new chinese tourists: the second wave of china's outbound tourism

China Outbound Tourism Research Institute

New Chinese Tourists

The Second Wave of China‘s Outbound Tourism

World Travel Market Workshop Nov. 8th 2011, 13.30 – 15.00 h


Tom Jenkins (ETOA): Chinese Outbound Tourism – European perspective

Wolfgang Georg Arlt (COTRI): The New Chinese Tourist

Jens Thraenhart (Dragon Trail): Social Media Marketing for Chinese outbound tourists

Discussion + LUCKY DRAW (put your business card into the bowl to participate)


Followed by

China Outbound Clinic 15.00 – 16.00 h

Fast Track Solutions for practical problems

Limited Access. Admission fee for Clinic: 100 Euro

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• COTRI China Outbound Tourism Research Institute

• Headquarter in Heide/Germany, China office in Beijing

• COTRI country partners in Italy, Spain, Mexico

• Director: Prof. Dr. Wolfgang Georg Arlt FRGSActive in P.R. of China since 1978 Former owner of Inbound Tour Operator China->EuropeCOTRI founder and director since 2004Professor for International Tourism Management at

West Coast University of Applied Sciences Germany

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China – A tale of two countriesChina has developed into the number one producer

of many things - Gold, TV sets, Cell Phones, Solar Panels, Beer, Apples, Cars, Carbon Dioxide and much more.

In cases where the country is still only number two, like tomatoes and space stations, this is going to change soon.

We all know that spiel.

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China – A tale of two countries

TIME MAGAZINE Headlines October 2011:

Hope: Can Chinese Consumers save the world economy?

Despair: Be very afraid of the China Bubble

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THE ECONOMIST Headlines October 2011

Hope: Chinese tourists seem to be everywhere, yet the Chinese tourism boom is only just beginning

Despair: The question is not if the Chinese economy will crash

but only when

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2012 - A critical year not only in the Maya calendar

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Survey results from Bank of China/Hurun (11/2011):

60% of all Chinese with more than 1 million Euro in personal wealth (about 1 million households) are in the process or seriously considering to emigrate

… and buying property overseas like crazyto transfer assets out of the country

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China – A tale of two countries“There is a sense that we are approaching an inevitable

breaking point, when the pressures in society will boil over and consume the rulers,” says one Chinese banker with close ties to a number of powerful political families.

“Almost all of the elements are in place for an uprising like we saw in 1989 – corruption is worse today than it was then, people feel they can’t get ahead without political connections, the wealth gap is much bigger and growing and there has been virtually no political reform at all. The only missing ingredient now is a domestic economic crisis.”

Financial Times, Nov. 5, 2011

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So – if it obviously does not appear to be a good idea to invest in Chinese real estate or stocks just now, is it worthwhile to invest in Chinese outbound tourism?

And the answer is (surprise surprise): YES!

Why?

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Enters the NEW CHINESE TOURIST

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2011:

Close to

70 mio. trips

(+20%)

China’s

balance of

Int. tourism

spending

10 bio. US$

in the red

7.1 7.6 8.2 8.4 9.2 10.5 12.116.6

20.2

28.9 31.034.5

41.045.8 47.5

57.451

68.0

China Outbound Tourism 1995-2011 in million border-crossingsSource: COTRI, CNTA, CTA

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Impressive growth, but:• 90% of the Mainland Chinese travelers stayed within Asia• Those who travel further concentrated mainly on the most

famous sights in the most famous cities in major destinations• Spending concentrated on shopping, not on tourism services• Destinations and companies not located on the beaten track

found the much-hyped Chinese tourists a Fata Morgana.

With the Second Wave of Chinese Outbound Tourism fuelled by the New Chinese Tourists, this is changing.

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More self-organized travelers from China are slowing down and spreading further afield.

Increasingly travel-savvy and globally connected, below 45 years and green, the New Chinese Tourist are arriving in exotic locations and are staying for more than just a snapshot.

Niche products for the first time get a chance to

profit from Chinese customers – and even

small niches in China mean big numbers.

.

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• “Self-organized” travellers are not be confused with “individual” travellers in the western sense.

• More experience and language skills still lead to “half-organized” trips with tour operators providing visa, air trip and maybe a few hotel bookings.

• New Chinese Tourists are still Chinese: They are still happy to see signage and other information in Chinese as a sign of respect for their country, they will still rely mainly on peer group information from other Chinese travellers.

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The low price, low quality Chinese outbound tourism will suffer from the pending economic crash in China,growth rates in terms of number of persons travelling will slow down.

But the New Chinese Tourists will continue to travel, as the motives for international travel – prestige, networking, distinction – will stay the same.

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New Chinese Tourists give new opportunities beyond the “Europe-through-the-coach-window” rush or the “4-nights-Phuket” market,

but require adapted products and the usage of relevant marketing channels.


Thank you for you attention – looking forward to your questions and comments during the discussion!

Contact: [email protected]

www.china-outbound.comwww.chinatraveltrends.com

During WTM 2011: COTTM Stand AS 781


Lucky Draw

Win a complete set of China Tourism Academy: Annual Report of China Outbound Tourism Development 2009/2010 and 2011 (English Edition), save 120 Euro!anda copy of Green Book of China’s Tourism 2011 (English edition), save 88 Euro!

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