Almost
300 people wanted to come to our recent Tourism Network Meeting
about the Russian and Chinese markets (see
the VisitBritain presentations) so there is clearly strong
interest in this market. We’ve
asked Roy Graff to give some of his insights on the
market. He’s
just come back from 3 years working in China for Gullivers
Travel and Octupustravel.com
and speaks fluent Mandarin Chinese so is well placed to comment
on the current opportunities. Roy now specialises in helping
companies target the Chinese market.
There probably isn't one hotel, incoming operator,
tour attraction or travel service provider who doesn’t
hope to cash in on the much hyped Chinese tourist bonanza.
China's population just topped 1.3 billion people. 150 million
of them are financially able to travel abroad; outbound tourism
has been growing at a phenomenal 26% annual average for the past
5 years, and could top 35 million in 2005.
Now that Britain has signed the coveted ADS agreement with China,
are we about to be flooded with Chinese tourists who will visit
all the UK attractions, spend thousands of pounds on travel and
shopping and transform our travel industry?
Apart from the uncertainties associated with
both the tourism industry and China politics, answering this
question requires
separating hype from facts. Much about China remains shrouded
in a fog of
misunderstanding, a result of both the short time that China
has had her doors open to the west and our own Euro-centric education
and world view. To understand the Chinese travel market we need
to understand not only China's modern economy and social structure
but also her history and culture. This certainly can’t
be addressed in a short article, but we can look at the practical
realities of this market.
Approved Destination Status is awarded by China's National Tourism
Administration (CNTA) in a bilateral agreement sanctioned by China's
Foreign Ministry. To date, China has awarded this status to 90
countries and territories. An ADS destination can be visited by
mainland Chinese groups over 5 people for the purpose of leisure
tourism.
The destination is allowed to open a tourism promotion office
in China, advertise freely in the specified markets and cooperate
with ADS licensed Chinese travel agents. However, it has no effect
on other travel sectors such as FIT, business travel or study abroad
and is limited to specific geographical markets in China, typically
Beijing, Shanghai and Guangdong province.
The announcement of ADS for Britain came last February. It will
take several months for the agreement to come into effect, which
is wise considering there is much preparation work needed. The
ADS agreement stipulates that the destination country prepare a
list of authorised inbound suppliers and only these are allowed
to receive the Chinese tour groups. VisitBritain has yet to compile
that list or decide on the criteria, so forward thinking companies
can take the lead and prepare themselves now to ensure they will
be the first port of call for the tour groups from China. Even
prior to the agreement taking effect, opportunities exist to attract
business cum leisure groups and wealthy FITs.
Chinese tourists are eager to discover new destinations and bring
back pictures and souvenirs of their travels. They are good shoppers
and followers of trends. With the right product and service they
will be an extremely lucrative market that has the power to drive
UK's travel industry for many years to come. But we should consider
the 89 other destinations competing for their custom, many of which
have been actively promoting in China for several years. Chinese
groups prefer to visit a multitude of countries in a single trip
which makes EU a more attractive offer currently, with a single
visa covering many countries.
As an industry we should lobby for an integrated policy on visa
that will allow tourists to add Britain to their European itinerary.
As individual companies we can start now to prepare an attractive
product for Chinese visitors, understand what they like and what
they buy, and importantly, how to market these products successfully
in China. If you have not had experience with this market yet,
some practical tips can get you started, but it is important to
obtain updated information as much as possible - China moves too
fast to encapsulate in an article:
Language- either hire a Chinese speaker or ensure your information
is translated correctly. Mandarin Chinese is the official dialect,
and simplified Chinese is used in Mainland China. Taiwan and Hong
Kong use Traditional Chinese characters.
Food- while they may like to try local cuisine occasionally, comfort
food when in a foreign land is still Chinese food. Breakfast items
like soy milk, steamed dumplings or congee will be appreciated
and Chinese restaurants that cook authentic food need to be on
the itinerary.
Normally you can tell authentic restaurants by the number of first
generation Chinese customers. In places with less choice, it is
necessary to work with the restaurant manager and chef on special
menus for Chinese groups. You will get extra points if you find
out the local specialty from their home province and provide it
to them as a surprise half way through the tour.
Shopping- people who travel to Europe have usually already visited
Southeast Asia and experienced high pressure shopping tours. Show
them that Britain is different by allowing them freedom to shop
with ease. They look for souvenirs that either cannot be found
in China, or that are very expensive there, but reasonable over
here.
Web- if you have a website, preparing a Chinese version will give
your potential customers a glimpse of what you offer, and comfort
in researching their trip in advance. Mirroring your site in China
and paying attention to its design, is as important as the language.
China's internet users have different tastes to western ones, and
sites on overseas servers are often slow to access and sometimes
unavailable altogether.
Prepare now for the Chinese market, and begin the process of building
your brand in China.