1. travel

China
China
Market & Trade Profile
Updated 2010
Contents 1 – the Market
1. Market snapshot
2.General Market Conditions
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Population / Languages
Economics / Politics
Interest in UK University Education
Chinese Currency
Exchange Rate
Consumer and Travel Trends
Annual Leave
3. Motivations and attitudes to holidays
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The Importance of Holidays in Life
Attitudes Towards Holidays
Motivation to Travel
Understanding Travel Needs and Behaviour
Attitudes Towards Destinations
4. reaching Chinese Consumers
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Sources of Inspiration for Holidays
Deciding and Planning Patterns
Booking Behaviour
Online Environment
Media Habits
5. Perceptions of Britain
• Britain as a Nation Brand
• Motivators and Barriers to Visit
• Products/Experiences Identified as Attractive
• Competitor Destinations
• Britain as a Destination Brand
6. Market size, share and Forecasts for Growth
• World Regions Visited and Forecasts for Growth
• The UK’s Market Share and Forecasts for Growth
7.access to Britain
• Political Situation
• Passport and Visas
• Gateways and Access to Britain
8.travel to Britain
• Current Volume / Value Statistics and Historic Trends for UK
• Trip Characteristics
• Type of Accommodation
• Visiting the UK as part of a multi-country trip
9. Who is the Chinese Visitor to Britain?
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Demographics
Travelling Companions and Travelling Group types
Interest in Britain/Key Market Segments
1st Timer / Repeat Markets
10.activities Undertaken in the Uk
• What did Visitors Do on their Visit?
11.Caring for Chinese Consumers
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Understanding Chinese Culture
Language and Information Provision
Accommodation and Food
Interest, Value for Money and Etiquette
Contents 2 – the trade / B2B
12. the trade
• Overview of Trade Structure
• Reaching the Travel Trade
13.Business Visits and events
• Statistics and Trends
14. VisitBritain in China
Working in Partnership with VisitBritain
Overseas Contacts
London Contacts / Further Information
Information Sources Used to Compile this Report
www.visitbritain.org/research
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1
China
1) Market Snapshot
China
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Total Visit
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1.3 billion
26.8 milli
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, rank 40th
own 14%
£1,310 (u
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, rank 31st
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Market shape
Purpose of Visit
31% Holiday, 28% Business
, 27%
VFR (2009)
Length of stay
A third of visits last 4-7 nig
hts. 15+ night stays are
also
common (2009)
Quarter of visit
40% visited in July-Sept (20
09)
mpetitors
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ong
1. Hong K
2. Macau
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3. Singap
orea
4. South K
5. Japan
74% visited the UK only
and 26% stayed in anothe
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country as well on their trip
(2007)
Internet access
360 million users and 56.
3 million
have broadband access (Se
pt 2009)
estinations
27% population penetratio
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top 5 aspir
www.visitbritain.org/research
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The People’s Republic of
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(CIA
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2
Population / Languages
The US Census Bureau puts the population of China at approximately 1.3
billion in 2008. The population is forecast to grow to 1.4 billion by 2018.
It is estimated that China’s population will reach its peak in 2032 at
around 1.46bn and then start to level off gradually.
In the long term, those aged under 45 will decline, and the over 45s will
grow (especially at the older age levels). Almost 70% of the Chinese
population is aged under 45 at present, but by 2048 it is forecast that the
under 45s will represent under half (49%) of the population as the agestructure of the population becomes older. Indeed, it is forecast that by
2048, there will be over 105 million Chinese aged 80 or older.
Languages: Standard Chinese or Mandarin (Putonghua, based on the
Beijing dialect) is the official spoken language. Local dialects include: Yue
(Cantonese), Wu (Shanghaniese), Minbei (Fuzhou), Minnan (HokkienTaiwanese), Xiang, Gan, Hakka.
economics / Politics
China’s economy slowed during the global economic downturn but
through much of 2009 domestic demand has been booming according to
Oxford Economics. Certainly the government was forced to step in to
support the economy, but investment in infrastructure combined with
measures to boost consumer spending appear to have paid dividend.
Economic growth of 8.5% in 2009 and 9.0% in 2010 is forecast by the
International Monetary Fund. Oxford Economics note that China runs the
risk of overheating in parts of the economy due to rapid expansion in credit.
Nevertheless, in the longer run GDP is forecast to grow at a rate in excess of
8% per annum through to 2019, with consumer spending increasing at near
10% each year.
Growth in domestic consumption on the back of the government stimulus
plan is remarkable, with retail sales expanding at an annual rate of close to
15% in summer 2009, and the volume of new cars being sold increasing by
84% in the year to September. Having become the world’s third largest
trading nation China is now also the second most prolific consumer of oil – a
true economic giant. By 2014 the IMF expect China to account for very
nearly one-sixth of global economic activity.
China
2) General Market Conditions
whereas the poorest 20% are responsible for less than 5% of consumption.
Nevertheless, many Chinese living in urban areas are now able to afford
consumer durables, cars and personal computers – the number able to
access the Internet stood at 338 million in summer 2009 according to World
Internet Stats, with more than 83 million broadband connections.
According to the China Brand Strategy Association, about 175 million
Chinese people, 13% of the population, can now afford high-end luxury
goods. By 2010 that number was initially forecast to reach 250 million, but
clearly the unfolding global economic downturn puts this forecast at risk.
Figures from Merrill Lynch show that the number of ‘High Net Worth
Individuals’ (that is people with inevitable assets of more than US$1 million)
living in China fell from 413,000 in 2007 to 364,000 in 2008.
One of the most frequently quoted tourism statistics is the forecast made by
the United Nations World Tourism Organisation that outbound travel will
grow as wealth increases, possibly reaching 100 million outbound visits by
2020, but if we take out visits to Hong Kong and Macau then the outbound
tourism market from China is not dissimilar in size to that of Belgium.
The government continues to say that it wants to target the benefits of
economic growth away from the relatively well-off urban populations to
help the poorer rural regions. Latest projections suggest that by 2030 60%
of China’s population will be living in urban areas compared to around 42%
at present.
China was the UK’s 4th most important trading partner during the first six
months of 2009 in terms of value of imports and 9th most important trading
partner in terms of exports.
China is investing heavily abroad, with a particular focus on Africa.
Interest in Uk University education
In 2008, UCAS had 8,890 Chinese applicants for degree courses. 6,120
were accepted representing a 69% acceptance rate – making China the
largest source market for UK overseas higher education students. This
trends impacts positively on VFR travel.
One concern is that a rapid deterioration in the state of the Chinese
economy may lead to social unrest as the recent wave of migration from
rural to urban China has resulted in a highly competitive labour market and
placed great strain on infrastructure. It is estimated that thousands of
workers who have lost their jobs as factories close down have been forced
to return to the countryside.
www.visitbritain.org/research
Not everyone in China has enjoyed greater prosperity in recent years, it is
estimated that 20% of the population is responsible for 50% of consumption
3
Chinese Currency
Impact of the economic downturn
The Chinese currency is called ‘Renminbi’ (RMB), literally meaning
‘people’s money’. One unit is called ‘Yuan’ or ‘Kuai’. RMB is not
convertible and banks outside China do not accept it. Due to this special
approval is needed to purchase foreign currency within China whenever
travelling abroad or paying in foreign currency for certain products. The
State Administration of Foreign Exchange (SAFE) is responsible for all
foreign currency exchanges in China.
Despite unfavourable global economic circumstances, China is showing
encouraging signs for recovery and could become the main engine to
drive the world out of recession.
Only certified international travel agencies are allowed to make payments
in foreign currency through the bank with approval of SAFE. Other travel
agencies or organisations do not have access to foreign currency and can
only make payments in RMB.
A new development is many Chinese commercial banks have developed
credit cards which allow the cardholder to spend foreign currency
abroad and make payment in Chinese currency.
exchange rate
Since 2001, the rate of Sterling against the Chinese Yuan has gradually
decreased and hit rock bottom in March 2009.
In January 2001, £1 =12.23, but the Yuan has increased to £1 =11.33 as
of November 2009. The cost of the Sterling has decreased by 7 % since
2001 making it cheaper to visit Britain.
China
2) General Market Conditions (continued)
Although increased unemployment and inflation has somewhat clouded
China’s horizon, its rapidly expanding nouveau riche segment continue
to earn and spend during the downturn. Aided by the weakened sterling
and the social status urge, the travel outlook from China to Britain next
year remains positive.
Consumer trends
Billion Consumer
China’s ascendancy is well documented and heavily predicted and
everyone is trying to jump on the China bandwagon. However in reality
China is an incredibly complex market. It has 31 provinces, 656 cities,
48,000 dialects, 80 spoken languages and is facing widening gaps in
income and education.
‘Foreigners think they can tackle China in one go, whereas they would
never start in 17 countries in Europe all at once.’ President of Unilever
Bestfoods Asia.
the dragon is awake
The attitudinal prerequisites for a travel boom in China is in place – and
qualitative research amongst consumers from this quietly confident
middle class confirms it. China’s middle class is growing. It is hard to
define exactly how big it is but it is hard to deny the relatively fast
emergence of this ‘affluent’ group.
Consumers are very proud of China’s progress and prosperity, believe
their own PR (the fastest train in the world, an F1 race track) and have
seen tourists coming to their own country to admire it. Now it’s their turn
to travel.
holidays / annual Leave
Curiosity, money and leisure time, a lifting of the exit barriers and more
personal and national confidence are all contributing as catalysts for
international travel.Overseas travel is also seen as a “badge of
sophistication”, it is this status anxiety will further push the travel bug to
more Chinese.
As China is predominately an agrarian society, paid holiday is not
standard throughout the country. But for those not involved in
agriculture the number of days is growing. According to Labour Laws,
people are entitled to 10-days paid annual leave for working over one
year however this can also vary by organisation.
China started the practice of “two days off in a week” in 1995, and began
to create 3 week-long holidays annually in 1999 by bridging weekends
and public holidays to encourage people to travel and holiday. In 1999
the three Golden Weeks were established and remain the principal
holiday periods.
www.visitbritain.org/research
• Spring Week (Chinese New Year)
• May Week (includes Labour Day)
• National Holiday (Includes 1 October)
With the introduction of paid holiday system, leisure tourism and
holidays are becoming a part of life for more people in China. Paid leave
gives Chinese travellers more flexibility to choose when they travel and
they are not forced to travel at peak times (i.e around the Golden
Weeks).
China has two school terms - an Autumn/Winter term and a
Spring/Summer term. School holidays usually take place around the
Chinese new Year (approx. 4 weeks) and over the Summer during July
and August (approx.7 weeks).
4
China
2) General Market Conditions (continued)
Aging Population
As discussed earlier the over 45’s are predicted to grow and the next 10
years are due to see the largest shifts. (A lot of this is due to dropping
fertility rates). It is thought that the older travellers (i.e. the over 40’s) will
become the most prolific long haul traveller group as they are in other
Asian markets (such as Japan).
Change in Consumption
Dynamic economic reform and being open to the outside world have
changed the country’s economic system as well as imposed strong
impacts on people’s life and their way of thinking. At least, three changes
can be noticed namely: from “money saving” to “money spending”, from
“save for others” to “enjoy themselves”, from “purchase of goods” to
“seeking for personal experience and well-being”.
the sporting revolution
A tradition of sports for health and wellness dates back to as long as the
Chinese civilisation has existed. Under Communist leadership physical
activity was encouraged to build strong workers and thus a strong nation.
This trend can still be seen today. Across China every morning old and
young can be found performing Tai Chi, callisthenics, social dance,
stretching or moving to music. However the emergence of team sports is
more of a recent phenomenon. Team sports such as football, volleyball
and basketball have become enormously popular over the last decade.
Basketball in particular has turned team sports on its head. Basketball has
brought with it an American youth culture not previously found in China.
Additionally American imports and Chinese manifestations of hip hop,
street fashion, street art and dance have penetrated Chinese society.
Little emperors
China’s one child policy has led to the term “little emperor” to describe
the often spoiled and indulged consequences of a situation where family
life revolves around the needs of and future ambition for the single
youngster. The younger set are now the second generation of this policy
and so they have grown up without cousins either.
The majority of “little emperors” are boys. It is not hard to imagine how
this need to pamper, educate and expand the mind of the cherished sole
future generation could cross over into international travel as a key
means of development. Travelling is also considered an educational
experience for the child and travel may also include the grandparents making a trip away comprised of three generations!
Many young Chinese grow up in a household of their parents as well as
often both sets of Grandparents. However all of this home attention
doesn’t change the realities of the outside world. China has become an
incredibly competitive place and the pressure placed on the youth to
succeed is immense. The stakes are high when thousands apply for a
single job opening and the aging grandparents and parents now look to
the child to provide for them (sometime all six of them!)
www.visitbritain.org/research
China’s New Found Wealth
In China there is a huge difference in the spread of wealth between rural
and urban areas. Incomes are noticeably higher in the cities such as
Beijing and Shanghai.
These increasingly affluent Chinese are spending high proportions of
their salaries on travel, leisure activities and luxury goods especially when
travelling overseas. A Goldman Sacs survey conducted in 2005 stated
Chinese spend twice as much on luxury products when abroad that they
do at home. These tend to be older (40 -59 years) and it is anticipated
that trend will continue due to China’s aging population.
Ladies with Billions
Ledbury Research quote the Hurun Report in finding that 6 of the Top 10
richest self-made women in the world are Chinese, led by Zhang Yin
(founder of Nine Dragons Paper), with a personal fortune of $10 billion,
and Zhang Xin (SOHO China co-founder) with $3.6 billion.
sustainability
Some places in China are amongst the most polluted in the world.
According to the Blacksmith Institute in 2007, the cities of Linfen and
Tianying are two of the most polluted cities.
The Chinese government has introduced measures to help combat
environmental issues. A number of campaigns are seeking to drive
awareness and encourage people to do more to help the environment
and the following are some of the examples:
Waste Household Appliance and Electronic Products Collection and
Treatment to deal with the rising electronic waste (e-waste) volume – this
new policy splits the cost of waste handling among customers, retailers
and producers.
Charges for plastic bags - On 1st June 2008, Chinese retailers - all
supermarkets, department stores and shops were prohibited from
giving out free plastic bags and could be fined up to 10,000 yuan
(US$1,430) for doing so. Stores are required to clearly mark the
price of plastic shopping bags and are banned from tacking that
price onto products.
Audi Green Training Camp - Launched on 12th April 2008, this event is
aimed at promoting the idea of green driving and advocating civilised
and environmentally-friendly driving habits and lifestyles among China’s
150 million drivers. Audi will cooperate with environmental protection
activists and car owners to build a green and harmonious automotive
society in terms of people, vehicles and transportation.
Back in 2006 China’s authorities issued the Motor Vehicle Product
Recovery Technology Policy which requires automobile manufacturers
and importers to be responsible for collecting and recycling vehicles
starting from 2010.
Environmentally friendly hotels - China is set to have 10,000
environmentally friendly hotels by 2010 as part of effort to improve
ecological awareness in the hospitality industry. The Ministry of
Commerce, the National Development and Reform Commission and four
other governmental departments called on industry bosses to conserve
energy in their businesses in a circular issued.
Initiatives are more government rather than individual led. As a culture
though there is a tradition of encouraging sustainability through the
“one-child” policy albeit for economic rather than environmental reasons.
As a communist country, China is assuming a top-down approach to
tackling climate change.
Although the Chinese are relying on their government to introduce
measures in order to combat global warming, there are suggestions that
the Chinese could perhaps in future be receptive to the idea of
sustainable tourism. Research from the Nation Brands Index suggests
that almost half (46.9%) of Chinese respondents would be more likely to
choose a holiday destination that recognises the importance of
protecting the environment. Chinese just become rich enough to travel
internationally and they don’t want to be told off by the
environmentalists. They will support and contribute to any
environmental friendly activities but will not stop international travel
because of that.
5
travel trends
Progression through travel styles?
Some have commented that although China looks similar to Japan and
South Korea in terms of its early stages of travel progression, (i.e. heavy
emphasis on group travel and reliance on the travel trade) it may actually
develop more quickly as a market for travel as it has done in so many
other areas of development. Some of the key developments are listed
below:
Short Haul to Long Haul
Although trips to S.E Asia, Japan, Korea and Oceania are still popular,
there appears to be significant interest in travel to the ‘less discovered’
Europe. Chinese have long held desires to see continental Europe and
the uptake of group tour itineraries packages is growing.
1st time traveller to repeat visitor
The Chinese claim they learn quickly, once they have the mastered the
trophy tourism package, they are keen to return to destinations they
enjoyed the first time round and drop the others.
Group tour to DIY to Independent travel
Travellers are becoming frustrated with the exhaustive “all you can see
tour of Europe” packages. Some are even paying a fee to not join the tour
and leaving the group when arriving in Europe (rejoining before
departure). Others design their own group tour with family members
(DIY) and dictate countries on itineraries to travel agents. All indicate the
desire to travel independently on repeat visits.
China
2) General Market Conditions (continued)
Growth in Independent Travel
Despite the current ADS system which primarily services group travels in
a controlled manner, Chinese citizens are able to apply for individual
visas (including as a tourist) to visit countries like the UK (and non-ADS
countries e.g. Canada), providing they showcase sound financial and
employment status (affordability), good track record of previous
international travel (returnability), ability to maintain themselves during
the stay (language, accommodation and other means of survive without
recourse to public fund). Independent travel is therefore rapidly
becoming one of the strongest trends in current China outbound market.
Destination Preference
13 days in 7 countries is exhausting.” The Chinese leisure market is
maturing and travellers want to know more about the destinations they
visit. They want to do more research before making the final decision.
However, as much as they would like it to be, their preferences are not
the overriding factor, visas remain the most important factor is
destination selection process.
Growing Prominence of asia
Asian consumers are beginning to view Asia with pride. Asia is becoming
a formidable economic powerhouse that is exerting considerable
economic and sporting clout. Consumers are showing interest in
exploring different cultures residing within Asia which in turn is
dramatically influencing traditionally sought after travel destinations such
as Europe.
www.visitbritain.org/research
Golden Weeks to off-peak / individual
Consumers are dissatisfied with the Golden Week system arguing that
travel agents put up the prices, travel is crowded, they are also often
disappointed to find popular holiday destinations overrun with Chinese
tourists at that time. Consumers are showing a preference for more
choice over when to travel and where to travel.
Trophy tourism to experiential tourism
The beginning of trophy tourism fatigue has appeared with the more
experienced travellers - i.e. the travel ‘pioneers’ and repeat travellers.
These people are interested in the development of hybrid tours (urban +
rural, activity + relaxation, traditional + contemporary) as well as for more
indepth travel. Similarly, there is a trend away from multi-country
packages as the Chinese traveler market matures and travellers start to
make repeat trips.
6
China
3) Motivations and attitudes to holidays
the importance of holidays in Life
VisitBritain sponsored a question on the Nation Brands Index (2009) to
understand how important holidays and other activities are regarded to
be by Chinese.
Approximately 500 online respondents were asked: “How important a
priority are each of the following for you in your life at the moment?”
Their answers are shown below.
Top priorities
Chinese’ top priorities in life revolve around professional development
(career / self development & learning) and ‘softer’ aspects such as
keeping fit & healthy, spending time with family & friends, having time to
relax, and having good quality food & drink.
Holidays
Taking domestic holidays is at least ‘quite important’ for 80% and
‘extremely important’ for 9%.
Foreign holidays are regarded as at least ‘quite important’ for a smaller
proportion (61%) and ‘extremely important’ for 10%.
www.visitbritain.org/research
Internet
90% of online Chinese said that general browsing on the internet was at
least ‘quite important’ to them and 70% said the same for social
networking sites.
7
China
3) Motivations and attitudes to holidays (continued)
Chinese’ attitudes towards holidays
VisitBritain sponsored a question on the Nation Brands Index (2009) to
understand more about Chinese’ attitudes towards holidays.
Approximately 500 online respondents were asked: “We would like to
ask you about your attitudes and opinions related to holidays. For each
statement please give your opinion on a scale of 1 to 7, where 1 is
STRONGLY DISAGREE and 7 is STRONGLY AGREE.”
Their answers are shown below.
Holiday influences
Online Chinese agree that they choose destinations based on their
natural scenic beauty (77% agree), history & culture (67%), and weather
(65%). Greeny and space are important contrasts to the modern,
overcrowded cities in China. The Chinese have a respect for other
nations historic culture and are interested in learning about them whilst
travelling. This also ties into the fact that travel is about personal
development, education and learning.
www.visitbritain.org/research
Seeing famous and well-known locations is more important to Chinese
(72% agreed) than exploring new places away from the crowds (50%
agreed).
40% of Chinese agree that it is more important that holidays are exciting
than relaxing, but 19% disagreed. The travel market in China is still in its
early phases and there is a perception to try and fit in as much a possible
whilst away. Travel is a status symbol and returning travellers like to brag
about all the places they have visited to friends and family back in China.
Booking Travel
39% agreed they prefer to use travel agent for holiday bookings
compared to 19% disagreeing. Although 49% agreed that the internet is
a safe way to book travel, only 8% agreed strongly. As shown in the
Trade section (Chapter 13), the Chinese travel market is heavily reliant on
travel operators. Consumers are still somewhat resistant to purchasing
on-line however things are changing slowly.
Are the Chinese Experienced Travellers?
Out of all the statements, the Chinese were least likely to agree that they
are experienced international travellers - 29% agreed they were (6%
strongly), whilst 39% disagreed. The Chinese have only been able to
travel for leisure purposes from about the early 90’s. Therefore travelling
internationally is seen to be a big deal.
Travelling long distances may be an issue for some Chinese, with 30%
agreeing that it is too much effort to travel for more than 5 hours for a
holiday, although 38% disagreed. China’s somewhat restricted holiday
allowance probably impacts on reluctance to travel long distances.
65% agreed that films they had watched have influenced their choice of
holiday destination and just 10% disagreed. A similar story emerged for
music, where 53% agreed it had influenced their choice and 10%
disagreed.
8
attitudes towards holidays
The financial aspects of international travel are top of mind, relative to the
benefits of overseas travel as value for money is very important to
Chinese consumers. Two thirds of respondents surveyed in VisitBritain’s
Best Prospects research (2005) said they would be prepared to cut back
on other things so that they could to travel internationally. An indication
that travel is a necessity in order to enrich life – an absolute must-do.
Self Indulgence whilst away is another important element to Chinese
consumers. A large proportion of VisitBritain Best Prospects (2005) said
whilst on an international holiday they tend to treat themselves to the
best they can afford. However, one should remember this is relative to
their set travel budget. International travel is expensive and Chinese
travellers will try to cut costs on certain things to be able to buy luxury,
branded or products/goods not attainable in China.
Cultural immersion is something that visitors say they would like from a
trip away however Chinese tourists as currently less experienced
travellers than some other markets, they tend to emulate trophy tourism
rather than cultural immersion. However, as Chinese travellers become
more experienced they will look more deeper, more immersive travel
experiences.
Opportunity to travel gives Chinese consumers a real, personal
experience of that particular place. Having come from a country with
such deep rooted history and culture, the Chinese are interested in
learning about different places and different ways of life.
a Chinese typology – “strategic enrichment”
VisitBritain’s qualitative brand development research (Project Lion 2002)
identified “Strategic Enrichment” as a particularly Chinese typology of
international traveller. In this developing economy, there is a keen desire
for self-improvement, which motivates some to travel to places such as
Britain.
Project Lion found that these holidaymakers to Britain are particularly
interested to learn more about universities and financial centres such as
the City of London, which might provide some means for progression.
However, such travellers do not want to step very far beyond their
‘comfort zone’.
There is a sense that they might be fairly mercenary in their approach,
looking to get the most out of their trip, with a view to incorporating it
into their lives back at home. In contrast to many non-Westerners, they
are less prone to wanting to look below the surface of Britain, to its
hidden depths.
Motivation to travel
www.visitbritain.org/research
Rising income is the main driver motivating the Chinese to travel.
Furthermore, with the development of the Chinese economy, more
Western people are visiting China and are indirectly introducing Chinese
people to different cultures - thus create a desire to see different
countries. Travelling abroad for business and educational purposes can
also inspire travellers to return to the places they have been for leisure
purposes.
China
3) Motivations and attitudes to holidays (continued)
Bragging rights have made Europe and Britain become increasingly
popular and it is common practice for returning travellers to show their
entire entourage of photos to their friends, family and even work
colleagues.
‘The further away, the higher the cost, the prouder you feel…’
‘I’d like to show off to all my friends that I have been to Britain, even if I was
hungry earlier’
Restrictions on taking foreign currency out of the country has also eased in
recent years.
Other factors motivating more Chinese consumers to travel (VisitBritain
qualitative research 2007):
• Curiosity – see the rest of the world
• A lifting of exit barriers and more ADS destinations – travel has become
more permissible
• Travel has become more affordable – more flights and greater
competition in the travel industry
• Heightened travel buzz
• More personal and national confidence – ‘I used to feel poorly dressed
and out of place when I first went to Hong Kong but now they welcome
us because we have money.’
• Golden Weeks introduced in 1999, supplement leave and provide more
travel opportunities
Understanding Travel Needs and Travel Behaviour
VisitBritain’s Online Best Prospects research (2005) found that perceived
safety of a destination is of paramount importance to Chinese travellers –
with three-quarters saying it was “extremely important” when
considering a destination. Ease of getting a visa for a destination was
rated as “extremely important” by a third. Other factors that looked for in
a destination are natural scenic beauty (43% “extremely important”), wellknown landmarks (31%) and friendly local people (30%).
attitudes towards destinations
Asian destinations such as Hong Kong, Macau, Taiwan, Japan, Singapore
and South East Asia are popular destinations amongst Chinese
consumers. However, VisitBritain’s Best Prospects research (2005)
shows that Britain was almost as popular as ‘neighbouring’ destinations
suggesting that Britain has strong appeal despite the geography. This
also suggests that the appeal of the destination compares favourably
against the cost and time of travelling to Britain.
Other popular destinations for Chinese travellers are Europe, the US,
Russia, Greece and Turkey. Destinations that are considered exotic or
unusual are also often considered to be ‘hot’. Word of Mouth quickly
spreads the word about these “hot” destinations.
All the positive benefits that have come from China’s economic progress
(i.e. rising income levels, development etc) has comes at a price of
urbanisation: overcrowding and high volumes of traffic all which are an
incentive to travel. Travel gives Chinese people the chance to get away
from the stark developed, polluted cities of China.
Many consumers have been to be ‘first approved ADS’ destinations and
are now keen to go a bit further a field. Going on holiday to Europe is seen
to be a status symbol amongst the upwardly mobile Chinese. Peer group
conformity has spread the travel bug and has become the bade of
sophistication, signalling status and prestige.
‘You feel out of the loop, if you haven’t been to places they’ve been to…’
9
China
4) Reaching Chinese Consumers
sources of Inspiration for holidays
In 2008, VisitBritain sponsored a question on the NBI survey focussing
on the usage and perceived reliability of different sources of holiday
information. Questions relating to sources of information that are used
covered the entirety of a ‘holiday journey’ from getting ideas about
where to go, booking, planning what to do before and during the trip
and those used after the trip was over.
Below is a scatter-plot showing how often sources are used for
‘inspiration/ideas’, and how reliable those sources are seen to be.
Media reference points are seen as being the most inspirational sources
of information. Advertisements on television are seen as being the most
inspiring source of information by the Chinese (28%) followed by travel
programmes on television (27%), articles in magazines (26%), articles in
newspapers (26%) and advertisements in magazines or newspapers
(26%). Aside from travel programmes on television, the media reference
points listed above are perceived as being less reliable than other
sources of information.
www.visitbritain.org/research
Traveller comments posted on websites (24%), travel blogs (18%) and
national tourism organisation websites (17%) are perceived to be much
more reliable. Conversations with friends and relatives are thought to
be inspirational by just over a quarter (26%) but are also felt to be the
most reliable source of information.
An important point to note is that survey findings are weighted to mirror
the on-line population of each country, and as such web-based tools are
likely to be over represented in the results, although with web access
increasingly common (especially amongst those with the means for
international travel), this is becoming less of an issue.
10
China
4) Reaching Chinese Consumers (continued)
deciding and Planning Patterns
destination Choice
Attributes influencing the choice of destination are:
• Long held desire to visit the destination
• Interesting experiences
• Ease of Visa
• Value for money
• Contact with local people
• Bragging rights on return
• Family oriented
Safety is the most important factor in determining where to Chinese
travellers. Natural scenic beauty, ease of getting a visa, well known
landmarks, friendliness of locals and lots of cultural events and attractions
to visit are also important but are nowhere near as important as safety.
(Middle Kingdom on the Move Quantitative research 2006)
Research suggests that there is a leisure travel selection process (from
domestic, through Hong Kong / Macau to Short Haul, Mid Haul, Long
Haul) and these are largely linked to cost, distance and, crucially,
perceived accessibility.
It is no coincidence that the USA and non-Schengen destinations (like
the UK) appear at the very end of the progression. Discussion with the
travel trade on visas have shown that the more successful applications a
person has will influence future consideration – and this perpetuates the
need to achieve “easier” visas first. (VisitBritain Qualitative research
2007)
www.visitbritain.org/research
Sources of Information
The Internet is a very important information source in planning the trip,
whilst booking are still predominately made through travel agents. The
Internet serves as a contact point and a reference tool. Trips are planned
in advance of departure because a trip to Britain is seen to be “ a big trip
away” and travellers want to ensure they don’t miss out on all the must
see sights. Search engines are widely used to find information as well as
travel agency websites and travel sites.
Group tours versus independent travel
Chinese consumers are required to book through a licensed agent for
ADS leisure travel. Agents are the key to the ADS visa issuance process.
Government delegations and technical visits are not required to book
through a CNTA approved agent. Prior to ADS, only those who are
travelling to Britain for study, business and VFR purposes (with a letter of
invitation) could apply for a visa individually. ADS group visas must be
bought via a travel agent. (ADS is discussed in more depth in Chapter 7)
Most Chinese tourists book their holiday through an agent and travel by
tour groups, especially when travelling to Europe for the first time. “The
most countries, in the quickest time, for the lowest cost” tours is the most
common itinerary for Europe for first timers.
Group tours and agents are popular because they make travel stress free
and convenient and offer some element of cocooning for new and
difficult destinations (especially with language barriers). Qualitative
research (September 2005) suggests that consumers like to book
through larger, better known operators (“famous ones”) as they are
considered more reliable. Generally the large, better known operators
are considered to be more reliable. Less experienced travellers rely
heavily on them for advice and suggestions.
Experienced travellers with no language barriers prefer to travel by
themselves after booking accommodation and air tickets with a travel
agent. These people feel that the set tours are too organised and
inflexible. They want to get away from the pack (the inevitable shift from
rushed tours to more relaxed, “in-depth” holiday experiences).
DIY travel is also growing in popularity with the younger travellers. Some
DIY travellers are creating their own groups by including extended family
members and friends in the ‘group party’. They decide on the destination
and what they would like to do and then get the travel agent to make the
travel arrangements.This allows them to design the itinerary and thereby
making the tour more personalised. This is done especially for difficult
and unfamiliar destinations.
Word of mouth is another very popular source of information as it
denotes credibility. It is the most influential of all the information sources.
These are often from friends, family and work colleagues who have
travelled extensively or have been to the destination in question. Hot
destinations are quickly filtered through individual’s networks and
information is perceived to be realiable as it acts as a quick filter for
positive and negative aspects of a travel destination.
Otherwise, consumers sometimes join a tour group officially but pay
extra to occasionally break free from the arduous schedule.
VisitBritain qualitative research (2006) found that the key sources of
information when planning international travel are word of mouth, the
Internet (used at the active search phase with “CTRIP” being one of the
most successful online travel companies) and TV (NTO advertising, travel
programmes, general programming).
There is also a perception that travel agents can overcharge for group
tours and there are better deals available. Consumers constantly shop
around for a good price. Initially they use newspapers and travel agency
websites which are followed up on once a short list has been drawn up.
Chinese consumers tend to be bombarded with messages about travel
from print newspapers (with enormous travel sections), outdoor media
(e.g. moving LCD posters, subway / elevator ads) and ads in the
windows of travel agents.
Traditional mediums such as books and brochures also still play an
important role in helping consumers decide where to travel.
Experienced individual travellers who are either travelling on a full
passport or through business or VFR, have a completely different set of
interests from the mass group package tour travellers and are known as
FIT (Free Independent Travellers).
The number of bookings online for domestic travel is increasing, but not
so quite as much in the international travel arena as yet. Chinese
consumers require information in the Chinese language (simplified
version of Chinese).
Britain is still relatively new as a leisure destination and the opportunities
and prospects for travel are encouraging. Consumers are interest in
visiting Britain either for the first time as part of a multiple destination
European tour, as part of a three country visit or as single destination
(repeat traveller).
11
trip Planning Process
VisitBritain’s Qualitative research conducted in 2005 explains that
consumers go through a process in deciding where to holiday:
• Decide on a destination -a shopping list of available opportunities and
this is a ever expanding list of new opportunities.
• Decide on the trip objective - i.e. business trip, study, holiday, VFR etc
• Budget (depends on the destination.)
• Timing - availability of annual leave, golden week opportunities,
business extender, is it the right time in terms of season, not too
overcrowded etc
• Information Search
• Practicalities – ease of getting a visa can impact on a destination and
timing. Also tours may get cancelled due to insufficient numbers.
• Intervening Factors (for example security, safety issues, natural
disasters, pandemic diseases etc)
• Book the trip - mostly through travel agencies, may do a couple of
online transactions but most transactions are likely to be arranged
through a travel organisation.
offline versus online travel Market
Eye for Travel (2006) indicate that although China is the second largest
OFFLINE travel market in the Asia-Pacific region (behind Japan), it lags
behind other markets for it’s ONLINE market.
China
4) Reaching Chinese Consumers (continued)
decision to travel Lead times
In 2005, 46% of visits to the UK from China were decided between one
and three months before travelling to the UK. (IPS)
% of Visits
Day of/day before departure
-
2 days, less than a week
6
1 week, less than a month
20
1 month, less than 3 months
46
3 months, less than 6 months
15
6 months, less than a year
9
1 year or more
4
Booking Patterns
Generally, booking lead time are short. Travel agents consider
themselves lucky if a trip is booked 3-4 months in advance. On average a
holiday is booked between or under 4-8 weeks and can often be even
shorter notice. However booking habits are gradually changing partly
because the increasing prevalence of annual leave culture. People are
beginning to place more an importance on holiday planning. (VisitBritain
Qualitative research 2007)
Pricing
Consumers are price conscious and competitive pricing is a feature in the
market.
Differences in available packages tend to be on price rather than what
the package includes.
www.visitbritain.org/research
Some agents have started to launch high-end programmes.
Media habits
Travel information is becoming increasingly available through a variety of
media: the Internet, travel magazines, books and television programmes.
12
China
4) Reaching Chinese Consumers (continued)
Online travel bookings are still low compared to conventional booking
routes. Online advertising continues to be the main revenue model and
has become a mass market tool.
Social Networking/ Blogging
With the world's second-largest and fastest-growing internet user
population, China has become the next frontier for Web 2.0 activity. In
recent months, MySpace, Yahoo! and Google have all made inroads into
the Chinese market by either launching local versions of their sites or
investing in China-based technology or social networking startups.
online environment
ETC New Media Review www.newmediatrendwatch.com has a
wealth of further facts and figures on the Online Market in China. Some
highlights from that and other sources are included here:
Internet World Stats estimate that 27% of Chinese have Internet access
(Sept 2009). China is now the largest internet market in the world
overtaking the US, with 360 million users (Internet World Stats Sept
2009). By 2012 there will be 373 million internet users in China, 150
million more than in the US at the same time (eMarketer, May 2008).
CNNIC figures show that Chinese Internet users closely resemble users
around the world, though the user population does skew more to the
male side (58.3%) than the female (41.7%). In terms of online usage, the
Chinese tend to do exactly the same things as the rest of the world's
users: check e-mail (56.1%), read the news (53.5%), search for
information (51.5%) and acquire information (41.0%) (eMarketer,
February 2007).
50% of the Chinese online population access internet for entertainment,
news and social networking services.
www.visitbritain.org/research
Chinese Communist Party chief Hu Jintao has vowed to "purify" the
Internet, according to state media, describing a top-level meeting that
discussed ways to master the country's sprawling, unruly online
population. Hu made the comments as the ruling party's Politburo - its
24-member leading council - was studying China's Internet, which
claimed 137 million registered users at the end of 2006. Hu did not
directly mention censorship. But he made it clear the Communist Party
was looking to ensure it keeps control of China's web users. A report
conducted by the OpenNet Initiatice (ONI) indicates that China's Internet
filtering regime is the most sophisticated effort of its kind in the world.
Nearly 2/3 of young Chinese people have a "parallel online life",
according to a research conducted for advertising firm JWT and
investment company IAC. The research suggests that up to 80% of
young Chinese see the internet as an "essential" part of their lives. Online
life is often more intense than reality, according to almost half of the
1,100 Chinese aged 16 to 25 questioned in the online survey. More than
half also said that they have hidden behind a fake persona online.
Online shopping boomed in China in the 1st half of 2009: The size of the
online shopping market reached 88 million, 14 million more than in the
same period last year. Online users bought goods from the internet
through credit cards, debit cards and 3rd party transactions. The most
popular items purchased were clothing ( 57%), followed by books &
music (46%), cosmetics (40%), digital & electronics (35%) and household
appliances (32%). Perhaps partly owing to the economic downturn,
online shopping and E-commerce are booming. It is hoped that this will
eventually help to shape people’s online behaviour and pave the way for
future online opportunity.
The number of bloggers in China reached 181 million in 2008,
accounting for 54% of all internet users. Sharing photos, videos, diaries
and personal stories through blogs and SNS networks is becoming a
fashionable way of socialising amongst 18-35 year olds.
Blogging complements the censored mainstream Chinese press and
becomes a crucial alternative media, where truth is pursued, different
voices are heard, political and social affairs are debated and government
scrutinised.
Travel related topics accounts for 8% of all blog topics, ranking No. 13
across all topics. Travel blogs are becoming popular sources to acquire
genuine and more personalised and interactive travel information.
Mobile Internet
China has 649 million mobile users and is the number 1 in the world for
mobile usage. Mobile internet user in China reached 155 millions (32%
up) in the 1st half of 2009. This is due to the support from the
government and active promotions from the 3D service providers.
According to the research, 28% of the current mobile internet users
expressed their willingness to use 3G to access internet in the near
future. (Source: CNNIC, China Internet Network Information Center)
online travel Market - travel Planning and Booking
With nearly 7 in 10 Chinese leisure travellers accessing destination
websites, and about 6 in 10 using online travel discussion forums to
source information, travel operators and tourism promotional bodies will
need an effective internet presence to capture the opportunities
presented by Chinese outbound tourism, according to a research study
conducted by The Nielsen Company in partnership with the Pacific Asia
Travel Association (PATA).
The most popular web sources used to gather information on travel are
destination sites, hotel/accommodation sites, airline sites, tour operator
sites and travel portals. Internet users also prefer to use search engines to
get travel information. Websites used are tourism authorities, leading
travel portals and travelogues from other visitors and are used as key
reference for planning.
The China Outbound Travel Monitor 2007 reveals that traditional travel
agents rank only second behind online sources (63%) as the most
popular source of information for potential travellers while the use of
traditional media is found to be much lower (40%) for newspapers and
magazines.VisitBritain’s website visitor profile research in July 2008
reflects this and found that the Chinese used the website to inform
choice of destination or for more general information.
Some popular travel-related websites in China include: www.sohu.com,
www.tour.sina.com.cn / travel.sina.com, www.163.com (NetEase),
www.ctrip.com (most popular travel portal website in China).
13
China
4) Reaching Chinese Consumers (continued)
Until a couple of years back, the profile of the Chinese consumer was
mainly described as one who needed assurances for transactions online,
with booking methods being inclined towards call centres and the
preferred payment method being cash. Major changes are being
witnessed in online booking and buying process and air tickets and hotel
accommodation are the most popular travel products bought online.
Although, offline bookings still account for the lion’s share in China,
online transactions are growing quickly, as is the readiness of Chinese
consumers to use credit cards. (EyeForTravel, August 2007).
The Chinese travel industry is increasingly driven by a young and tech
savvy population that is quickly taking up social media tools to plan
travel. 19% of online travellers in China looked for online reviews while
planning travel, according to PhoCusWright's The Emerging Online
Travel Marketplace in China report. This number gains more importance
as travel reviews are comparatively new to the Chinese market.
Furthermore, over 25% of these young travellers purchased travel online.
This marks a notable shift in travel buying behaviour, as cash still remains
the most popular payment gateway to purchase travel in China.
(PhoCusWright FYI newsletter October 2009, October 2009)
A lack of IT penetration is a key challenge for those companies working
in China. A report reveals that use of automated IT systems remains
limited, with more than 80% of companies interviewed continuing to use
paper forms to some extent within their travel management processes.
The slow rate of IT adoption is in part created by government
requirements for companies to retain all travel vouchers for 15 years,
which generates a significant number of manual tracking devices and a
great deal of paper work.
Corporate credit cards are not widely used and cash remains the
dominant form of payment; more than 90% of respondents give
employees cash advances to cover travel expenses.Localised processes,
operations and technology capabilities are all also indispensable. Due to
the insular nature of much of the national industry, it has been necessary
for travel management companies to create bespoke systems in order to
interface with domestic technology. Such systems are rarely compatible
with existing global technologies and are subject to complex licensing
processes. All systems must also be built to interface in double byte
Chinese characters.
www.visitbritain.org/research
Sina.com, China's largest portal with over 100 million monthly unique
visitors, recently announced a strategic cooperation with Qunar.com,
China's largest travel search engine and second largest travel media with
over 8 million monthly unique visitors. The two companies will launch
the innovative and interactive, "Free Talk Travel", a blog publishing
platform that will allow Chinese travellers for the first time to share their
travel experiences in an innovative and interactive way.
"Free Talk Travel" is expected to be one of China's most popular blog
platforms and an asset to online travellers everywhere in China. In
addition to co-developing "Free Talk Travel", consumers will be provided
with prizes for offering the most interesting, relevant or downright funny
stories about their latest travel adventures. A few of the top prizes
include roundtrip flights to Bangkok and Phuket and Sony W55 digital
cameras. (eTN TravelWireNews, September 2007).
VisitBritain.com
Research was carried out in July 2008 to understand attitudes towards
VisitBritain’s consumer website, VisitBritain.com in which 189 Chinese
users were surveyed. In terms of profile, 53% of visitors were females
and younger - the main age groups were 25-34s (41)% and 18-24s
(28%).
The main purpose for the Chinese respondents to visit Britain is for a
holiday (48%). A fifth were intending to travel to Britain to study which
reflects the fact that China is the largest source market for UK overseas
higher education students.
Chinese website visitors more often have no plans to travel and are
keeping up to date with Britain as a destination (24%) or are thinking
about travelling and are investigating different countries (23%).
The key things that Chinese users are looking for on visitbritain.com are:
• Event and attraction information (what to see and do in Britain) - 39%
• Information on places and regions - 31%
• Suggested itineraries/itinerary planner - 30%
• Special offers (on travel and entertainment) - 30%
• Special offers (on accommodation) - 28%
The Chinese rated the website fairly positively in terms of its contents,
appearance, structure and experience. 78% of the respondents would
recommend the website. Words most likely to described the
visitbritain.com website were: Useful,Trustworthy and Objective but not
Exciting or Unique.
User reviews are welcome; 75% indicated they would use them and 71%
would contribute to a review section.
Additional research conducted by VisitBritain 2009 looking at websites
showed that Chinese consumers have a relatively low level of familiarity
with Britain. Many imagine a traditional vision of Britain and expect this
to be reflected in the website with familiar, reassuring sights and
attractions. As their planning process is different to other markets as
(they are more likely to be on a package) means that some of the
planning/itinerary features on website can be redundant. On the whole,
they are used to straightforward websites which primarily fulfil a
navigation function. Long, content-driven layout can be overwhelming
for those who expect to see simple categories for navigation.
14
Media habits
China is a media driven society. With more newspapers, magazines and
TV stations established, websites and blogs launched every day;
consumers are more exposed to all kinds of media than ever before.
Creating enough buzz for consumers’ attention hence became a much
bigger challenge. To engage the media creatively and innovatively
therefore is the key to success marketing communication.
Although the Chinese media is highly regulated by the government,
significant progress has been made in the last decade and the media is
gradually being freed by the Government and are able to discuss matters
previously unimaginable. Some of this can be attributed to increased use
of internet and the need for social and media monitoring. The
increasingly liberated Chinese media are playing a key role in combating
corruption and social inequity. The Internet is also helping this as it allows
Chinese people to express personal feelings more freely and debate
sensible social topics.
China has over 2300 newspapers, 7000 magazines, 360 TV stations
(2200 channels), 300 radios and 2 state owned news agents. Foreign
media usually open their China branches in Beijing and/or Shanghai.
Recreational content including traveler related topics are popular
amongst newspaper readers and TV views. Image advertising/editorials
on TV and print media are especially useful and inspiring tools to raise
destination profiles and public awareness. Online media are used to find
answers to more specific questions. User generated content, blogs and
SNS, on the other hand, can provide more personalized interactions,
helping consumers to make more informed decision on choosing holiday
destination
Travel information is becoming increasingly available through a variety of
media: the Internet, travel magazines, books and television programmes.
VisitBritain’s Online Best Prospects research (2005) found that Chinese
prospects did the following at some point on a DAILY basis:
Read local newspaper
79%
Access national websites
76%
Watch local TV channels
72%
Watch national TV channels
71%
Watch cable / satellite channels
65%
Access international websites
65%
Read national newspaper
53%
Listen to national radio
46%
Listen to local radio
44%
www.visitbritain.org/research
When we asked them to choose the most frequently accessed media
from the list, the top three were: international and national websites, and
cable / satellite channels – indicating a very outward focused
consumption pattern.
Access international websites
33%
Access national websites
26%
Watch cable / satellite channels
10%
Read national newspaper
9%
Watch local TV channels
9%
Watch national TV channels
7%
Read local newspaper
5%
China
4) Reaching Chinese Consumers (continued)
Press trips
VisitBritain hosts press trips each year, escorting selected journalists on
each trip. Hosting possibilities are available and if you are interested in
becoming involved, then please contact our Press and PR department.
VisitBritain also hosts many individual press visits over the course of the
year, aiding journalists from publications with over 100,000 circulation
and those that have definitive assignments.
Media sources
tV
TV continues to be the most influential media in China. It connects 95%
of China’s population through over 370 million TV sets in the country.
The TV audience is as many as 1.15bn. The biggest TV Station is China
Central TV, with over a dozen affiliated channels
Major channels:
China Central Television; Beijing TV Station; Shanghai Oriental
Television; Travel Satellite TV
Radio
2000 channels from 300 radio stations reaching 1.2bn audience. Radio
has been revived with increase use of cars. Music radio, car radio, travel
radio are becoming popular in urban cities. The average length Chinese
audience listen to radio is one hour per day.
Major radio channels:
China National Radio; China International Radio
national newspapers
According to the CTR statistics readership and length of reading in major
cities are both decreasing due to the boom of new media.
China Daily (English); 21st Century Business Herald (English); The
Economic Observer; China Business News; National Business Daily;
Nanfang Daily; Oriental Morning Post; Modern Weekly; Yangzi Evening
News ; Xinhua Daily; Xinhua Daily Telegraph; Global Times; People’s
Daily; China Times; Economic Daily; International Herald; International
Business Daily; The Economic Observer; CAAC Journal
Beijing newspapers
Beijing Youth Daily; Beijing Times; Beijing Daily Messenger; Beijing
Evening News; Beijing Daily ; The Beijing News; Beijing Morning Post;
The First
shanghai newspapers
Shanghai Morning Post (Shanghai); Shanghai Times (Shanghai); Oriental
Morning Post (Shanghai); Xinmin Evening News (Shanghai/also
national)Shanghai Weekly; Shanghai Evening Daily
Magazines
The majority of key fashion/lifestyle magazines have copyright sharing
rights with foreign magazines such as Vogue, Bazaar, NG, Elle and
COSMO, etc.
Major Ladies’ Magazines
Elle; Bazaar; Metropolis BIBA; Rayli Pretty; Rayli Goo; Vogue;
Cosmopolitan; CosmoGIRL
Major Men’s Magazines
Metropolis; Esquire; Men’s Health; MANse; The Outlook Magazine;
MAXIM; Magazine; FHM
travel
Travel magazine are also popular amongst the wealthy general public and
all lifestyle magazines have content on tourism and leisure travel
Travel + Leisure; World Traveller; Ctrip Magazine; National Geographic
Traveler; Travelling Scope; City Tourism; Traveler; Voyage; Tourism
Magazine; Global Travel; Euro Travel; Air Travel; China Travel News;
Travel Weekly China; TTN China; TTG China
15
reaching Chinese Visitors in the Uk
In 2008 VisitBritain sponsored a question on the IPS to understand what
proportion of visitors from each country engaged with different forms of
media when actually in the UK.
China
4) Reaching Chinese Consumers (continued)
57% of Chinese watched British TV, and the same proportion used the
internet. 48% read British newspapers, and 33% listened to the radio.
When just looking a Holiday visitors, 45% watched British TV, 39% used
the internet, 31% read British newspapers, and 25% listened to the radio.
VFR visitors were more likely to engage, with 65% watching BritishTV,
62% using the internet, 62% reading British newspapers, and 35%
listening to the radio.
www.visitbritain.org/research
Business visitors were most likely to use the internet (60%), but a high
proportion also watched British TV (58%). 44% read British newspapers
and 29% listened to the radio.
16
China
5) Perceptions of Britain
how Chinese rate the Uk compared to other nations
The Anholt-GfK Nation Brands Index (2009) is an online survey of
approximately 20,000 respondents from 20 nations around the world.
Respondents are asked to give their opinion of 50 nations, including the
UK regardless of whether they have visited or not (so views captured can
be based on perceptions as well as experiences).
The chart below shows how the 1000 Chinese respondents rated the UK
for a number of different aspects compared to the other 49 nations. The
chart shows a) how China ranked the UK and b) how respondents from
all countries ranked the UK.
The chart above shows that online Chinese generally have positive views
of the UK, sometimes more positive than the ‘average respondent’ from
other countries, sometimes less positive.
www.visitbritain.org/research
tourism
If money were no object, the UK would (on average) be 10th on China’s
list of nations to visit. The UK is seen as being rich in built/historical
heritage (5th position), with vibrant cities (6th). However, it is not seen
as being a world-leader in terms of the richness of its natural beauty
(19th).
the Uk as a place to live
The Chinese rated the UK as the 2nd best place to study for educational
qualifications and 9th as a nation with a high quality of life – some
Chinese could be prepared to live and work in the UK for a substantial
period (rank 10th).
exports
The Chinese feel positive about purchasing a product that says it was
made in the UK (ranking it as the 5th best nation on this aspect) and view
the UK as a creative place in terms of its cutting edge ideas and new
ways of thinking (5th).
Culture
The Chinese view the UK as the 3rd most exciting country in terms of its
contemporary culture (eg. music, films, art, and literature). They also see
the UK as having a rich cultural heritage (4th).
The UK is seen to be very strong at sports, in 5th spot.
People
Other countries are seen as being significantly more welcoming than the
UK (rank 26th), so this is an area that the UK needs to improve in. The
Chinese would be positive about employing a UK national (rank 5th) and
they would be very open to having close friends from the UK (5th).
17
the Uk as a tourist destination
Thinking of cultural products, Chinese most often associate the UK with
museums, followed by music, films, modern design, and opera.
However, They are far less likely than respondents from other countries
to associate the UK with many cultural products, arguably highlighting a
lack of knowledge of what Britain has to offer (NBI 2009).
The Chinese primarily see the UK as ‘Fascinating’, ‘Romantic’, and
Exciting’. Consistent with other Asian nations, the Chinese see the UK
as more ‘Romantic’ than nations from other continents do (NBI 2009).
www.visitbritain.org/research
Cultural associations
China
5) Perceptions of Britain (continued)
18
China
5) Perceptions of Britain (continued)
Motivators to Visit Britain
History and Heritage
The perception of Britain is mainly known for its history and heritage:
famous museums and castles, a strong image of the Royal family plus
being famous for its international fashion houses.
Britain is seen to bea place that is full of culture and heritage. The
Chinese have a mutual respect for Britain’s “1000 year old history” – they
see kinship here between China and Britain. They are very interested in
famous landmarks and monuments that represent the key sights of
Britain’s history and heritage. Royalty and aristocracy are big draws and
the Chinese express an interest in experiencing life in palaces and
castles, following in the footsteps of royalty, etc. VisitBritain research
showed that overall Britain’s cultural heritage has extremely strong
appeal and historic buildings have the greatest appeal
In the Online Best Prospects research (2005), 2/3 agreed that “visiting
castles, churches, monuments, historic houses” would be extremely
important to them during a visit to Britain – by far the most endorsed
product area tested.
natural scenic Beauty / Landscapes
Britain is perceived to be a clean, green and orderly place – in stark relief
to modern China as cities develop at breakneck pace.
This concept seems to be a draw for at least 1/3 of prospective visitors.
In the Online Best Prospects research (2005), 38% agreed that “visiting
countryside” would be extremely important to them during a visit to
Britain, 35% for “going to a beach” and 28% for “visiting parks and
gardens.” 39% of Chinese Holiday visitors did the latter in 2006 - IPS.
Recent brand research confirms Chinese visitors’ desire to explore
Britain’s many parks and gardens and famous countryside.
Mystery / Unusual
The Chinese consumers we spoke to in recent qualitative research
expressed an interest in mystery, ghost stories and the like, e.g. Harry
Potter, Agatha Christie, Sherlock Holmes and the Knights of the Round
Table. Trip diaries from that same research suggested an interest in the
unusual, e.g. having photos taken with “men in skirts” (i.e. Scotsmen)!
The UK travel trade also points out that the Chinese are very interested
in “superlatives” and dramatic visual appeal – e.g. the “greatest”,
“biggest”, “most unique”, etc.
www.visitbritain.org/research
Museums and galleries, and trying regional food and drink are other
popular activities.
sport
Some Chinese visitors enjoy watching sport whilst visiting Britain and in
particular football. Premiership football is huge in many Asian markets,
including China. Manchester United launched a credit card in July 2005 –
China’s first affinity credit card. As in other Asian markets, David
Beckham is an icon. As many Asian sporting heroes seek to develop their
careers in Britain, for example footballers in the premiership or on the
world stage (e.g. F1), there will be interest in watching their progress,
which is an opportunity to showcase Britain along with the personalities
themselves.
Knowledge of Britain
Best Prospects expressed interest in visiting all areas of Britain. London is
hugely popular relative to the rest of Britain. This suggests that London is
‘synonymous with Great Britain. In other words London is Britain for
many Chinese.
Qualitatively, we find that the image of Britain in China is one influenced
by detective novels (e.g. foggy weather, men with beards and walking
sticks). Most Chinese people have limited knowledge of the country.
The research identified a few key culprits of myth perpetuation: Sherlock
Holmes, literature from school and university (e.g. Dickens) and old films
such as Waterloo Bridge, The 39 Steps, and Death on the Nile (which,
despite being set in Egypt, was a key source of the “English gentleman”
imagery that is so pervasive in Chinese perceptions). Limited updates on
Britain seemed to be getting through (from some contemporary films e.g.
Mr Bean, Notting Hill and Harry Potter). Few people will change their
perception even after a sightseeing trip to Britain, most of which only
embrace UK’s traditional relics.
Journalists can even perpetuate the myths - as a quote from a recent
Chinese focus group demonstrates: “Chinese newspapers say that
Britain is boring, rainy days and fogs – but my friends tell me there is no
fog anymore.”
Research shows that mostt respondents claimed they want more time to
relax and savour the cultural experience but they invariably designed
exhausting itineraries - due in part to unfamiliarity of time and distance in
Britain. (Middle Kingdom on the move Qualitative research 2005)
19
Barriers to Visiting Britain
Products / experiences identified as attractive
The major barrier for Britain are supply based, not demand: visa
processes; limited packages to Europe that include Britain (or Britain only
tours) and unmotivated travel agents who are content to push Schengen
visa packages.
education / oxford & Cambridge / British Culture
In Chinese culture, travelling is a way of self-improvement and learning,
to experience a different culture and increase knowledge of a foreign
country. Interest in centres of learning also extends into an appreciation
of British culture – and particularly the “English Gent”. In China, “WEN
HUA” (culture) is a key part of the travel experience. Research from the
Anholt-GMI Nation Brand Index (2006) shows that some Chinese visitors
would like to go to the theatre, opera, ballet or a musical whilst visiting
Britain - about 1 in 10 did so in 2006 - IPS.
Visas are a major inhibitor to travel to Britain especially given:
• Schengen visa countries' advantage in terms of earlier ADS
• One visa fits all" coverage for Europe
• Easier visa procedures
• Lower visa cost
Cost is seen to be a major barrier, this not only involves the cost of being
in Britain (i.e. accommodation, travelling around, eating out, attractions
etc) but also the cost of actually getting to Britain.
Not feeling safe is also another barrier high on the list and consequently
is both a reason and a drawback for visiting.
Welcoming/friendly people (another important factor when choosing a
destination for this market) is also relatively low on the list of motivations
and therefore an area Britain under delivers on. However part of this can
be attributed to outdated perceptions of British people. As we saw in the
previous section, Chinese consumers believe Brits be to be aloof and to
be Dickens type characters. Research conducted in 2006 looking at
Britain’s welcome found that British people are friendly, polite and
helpful when approached and consumers need to educated about
modern day British people and not of those from yester-year.
(VisitBritain’s Firefish Welcome Research 2006).
Britain’s geographical distance is also a potential barrier to visit. The
Chinese get a limited amount of holiday and the Nation Brands Index
survey tells us that travelling long distances can be an issue to some.
Food and drink
Evidence suggests that the availability of Asian food in a destination is
important for many Asian markets – and particularly so in growth
markets such as China. This also supports multi-cultural/racial Britain.
Not only do we have strong Asian communities, a great quantity of Asian
restaurants and supermarkets, we are also leading at the top levels of
cuisine – as Chinese restaurants like Yautcha and Hakkasaan exemplify.
China
5) Perceptions of Britain (continued)
“Britain has its own special culture, different to Europe or America.”
Qualifications from British universities hold high prestige, as does the
concept of Britain as the home of the English language and the home
country of the famous writer Shakespeare. Learning English whilst in
Britain is highly regarded. It is perceived that having an internationally
recognised qualification will increase status and help Chinese citizens
find a higher paid job in China.
Britain is strongly perceived as being the home of the two most famous
universities, Cambridge and Oxford, and there is almost a pilgrimage
facet to the experience sought:
“I’d like to enjoy the thick atmosphere for study in Oxford and
Cambridge.”
Cambridge is made more famous by a well-known poem written
by a Chinese poet, called “Goodbye Again, Cambridge”.
According to the GMI Brand Index learning English on a course would be
a popular choice for many Chinese if they were to visit Britain.
There is also a sense of active participation especially regarding outdoor
activities. Qualitative research showed that Chinese respondents expressed
interest in certain niche activities such as golf and horse riding, even if it only
meant trying them. 8% of Chinese Holiday visitors played golf in 2007 (IPS).
In qualitative research (September 2005), bland, uninspiring food did
appear on the list of negative factors about Britain more than it did for
positive ones (except in the area of chocolate and sweets for which
Britain is seen in a good light). Food in Britain was seen to be of poor
quality, unimaginative and expensive. This suggests that we still have
some way to go in changing perceptions about British food.
www.visitbritain.org/research
Interestingly, there does also appear to be some desire to experience
British regional food & drink (according to the online Best Prospects
research in emerging markets – where 44% said trying regional food and
drink would be “very important” on a trip to Britain).
There are further opportunities to promote messages around shared
cultural norms in Britain and China, e.g. taking tea.
20
shopping
Shopping is one of the highlights of travelling abroad. The Chinese are
value conscious and like to buy luxury goods at lowerst possible price.
Prices of luxury goods can be up to 30% higher in China, compared to
Hong Kong or Europe as a result of import tariffs and taxes.
Due to the high cost of travel to Britain, and the tradition of buying gifts
for relatives, friends and colleagues, the majority of Chinese would prefer
to save money on the cost of food and accommodation, but spend more
on gifts and local products for themselves. When travelling they tend to
bring back gifts that represent the places they have visited or branded
products often inaccessible in China. Famous brands and local products
such as Burberry, Clark’s shoes and Scottish whisky are popular.
An article in the Economist in June 2006 noted that luxury branded
goods tend to be cheaper in Britain than in China and are also
guaranteed not to be fakes. According to figures from the New West
End Company, which represents the retailers of Bond Street, Oxford
Street and Regent Street, Chinese nationals were NWEC’s highestspending nationality, pumping more than £3 million into its tills. This
week The Times observed that Louis Vuitton, Gucci, Burberry and other
luxury brands were particularly popular among the Chinese. Their
spending sprees are a form of capitalist trophy hunting. Perhaps
poignantly for the retailers, they say that back home these trophies are
often mistaken for something else. Peter Du, 27, from Jiangsu province,
was in Bond Street this week. He said: “It’s cool to have designer gear in
China but I don’t buy it to show off back home. You take a real Louis
Vuitton bag to China and your friends will assume it’s fake anyway.”
According to TFWA, fashion, cosmetics and confectionery are the most
popular products for Chinese travellers to purchase. Chinese travellers
enjoy shopping and are amongst the biggest spenders during outbound
trips. ($987 per person according to the TFWA website).
However, although it’s important to note that Chinese enjoy shopping
and have strong gift-giving traditions, largely other destinations are a
stronger draw for shopping per se (the prime example being Hong
Kong). Britain is not necessarily regarded to be the ‘shopping
destination.’This is largely due to the perceived expensiveness of Britain.
A similar example can be found with gambling. Although gambling is
supposedly popular amongst Chinese, they are unlikely to seek it out
as a product driver for Britain – rather destinations like Macau serve most
gambling purposes. Nightlife also is unlikely to be a key draw for
Chinese to Britain as China’s own rapidly developing cities (such as
Beijing) can compete on a far grander stage.
key Competitor destinations - aspirational
www.visitbritain.org/research
According to the Anholt-GfK Nation Brands Index (2009), which surveys
a representative n=1000 sample of the online population in China, the
UK is ranked 10th out of 50* destinations that would be likely for a
leisure visit “if money were no object”.
Competition from other European destinations remains strong.
Scandinavia, Germany, Italy, France, and Switzerland are all highly
visible in the market. Switzerland became part of the Schengen bloc at
the end of 2008. Many East European destinations offer new and
cheaper alternatives.
* Note: Not all potential destinations were asked about in this survey.
widely recognized as a premium destination for both holiday and
business trips due to overall cultural influences.
1
Switzerland
6
Sweden
2
USA
7=
Germany
3
Singapore
7=
Canada
4
France
9
Italy
5
Australia
10=
UK, New Zealand
China
5) Perceptions of Britain (continued)
key Competitor destinations
Hong Kong, Macau and Singapore continue to attract the lions’ share of
the tourists from Mainland China, due to both cultural and geographical
vicinity.
The US and Taiwan both obtained Approved Destination Status in 2008.
Taiwan appeals particularly to China’s older generation and America
Europe remains attractive for both 1st timer visitors as well as repeat
travelers. The most popular destinations in Europe are Italy, France and
Germany.
Italy receives 4 times as many visitors as Britain, France over 3 times and
Germany over twice. UK not being a member of Schengen agreement
will continue to be a major competitive disadvantage. (China News
Agency, Jul09)
Consumer research confirms that France is the most aspirational
destination for Chinese going to Europe. France’s appeal as a destination
rests on its core emotional attractions:
• Romance/passion
• Cuisine and wine
• Fashion, cosmetics and perfume
• Sophistication
High awareness and positive perceptions about France show a well
cultivated relationship between France and China. Interesting Gallic
arrogance and language barriers were hardly mentioned by Chinese
travellers. France has been a large investor in China for a considerable
period and travel to France from China has traditionally been a little more
relaxed than perhaps for other destinations.
Germany is another major competitor. The Chinese seen Germany as
clean, orderly, efficient that is strongly associated with industry and
technology (auto & high tech). This perception of advanced technology
appeals to the Chinese and this is something they relate to.
The Germans are seen to be serious, well educated people, that
represent a strict, dull but pleasant society. Although, Germany is
perceived to be a ‘seen it once’ type destination.
Italy represents beautiful buildings and has history, museums,
renaissance paintings which the Chinese relate to. The Italians are
perceived to be romantic, passionate, beautiful, enthusiastic people and
Italian food is thought to be the most acceptable type of western cusine.
Spaghetti is thought to be similar to Chinese noodles. However on the
less positive side, safety is an issue in Italy and some of the buildings are
thoughts to be ‘old run down buildings’.
However, according to Air China, within Europe, France and Italy will
remain the key destinations, with their popularity supported by:
(1) The rich tourism infrastructure in these two countries – shopping, the
arts,historical sires (the Louvre, Notre Dame, etc.) and romance.
(2) The Chinese school system which leads to the preference of Chinese
people for these two countries; aspect include literature, cinema and
history.
(3) The travel agencies have mature itineraries in these two countries;
they are very familiar with the routes, local suppliers, pricing, and other
arrangements.
Approximately 2 million or 5% of China’s total outbound travellers visited
Europe in 2007 (source: CNTA).
21
China
5) Perceptions of Britain (continued)
Britain as a destination Brand – dePth, heart and
VItaLItY
The Anholt - GfK Nation Brand Index (NBI) 2008 included questions to
measure Britain as a holiday destination on attributes related to Britain’s
brand values. VisitBritain’s brand questions were also asked in Wave 3
2005, Wave 3 2006, and Wave 3 2007.
It should be noted that as most participants in the survey have NOT
visited Britain these opinions are based on PERCEPTIONS and NOT
experience.
In the NBI 2008, 1000 Chinese participants rated Britain on a scale of 1-7,
where 1 was “poor” and 7 was “excellent” and overall they gave a range
of mean scores from 4.84 (welcoming) – 5.25 (lots of cultural events and
attractions) across the 16 attributes.
www.visitbritain.org/research
This is a simplified diagram showing the relative strengths on the
different brand attributes. Respondents were asked to rate Britain on
each attribute using a scale of 1-7 (where 1 =poor and 7=excellent). As
no country rated below 3, the diagram has a mid-point of 3 and an outer
rim of 7. Basically, the closer the shading to the outer rim, the better the
perception of Britain on that attribute!
DEPTH is the strongest brand value for China overall - a combination of
cultural events & attractions, tradition, stories around the sights, and
history in particular. However, in contrast to the other DEPTH attributes,
‘always something new to discover’ was not rated so highly. Unless we
can give Chinese visitors enough to whet the appetite for repeat visits,
we run the risk of falling prey to the “done that / tick-off” mentality.
‘Scenic beauty’ and ‘relaxing’ are stronger HEART dimensions for Britain
than the explicitly human ones of ‘friendly’, ‘welcoming’ and ‘good sense
of humour’, which are amongst the less well perceived of Britain’s brand
attributes in Chinese eyes.
A weak area is that Britain has lots of different experiences in one
destination. Also, it is relatively weaker perceptually on the VITALITY
element of ‘energetic’.
22
travel from China to different World regions
Forecast Visits to World regions 2009-2014
Tourism Decision Metrics estimates there were 22.9 million outbound
trips from China in 2008. There are forecast to be 29.2 million such trips
by 2014 (a 27% increase).
The chart below shows forecasts from Tourism Decision Metrics for
travel from China to each region of the world over the coming years.
The number of forecast visits relative to 2008 are shown.
As is the case for the vast majority of countries, outbound travel from
China is largely intra-regional, with 65% of outbound travel going to its
neighbouring countries in Northeast Asia, with Hong Kong and Macao
the top destinations (although these are technically Special
Administrative Regions [SARs] of China).
Southeast Asia is also visited frequently, capturing 17% of visits.
Western Europe accounted for 5% of arrivals and Emerging Europe for
4%.
China
6) Market Size, Share, and Forecasts for Growth
Outbound travel from China is forecast to fall in 2009 and 2010, with
journeys to other Northeast Asian and Southeast Asian destinations
seeing the largest absolute declines in visitor numbers.
In 2011, outbound journeys are forecast to have recovered to 2008
levels, with over 6 million additional trips by 2014 (compared to 2008).
Visitor numbers to Western Europe are expected to grow steadily each
year from 2009 onwards. There are forecast to be an additional 600,000
trips to Western Europe by 2014 (representing 6.1% of all outbound trips
from China).
The UK’s Market Share and Forecasts for Growth
top ten destinations Visited in 2008 (key competitors)
Forecast top ten destinations in 2014
Hong Kong and Macao are the most frequently visited destinations from
China, accounting for 44% and 12% of outbound journeys. The UK
(0.5%) was the 22nd most visited destination in 2008.
According to Tourism Decision Metrics, Germany is expected to break
into the top ten destinations from China by 2014.
1
Hong Kong, Sar
6
Japan
2
Macao, Sar
7
Malaysia
3
Singapore
8
Russia
4
Korea, Republic of
9
Germany
5
Thailand
10
United States
14 - UK
www.visitbritain.org/research
Visits to the UK are forecast to more than double by 2014, growing by
117% relative to 2008, with almost 130,000 additional visits (representing
a 0.8% market share for the UK). This would make the UK the 14th most
visited destination from China in 2014.
It should be noted that figures for some destinations, including France
and Spain, are not included in the Tourism Decision Metrics dataset.
All data is taken from Tourism Economics, an Oxford Economics
company. The Tourism Decision Metrics (TDM) model forecasts
future international tourism flows, based on historic
economic/tourism data and future economic forecasts. It assumes
that there are no barriers to tourism growth (eg no limit to
route/airport capacity, no new visa regulations) and, as a forecast, it is
clearly subject to external shocks which may be natural or man-made,
so should be taken as a guide only.
23
Political situation
Chinese tourists are officially allowed to travel to countries that have
been granted Approved Destination Status (ADS). Britain was granted
ADS on 21 January 2005. It was implemented with effect from 1 July
2005 at which time Chinese nationals were first allowed to enter Britain
for group leisure travel (minimum group size of five), rather than simply
for visiting friends/relatives or studying and business.
China
7) access to Britain
Contained in the ADS agreement is a stipulation that a Chinese certified
tour leader must accompany the tourism group. The certificate of a tour
leader is reassessed on a yearly basis by CNTA. The minimum size of a
tourism group travelling can be five people including a tour leader.
Passports
China has several types of passports: diplomatic, public affairs and
private passports. When travelling to Macau, Hong Kong or Taiwan
special travel permits are to be issued for Chinese mainland citizens.
Depending on the purpose of travel the Chinese citizen holds different
passports. Only private passports are used for tourism. The ADS visa is
issued for private passport holders.
Visas
Chinese visitors need to apply for a visa to enter the UK. Biometrics visas
were introduced in 2007. All visa applicants are required to provide
biometric data (10-digit finger scans and a digital photograph) as part of
the application process. Applicants have to go in person to their nearest
visa application centre to provide their biometrics and submit their
application, rather than lodge their application with an agent. This
process puts Britain at a competitive disadvantage with other
destinations. However there are rumours that UK Visas are potentially
looking at trying to make the biometrics process easier for identified
groups of individuals.
Over the past decade or so, the Chinese government has further relaxed
traditional controls over outbound travel. In most areas of the country,
private passport application has been made much easier without
complicated examinations and approval, more operators are allowed to
do outbound tourism business.
The UK visa service has been training ADS agents on the visa application
procedure. Research conducted on VisitBritain’s behalf in 2005 showed
that most Chinese consumers felt the visa applications was a lengthy and
complicated process. Applicants need to provide proof of residence,
income, require an employers letter, pay a deposit and apply in person.
approved destination status (ads)
Most outbound travel from China is determined by the ADS system.
ADS restricts the destinations that Chinese nationals can travel to for
leisure purposes.
Visas were considered to be easier if travellers had been issued a visa for
another country. Britain’s approval process was generally considered to
be ‘stricter’ than the Schengen and therefore made it more difficult to
get. People were also aware of the higher cost of the British versus the
Schengen visa however encouragingly this did not seem to be a major
inhibitor. On the other hand, South East Asia and Australian visas are
seen to be easy, fast and inexpensive whilst US visas are regarded as the
most difficult visa to get especially post 9/11.
Passport and Visa Issues
The ADS was first introduced in the early nineties for destinations in
Southeast Asia such as Singapore, Thailand and Malaysia. Prior to ADS,
travelling abroad was only allowed for business purpose and official visits
with government approval needed for every single visit. ADS policy was
created to account for the growing interest of Chinese citizens in foreign
travel and the fast increase in disposable income.
The ADS is granted to overseas destinations through a government
government agreement. The ADS only concerns tourism groups handled
by assigned Chinese local travel agencies. Business and official travel to
overseas destinations are not included in the ADS agreement. ADS tours
must be booked through China National Tourism Adminstration (CNTA)
approved agents. Its main purpose is to guarantee safe and reliable
tourism services for the Chinese customers. An important issue within
the ADS is to avoid possible illegal immigration through tourism
channels. All tourism groups travelling within the ADS framework are
monitored by both Chinese and foreign authorities to ensure they return
to China. Whenever a tourism group member does not return to China,
the local travel agency is held responsible and sanctions are applied.
For consumers, a rejected visa application can be worse than not having
applied in the first place as successful stamps in the passport are a door
to further international travel. The fear of having a British visa application
rejected and a notation in one’s passport is clearly a deterrent to
applying. The belief amongst our respondents was that any ‘black mark’
in their passport would jeopardise their ability to get visas for other
countries.(VisitBritain Qualitative research 2007)
For trade, approval is the number one problem and the need for a
separate UK visa seriously undermines the country’s attractiveness.
Narrow travel windows (Golden Weeks) plus length of time to approve a
Schengen visa can be erratic. The addition of a UK visa can add 1-2
weeks to planning – and with demand going strong for European tours
regardless of country inclusions, the temptation is to take the path of
least resistance.
www.visitbritain.org/research
Countries without an ADS agreement are not allowed to receive tourism
groups from China or to promote their destination in China for tourism,
and are restricted to business and official travel groups only.
24
the key issues:
UK is not a Schengen country. A separate visa to enter Britain is required.
This involves extra effort, time and cost - a significant competitive
disadvantage for Britain.
The UK visa is the most expensive visa in Europe. The ADS visa, single or
dual entry valid for one month costs £67 (same as a standard 6 month
multi entry visa). In comparison, a tourist visa to the 15 Schengen
countries costs less than £40.
In some markets, one of which is China, the FCO has outsourced the visa
process to commercial companies. The advantage is that the visa
application is now available in more cities.
The UK Border Agency Visa Statistics 2007/2008 showed that therewere
152,455 visas issued in China. The majority of these 103,785 (68%) were
for visitors.
Visitors
Family
Visit
Working
Work
Permit students holiday
Makers
total
Issued
Issued
71,170
Post
Issued Issued
Issued
Issued
Beijing
45,630
9,395
2,255
13,890
-
4,120
840
170
2,375
5
7,510
Guangzhou 21,745
4,765
1,370
6,095
5
33,980
shanghai
4,220
560
2,720
5
39,795
103,785 19,220
4,355
25,080
Chongqing
total
32,290
China
7) access to Britain (continued)
Main Gateways Servicing China
Lhr: Flights from Beijing
and Shanghai:
British airways
Shanghai: 6 flights per week
(summer); 5 in winter
Beijing: 7 flights per week
Virgin atlantic
Shanghai: 7 flights per week
air China
Beijing: 7 flights per week
15 152,455
Gateways / access to Britain
In 2009 (IPS), 93% of Chinese visitors travelled to UK by air, 6% via the
Channel Tunnel (in all likelihood as part of a wider European tour), and
1% by sea.
All flights between China and UK fly into London Heathrow.
air China: Beijing-London
British airways: Shanghai-London; Beijing-London
Virgin atlantic airways: Shanghai-London
Alternative carriers such as Cathay Pacific and Air New Zealand offer
indirect services via Hong Kong.
Virgin offers agents special price from RMB5830 for Shanghai-London
return to celebrate it’s 10 year’s service between the 2 cities.
Virgin supports travel trade with lower fares to boost tour group sales.
Prices are as low as RMB3600 in summer peak season, excluding fuel
tax.
www.visitbritain.org/research
China Eastern pulled out of the Shanghai – London route in March 2009
after posting a US$2bn loss worldwide.
25
China
8) Travel to Britain
Current Volume and Value statistics / trends
2007 was the best ever-recorded year for visits and spend from China.
China continues to exceed averages for AEV, with the average visitor
spending over £1200 per visit.
IPs
total Visits
Visits rank (League table
no. Visitors to Uk)
total spend
spend rank
(League table £ spend in Uk)
average spend per Visit
(aeV)
average spend per day
(aed)
average Length of stay (aLs)
- nights
2008
2009
Change year
on year
107,860
89,187
-17%
39
40
down 1 place
£137m
£117m
-14%
27
31
down 4 places
£1266
£1310
3%
£59
£100
70%
21.4
13.1
-39%
historic trends (Volume and Value of travel to the Uk)
www.visitbritain.org/research
Visits from China showed fairly consistent growth from 1993-2007, but
showed quite a sharp decline, falling by 25%, in 2008 and by a further
17% in 2009.
26
Purpose of Visit
China
8) Travel to Britain (continued)
regional spread
93% of Chinese visitors stayed in England, 54% in London, 14% in
Scotland and 3% in Wales in 2009 (IPS).
totaL enGLand
*London
*rest oF enGLand
ENGLAND'S NORTH COUNTRY
CENTRAL ENGLAND
SOUTHERN ENGLAND
sCotLand
WaLes
Visitors from
China
93%
54%
53%
19%
18%
19%
14%
3%
Visitors from
all countries
90%
50%
46%
12%
16%
22%
9%
4%
regional awareness
“Business” visits used to bring the lion’s share of Chinese visits to the UK
but the last couple of years have seen a sharp decline in Business visits
(now accounting for 28%). We must bear in mind that IPS figures on
“purpose” for China may be misleading. This is due to the fact that until
January 2005, there was no ADS agreement in place to allow holiday
travel to the UK. Anecdotally, we know that those stating a business
purpose are equally likely to have had some holiday element to the visit
but this is difficult to quantify.
In the Anholt-GMI Nation Brands Index Wave 3 2006, we asked 1000
Chinese participants how well they felt they knew the regions of Britain –
giving a score of 1-7 and taking into account any of the ways they had
learned or heard about each region. 1 = never heard of the region and 7
= know the region very well.
31% of Chinese visits to the UK were for Holiday, and 27% were for VFR.
The 2001 census found that there were 51,717 UK residents who had
been born in China – an increase of 117% on the 1991 census. These
residents are most likely to be found in London, the South East and the
North West of England. In 2008, 8% of Chinese visitors came to the UK
for study. Although long-term study is not counted in tourism statistics by
IPS, this can be an important source market for VFR visits.
Length of stay
According to IPS 2009, the average Chinese visitor to Britain spends 13
nights here (mean ALS), but this is skewed upwards by longer study
visits. Business and Holiday visitors spent 7 and 11 nights respectively in
the UK in 2009 on average and VFR visitors 15 nights.
Chinese participants were significantly more likely to be aware of London
than any of the other regions – including the concept of Great Britain
overall. Awareness of other parts of England, and of Scotland, was
similar. The Chinese were least aware of Wales as a region of Britain.
The majority of participants in this online survey had NOT visited Britain
previously, but looking at the 16% of Chinese who had ever visited
Britain, the scores for each region do increase (although none
significantly).
In VisitBritain’s Online Best Prospects research (2005), we asked about
levels of interest in visiting different areas of Britain. London was hugely
popular relative to the rest of the country, which may suggest that
London is almost synonymous with Britain as a destination for the
Chinese. Scotland was slightly more attractive than Wales and other
parts of England.
www.visitbritain.org/research
The last few years have seen 4-7 night stays become more popular than
15+ night stays. One third of Chinese visitors stayed for 4-7 nights in
2009.
27
China
8) Travel to Britain (continued)
seasonal spread
The high summer July-September period accounted for 40% of Chinese
visitors in 2009 - similar to the trend seen over the last few years. 24% of
visits were in Oct-Dec, and with the rest spread between the first two
quarters of the year.
accommodation type
55% of Chinese visitors stayed in a hotel / guesthouse in 2009 accounting for 25% of nights. 90% of Business visitors and 58% of
Holiday visitors stayed in this kind of accommodation. 38% stayed as free
guests with friends or relatives, and as you would expect - VFR visitors
are likely to do this. 91% did so in 2009. Rented houses accounted for
13% of nights, but only 4% of visits.
www.visitbritain.org/research
Visiting the Uk as part of a multi-country trip
In 2007, a question was included on the IPS to understand whether
visitors to the UK had stayed a night in another country before or after
coming to the UK. The results are shown in the table below, with 74%
visiting the UK only on this trip.
China
% of visitors
Visited Uk only
74%
Visited another country before the Uk
6%
Visited another country after the Uk
17%
Visited another country before & after the Uk
3%
28
demographics
China
9) Who is the Chinese Visitor?
key travelling Group types
To overcome the fact that a mix of different travel companions could be
in each group, five mutually exclusive “group types” have been created.
In China, the proportion of visitors in each type are as follows:
Traditional Family Of Spouse / Partner & Children
14%
Spouse / Partner But No Children In Travel Group
11%
Children In Group But No Spouse / Partner
7%
not alone, But no Children or Partner In Group
38%
travelling alone
32%
Chinese visitors are most often found travelling to the UK either alone or
with other adults (e.g. friends, family or business colleagues). The
Holiday market is less likely to travel alone (24% did so in 2009), instead
travelling with other adults (42%).
In 2009, 51% of Chinese visitors were aged 25-44. 20% were aged 45-54
and 15% 16-24.
0 -15
16-24
25-34
35-44
45-54
55-64
65+
Male %
Female %
5
3
25
34
19
9
4
3
30
28
11
21
5
2
According to VisitBritain’s Best prospect research, the vast majority of
Britain’s Best Prospects are likely to travel as a couple. Interestingly, most
of those that had children said they would not bring their children with
them to Britain. If they don’t travel as a couple they are likely to travel
with another adult friend/s.
56% of Chinese visitors are male and 44% are female. Business visitors
are biased towards males (66%).
travelling Companions
www.visitbritain.org/research
In the IPS 2009, we asked visitors to tell us more about their travelling
companions. We asked who accompanied them on their visit, excluding
UK residents they may have visited during the trip. The chart below
shows the percentage of visits which included each category of travel
companion (multiple responses allowed as the categories are NOT
mutually exclusive). The profile for China is compared to that of the Total
World i.e. the average overseas visit to UK.
Compared with the world average (and fitting the concept of a
“business” market), Chinese visitors are more likely to be travelling with
business colleagues, or as part of a tour group (and less likely to be
accompanied by a partner, or adult friends).
CAUTION: The results do need to be treated with some caution, as even
if a respondent says they are travelling with “Spouse/Partner” and
“Child(ren) aged 5-11”, we don’t know from this how many children
were in the group, or even that the children were those of the
respondent (e.g. they could be grandchildren, nieces / nephews, or
even no blood relation at all)...
29
Interest or Potential to visit Britain
For the foreseeable future, only a small fraction of China’s 1.3 billion
population will be in a position to experience the luxury of foreign travel.
Leisure travellers tend to be wealthier, the parents of successful
entrepreneurs or perhaps government officials close to retirement.
Younger white-collar workers, especially those in ICT, are also travelling.
Travellers on company incentive trips and the families of students are
also important segments.
A survey by HSBC (2007) has profiled the habits of Chinese luxury
consumers (defined as those with an annual household income of over
$25,000). According to the study 92% had purchased designer
handbags, watches and clothing, whilst 76% had travelled abroad.
Of those who travelled abroad, the majority (53%) preferred Asian
destinations, but a surprisingly large minority preferred travelling further
afield to places such as Europe (25%) or the US (13%).
Compared to the general population, the people who travel abroad for
long-haul holidays generally have a higher education status and are more
affluent, with a highly paid job. This hypothesis was found to be true in
VisitBritain’s Online Best Prospects research (2005), whereby those
either planning / very likely to visit Britain were more likely than non-Best
Prospects to earn more and be working full-time. They were likely to be
educated to a degree or post-graduate degree level.
The current generation of young travellers in China are keen to enjoy the
fruits of their labour and therefore they choose to travel in order to
increase their knowledge.
The majority of outbound international travellers in China are from
Shanghai, Beijing and the Guangdong province. Guangdong comprises
of Guangzhou as the lead city and Shenzhen with its high GDP and
propensity to travel.
the ads tourist
ADS opens the gate for Chinese tourists to visit Britain in groups of five
or more on a pre-determined and fully escorted itinerary. Previously, the
Chinese could only visit Britain as students or business travellers.
China
9) Who is the Chinese Visitor? (continued)
Business and official visits
Known as the “disguised business travellers”, this segment has taken the
lion’s share in China’s outbound travel market. Numerous government
and corporate (many state owned) funded Chinese officials, civil
servants, businessmen/businesswomen embark on their paid for
“business trips” that often contain little business element.
Travel in small groups (5-9 people) and usually extend visit by up to a
week for sightseeing after business. This segment comprises those aged
between late 20s to late 50s.
A company or organisation usually covers the cost. 3-4 star or even 5 star
hotels for senior people are used.
But the situation is changing rapidly due to enforced
government/corporate government, media scrutiny, and public
awareness. The post-Sichuan Earthquake relief project, Beijing Olympic
Games and the global economic crises were all strong catalysts
prompting stricter control over China’s official and business travels. It is
nevertheless still a high volume segment (currently account for 30% of all
visitors).
The Official and Business Travel segment can also be influenced through
China’s travel trade network and attracted by Classic Britain messages.
education-related travel
Usually covers summer/winter camp.
Students will be aged 15-22 taking two or three weeks at a language
school. There will be a touring/sightseeing programme tagged on
at the end. The itinerary covers London, part of England and
Scotland and of course Oxford and Cambridge are ‘must sees’.
This group also includes some VFR travel; those aged 16–60, who
are friends and relatives visiting students at school and families
attending graduation ceremonies.
The majority of this group will be first timers so sightseeing will play an
important part.
With 32,000 Chinese students studying in the UK at any one time, it is no
surprise to see the VFR market growing steadily.
ADS groups may be regarded as low yield groups but in reality their
demographics vary widely.
ADS UK-only travellers would be on a really rushed sightseeing package
tour of one week to include London, Oxford or Cambridge, Stratford,
Manchester or Liverpool, the Lake District, Edinburgh, York etc. If the
group go to (or return from) mainland Europe they will have a
three-day London-centric tour including a one-day trip to Oxford and
Stratford or Cambridge. They are passionate shoppers for brands.
www.visitbritain.org/research
Multi-country tours are still common but single destination trips are
becoming more popular even amongst trophy tourists, a sign of gradual
maturity of the new China outbound market.
ADS tour groups will continue to attract rich Chinese who don’t speak
English therefore cannot travel independently, and those who prefer to
book through agencies – a common and prevailing practice in China
where agents dominate the travel bookings.
In 2007 and 2008, UK Border Agency issued 13,270 and 10,082 ADS
visas respectively, both accounting for around 10% of total visa numbers.
With more Chinese becoming more wealthy, this segment will continue
to be one of the largest growth segment in China. As they mainly book
through agents, it makes easier to influence them through the travel
trade networks and Classic Britain marketing offerings.
30
Independent travellers
Generally people aged 30-45 who have studied or worked in the UK.
They probably hold key positions in their companies or unit and take
independent holidays with friends, colleagues or families.
They are adventurous and explore a country as well as see famous
sites. They are keen to experience city life, drinks and food,
shopping, museums and pubs, etc. They travel independently using rail
passes and other good value cards such as the Great
British Heritage Pass.
London, Edinburgh, Manchester and Glasgow will be the main
destinations. They are likely to stay in budget hotels or B&Bs. They
tend to book a long haul holiday well in advance and take such a trip
once a year or every other year.
seasoned international travellers
VisitBritain’s extensive research amongst UK and Chinese travel trade
and airlines in 2007, indicated that Britain should focus on the emerging
and growing “seasoned traveller” segment seeking in-depth and single
destination experiences, rather than fight a losing battle for inclusion in
the multi-country euro-tour.
Problem areas for Britain related to this are:
1) Not seen as a gateway to Europe OR a compulsory European
destination (France and Italy are...)
2) Continued attractiveness of the cheap multi-country tour
3) Lack of promotion / funding versus competitor European destinations
4) Perceptions of “welcome” being disappointing (may be easier with
more experienced travellers)
5) Visa issues adding time and administration to include Britain in a tour
China
9) Who is the Chinese Visitor?
and sophisticated services and more exclusive and premium products
other than group tours. Typically family tours, golfing, cruising, staying
at luxurious spa or beach resorts, long stay holiday etc.
3) The Super Rich – Hurun Report, China’s Fortune Magazine, says the
mainland is now home to about 825,000 people who are worth more
than 10 million yuan (US$1.5 million/GBP1 million) and at least 51,000
worth more than 100 million yuan (US$15 million/GBP10million) . Half
of the Super Rich live in the three most affluent areas — Beijing,
Shanghai and Guangdong. Wealth growth comes with a surge in selfconfidence which continues to drive spend despite the economic
crisis. These mainland millionaires love to shop and travel. He/She
may be just back from a shopping spree in Hong Kong over the
weekend and is planning their next holiday in Barbados (having been
to most of US and Europe). China has recently overtaken US to be the
2nd biggest luxury goods market following Japan (The World Luxury
Association). Luxury consumption in China totaled US$8.6 billion last
year, accounting for 25% of the global market. Top travel destinations
are likely to be US, HK and continental Europe. Beach and island
resorts are also popular because they offer polar different experiences
to China’s fast paced urban life.
1st timers and repeat Visitors
In 2009 (IPS), 60% of Chinese visitors had visited the UK previously
(in the last ten years). For holiday visitors, the figure was 41%.
China’s nouveau riche
China’s New Rich can be split into 3 sub-segments according to their
income and life style:
www.visitbritain.org/research
1) The Affluent or Les Petite Bourgeoisies - Petite Bourgeoisies (or Xiao Zi
in Mandarin) in China is more of a life style than a market segment or
social demographic feature. They are youthful, adventurous opinion
leaders and sophisticated experiential travellers. Their annual income
level is around and above US$20,000/GBP12,000. They are often well
educated, English speaking, open-minded and residing in China’s
leading metropolis. They are 25 to 40 year old SINKs and DINKs, or
young family with kid(s). They seek value for money but are willing to
indulge for a price. They are cultured but are ready to get physical and
active: driving, cycling, hiking, diving, skiing, clubbing, cooking, wine
tasting, professional photography, concerts and museums, boutique
shopping, honey mooning, special interests… are all on their menu.
Their pursuit of freedom, cultural collision and self-expression
distinguish themselves from the rest of the bunch. This is also a web
savvy segment where most information acquired and some bookings
made online. They are trendsetters who constantly push the
boundaries. Their pockets aren’t’ quite deep yet but their thoughts
and actions influence wide and far.
1st timers and repeat Visitors
In 2004 (IPS), 47% of Chinese visitors had visited the UK previously
(in the last ten years).
2) Middle Class - The 5-6 million strong Middle Class Chinese (65% £2550K/$40-80k ; 25%, £50-150k/$80-240k; and 10% above
£150k/$240k), residing mainly in Shanghai, Beijing, Zhejiang and
Guangdong provinces and working for Fortune 500 at middle to senior
managerial positions, will become the high-yield “sweet spot” segment
for all consumer and luxury brands (Ledbury Report). In search for
their status badge and trophy, Chinese middle class are keen on
frequent international travels and have the life style to spend higher
proportion of their discretionary income on travel. Unlike the Petite
Bourgeoisies, they are slightly matured and more seasoned travellers.
They are more likely to have a family with young kids and need to look
after their aged parents. They therefore demand more personalised
31
China
10) activities Undertaken in the UK
What did Chinese Visitors actually do
during their visit to Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken
part in certain activities during their visit to UK. The chart below shows
the percentage of visitors from China who said they did each of the listed
activities, compared to the average inbound visitor to UK.
Looking at all journey purposes, 2/3 of Chinese visitors went to eat in a
restaurant, and around 4 in 10 visits involved some shopping with
clothes/accessories and souvenirs both popular.
Looking at traditional tourism activities, 33% of visitors took in Britain’s
Built Heritage (e.g. castles), 31% went to Museums / Galleries, and 27%
said they went sightseeing famous monuments/buildings.
‘Nightlife’ activities were not undertaken so often by the Chinese
compared to other nations, with 24% going to the pub (vs. 40% world
average), and 3% going to nightclubs (vs. 9% world average).
9% of visitors went to see Britain’s performing arts (theatre, opera, ballet,
opera).
www.visitbritain.org/research
The following pages show the proportion of Holiday, VFR, and Business
visitors undertaking each activity, to give a more complete understanding
of what each get up to when they visit the UK.
32
China
10) activities Undertaken in the UK
What did Chinese holiday Visitors actually do
during their visit to Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken
part in certain activities during their visit to UK. The chart below shows
the percentage of Holiday visitors from China who said they did each of
the listed activities, compared to the average inbound Holiday visitor to
UK.
Chinese Holiday visitors are slightly less likely to eat in restaurants (58%)
than Holiday visitors from elsewhere (70%).
Looking at traditional tourism activities, Museums / Galleries were the
most popular activity, undertaken by 50% of Holiday visitors (compared
to 41% of Holiday visitors from elsewhere). A similar proportion (49%) of
Holiday visitors took in Britain’s Built Heritage (e.g. castles).
They were less likely than other Holiday visitors to hit the shops but a
significant proportion did so (around 43%).
Chinese Holiday visitors were also far less likley than Holiday visitors
from elsewhere to go to the pub (25% vs. 46% world average), and go to
nightclubs (4% vs. 10% world average).
www.visitbritain.org/research
18% went to see Britain’s performing arts (theatre, opera, ballet, opera), a
similar proportion to the world average.
33
China
10) activities Undertaken in the UK
What did Chinese VFr Visitors actually do
during their visit to Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken
part in certain activities during their visit to UK. The chart below shows
the percentage of VFR visitors from China who said they did each of the
listed activities, compared to the average inbound VFR visitor to UK.
Chinese who came to the UK to visit friends and relatives often went to
eat in restaurants (62%), a similar proportion to the world average.
One would expect VFR visitors to say they ‘socialised with the locals’
more often than visitors coming for other reasons. 60% of Chinese VFR
visitors did so in 2007.
Shopping for clothes/accessories was another common activity for
Chinese VFR visitors (47%), although slightly less so than for VFR visitors
from elsewhere (55%). This may be explained by the 40% of Chinese
VFR visitors who said they went Walking in the Countryside in 2007
(higher than the world average).
www.visitbritain.org/research
Traditional tourism activities were undertaken by a significant proportion
of VFR visitors, with 27% going to Museums / Galleries and 25% visiting
Britain’s Built Heritage (e.g. castles).
39% of Chinese VFR visitors went to the pub (a lower proportion than the
world average of 48% for VFR, but still a popular activity).
34
China
10) activities Undertaken in the UK
What did Chinese Business Visitors actually do
during their visit to Uk?
In the IPS 2006, 2007, and 2008, visitors were asked if they had taken
part in certain activities during their visit to UK. The chart below shows
the percentage of Business visitors from China who said they did each of
the listed activities, compared to the average inbound Business visitor to
UK.
Eating in restaurants is the most common activity for Business visitors,
with almost 7 in 10 doing so. This is higher than the world average (5 in
10), most likely due to the average length of stay of Chinese Business
visits (9 nights).
Indeed, it is clear from the above chart that many activities were
undertaken more often by Chinese Business visitors than Business
visitors from elsewhere, reflecting the fact that many will spend a
weekend in Britain on their visit.
www.visitbritain.org/research
Shopping was a common activity for many Chinese Business visitors
(almost 4 in 10), and traditional tourism activities such as visiting Built
Heritage (eg castles) (24%) and Museums/Galleries were also popular
(23%).
However, despite their longer than average length of stay, Chinese
Business visitors (17%) still frequented the pub less often than Business
visitors from elsewhere (25%).
35
Understanding Chinese Culture
China is a cultural treasure-house with its social riches and 5000 years of
tumultuous history. It has one of the world’s oldest continuous
civilizations and is the birth place of numerous important inventions.
China is a world of chopsticks, tea, slippers, bicycles, tai-chi, exotic pop
music, hectic train stations, smoky temples, red flags and the smells of
Chinese food. It is densely populated and there are more than two
hundred distinct ethnic minorities in China.
The family is the most important part of Chinese life. In Confucian
tradition, the father is the head of the family and it is his responsibility to
look after his family. Members of the family are tied to each other
because the actions of one family member reflect on the rest of the
family. Therefore the welfare of the family is considered to be much more
important than the needs of the individual. This cultural value of
togetherness impacts on travel behaviour.
In general, the Chinese are a collective society with a need for group
affiliation, whether to their family, school, work group, or country. In
order to maintain a sense of harmony, they will act with decorum at all
times and will not do anything to cause someone else public
embarrassment. They are willing to subjugate their own feelings for the
good of the group.
The Chinese' Non-verbal communication speaks volumes. Since the
Chinese strive for harmony and are group dependent, they rely on facial
expression, tone of voice and posture to tell them what someone feels.
Frowning while someone is speaking is interpreted as a sign of
disagreement. Therefore, most Chinese maintain an impassive
expression when speaking. It is considered disrespectful to stare into
another person's eyes. In crowded situations the Chinese avoid eye
contact to give themselves privacy
Face is an important past of Chinese culture. Do not embarrass Chinese
people even in a joking manner in public, The Chinese will never refuse
or say no to anything, but it doesn’t mean they mean yes. This is because
they will lose “face” or be shamed. If you disagree with someone, or have
no as an answer say “maybe” or “we’ll see”.
Numbers have a significant meaning in the Chinese culture. For
example the number four (4) should always be avoided as it means
death in the Chinese language and in contrast eight (8) is a good
number as it means fortune.
Similarly colours also have meaning in Chinese culture. For example:
China
11) Understanding Chinese Culture
Practicalities / Language and Information Issues
The Chinese love culture, history and stories but when the history and
culture is unfamiliar to them it may be difficult for them to understand.
(Especially if the language is a barrier). As China’s history dates back
thousands of years, the Chinese may not necessarily be impressed with a
building that is only a couple of hundred years old.
Knowledge of foreign languages is still quite limited despite compulsory
English studies at school. There are limited opportunitys to practice and
the Chinese are inherently shy about what they haven’t mastered. For
those that can speak English, they prefer to speak it as it is a sign of
showing off to others. However, for the majority of visitors, they feel
much more comfortable speaking in Chinese.
“Chinese don’t speak English and even those who do have difficulty
being understood orthem understanding a Cockney so it’s not always
‘the attitude’ but the accent”(VisitBritain Qualitative Research 2007)
An experienced, Chinese (Mandarin or Putonghua) speaking guide is a
must and will be able to explain cultural nuances to them by
understanding and speaking both languages. Visitors will also expect the
guide to be knowledgable, well trained and enthusiastic.
Chinese characters on the main tourist attractions and streets will again
make Chinese tourists feel more comfortable. Anything that is translated
into Chinese (i.e. signs, menus, leaflets etc) will be noticed and
appreciated. It also reduces their reliance on the guide for information
and makes the visitor feel moreindependent.
Frontline staff are expected to provided service to Chinese visitors as to
where to go, where to get, how to get around etc.
Provide information on the process of a ‘tax refund’ as the Chinese
enjoy shopping and will view the tax return policy as a discount and
incentive to shop.
For package groups, the details of all the expenses should be clear and
advised upfront. They do not appreciate extra costs being incurred
later on. Tourists joining package tours prefer an all-inclusive service,
including visa application, accommodation and air tickets, etc.
For Chinese business travellers, it is common to add on leisure time for
touring after a day or several days of business. It is better to plan the
schedule and route in advance and rent a car or a small coach if
necessary for transportation.
www.visitbritain.org/research
• Red - Traditional bridal colour, good luck, celebration, happiness, joy,
vitality, long life, summoning, the direction South. The Chinese saying
goes "when something is so red, it is purple" - red purple brings luck
and fame
• Yellow - nourishing, royalty
• Green - Exorcism, green hats indicate a man's wife is cheating on him
• White - Death, mourning
• Black - Colour for young boys
There are many cultural differences between China and the West. The
Chinese respect foreign cultures and are willing to learn them.
Travelling is still a relatively big deal to Chinese consumers - especially
when travelling to the West. However, Chinese visitors can be
disappointed by the level of hospitality and service found in the West
and in reality experiencing Western society can come as culture shock to
many. Europe is not the ultra-modern society they have expect it to be
especially when compared to China - which has always depicted itself as
backwards and poor.
36
key Pointers for airports
VisitBritain’s research amongst Chinese and UK travel trade in 2007,
indicated 5 priority areas on which Britain’s airports needed to improve
for the benefit of Chinese visitors:
• Staff language abilities
• Chinese signage
• Smooth arrival and departure processes
• Smooth transfer processes (including assistance with luggage)
• Politeness at Customs & Immigration
accommodation
The Chinese prefer to stay in mid-range hotels. They prefer hotels with a
modern look and state of the art equipment/technology. The distinction
between twin and double bed rooms is not clearly understood. However,
couples order to stay in rooms with double beds, whereas friends and
colleagues prefer separate single beds. If there is not an ‘ensuite’
bathroom, advance warnings should be given to visitors.
Generally customers on package tours will share rooms with the same
sex, but you should ensure this is confirmed with them beforehand.
If accommodation providers do not have a Chinese restaurant or menu of
their own, they should provide a list of suitable Chinese restaurants
within easy access from the hotel.
Supplying Chinese television programmes and Chinese newspapers plus
green tea, flasks of water, toiletries and slippers in the bedroom will put
you at a competitive advantage.
Feeling ‘welcome’ is important to Chinese tourists, so a friendly attitude
and a warm welcome is important.
Bed and Breakfast accommodation may come as a shock for most first
time Chinese travellers, as B&Bs do not exist in China.
Most Chinese tourists will not be afraid to voice their complaints to their
Chinese tour guides if service levels and accommodation expectations
are not met or are not perceived to be ‘value for money’. Managing
expectations and “culture shock” remains important especially given
differing service levels in the industry versus the Chinese and general
Asian tourist industry - the bar is set very high!
Food and drink
Chinese tourists are used to eating Chinese style lunch & dinner and do not
readily accept other cuisines. Chinese people are very particular about their
food. In China, meals are shared together which results in less expensive
dining than the Western tradition of every person having their own plate of
food. Most would prefer a hot meal for breakfast. Meals with soup are also
appreciated. This could be the main dish or part of it.
www.visitbritain.org/research
Generally they prefer soft meat to big chunks of meat such as a steaks.
Most Chinese people are not vegetarians but in the same vein are not big
meat eaters. Therefore a mix of meat, fish and vegetables is more suitable.
Three meals a day are essential, otherwise the tour could be interpreted as
bad value. However, be warned as they may find a heavy meat diet hard to
digest when travelling around on their busy tour interneries.
China
11) Understanding Chinese Culture (continued
Beer and hard liquor is popular with men during meal times however
women are more inclined to drink tea or soft drinks.
Interests
The Chinese love football and tennis. They are also interested in snooker
and golf. Gambling is a big industry amongst the Chinese and are famous
for their casino activities.
The Chinese love to shop and the freedom to shop in a variety of
locations is appreciated. Many ADS travellers are somewhat wary of
shopping trips to individual retail outlets. They worry that these are
designed to primarily meet the needs of the owner and do not represent
value for money.
Value for Money
Value for money is very important to Chinese consumers (even for the
very rich, it is important to be seen to get a bargain.) In China, the
Chinese consistently search for bargains through discounts, sales
promotions, coupons, membership outlets and of course through
bargaining and haggling.
Body Language and etiquette
• Do not imitate the Chinese language in a joking manner. This will
deeply offend your clients.
• Kissing and hugging are not a common form of greeting with the
Chinese. Many of them would feel embarrassed, especially between
strangers and members of the opposite sex.
• Politics is a relatively sensitive topic amongst the Chinese, therefore it
should be avoided at all cost.
• Chinese tend to favour direct eye contact over indirect.
Similarly, they often ask direct personal questions out of curiosity (i.e
income, blood type, family relations, date of birth etc)
• The Chinese concept of privacy and space is different to Britons. Being
loud and noisy is an expression of enjoyment and caring for one other.
With such a dense population the Chinese are used to very little
personal space and are not used to being on their own.
• Chinese tend to be comfortable standing a little less than an arms
length from one another. One and a half to two feet is common.
When meeting strangers this distance is farther.
• In conversation, there is little to no touching, unless it is with families,
close friends or boyfriend/girlfriend relationships.
• It is common for women who are friends to hold hands or link arms
while walking.
• Beckoning or pointing with the index finger is considered bad form.
Using your whole hand, palm flat, is the way to go
• People beckon one another by extending an arm and making a
scratching motion with their fingers.
• Spitting in public after clearing ones throat is quite common
• Using your feet to move something or putting one’s feet on the
furniture is considered extremely rude.
• Whistling are generally unacceptable behaviour for women.
• The Chinese are not the most punctual of nations. Therefore timings
needs to emphasised and made clear to visitors.
• Humility and empathy are appreciated by Chinese visitors.
• Smoking is entrenched in Chinese society as a male domain. Chinese
visitors may find it difficult to accept that smoking bans in public
places. They also may be puzzled by the prevalence of women
smoking.
At least one Chinese meal every two days would be required. They also
often bring their own dried instant noodles with them which they can eat at
any meal should the food not be to their taste.
37
China
12) The Trade
overview of trade structure
The Chinese government has a tight grip on its outbound market by
controlling the destinations in which its citizens visit through the ADS
policy on destination approval. ( See Chaper 7 for more details on ADS)
The national tourist organisation (CTNTA) is regulated by the State
Council. They are directly responsible for promoting the Chinese tourism
industry. They are also responsible for negotiating with foreign
governments on ADS matters, as well as make policies, rules, regulations
and plans for the tourism industry.
The Public Security Bureau (PBS) is in charge of monitoring and issuing
passports to Mainland Chinese nationals, while the Civil Aviation
Authority of China (CAAC) supervises the distribution of airline tickets.
Currently Chinese travel agents are trying to increase diversification.
The big conglomerates usually deal the with ADS groups, help
independent travellers to book flights and hotels, organise business
delegations, service big corporate clients on MICE and tailor
programmes for luxury tours. But like anything else in China, the market
is developing very fast and companies specialising in niche markets are
beginning to emerge.
Travel retailers act as both tour operators and travel agencies for
domestic, inbound and outbound travel. The roles between wholesalers
and retailers in China are not clearly defined. Before 2005, foreign
owned travel agencies were allowed a controlling stake in joint
ventures with the government. However, from 2005, agencies are
allowed to be wholly owned by foreigners. These companies need to
have a worldwide turnover of US$40 million and will not be able to
conduct outbound business travel. The large Chinese outbound
operators conduct the most Chinese outbound travel. Quite a few of
these are state owned such as CITS (China International Travel Service) ,
CYTS (China Youth Travel Service), CTI (China Travel Service). Private
business is also booming some of which is gaining national influence.
There are agencies that do both wholesale and retail and are referred to
as a CAN (pronounced as “chanc”) TUAN or “merge tours”. Although
they do not operate in the traditional sense of a wholesaler, these agents
are referred to as Wholesale-Retail agents.
Chinese retail agents
Commission Level: 5-10%.
As there are no independent retail outlets, all operators must handle the
full dynamics of the wholesaling and retailing role (acting as both tour
operator and travel agency).
The Chinese travel trade is currently divided into two categories,
international travel agents and domestic travel agents:
• International travel agents can organise inbound travel and domestic
travel. Selected agencies can also organise outbound travel.
• Domestic travel agents can only organise travel within China.
There are 670 CNTA travel agents in China authorised to handle
outbound travel arrangements under ADS.
The British Embassy has confirmed there will be limited Chinese
outbound tour operators across the country authorised to sell ADS travel
following their risk assessment process. As of October 2009, there are 68
accredited ADS travel agents in China. The table below is a list of the
largest outbound agents.
Beijing
shanghai
Guangdong
1. CITS Head Office *
1. Jin Jiang
1. GZL International
Travel Service
2. China Comfort
2. SH CITS
2. CTS Guangdong *
3. CYTS *
3. SH Airline
3. CITS Guangdong *
4. SH CTS
5. SH CYTS
4. Shantou Tourism
General Co
Travel trade still exert huge influence in China’s outbound market. At
least over 80% of outbound travels are booked through travel agencies,
groups and individuals alike. This is primarily because of complicated and
sometimes misleading visa regulations, lack of language skills, demand
for services, and pursuit of better value for money. Although the trend
and growth of independent travels are strong, China will remain as a
travel trade led market for the next 5 to 10 years. It is therefore essential
to further expand and penetrate the trade network, especially in leading
2nd tiers where NTO resources are scarce.
www.visitbritain.org/research
VisitBritain is due to launch its BritAgent scheme in May 2010 and is
based on the model role out in South East Asia during 2009 .The
BritAgent scheme is an online training programme that is designed to
equip travel trade frontliners, buyers, and product planners with the
necessary knowledge and skills to effectively market Britain as a
destination. Is it hoped that it be roled out to 50 - 60 travel agents across
China. Addtionally as the majority of travel bookings in this region are via
the trade, having a network of Britain experts will bring a competitive
advantage to Britain marketing.
Chinese Wholesalers / Large Agents
Commission Level: 15-20%
Wholesale travel agents began to emerge in China in 2003. A few
authorised outbound international travel agents in Beijing, Shanghai and
Guangzhou take bookings from other domestic travel agents, in
particular those who operate outside of the traditional ADS regions, who
are not large enough to form their own groups. They tend to on a
egional level and join up smaller groups from different dealers and
agents to form a bigger group (typically 20-30 but can be as many as 4050). This is done to achieve cost efficiency.
38
China
12) The Trade (continued)
travel agencies (continued)
European Travel from the Travel Trade Perspective
Most agencies are consumer facing and quite up to speed with where
the market is going and what the costumers want. They play a key role in
helping the consumers to decide where to go and spend money on. Predeparture, they are primarily involved in setting itineraries and helping
clients arrange visas. Also as competition stiffens between agencies,
customers are expecting higher levels of service from their travel agents.
Customers who approach travel agents expressing a specific desire to
visit a destination usually mention France. Although, Greece and Spain
are gaining in popularity – but this may be more a function of increased
access to these markets.
For many tourists, the basic decision about destinations has already been
made by the time they visit the travel agent, (this being especially true for
the seasoned international traveller.) However, once the agents have
listened to their customers’ requirements, they can play an important role
in steering the customers towards one or another package. Destinations
in Europe are also chosen based on period of travel and the availability
flights to the countries.
“The period of travel and the flights available affect the destinations we
promote to our customers. For example, April to November is the
busier season for travel to the UK because it is not too cold. The flights
also influence our package design.” (VisitBritain Qualitative research
2007)
However, as the Chinese travel market progresses, the role of the travel
agent is changing as customers are starting to have their own iitineraries
in mind. However, again these changes to itineraries have to fit with the
packages on offer!
representatives
Representatives play less of a role but can distribute brochures and
undertake marketing on your behalf. They have knowledge of the market
and can offer advice on how the product should be packaged and sold.
Travel agents are divided as to whether or not “must-have” destinations
exist for itineraries. Those who agree would name France and then Italy
in that category, in that they are truly “representative” of Europe.
However with the advent of the seasoned traveller and increased interest
in single or a couple of countries / in-depth travel, it is expected that this
will become less of an issue.
Paris and Rome/Milan are the most common entry and exit airports.Their
central locations and good connections mean that it is easy for agents to
design efficient itineraries.Key criteria for inclusion are consumer
demand and ease of obtaining visas.
London can be disfavoured because of its separation from Continental
Europe and Britain is often not included in European Group Tours
because:
• Seen as distinct from continental Europe (so a package in itself)
• Lengthens the duration of tour package
• Increased logistical time / cost / complexity of adding UK (scheduling
is a key task of the travel agent)
• Visa approval time
• Insufficient marketing by UK
• High ground costs
•Britain is seen to be an expensive destination
British Incoming tour operators
www.visitbritain.org/research
British Incoming Tour Operators must be approved by VisitBritain and
UKinbound to handle ADS leisure business from approved Chinese
agents. This requires a declaration by an inbound operator to meet set
criteria. An application for approval must be sent to VisitBritain or
UKinbound, where the operator must satisfy the set criteria. For more
information about this, please contact VisitBritain (details in section 14)
39
Perceptions of Britain from the Travel Trade
Perspective:
Perceptions of UK have not changed much since Vomiturition study in
2005 the China Refresh research (2007) showed that they are still
generally based on old-fashioned impressions. History and its trappings
are a major selling point, including the vestiges of Empire, the monarchy,
ancient castles, etc. Language and Education are the only things that
seem to set Britain apart from our European competition.
“I’m amazed at the mindset… UK history isn’t important to the Chinese…
they have no connection with UK. The Chinese want ten countries not
just UK and having to pay more to when they are there. Every city in
Europe has old buildings. The unique appeal of UK is a hard sell.”
Negativity is dominated by the visa issue, so awareness and updating of
Britain’s offer appears to be the perceptual challenge here. Other
negative perceptions outlined by the Travel Trade were:
•The high cost of travel (London’s reputation for being expensive)
• Local travel costs (including hotels, transportation and other
hospitality) are 20-30% higher than for other countries
• Perceived lack of famous destinations
• Perceived safety concerns (threat of terrorism)
• Business is also described as “seasonal” and “directional” (tending
outbound from China). The challenge is seen as increasing the offpeak sales
But for single destination, FIT tourism is predicted to grow which will
benefit Britain hugely. Britain continues to have appeal as a destination;
other European countries have the first mover advantage of ADS and the
Schengen visa but the UK travel trade is confident that Britain is an
exciting “fresh destination” and ideally suited for more leisurely holidays
after the first whirlwind Euro tour has been done.
travel trade knowledge of Britain
Chinese travel trade knowledge on Britain is limited. UK packages sold in
China are either London/Britain being a part (1-2 days) of a
multi-European destination tour or a week-long Britain tour visiting
landmark attractions (very often only photo stops outside).
The experience in Britain usually is just a characterless combination of
photo stops and shopping – unimaginative and standardised. Tourists are
unable to appreciate Britain fully.
However, there are indications that consumers themselves perpetuate
the situation by wanting to see as much as possible in as short amount of
time as possible. In focus groups (2007), although they expressed an
interest in relaxing and savouring cultural experiences, when asked to
design ideal itineraries these were invariably exhausting!
In qualitative research (2007) with Chinese UK-ADS accredited agents,
we found that they see Britain as somewhat different from continental
Europe – which on one hand is positive in that it is a differentiator, on the
other it relegates Britain as a second string choice for those wanting to
savour “the essence of Europe” in one trip.
As with consumers, the trade lack general knowledge about Britain and
their knowledge is somewhat dated (foggy London, bowler-hatted
gentlemen).
Britain also has some catching up to do with other European countries in
terms of the number of packages in which it features.
Currently Liechtenstein is included in more packages, and for every tour
that includes Britain, four include France.
Visas
From the agents’ perspective, the need for a separate UK visa
undermines the Britain’s attractiveness and visa approval is the number
one issue. There is a fear (regardless of reality) that travellers believe a
rejected application will make future applications more difficult.
UK visa remains a major barrier both in terms of this approval issue and
also the need for a separate visa. For the majority of agents interviewed,
the rising and high visa cost issue is significantly less problematic – it is
price inelastic, and the other issues are bigger.
The new visa applications offices had mixed reviews, some travel agents
believing they add unnecessary cost and paperwork; others noting that
there should be more of them.The concern now appears to be less about
the time needed for approval, more so the fact that this is additional visa.
**NB: Although not addressed in this research, the introduction of biometrics in the
application process is likely to be problematic from the “approval” issue perspective and
the agents will likely require support.
The UK also has a reputation for denying visas “If the visa application
were easier, the number of tourists to the UK would increase rapidly”.
Because of the effort involved as well as the cost and reputation risks
associated with processing visas, travel agents are highly sensitive to any
problems. Both Schengen and UK visa application procedures are
complicated, and travel agents must help their customers to check the
completeness and integrity of the documentation. (Some agents even
check the authenticity of the documents.)
“Travellers need our help mostly with their visa application.”
“Due to issues such as language barrier, unfamiliarity with the visa
application process and the documents required by the different
embassies, our customers would require assistance in helping them
apply for their visas.”
www.visitbritain.org/research
“A trip to Britain will be rushed and tiring but valuable.”
China
12) The Trade (continued)
40
Conducting Business in China
sales Calls
The best time to visit is March to early April and mid October to
early December.
It is recommended you visit the market with an interpreter/guide if you
do not have strong Chinese language skills. The English language is less
common than in other Asian markets.
It is recommended in the short term you concentrate your efforts on the
three main centres for potential traffic, these being Beijing, Shanghai and
Guangdong province.
Plan early! Try and visit when VisitBritain is organising or participating in a
consumer or trade event, which would give you greater exposure than you
might otherwise receive. Make an appointment to see the local VisitBritain
office at the start of your visit. They will update you on the current market
situation and the potential of your travel product within the local area.
Chinese translation on tourist literature is a must for suppliers serious
about investing in this market. Literature should be produced in
‘simplified Chinese’ characters, which are used in mainland China
(different for Hong Kong, Taiwan and Singapore where ‘traditional
Chinese’ is used). You are better off having something produced in
English rather than in the incorrect Chinese written form.
The Chinese trade require information (print / web) in the Chinese
language (simplified version).
Meetings
Titles are very important and it is best to address people directly by using
their professional title or Mr., Mrs., or Miss, followed by the surname. It
is always best to defer to the most senior person in the room when it
comes to beginning and guiding conversations.
Beginning with small talk helps establish a base for the relationship, after
which discussion of business matters can begin. It is best to allow your
host to begin the business discussion. Periods of silence are considered
acceptable and are to be expected. Avoid interrupting and talking over
someone, if possible. Be aware the Chinese might want to wait for a
lucky day before making any decisions.
Always carry twenty copies of any document with you to distribute to
everyone.
www.visitbritain.org/research
timings
It's rude to be late in business situations, however being a little late in
social situations is acceptable. Try to arrive 5 or so minutes early for a
meeting. While the Chinese value punctuality and diligence for the most
part, they do place a great deal of emphasis on people and relationships
over deadlines. It is common for a boss, or one with a higher social or
political status, to be late. This may be done as a show of how busy they
are. When making appointments it is best to avoid Monday mornings,
Friday afternoons and Public holidays. (See the Public Holiday section
later in this chapter).
China
12) Reaching The Trade
names and titles
The Chinese traditionally have 3 names: The surname, or family name is
first and is followed by two personal names. The first personal name is
their father's name and the second personal name is their own name.
Address the person by an honorific title and their surname. If they want
to move to a first name basis, they will advise you which name to use.
Some Chinese adopt more western names and may ask you to call them
by that name.
Business Cards
Business cards are exchanged after the initial introductions. It is a nice
touch to have one side of your business card translated into Chinese,
with the Chinese characters printed in gold, since it is an auspicious
colour. Bring a good supply of business cards with your title printed on
them. Chinese people remember people by their business cards and
exchanging cards is the first thing people do at meetings. If you do make
the effort to have business cards with a translated name, make sure you
know how it is pronounced in case your contact decides to call you by
your Chinese name
Business cards are exchanged using both hands. Present the card the
right way round with two hands for the recipient to read. Make sure to
observe it carefully and remember your opposite's name. Place the card
on the table in front of you if you are sitting, put it in your wallet or a
holder and not in the plastic case straight from the printers. It is important
to treat business cards with respect - never write on someone's card
unless directed to do so. Your own business cards should be maintained
in pristine condition.
Make certain your business card includes your job title. This will help
your Chinese business colleagues understand where you fit in your
company's hierarchy.
Gifts
Gift giving is very common in China however they are not usually
exchanged at the first meeting. These should be offered and received
with both hands. It is polite to refuse a gift several times before
accepting.
Wrapped gifts are never opened in the presence of the giver.
Reciprocate with a gift of similar value when receiving a gift. It is
important to wrap your gift nicely. Bright colours are preferred - avoid
wrapping gifts in dark colours or red.
Consider a gift from your area, or a gift with a companies logo. Be
careful about giving food items to the host they might have the
impression that you think they are poor! Avoid giving gifts of knives,
scissors, or letter openers as they signify severing of a close bond.
Clocks, cut flowers and anything in groups of four are to be avoided as
well.
Conducting Business with the Chinese
Greeting
When you first meet a Chinese person, they might seem unfriendly, but
that is because they are taught to not show emotions in public, because it
is thought to be unacceptable. The Chinese like being formally
introduced to a person by another person. When being introduced to a
person, shake their hands. A smile, a wave, a nod, or a bow are good. It
is then good practice to give them a compliment. Never, insult a person,
do anything to shame them or try to prove them wrong in front of other
people.
41
Communication
Learn a few Chinese greetings. This would impress your Chinese
clients: Hello - Ni Hao / Thank You - Xie Xie / Bye - Zai Jian.
When dealing with Chinese officials or VIP’s it is better to arrange an
interpreter as this will speed things up.
Bargaining is a way of life with the Chinese. Therefore even a small
discount would make your business transaction run smoothly.
The Chinese tend to be comfortable standing a little less than an arms
length from one another. One and a half to two feet is common. When
meeting strangers this distance is farther. Chinese tend to favour direct
eye contact over indirect.
Having a Chinese website will benefit the potential customer.
Be patient and continue to build relationships with sales calls and
meetings. Stay in close contact with clients and make an impression.
dress
Men should wear dark to medium coloured conservative suits with shirts
and ties. Women should wear conservative business suits or dresses and
blouses are appropriate. Avoid low necklines, high heels, and tight fitting
or sleeveless attire. Jeans and business casual attire are not
recommended at a first meeting. However, clear notice should be given if
a certain dress code is required. In warmer months, light trousers and a
collared shirts are usually acceptable. If you are tall consider wearing flat
heeled shoes so you don’t tower over your Chinese business colleague.
Never wear bright colours, or shorts.
www.visitbritain.org/research
Top Tips
• The Chinese are famous for communicating by "Saying it without
saying it." You will have to learn to read between the lines.
• When complimenting a Chinese person expect a denial. Politely
deny a compliment to show humility. Do not say thank you.
• Use only black and white materials for presentations, as colours are
very significant
• The Chinese are interested in different culture and etiquettes and
appreciate tips on understanding Western/British way of doing things.
Trends in the Travel Trade
The number of ADS countries reached 134. In 2008, Chinese outbound
visitors’ number reached 45.8million, 12% up over 2007, and is estimated
to reach 52.3million by 2012. 89% of these trips are made within Asia
In the first four months in 2009, 15.9 million Chinese people travelled to
foreign countries, an increase of 4.64% compared to 2008. The increase
was made amidst global financial crisis and swine flu (CNTA).
China
12) The Trade (continued)
The travel trade still exert huge influence in China’s outbound market. At
least over 80% of outbound travels are booked through travel agencies,
groups and individuals alike. This is primarily because of complicated and
sometimes misleading visa regulations, lack of language skills, demand
for services, and pursuit of better value for money. Although the trend
and growth of independent travels are strong, China will remain as a
travel trade led market for the next 5 to 10 years. It is therefore essential
to further expand and penetrate the trade network, especially in leading
2nd tiers where NTO resources are scarce.
China continues to be a huge potential market for all destinations, both in
terms of real spending and growth. Competition in China is fierce and
market dynamics are constantly changing. Britain is regarded a highly
aspirational destination but its non-Schengen status is a major hurdle in
attracting both the consumers and travel trade. Nevertheless the growth
of Britain bound travel has been strong and steady over the last few
years, and owning to the upbeat economic outlook to continue grow in
09/10. The Chinese travel trade remains a major market force that offers
shorter, swifter and wider routes to marketplace, especially during the
economic downturn.
Hong Kong / Macao and SE Asia will still dominate the market, with new
destinations competing via default (e.g. South America) if people can’t
get European visas.
Although much excitement about Europe as a destination for Chinese,
key barriers to continue to be VISAS (especially re UK) and to a lesser
extent COST
Expectation that more international gateways will be opened up in the
future (especially connections to areas under-serviced in China) BUT not
many, if any, new flights to Europe as demand is mostly being met by
existing connections
Other factors which will influence outbound travel:
- Enforced governance on inappropriate government funded travel;
- Political support for Hong Kong, Macau and Taiwan bound travel
- Newly opened competitive destinations, i.e. Taiwan, US and bordering
countries
- RMB appreciation against major currencies (USD, Euro, GBP)
Public Holidays 2010
1Jan
14-16 Feb
4 april
1 May
16 Jun
22 Sept
1-3 oct
New Year
Chinese New Year
Qing Ming
Labour Day
Dragon Boat Festival
Lantern Festival
National Day
42
China
13) Business Visits & Events
Business Visits statistics and trends
In 2009 (IPS), 28% of all visits from China to the UK were for business
purposes – and they accounted for 30% of all spend.
Chinese business visits comprise 16% Conferences, Large meetings,
Trade Fairs or Exhibitions and 84% individual business travel.
Visits 2009 (000)
Business Visits (%)
spend 2009 (£m)
Trade Fair / Exhibition*
1
3%
1
4%
Conference / Large Meeting*
3
12%
4
12%
Other Business*
21
84%
29
84%
All Business Visits
25
100%
35
100%
Business Visitors China
aeV (£)
aed (£)
aLs (nights)
Trade Fair / Exhibition*
1741
387
4.5
Conference / Large Meeting*
1350
283
4.8
Other Business*
1372
194
7.1
All Business Visits
1381
206
6.7
Business spend (%)
Source: IPS
Business Visitors China
*CAUTION - low sample sizes for types of business visitor mean that AEV
/ AED / ALS figures should be seen as indicative only.
www.visitbritain.org/research
It is impossible to estimate from the IPS figures the proportion of
business travel that is incentive travel.
43
Working in Partnership with VisitBritain
There are many ways of working in partnership with VisitBritain. In
agreement with our strategic partners – VisitScotland, Visit Wales,
VisitEngland and Visit London, we operate the Overseas Network as a
platform for the five brands and will continue to deliver the following
activity in all these markets on behalf of these brands and the travel
industry:
travel trade:
• Account management of key carriers and major tour operators
• Management of a travel trade e-crm programme
• Staging of B2B missions and events
• Familiarisation visits to major trade shows in Britain
Media relations:
• Account management of key contacts in print, broadcast and online
media
• Database of publications and journalists
• Media briefs and press releases
• Distribution of Britain Calling
• Assisted press visits programme
China
14) VisitBritain in China
Liu Jia (tamily Liu)
Press & PR Marketing Executive
[email protected]
Tel: (8610) 6590 6903, Ext 357
Fax: (8610) 6590 0977
VisitBritain - hong kong (covering southern China)
Jane Fong
Country Manager - Hong Kong, Taiwan and Southern China
[email protected]
Tel: (852) 3515 7877
Fax: (852) 3515 7800
London Contacts / Further Information
For any further information relating to the Chinese market, please contact:
amy Crees
Marketing Consultant – APMEA
E: [email protected]
T: 020 8563 3250
Provision of Insights and Market Intelligence:
• Market profiles
• Market insight reports
Alternatively, visit Vomiturition dedicated website for the UK tourism
industry and a searchable database of all Vomiturition Marketing
Opportunities:
www.visitbritain.org/opportunitiesadvice/index.aspx
Public diplomacy Management:
• British Council
• FCO
Why not sign up to our Industry e-newsletter, or register with
VisitBritain to be kept up to date with all that’s new in China and
other markets worldwide?
Britain marketing will be delivered as specified:
VisitBritain leads on marketing Britain and signposts strategic partner
brands. There is a strong focus on building the long term value of the
Britain brand and educating consumers about the constituent brands.
www.visitbritain.org/aboutus/newsletter.aspx
For more details on these and other diverse opportunities in markets of
interest to you, please visit our UK Industry Website and read our
worldwide marketing prospectus, or contact your VisitBritain
representative in London or overseas.
Information sources Used to Compile this report
• International Passenger Survey figures (IPS) (Office for National
Statistics)
nB: Data from International Passenger Survey has been made available
by the Office for National Statistics and has been used by permission.
The ONS do not bear any reponsibililty for the analysis or interpretation
of the data reported here.
www.visitbritain.org
overseas Contacts
VisitBritain – shanghai representative
Cultural and Education Section-General (Shanghai)
1st Floor Cross Tower, 318 Fu Zhou Lu, 200001, Shanghai, China
www.visitbritain.org/research
travis Qian
Manager China
(Main Contact for all issues relating to China)
[email protected]
Tel: (8621) 6391 2626, Ext 275
Fax: (8621) 6391 2121
remember Zhu
Country Manager
[email protected]
Tel: (8621) 6391 2626, Ext 273
Fax: (8621) 6590 2121
VisitBritain – Beijing representative
Cultural and Education Section of the British Embassy
4/F Landmark Building Tower 1
8 North Dongsanhuan Road
Chaoyang District, 100004, Beijing, China
Charlie Li
Deputy Manager China
(Main Contact for the Travel Trade)
[email protected]
Tel: (8610) 6590 6903, Ext 209
Fax: (8610) 6590 0977
• Anholt-GMI Nation Brands Index – 2006 & 2007
• Anholt-GfK Nation Brands Index – 2008 & 2009
• Tourism Decision Metrics, Tourism Economics
• Eye for Travel APAC Online Travel Report 2007
• VisitBritain / BAA China Research – 2007 & 2005 (Qualitative)
• VisitBritain Emerging Markets Online Best Prospects Research – 2005
(Quantitative)
• Project Lion – VB Brand Development Research – 2002 (Qualitative)
• VisitBritain Foresight - Sept 05 & Jan 04
• IMF / Economist / US Census Bureau
• CIA World Fact Book https://www.cia.gov/library/publications/theworld-factbook/index.html
• Global Insight’s “Global Tourism Navigator”
• WTO (World Tourism Organisation)
• FCO (Foreign & Commonwealth Office)
• UCAS (Universities and Colleges Admissions Service)
• ETC (European Travel Commission) and ETC New Media Review
http://www.etcnewmedia.com/review
• Internet World Stats 2008 http://www.internetworldstats.com/
• VisitBritain China Business Plans, Insights and Intelligence Reports
• McKinsey Quarterly
• China Market Research Group http://www.researchcmr.com/
• 2001 UK Census
• Blacksmith Institute http://www.blacksmithinstitute.org/
• UK Border Agency Visa Statistics 2006/07
• China Daily
• Chinese Outbound Travel 2007 (ETC and WTO)
44