, a long-haul trip, is the high travel expenditure on airfare and lodging.

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3. Trip Characteristics

• Use of Travel Agents

69% of Chinese travelers reported travel agent usage is necessary when booking their air trips, accommodations and planning of the itineraries, Shanghainese polled got the highest percentage as 77% while Guangzhou people the lowest as 59%.

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• Types of Chinese Tourism Chinese visitors tend to make more use of a travel package (51%) than other types of travel models.

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• Purpose of Trip According to the tour operator survey, 70% of Chinese travelers are more likely to travel overseas for business purposes while only 10% for leisure/recreation/holiday purposes. There are also 20% of Chinese travelers are for MICE purposes.

Chinese travelers' purpose of trip

70

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s

Leis

ure/

Rec

reat

ion

/Hol

iday M

ICE

Purpose

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• Incentives of Travelling to California The majority of Chinese visitors reported that the tourist spots (72%) in California such as theme parks are the biggest incentive for them to travel to California, followed by the year-round events (66%).

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• Chinese Tourists’ Impressions on California

This survey found that the beautiful scenery of California (45%) leaves a favorable impression on the Chinese visitors. And they have some good feeling about the parks there too, yet with only a slender 14% of the vote. According to the media survey, Chinese media have described California as a shopping paradise (85%), and it is sunny (80%), dynamic (60%), beautiful (75%), and entertaining (70%).

Adjectives that Chinese media used to describe California

8060

85 75 70

40

020406080

100

Sunny

Dynam

ic

Shopping Para

dise

Beautif

ul

Enterta

ining

Culture Adjective

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• Chinese Visitors’ Favorite National Park and Theme Park in California Sequoia National Park / Kings Canyon National Park (47%) ranks first as Chinese visitors’ favorite National Park in California while Disneyland (51%) is their favorite Theme park. Yosemite National Park (35%) and Universal Studio Hollywood (47%) take the second place. According to the tour operator survey, tour operators ranked California’s theme parks no. 1 followed by national parks & world heritage and wine and food as the no.3 that appeal to Chinese travelers. It is the same result as that of media survey.

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1. Chinese Travelers’ Characteristics

Length of Stay According to the tour operator survey, Chinese visitors to California stayed an average of 5 nights in the California (100%). Some of them will stay 7 days (66.7%-China’s tour operators and 53.3%-US receptive). However, the possibility of extending their stay after package tour is only 10%.

Averag e leng th of s tay for C hines e travelers s pend in C alifornia (F rom US R ec eptive point of

view)

100

53.3

020406080

100120

5 Nights 7 Days

Averag e leng th of s tay for C hines e travelers s pend in C alifornia (F rom C hines e tour

operators ' point of view)

100

66.7

020406080

100120

5 Nights 7 Days

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• Type of Lodging The majority of Chinese travelers will stay in a hotel or motel (79%) while in California. According to the tour operator survey, Chinese tourists prefer to stay in the 4-stars hotels, such as Sheraton, Crown Plaza, and Holiday Inn (100%). Some of them will choose the hotels, such as Westin, Hyatt, and Hilton (26.7%-China’s tour operators and 13.3%-US receptive).

T ype of L odg ing (% )

79

22

6

0

20

40

60

80

100

Hotel/Motel P rivate Home O ther

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H otels that are perferred by C hines e touris ts (F rom US rec eptive point of view)

100

13.3

020406080

100120

Sheraton, Crown Plaza, andHoliday Inn

Westin, Hyatt, and Hilton

H otels that are perferred by C hines e touris ts (F rom C hines e tour operators ' point of view)

100

26.7

020406080

100120

Sheraton, Crown Plaza, andHoliday Inn

Westin, Hyatt, and Hilton

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• Lodge’s Aspects

Chinese travelers will consider price (100%), location (100%), and hotel facilities (66.7%-China’s tour operators and 73.3%-US receptive) when choosing the hotel.

H otel As pec ts that C hines e touris ts will c ons ider (F rom C hines e tour operators ' point of view)

100 100

66.7

0

20

40

60

80

100

120

Location Price Hotel Facilities

H otel As pec ts that C hines e touris ts will c ons ider (F rom US rec eptive point of view)

100 100

73.3

0

20

40

60

80

100

120

Location Price Hotel Facilities

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CONCLUSION

Chinese outbound departures grew more than double in the last five years, from 20.22 million people in 2003 to 46 million people in 2008. This increase is primarily due to China's sustained economic growth since 1978. The number of affluent Chinese has increased dramatically and many are able and anxious to travel overseas. In addition, new international agreements and loosening visa restrictions are making it easier than ever for Chinese citizens to travel abroad. "Another reason [for the increase in Chinese outbound travel] has been the government's incentive to outbound travel and the increasing liberalization in this area in place since 1983," said Sandra Carvao, deputy chief in the Market Trends and Competitiveness Section of the United Nations World Tourism Organization (UNWTO). It is predicted Chinese outbound tourism will receive a 9% annual rate of growth in 2009 in spite of the current gloomy economic circumstance. China has granted ADS status to 134 countries and the United States is one of the most recently approved countries. This has been a very significant step forward in the development of Chinese tourism to the USA. In this research, it has been found that Chinese consumers have a very positive attitude toward California’s tourism. California tourism’s outlook in China is promising in the view of the huge Chinese population who has yet to travel the destination when they flush with cash from the country's booming economy. The procession of a range of renowned tourist spots is undoubtedly a big draw to the Chinese travelers. Yet challenges exist. Although the United States ranks sixth in Chinese outbound travel, the number of Chinese leisure travelers to the United States has been tiny. High travel expenses, language barrier, long-haul travel, etc are some of the “push factors” derived from the founding of this research. As well, Asia Pacific countries are winning the battle for Chinese tourists for now. With competitors on one side and visible difficulties on the other, how California will market its tourism products and get well equipped for this battle is of very importance. A quotation from a UNWTO officer at the 2nd International Forum on Chinese Outbound Tourism last November in Beijing can be a perfect connotation of the current Chinese outbound tourism market: “Let China sleep/For when China wakes/It will shake the world/It already did!” Let’s see how California’s effort on the China market will draw the Chinese consumers’ eyeballs! In the next section, a few recommendations of launching promotional campaign in China are presented for CTTC’s reference.

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RECOMMENDATIONS FOR CALIFORNIA

Base on the research analysis, recommendations, viewed from three perspectives, are made.

1. Consumer Perspective

Middle-class driven consumer segment

First of all, we recommend California target to the consumers in the middle-class. From our research, it shows that the interviewees in the middle-class have the travel experiences most. Most of them are office staff, managers, and freelancers. Also, it is expected that the middle-class travelers will grow rapidly from the World Tourism Organization (WTO). Thus, we believe that California’s target clients should be the middle-class travelers.

Naturally California

Secondly, from the consumer research, most respondents show interest in visiting California. They report that California has the charm in which its natural scenery is very impressive. They have a strong impression on California’s natural environment. On the other hand, they also think that the most distinctive things in California are the seashore along the Pacific Ocean, wildlife parks, as well as the world-famous national parks. It shows that Chinese travelers have a strong interest in California’s natural scenery. Thus, we recommend California to emphasize on its natural scenery when promoting to the Chinese travelers which can attract them to pay attention on the promotion and drive them to California.

Education on luxury travel experience

Thirdly, Chinese has been a price sensitive group of tourists. To serve that end, Chinese tour operators have been trying to offer low-price regular repeating itineraries and tourism products for years. It is highly important for the CTTC China office to market California as a premium high-end destination. Yes, the surveys show that Chinese are price conscious. However, it does not mean that California has to cheap sell the destination. California’s market is targeted and is for middle and upper class who can afford and will spend for a luxury and quality travel experience. The survey results reinforce the importance of educating the China market of California’s branding and positioning. California is not for everyone. It is for those who want quality high-end travel products.

Fifthly, most of the Chinese travelers will travel in summer and fall. And most of them will take 2-12 months to consider a destination to visit. Thus, we recommend California to have more promotion and advertisement during winter and spring. It is because if the Chinese travelers see the

Travel season in Summer and Fall

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advertisement in winter, they will start planning their trip for within 2-12 months. And after 2-12 months, it will be their travel time, i.e. summer and fall. Therefore, we recommend California to have more promotion in winter and spring.

Companion travel

Lastly, most of the Chinese travelers prefer to travel with friends, spouse or their children. Thus, California can design and promote theme itineraries, such as friend reunion trip, romantic trip, and family fun trip for the Chinese travelers.

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2. Media Perspective

California Sunshine. Sunshine California

First of all, most of the Chinese media think California’s sunshine is the first thing coming to their mind when California is mentioned. The second and third one is beaches and movie stars. Thus, it is recommend California emphasize on these things when it holds any media activity. For example, if they join the trade show in China, they can decorate the booth with California beaches and sunshine. Or they can provide more information about these things to the media.

Gateway cities and beyond

Secondly, 100% of the Chinese media know Los Angeles. The second and third well-known cities are San Francisco and San Diego. This result is same as the finding in the consumer research. It is a reflection of lack of understanding of California in the China market. The good news is that the CTTC China office is going into the China market with no precondition. Whatever we want California to be understood as, that is the message and the education the industry will receive. As a result, it is high time to educate the China market well about the gateway cities and their quality products, at the same time market California beyond the gateway cities. According to the surveys, the world heritage, natural landscape, etc are in high demand.

One-stop state to avoid competition

Thirdly, same as the finding in the tour operator research, the Chinese media polled stated that the first rival of California in tourism is other states in America, including New York, Nevada, and Hawaii. Thus, as recommended before, California can emphasize itself as the one-stop state for Chinese travelers to see all America when it sends out the information (such as press releases, e-newsletter, etc.) to the media.

Parks and heritage as secondary message

Fourthly, theme parks and national parks, world heritage sites, and a wide range of shopping options are the top selling point that California should highlight when connecting with Chinese media.

Market is information hungry

Fifthly, it finds that most of the Chinese media have had coverage of California in the past 3 years. However, many mentioned that they did not see any promotional activities and have no access to related information either by personal engagement or interviews. Thus, it is recommended that California should actively engage the Chinese media through education, information delivery and regular media activities.

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3. Tour operators Perspective

Leisure and MICE equally important

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First of all, while most of the tour packages to California are for leisure purpose, MICE and corporate travel takes 30% of the business. MICE and corporate travelers are high-end spenders. They are the target market that California wants to attract. It is suggested that California to provide collaterals and website information for both leisure and corporate markets. All the communications and travel trade products should have a set for leisure market and a set for corporate travel.

Need for new products and new itineraries

Secondly, since the most well-known cities among the Chinese are Los Angeles, San Francisco, and San Diego, it is recommended that California to provide more travel information of these three cities to the tour operators as Chinese travelers will very possibly ask for the information of these three cities when considering a visit to California.

Competition from other US states

Thirdly, it finds that New York, Nevada, and Hawaii are the three major competitors in America. New York is famous for shopping, Nevada for sightseeing and Hawaii for beach and sunshine. California actually has them all! Thus, it is recommended California to emphasize itself in doing promotion with the tour operators as the one-stop state for Chinese travelers to see all America.

Parks and heritage a driver

Fourthly, from the tour operator research, it finds that most of the tour operators believe that theme parks and national parks, World Heritage sites, wine and cuisine are what make California different from the others. Same result was found in the consumer survey. Thus, it is recommended California to provide more information of all these highlights to the tour operators.

Travel season in Summer and Fall

Fifthly, it finds that most of the Chinese travelers will travel in summer and fall which is same as the finding in the consumer research. Thus, California can provide more travel information and hold some educational seminar or informative seminar in winter and spring which allows tour operators to have more time to create/ prepare itineraries for the Chinese travelers.

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4. What can CTTC help?

Education and product development in Phase 1

First of all, for tour operators, it is recommended CTTC to provide more fam tours to California for the tour operators which can help them to better understand California. Also, campaigns/events will be very useful. Besides, all the tour operators think that CTTC should have a Chinese website can also help tour operators to have better understanding about California.

Keep them informed

Secondly, regarding awareness of California’s tourist resource, it is recommended that California to host informative seminars. Also, media coverage can also increase the awareness of California’s tourist resources. Joint consumer promotions and monthly newsletter will serve a similar purpose.

Working with media

Thirdly, for media, same as tour operators, it is recommended that CTTC to host media fam tours and to connect with them with news releases/newsletters which can help to develop a better understanding about California. Besides, Chinese media think that marketing coop programs with the media will be useful as well. Also, they hope that CTTC can develop a Chinese website which can provide a convenient way for media and web surfers to gain access to the most updated information of California. Chinese collaterals will be helpful to draw people’s attention as well.

Working with tour operators

Fourthly, regarding to the Chinese representative office of CTTC, all tour operators are looking forward to more information from the representative office on trade shows, meeting, hotels and tour agencies in California. Besides, it is recommended that CTTC Chinese representative office to organize activities such as seminars, to develop a better communication with the Chinese tour operators.

Reorganize the receptive resources in California

Currently, the tours from China to California are mainly arranged by collaboration between a China tour operator and a local Chinese receptive in California. However, the quality of services in the receptive operators in California has been in question. In the surveys, some of the tour operators advise to improve the receptive capability of tour operators in California. This issue should be looked into closely by the CTTC.