China Tourism: Current Trends and Future Prospects A Special Presentation for Hospitality and Tourism Community in Fiji
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1 China Tourism: Current Trends and Future Prospects A Special Presentation for Hospitality and Tourism Community in Fiji Kaye Chon, Ph.D., CHE Chair Professor and Director of School School of Hotel & Tourism Management The Hong Kong Polytechnic University
2 People s Republic of China
3 People s s Republic of China (PRC) Mainland China: 1.3 billion in population Hong Kong Special Administrative Region (SAR): 7 million in population Macau Special Administrative Region (SAR): 0.5 million in population
4 Forecast for World Tourism A shift in the center of gravity EUROPE NORTH AMERICA ASIA
5 1 World Tourism, 2020 World s Top Destinations, 2020 World Tourism Organization Country Tourist Arrivals Market Share % Growth Rate p.a China 130m 8.3% 7.8% 2. France 106.1m 6.8% 2.3% 3. United States 102.4m 6.6% 3.5% 4. Spain 73.9m 4.7% 2.6% 5. Hong Kong 56.6m 3.6% 7.1% 6. UK 53.8m 3.4% 3.4% 7. Italy 52.5m 3.4% 2.1% 8. Mexico 48.9m 3.1% 3.6% 9. Russian Fed. 48m 3.1% 8.5% 10. Czech Rep. 44m 2.7% 4%
6 Diverse culture and interests
7
8
9 Growth of Inbound Tourism China s s tourism industry restarted with the development of inbound tourism in 1979 (China s Open Door Policy) In 1978, inbound tourism receipts was $0.26 billion with 1.81 million border crossing visitors In 2006, inbound tourism receipts reached $33.95 billion with million border crossing billion with million border crossing visitors
10 Growth of Inbound Visitors, Source: CNTA, The Yearbook of China Tourism Statistics
11 Vulnerable to Situational Factors 1989: The event of Tian anmen anmen Square Inbound visitors: 24.5 million (down 22.7%) Inbound foreigners: 1.46 million (down 20.69%) Inbound tourism receipts: $1.86 billion (down 17.2%) 2003: SARS Outbreak Inbound visitors: million (down 6.4%) Inbound foreigners: 11.4 million (down 15.19%) Inbound tourism receipts: $ 17.4billion (down 14.6%)
12 Outbound Tourism: only a new but fast developing phenomenon since 1997 China s s outbound tourism initiated in 1980s In 1997, private (individual) outbound tourism activities were approved by Chinese government In 2006, million Chinese outbound visitors overseas spending has reached USD 25 billion
13 Year China s s Outbound Departures Total departures Growth rate (in Millions) Private departures Growth rate Percentage of private departures % % 45.82% % % 37.86% % % 46.21% % % 53.79% % % 57.24% % % 60.60% % % 73.32% % % 79.62% % % 81.02% % % 84.01%
14 USD, bn China's Outbound Tourists' Overseas Spendings
15 The top ten destinations for Chinese outbound departures Hong Kong 2 Macau 3 Japan 4 Vietnam 6 Russia 7 Thailand 8 USA 9 Singapore 5 South Korea 10 Malaysia
16 The Development of Approved Destination Status (ADS) ADS -- Overseas Outbound Tourism Destination Countries with Approved Destination Status A bilateral government agreement regulating the visa facilitations and the responsibility of organizing the outbound Chinese tourists By end of 2007, ADS covered 130+ countries in Asia, EU, Africa, America & Oceania USA & Canada have signed MoU for ADS
17 China a big country with 1.3 billion in population: Primary, Secondary and Tertiary Cities
18 China Outbound Tourists: Three tiers of market
19 Where do China tourists plan to visit? (Nielson Shanghai 2007) Asia 70% 59% Europe 14% 24% Oceania 6% 3% North America 6% 12% Africa South America Central America 2% 1% 1% Leisure 1% 1% Business
20 Source of information for decision making (Nielson Shanghai 2007) Internet-destination information 70% Internet-online travel discussion forum Travel agencies 62% 60% Free books/pamphlets at borders/airports Newspaper/magazines Internet- website of travel agencies 42% 41% 39% Purchased travel books/pamphlets Introduction/recommendation from others 34% 32% Promotion posters at destination TV/radio 26% 25% Tour guides 18%
21 Where to China tourists stay? (Nielson Shanghai 2007) 12% 23% 41% 49% 36% 27% 7% 6% 14% 2% 4% 4%
22 Planned destinations in next 12 months (Nielson Shanghai 2007) 42% 26% 23% 23% 21% 18% 18% 16% 15% 15% 15% 15% Hong France Kong SAR Macau SAR SingaporeThailand U.K. Australia Italy Malaysia South Korea Japan Germany
23 Challenges and Issues Educating outbound tourists Improving service quality in China Technology transfers from Hong Kong and other Asian countries to China
24 Influence of Asian tourism industry Hotels Shangri-La Peninsula Mandarin Oriental Dusit Hotels Nikko and ANA Okura Lotte Aman Resorts Banyan Tree and many more Airlines Cathay Pacific Singapore Airlines Korean Air ANA Asiana Airlines Japan Airlines Thai Airways Malaysia Airlines and others
25 Industry Is Taking Leadership in Applied Research and Development
26 The Hong Kong Polytechnic University Largest university in Hong Kong (25,000 students) Strong in 3 areas: School of Hotel and Tourism Management, School of Design, and School of Textile and Clothing Teaching language - English
27
28 SHTM ranked No. 4 in the world
29 The Hotel Our teaching hotel to open in Faculty offices - Classrooms - Laboratories - Library rooms five stars - 3 restaurants - Indoor swimming pool - Spas - Conference center - Ballroom - Training restaurant
30 Thank you! Visit:
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