TAIWAN MARKET. Rene Reyes. As presented by: Officer-in-Charge, DOT-Taiwan October 10, 2012
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1 TAIWAN MARKET As presented by: Rene Reyes Officer-in-Charge, DOT-Taiwan October 10, 2012
2 Taiwan outbound past 10 years 10,000,000 9,000,000 8,000,000 7,319,466 7,780,652 8,671,375 8,208,125 8,963,712 8,465,172 8,142,946 9,415,074 9,583,873 7,000,000 6,000,000 5,923,072 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 % inc/dec % 31.40% 5.50% 5.60% 3.40% -5.60% -3.08% 15.60% 1.80%
3 VISITOR ARRIVALS FROM TAIWAN TO THE PHILIPPINES ( ) 200, , , , , , , ,024 97, , , , , , , ,455 80,000 60,000 40,000 20, % inc/ dec % 27.58
4 Outbound forecast ,000,000 10,000,000 10,000,000 10,500,000 11,000,000 11,500,000 12,000,000 8,000,000 6,982,224 6,000,000 4,000,000 2,000,000 0 % increase Jan -Aug % % 5.00% 4.76% 4.55% 4.35%
5 OUTBOUND TRAVEL PER AREA 2011 Outbound travel per Region Source of outbound travel 473,259 5% 234,062 2% 101,614 1% 22.40% 3.20% 8,762,214 92% Asia America Europe Oceania 52.40% North South Central Others 22.00% Source: Ministry of Transportation and Communications, Taiwan
6 Profile of outbound travelers (2011) Characteristics Factor affecting desire for outbound travel Purpose of travel Month Outbound Traveler Length of vacation time : 32.1% Plenty in budget : 22.4% Package tour itinerary : 8.5% Cheap airline tickets or tour fare : 7.7% Sightseeing, Vacation, Recreation 61.2% Business 25.4% VFR 12.6% more in July (10.5%) and August (9.4%) summer break Gender more males(55.2%) female (44.8%) Age Average Age:41 Monthly Income Average monthly income NT$38,455 (US$ 1,303) Occupation Travel arrangements Average number of nights per trip More technician (14%), Office supporting staff (12%), Services or sales workers (12%), Housekeepers (12%), Managers or supervisors (11%), Retirees(10%) and Students (10%) By travel agency 85.9% Individual 14.1 % 8.75 nights Average Spending Per Trip NT$48, 436(+4.3%) (US$ 1,600) Source : Survey of Taiwan Travelers, MOTC
7 TRAVEL TRENDS Female tends to travel to those destinations which is perceive as a tourist destinations Destination Male Female Japan 44.30% 55.70% Korea 40.10% 59.90% Singapore 48.40% 51.60% Malaysia 47.10% 52.90% Thailand 47.50% 52.50% Destination Male Female Hong Kong 56.0% 44.0% Mainland China 64.8% 35.2% Vietnam 50.4% 49.6% Macao 60.2% 39.8% USA 49.7% 50.3% Philippines was a male dominated destination in 2007 due to our image and tour product offerings, to be able to address this we introduced new tour products that caters to the female market Male % of total Female % of total total Jan - August , % 32, % 73,198 Jan - August , % 75, % 152,253 Growth rate 86.0% 136.3% 108.0%
8 Due to the political policy of Taiwan focusing on China and the increased oil cost. Most of the airlines have been focusing on operating the short time route, flying time around. 1.5 hours to 2.5 hours to increase revenue. More charter flight operations for the Philippines 2007 Airlines Route frequency seats capacity/ week Mandarin Airlines Taipei - Cebu 2x/week 1,280 Far Eastern Airlines Taipei - Laoag 2 x/week 1,280 Total 2, Mandarin Airlines Taipei - Kalibo 4x/week 2,464 Far Eastern Airline Taipei - Cebu 2 x/week 1,280 Trans Asia Taipei - Cebu 2 x/week 1,280 Philippine Airlines Taipei - Kalibo 4 x/week 2,464 Zest Airlines Taipei - Kalibo 4 x/week 2,464 Total 9,952
9 Small group tours 3 6 persons becoming popular as more consumers become from interested in special activities/tours Launch new tour product for Manila and Makati for small groups
10 Overseas incentive trip becomes part of company motivation to employees, incentive groups range from 30 to 1,000 pax Worked closely to travel agents to conduct sales presentation to Science and Economic Parks to promote Philippine incentive travel Conducted familiarization trip to the Philippine for big company decision makers Hosted about 21 groups, for a total 2,346 pax
11 Blogs and social communication becoming the new world of mouth media Included bloggers during media familiarization trip Advertise in popular blogsites with tourism forte New emerging segment the youth, family (3 generations) and honeymooner/pre-wedding, tends to grow. Conducted celebrity wedding in Boracay To use Boracay and Cebu/Bohol as location filming for Taiwan TV drama series to include wedding scenes The greenhouse effect and climate change make Taiwanese people more aware of Green / Eco tourism. Made various features in TV News program about Philippine natural destinations and conservation procedure being undertaken The youth (age15-24) market, especially the newly graduate, either from high school or university, parents make this as graduation gift or part of the school excursion. The price and crises sensitive are the main decision making for Taiwanese people so they are searching for reasonable price with high quality destinations.
12 Competition The free VISA policy: The free VISA policy for Taiwanese tourists of 100 countries and low airfare to the new short haul destinations (flight to second-tier cities like Busan, Korea) are the popular trend for Taiwan outbound tourists. They would like to visit the new destinations that no need to apply the VISA with lower travel expenses. Open policy of economy to China : When Taiwan government have had an open policy of economy, investment, and tourism with China, Taiwanese tourist influx to China exceeded 2 million / year, making it the biggest outbound destination. Expected to increase further as FIT travels are now allowed. Korea Wave : Korea has been getting popular in this market for 2-3 recent years not only because of Korea Wave (affordable shopping, new trend, popularity of Korean TV dramas song and pop culture) but also the price of tour package has been lower comparing to other Asian destinations. Taiwanese find low airfare and package as a reason to travel. Vietnam, from business to leisure travel : The destination had been going strong in the market due to the economic relation between Taiwan and Vietnam. Business travelers find charm on this new destination which leads to encourage leisure travel as well. The business of direct flights from Kaohsiung Vietnam has been getting better and better. Vietnam will open their Tourism Office in Taiwna by 2013.
13 Singapore Family destination With the opening of Resort World and Universal Studios, Singapore had been trying to capture the family holiday market. Thailand top destination in ASEAN Remained to be the top destination for Taiwanese in ASEAN, however the past few years after the political problem in 2010, there is still reservation from Taiwanese to travel to Thailand for safety reason, with the decline of outbound travel they are contemplating to waive visa requirement for Taiwanese tourists Malaysia Time to Explore The most aggressive in terms of promotion in the market backed with budget capability. This year, waive visa for Taiwanese. Embark on a one year taxi and bus advertising, continuous local TV ads with its Time to Explore campaign
14 Media reach TOTAL 大台北 (TAIPEI) 台中市 / 台中縣 (TAICHUNG) 高雄地區 (KAOSHIUNG) Number % Number % Number % Number % TOTAL 報紙 (Newspaper) 雜誌 (Magazine) 電視 (TV) 廣播 (Radio) 網路 (Internet) 任何戶外廣告 (OOH) Source : AC Nielsen Survey
15 TRAVEL INFORMATION SOURCES Internet (especially travel agency websites), travel magazines, travel programs/channels important channels for advertising; word-of-mouth also critical <Internet> - Travel agency website - Foreign government official travel website - Yahoo homepage - Blog - Yahoo Knowledge - Airline websites - Google - BBS/ Forums - Internet advertisements - PC Home homepage - Shopping website - MSN homepage <Book, newspaper and magazine > - Travel magazine - Travel book - Magazine ads - Articles or column on newspaper - Newspaper ads - Articles or column on general magazine - Articles on general book Source : Nielsen Research % 3 most often used All sources Top 5 <TV> - Travel programs - Travel channels - TV ads - Non-Travel programs <Word-of-mouth> <Channels> - Travel exhibition - Travel agency DM/ brochures - Travel agency salesperson's introduction <Others> - DM in newspapers - MRT ads - Outdoor ads - Radio ads %
16 Concerns and issues in the market Seat capacity Only two (2) airlines allowed for category 1 Seats restrictions 4,500/ week, 50% for eh exercise of 5 th freedom rights Category two (2) only 1 airlines allowed New tour products and destinations Tourism policy Visa and WEG tour leader restrictions Mandarin speaking guides
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