DRMumbai: The Chinese outbound tourism market is already very strong and has huge potential to grow further still. In a bid to offer valuable insights for the global travel trade to effectively tap the Chinese outbound market, World Tourism Organization (UNWTO) and the China Tourism Academy (CTA) have jointly published a set of guidelines after carrying out a primary research into the factors motivating Chinese tourists to travel. The document also presents a valuable toolkit to guide destination managers and decision makers on the best way to tap into this lucrative and productive market.
While it may not be a great time to welcome Chinese visitors, their outbound market is booming and it makes sense to understand their mindset and psyche
China occupies the privileged position of the leading tourism outbound market in the world both in departure numbers, as well as total expenditure. The Chinese outbound market is characterised by its rapid growth, large volume, far outreach and huge potential. NTOs and DMCs need to be “China ready” in their plans and products to tackle this valuable and lucrative market. It is strategically important to understand the mindset and psyche of the travellers to be able to cater to their needs.
In the past ten years, China’s outbound market has continued to maintain double-digit, even over 20 per cent growth, being today the world’s largest source market. Besides the nearby destinations in Asia and the Pacific, more and more Chinese tourists are discovering long-haul traditional and emerging destinations.
China has been the largest source market in the world since 2012. In 2018, there were around 150 million outbound trips (+15 per cent) from China and Chinese tourists spent over $277 billion (+5 per cent) in their travels abroad.
Nearby countries in North-East and South-East Asia, as well as Hong Kong, Macao and Taiwan are the main destinations visited by Chinese tourists. Emerging destinations are also attracting more and more Chinese tourists.
KEY BEHAVIOURAL TRAITS OF CHINESE TOURISTS
- Millennials are the dominant group
- Family bonds are an overriding feature
- Leisure and sightseeing are still the main purpose of travel, and attraction of scenic spots is the most important decision-making factor
- Online information search and booking is prevalent
- Besides shopping, gastronomy in the form of local delicacies and cultural entertainments are also highly welcomed
- Ease of payment is expected
- Both travel and non-travel online user generated content platforms are the place for travel experience sharing. Sharing with families and friends is customary
KEY FACTORS DEFINING THE SATISFACTION OF CHINESE TOURISTS
- Value for money: high quality at reasonable prices
- Good air quality and natural environment
- Enhanced safety and security
- Better mobile phone signals
- Professional tour guide services
MARKET OPPORTUNITY
The market has a huge potential since about 90 per cent of Chinese citizens have not yet travelled overseas. Key emerging trends worth taking into consideration include:
- The pursuit of Chinese tourists has evolved from viewing beautiful scenery to ‘scenery enjoying and life experiencing’
- Cultural entertainment is becoming an indispensable component of local life experience
- Individualized services and products are expected, especially for frequent travellers
Destinations are thus encouraged to develop and promote places of interest, activities and services enriched by local culture and lifestyle; pay more attention to mobile devices to attract young people, especially those born after 1990 and provide innovative products and services
It is understandable that destinations are at different stages of attracting Chinese tourists and therefore have different strategies. Mature destinations should focus on free independent travellers (FITs) in the wealthier cities such as Beijing, Shanghai, Guangzhou, Tianjin, Suzhou and Chengdu, as well as group tourists and new FITs in the tier II and tier III cities.
Emerging destinations can focus on high-end tourists needing tailored tours, but those with lower costs are also attractive to the young and FIT tourists.
CHINESE-READY MARKETS
Five of the most-visited destinations by the Chinese are Australia, France, Thailand, Japan and the United States of America. These destinations follow some of the best practices detailed below to remain effective in welcoming Chinese tourists.
KEY CHARACTERISTICS
Increase in expenditure: Chinese tourists spent $277 billion in 2018 (+5 per cent).
Growth of independent tours and personalized services: Outbound departures with traditional package tours through travel agencies was 59 million in 2016 (latest available data) which accounted for 47 per cent of the total market share. However, the trend is being reversed with richer overseas travel experiences and the increase in the millennials where more Chinese tourists choose to travel independently.
Advent of incentive, business and other travel groups: Besides the fierce competition among conventional tour operators (Caissa Touristic, U-tour, CITS, CYTS, etc.) and online travel agencies (Ctrip, Tuniu.com, Qunar.com, LY.com, Fliggy.com, etc.), new business entities with loyal consumer base are entering the outbound tourism market.
The impact of technology – switch from computer websites to mobile applications: Chinese are increasingly going mobile for bank transactions, booking tickets, payments, videos and comments.
Catchment areas of Chinese outbound tourism – richer areas with higher per capita income dominate: According to the sales data by Ctrip, the top-10 tourist generating cities are Shanghai, Beijing, Guangzhou, Chengdu, Chongqing, Nanjing, Kunming, Wuhan, Xi’an and Hangzhou.
TOP AND EMERGING DESTINATIONS
Among these, the top-10 destinations for Chinese outbound travel in 2018 were: Thailand, Japan, Vietnam, Republic of Korea, United States, Singapore, Malaysia, Cambodia, Russian Federation and Indonesia.
In 2018, destinations such as Cyprus, Croatia, Bahamas, Turkey, Serbia and Georgia attracted more attention. This has been confirmed by Ctrip.com that also witnessed the highest sales growth from destinations such as Montenegro, Serbia, Argentina, Mexico, Brazil and the Czech Republic.
UNDERSTANDING CHINESE TOURISTS
In terms of gender, females travelling abroad outnumber males with a ratio of 53:47. In terms of age, millennials (aged between 15 and 34 years) dominate with 55 per cent the market, followed by those between 35 and 44 years old (33 per cent). On the other hand, senior citizens (over 60 years of age) and children (under 15 years of age) constitute 6 per cent and 5.6 per cent respectively.
Chinese outbound travellers have a good standard of education with an appreciable percentage (25 per cent) having graduate and post-graduate degrees.
One third of the Chinese outbound travellers have monthly pre-tax income of between $700 and $1100 which put them into the category of the middle-class while almost another one third can be categorized as affluent.
Leisure and sightseeing are the predominant features of Chinese outbound tourism.
Family bonds are an overriding feature in Chinese outbound travel with 51 per cent travelling with family, 27 per cent with friends and only 13 per cent travelling alone.
For most Chinese tourists, attractions are the most influential factor when choosing a destination (39 per cent). Many tourists (16 per cent) are also price sensitive. Delicious food (11 per cent) and colourful activities (15 per cent) can help to attract Chinese tourists.
WELCOME CHINESE CERTIFICATION
The China Tourism Academy has issued the Welcome Chinese Certification delivered by its exclusive worldwide partner Select Holding Ltd., who is in charge of verifying that the standards are implemented and in place. The Welcome Chinese Certification has been recognised by the European Travel Commission as the standard of reference from China for the European market.
Based on this certification, key points are provided to all destinations eager to welcome Chinese tourists. They include understanding of Chinese culture, customs and traditions as the first step; open visa policy; understanding the evolution of the Chinese outbound market and its new realities; free Wi-Fi, ease of payment and language (Mandarin service); close contact with Chinese travel partners that can help destinations to detect and follow market changes and provide diverse and authentic travel experiences that will help to attract repeat tourists.
DOs
Smile. Chinese people value non-verbal communication
Allocate hotel rooms with the numbers 6, 8 or 9, as all are considered lucky
Pay compliments and offer other forms of respect such as giving small gifts
Use some basic Chinese phrases as a mark of respect
Handle items such as dishes and documents with both hands as a sign of respect
Treat complaints seriously and be prepared to formally apologise
DON’Ts
Don’t give Chinese tourists a fourth-floor room as number ‘4’ resembles death in Chinese language
Don’t raise politically sensitive issues such as human rights or independence without great care
Don’t correct or contradict people in public or say anything that causes them to lose face
Don’t put someone’s business card in your pocket without being seen to read it first
Don’t expose groups to long queues or make them wait for servicea
