With this newsletter, we aim to provide our clients and others in the travel and tourism industry with a broad overview of the latest trends and newest regulations related to the Chinese travel and tourism industry.

This month, a variety of trends are shaping the industry:

Shanghai continues to be popular with the MICE crowd…

By September, Shanghai will have held 240 large-scale MICE events for this year. The number has grown by 76 per cent compared to the first nine months in 2010.

Mainland Chinese are getting wealthier…

According to a report released yesterday by Credit Suisse Research Institute, the total wealth in Mainland China rose US$4 trillion from January, 2010 to June 2011, becoming the world’s second largest source of wealth growth. The number of millionaires in China has reached 1.017 million. The report said the figure will double in the coming five years.

The behavior of Mainland Chinese travelers continues to change…

Chinese travellers’ behaviour, showing that more first time Chinese travellers are choosing to travel independently rather than in traditionally large groups they have in the past.

It also reveals over 318 million access the internet regularly and search online for information on hotels, destinations and flights. Not surprisingly, the study revealed that Chinese travellers are more likely to get their information through social media, including online video sharing sites, traveller blogs and microblogs. According to iResearch, online travel booking market in China in 2010 stood at US$9.67 billion, a 58% increase from 2009. Moreover, it added that 60% of Chinese Internet users make purchase decisions based on online reviews.

If you have any comments or suggestions on the summary above or the full newsletter below, please don’t hesitate to contact us.  Also, do please do let us know if you do not wish to receive this newsletter by getting in touch with me at oliynyks@ruderfinnasia.com or by return email.

Best regards,
Shari Oliynyk
Director, Travel & Tourism

About Ruder Finn China’s Travel and Tourism Experience

Over the past 12 years, Ruder Finn China has developed and implemented numerous multi-faceted public relations programs in the travel and tourism sector.  Ruder Finn’s work on behalf of international clients includes projects and programs promoting countries, airlines, resorts and major tourist destinations.

Ruder Finn China’s travel and tourism experience, combined with its worldwide track record, offers its clients a combination of truly knowledgeable local and international teams, delivering results that meet their needs and objectives – on time and on budget.  Feel free to get in touch with us to discuss your requirements.  Our contact information is indicated at the beginning of this newsletter.  We look forward to hearing from you!

China Travel Industry News

Shanghai’s Big Draws

Sharp Rise in Mice events

Enterprises open new battlefield of the tourism with microblog

China’s e-payment booms, foreigners get the boot

China Consumer and Economic News

China Export Growth Dwindles to Slowest Pace in Seven Months as Yuan Gains

China to top UAE Asia-based visitors

Mainland travellers ‘tired’ of old favourites

Mainland China Has Over 1 Million Millionaires

Destination News

Europe aims to capture Chinese market

Tourism Fiji Eyes Chinese Travellers

US welcomes more Chinese

Nepal hot for Chinese

Foreign Countries Tighten Visa Granting to Chinese Shoppers in Outbound Travel?

Holiday to be boon for places overseas

Hotel News

Worldhotels set for boom in China

Hyatt rolls out select service brands in China

IHG to launch unique China brand

Wyndham Signs Five New Ramada Hotels in China

Airline News

Qinghai pins hopes on new airport to grow arrivals

China Southern adds flights down under

China Southern receives first A380

Cebu Pacific target China for growth

Air passenger tax will upset UK arrivals

Heathrow Losing Asian Flight Links to Paris, Frankfurt, Research Shows

China Travel Industry News

Shanghai’s Big Draws
TTG Asia, October 6, 2011
Xinlei Wang

According to the Shanghai Municipal Tourism Administration (SMTA), it is expecting about 240 million domestic and 10 million international visitors by 2015, as well as a revenue growth of more than 70 per cent from tourism. To achieve this the municipal government plans to invest RMB40 billion (US$6.3 billion) in tourism projects. For the city’s hotels, however, occupancy has dropped by 20-25 per cent compared to 2010, when the World Expo was held.

Sharp Rise in Mice events
TTG Asia, October 6, 2011
Xinlei Wang

Shanghai continues to be popular with the MICE crowd. “By September, Shanghai will have held 240 large-scale MICE events for this year. The number has grown by 76 per cent compared to the first nine months in 2010,” said Wu Cheng Lin, president of the Shanghai Conference and Exhibition Industries Association (SCEIA). “Shanghai is expecting a 20 per cent revenue growth from MICE each year,” said Sha Hai Lin, director of Shanghai Municipal Commercial Committee. By 2015, total exhibition and convention space in Shanghai will reach 1,500 hectares, which is nearly double the current 806 hectares, said SMTA deputy director Patrick Chen.

Enterprises open new battlefield of the tourism with microblog
www.travelweekly-china.com, October 17, 2011

Enterprises in many industries like the tourism have opened microblogs to expand the new network marketing platform with the popularity of microblog. Microblogs are not only a perfect marketing platform, but also a platform to monitor the product operation effect and user satisfaction. According to the monitoring of SNSTracker, microblogs of elong.com, 17u.com and qunar.com have the most fans.

China’s e-payment booms, foreigners get the boot
Reuters, September 27, 2011
Jane Lanhee Lee

As consumption booms, especially through the Internet, China’s electronic payment service industry has taken off. With credit and debit cards, prepaid cards, mobile payments, online payments, and now biometric payments, dozens of companies are vying for a part of the fast growing pie. Last year, transactions through online payment companies, the PayPals of China, passed 1 trillion yuan ($156 billion) for the first time. And by 2013, it’s expected to triple, according to research firm Analysis International. Cards, which make up the bulk of e-payments, swiped 10.4 trillion yuan last year in retail sales, making up about 35 percent of retail spending, according to the central bank. That in a country a decade ago was mostly a cashed based society.

The numbers can make overseas investors salivate, but it looks, once again, like they could be left in the cold. While the e-payment service industry outside of debit and credit cards had largely been unregulated, the central bank last year implemented a rule that requires third party payment service providers to get a license. And it said companies backed by foreign money needed special approval from the State Council, which has been interpreted by some local media as a move to kick out foreign investors.

China Consumer and Economic News

China Export Growth Dwindles to Slowest Pace in Seven Months as Yuan GainsM
Bloomberg, October 13, 2011

China’s exports rose the least in seven months and the customs bureau warned of “severe” challenges as the global economic outlook dims, giving Premier Wen Jiabao’s government less incentive to let the yuan rise.

China to top UAE Asia-based visitors
www.etravelblackboardasia.com, October 20, 2011

China is expected to be the largest number of foreign visitors stepping into the UAE this year, overtaking last year’s Asia inbound leaders, Japan.

According to Seoul city government deputy director Heung-sik Kim, the numbers of people travelling to the Middle Eastern cities of Dubai and Abu Dhabi, from China and Korea are continuously rising.

Mainland travellers ‘tired’ of old favourites
TTG Asia, October 28, 2011
Brian Higgs and Amee Enriquez

EXOTIC and far-flung destinations such as Mauritius and Madagascar in the south-west Indian Ocean, and Israel in the Middle East, are becoming more popular with well-heeled travellers from mainland China.

Lisa Zhuge, manager China office of Happy Planet, a Mauritius DMC, said there had been burgeoning demand for Mauritius and Madagascar from the high-end Chinese segment, mostly from tier-one cities such as Beijing, Shanghai and Guangzhou, ever since the company opened its Beijing office in 2009.

“Mainland Chinese are looking out for new and exotic leisure destinations. They are tired of the Maldives and Hawaii,” she said.

Meanwhile, for Israel, arrivals from various parts of mainland China have been growing at an estimated 30 per cent per year since 2009, according to Italy Friedjung, director, Israel government tourist office Beijing of the Israel Ministry of Tourism. The Israel Ministry of Tourism has been hosting Chinese media for familiarisation trips and promoting the destination through Chinese new media platforms.

Mainland China Has Over 1 Million Millionaires
Mirror, October 20, 2011

According to a report released yesterday by Credit Suisse Research Institute, the total wealth in Mainland China rose US$4 trillion from January, 2010 to June 2011, becoming the world’s second largest source of wealth growth. The number of millionaires in China has reached 1.017 million. The report said the figure will double in the coming five years.

Destination News

Europe aims to capture Chinese market
www.etravelblackboardasia.com, October 21, 2011

A study found the number of Chinese outbound tourists travelling to Europe is predicted to reach 4.5million by 2015 and 8.6 million by 2020, giving the European travel industry a potential income of €2 billion.

The study commissioned by Hilton Hotels and Resorts titled ‘How the rise of Chinese Tourism will Change the Face of the European Travel Industry’, identifies how the European tourism industry can evolve to better cater the needs of the Chinese traveller.

The report found Chinese Outbound Travel and Tourism (COTT) generated around 3 million visitor trips to Europe in 2010 with the majority spending time in Italy, France and Germany.

The study identifies a shift in Chinese travellers’ behaviour, showing that more first time Chinese travellers are choosing to travel independently rather than in traditionally large groups they have in the past. It also reveals over 318 million access the internet regularly and search online for information on hotels, destinations and flights.

Not surprisingly, the study revealed that Chinese travellers are more likely to get their information through social media, including online video sharing sites, traveller blogs and microblogs.

Tourism Fiji Eyes Chinese Travellers
www.marketing-interactive.com, Oct 24, 2011
Oliver Luk

Tourism Fiji has appointed digital agency Digital Jungle with the objective to attract more Chinese travellers through social media efforts.

In 2010 more than 18,000 visitors from China traveled to Fiji, showcasing a 32% increase compared to the same period in 2009.

According to iResearch, online travel booking market in China in 2010 stood at US$9.67 billion, a 58% increase from 2009. Moreover, it added that 60% of Chinese Internet users make purchase decisions based on online reviews.

US welcomes more Chinese
TTG Asia, October 27, 2011
Amee Enriquez

MAINLAND Chinese arrivals to the US have grown steadily, with New York, Florida and Las Vegas hailed as popular destinations, according to Haybina Hao, director, international development, NTA, the leading association for professionals serving travellers to, from and within North America.

Hao credited the better approval rate for visas as one of the reasons for the rise in mainland Chinese arrivals.

States like Guam and Hawaii were also seeing better traffic because of their proximity to the mainland and improved direct flight access, she added.

David Yu, NTA chief representative-China, said that 801,738 Chinese visited the US in 2010. NTA expects the number to exceed 2.6 million by 2016.

The US currently gets mostly leisure tourists from the mainland, who stay an average of up to two weeks. Popular reasons for visiting are shopping, golf, fishing trips and summer camp for students.

Nepal hot for Chinese
TTG Asia, October 28, 2011
Brian Higgs

NEPALI inbound operators have been seeing a steady increase in the number of high-end mainland Chinese customers.

Rabin Bajracharya, director sales of Lalitpur-based Global Holidays, which has an office in Shenzhen, said, year to date, he had seen more than 100 per cent year-on-year growth for business from mainland China to Nepal. The number of travellers had been growing steadily over the last three to four years, he added.

“(Mainland Chinese) like to combine Nepal with Tibet, and sometimes Bhutan and India,” he said. “They spend an average of seven to eight days, and about US1,100 per pax. If it is an adventure trip, then they stay about 10-12 days.”

Bajracharya said his mainland Chinese clients usually partake in mountaineering, trekking, extreme adventure sports, and even cultural tours, all facilitated with the help of tour guides fluent in Mandarin.

Foreign Countries Tighten Visa Granting to Chinese Shoppers in Outbound Travel?
The Beijing News, October 19, 2011

Outbound tourism welcomed a peak during the National Day Holiday. A number of Chinese were busy in shopping at big brands’ stores in addition to the attractions. However, some countries and regions restricted visas for Chinese travelers. Some Chinese travelers had to pay a deposit to get visa. Some European countries and regions asked Chinese travelers to show original ID cards and household registers. World Luxury Goods Association’s “Golden Week Chinese Overseas Consumer Analysis Report” indicates that Chinese travelers spent 2.6 billion euros in overseas countries in seven days during the national day holiday. Chinese travelers spent 1.96 billion euros in Europe in the seven days.

Holiday to be boon for places overseas
China Daily, September 30, 2011
Tan Zongyang

The China Tourism Academy, a research institute, forecasts that 2.2 million Chinese tourists will travel overseas during the weeklong holiday that starts on Oct 1.

The number of outbound tourists is expected to increase by a double-digit percentage above what it was in the same period this past year, the academy said. And travelers during the holiday are expected to spend $950 each on average, or $2.1 billion in total.

According to the academy, the Maldives, Phuket Island in Thailand, Bali Island in Indonesia, Hong Kong and South Korea are expected to be among the destinations preferred by Chinese mainland tourists during the holiday.

They will be popular because they can provide both good accommodations and tax deductions to Chinese tourists who buy luxury goods. Dai also noted that such places are offering more services in Mandarin.

In 2010, Chinese citizens became the fourth largest spenders on overseas travels.

Hotel News

Worldhotels set for boom in China
www.etravelblackboardasia.com, October 5, 2011

Increasing its Asia presence, Worldhotels has teamed up with China World Hotels to open up to 75 hotels in China within a decade. China World Hotels currently operates up to 160 hotels in China and according to the brand’s director Robert Yu the Worldhotels brand could bring international exposure to hotels currently in China. The 75 hotels are expected to open up in Beijing, Shanghai, Hong Kong, Macau and Taiwan.

Hyatt rolls out select service brands in China
Business Traveller Asia, October 13, 2011
Margie T Logarta

Hyatt Hotels’ China expansion has received a boost with the debut of its Hyatt Place and Hyatt House brands in Shanghai – the first Asian destination to receive these new service propositions – and signing of eight additional full service hotels across the country.

Hyatt Place, which was launched last year, will feature guestrooms measuring around 32 sqm and amenities following Hyatt standards, such as the linens and showers, but no spa, ballroom or Chinese restaurant.

Hyatt House, introduced earlier this year, caters to a clientele on extended visits desiring space. The hotel’s entire portfolio of Hyatt Summerfield Suites and 16 Hotel Sierra properties were rebranded as Hyatt House.

As for the full-service Hyatt projects, these include three Grand Hyatt hotels in Lijiang (Yunnan Province), Heifei (Anhui Province) and Shenzhou Peninsula of Hainan Island, as well as four Hyatt Regency properties in different areas of Shanghai – Chongming, Hongqiao, Jiading and Wujiaochang – and one in Zhenjiang, Jiangsu Province.

The group’s Andaz brand will debut in Asia, soft opening on October 18 the 24-storey, 307-room Andaz Shanghai.

IHG to launch unique China brand
Business Traveller Asia, October 14, 2011

Intercontinental Hotel Group’s (IHG) soon-to-be-launched brand, expressly designed for the Chinese traveller, promises to respond to their core needs both as professionals and individuals.

China’s major hubs such as Beijing, Shanghai and Guangzhou are expected to receive properties under IHG’s new Chinese brand, and so will secondary and tertiary cities “because that’s where the future growth is”, said Barr. Then, the brand will be brought out of the country, possibly starting in Singapore, Hong Kong and Bangkok, then in time, to longer-haul points such as New York and London. The step is a logical one, following ever-increasing projections of an explosion in the Chinese outbound market.

Wyndham Signs Five New Ramada Hotels in China
www.asiatraveltips.com, October 25, 2011

Wyndham Hotel Group has signed franchise agreements for the following five new construction hotels in China under the company’s Ramada brand.

The properties will join Wyndham Hotel Group’s 43 Ramada hotels already in operation in China.

Airline and Air Travel News

Qinghai pins hopes on new airport to grow arrivals
TTG Asia, October 3, 2011

The completion of the Qinghai Yushu Airport in 2014 is expected to boost international air connections and foreign arrivals to the Chinese province.

Qinghai Tourism Administration director, Wu Dawei, said: “The current lack of international direct flights into Qinghai has limited the growth potential of international arrivals. Entry is only via Shanghai or Beijing, which the average longhaul visitor considers inconvenient. We are hopeful that the larger new airport will attract bigger jets that fly international routes.”

China Southern adds flights down under
www.etravelblackboardasia.com, October 11, 2011

Building on growing demand, China Southern Airlines has released plans to double the number of flights between Melbourne and Guangzhou by the end of this month.

Commencing 31 October this year, the carrier said it will increase its services on the route from one to twice daily until February next year, The Sydney Morning Herald reported.

The airline’s general manager Adam Zhang said the extra services were an aim to push travel between Australia and China from 70,000 to 140,000 before 2014.

China Southern receives first A380
Business Traveller Asia, October 17, 2011
Alisha Haridasani

China Southern took delivery of its first Airbus A380 on October 14 making it the first Chinese carrier to do so.

The aircraft will first be deployed on domestic routes, flying between Guangzhou and Beijing until October 26. From October 27 until October 29, the aircraft will be placed on the Beijing-Shanghai route. It will eventually be deployed on international routes although it is still unclear when that will happen and on which route. When the aircraft operates between Beijing and Shanghai it will hopefully ease intense congestion on this highly popular route, since the A380 adds more capacity per flight.

Cebu Pacific target China for growth
www.etravelblackboardasia.com, October 31, 2011

Cebu Pacific has announced it will increase its Manila –Beijing flights from three to four times weekly from 07 January 2011, in response to increasing growth from the China market.

The Airlines decision to expand is as a result of a 30 percent increase in passengers from mainland China in the 3rd quarter of 2011, compared to the year before.

To kick off the increase in flights and demand from China, the budget carrier is holding a seat sale offering tickets between Manila and Beijing, Guangzhou and Shanghai at discounted prices from 01 December through to the 31 March 2012.

Air passenger tax will upset UK arrivals
www.etravelblackboardasia.com, October 5, 2011

The Governments plan of raising Air Passenger Duty Tax (APD) by ten percent will impact tourist arrival numbers into the country and damage the Great Britain campaign, tourism heads have warned. Senior figures in the travel industry have expressed their reservations of the potential harm the tax rise could inflict on the travel industry and to the British economy, the Telegraph reported.

Heathrow Losing Asian Flight Links to Paris, Frankfurt, Research Shows
Travel Impact Newswire, October 2, 2011

London’s Heathrow airport is losing its European hub status to Frankfurt and Paris will need to boost connections with cities in Asia and numerous other “emerging market” cities if it hopes to narrow the gap, according to an economic research paper published on September 30.

The report by Frontier Economics, entitled “Connecting for Growth”, claims that Britain “risks being cut off from global growth” and becoming “a less competitive place to do business”. It cites Manila, Jakarta, Ho Chi Minh City, Guangzhou, Shenyang and Pune as examples of cities from where it is either underserved or not served at all as compared to Paris and Frankfurt.

A variety of trends are shaping the industry:

China’s wealthy are shopping abroad…
With mainland Chinese buying 56 percent of their luxury goods abroad, high-end retailers outside China stand to be the big beneficiaries of the unfolding boom in tourism and disposable incomes. It is estimated that mainland Chinese demand for luxury goods would soar to 42 percent of the global total by 2020 from just 13 percent in 2010.

China’s women are leading the international tourism charge…
In China the amount spent on travel by “well educated and well-paid”, single Chinese women rose to 4,300 yuan (468 euros) last year – up 20 percent year-on-year, eclipsing the nine percent rise in the same figures for men. This information was released in a report by Qunar.com – the world’s largest Chinese-language online travel search engine – and it also claims that in China’s women are responsible for 65 percent of decisions made about travel products and expenditure.

Chinese are expected to be the largest tourist demographic in subsequent years…
57 million Chinese tourists set to visit abroad in 2011. A record 56 million mainland tourists travelled overseas last year. That number is 2 million more than an earlier estimate of 54 million, and is also an increase of 8.3 million over 2009.

According to an industry report by the International Air Transport Association (IATA), 214 million out of 360 million new passengers on Asia-Pacific routes in 2014 will be from China

If you have any comments or suggestions on the summary above or the full newsletter below, please don’t hesitate to contact us. Also, do please do let us know if you do not wish to receive this newsletter by contacting me at oliynyks@ruderfinnasia.com.

Best regards,
Shari Oliynyk
Director, Travel & Tourism

About Ruder Finn China’s Travel and Tourism Experience
Over the past 12 years, Ruder Finn China has developed and implemented numerous multi-faceted public relations programs in the travel and tourism sector. Ruder Finn’s work on behalf of international clients includes projects and programs promoting countries, airlines, resorts and major tourist destinations.

Ruder Finn China’s travel and tourism experience, combined with its worldwide track record, offers its clients a combination of truly knowledgeable local and international teams, delivering results that meet their needs and objectives – on time and on budget. Feel free to get in touch with us to discuss your requirements. Our contact information is indicated at the beginning of this newsletter. We look forward to hearing from you!

China Travel Industry News
China may surpass Japan in tourism stakes
Ctrip.com issues “Report of 2011 Tourists’ Propensity for Travel”
An inventory of 2010 tourism market
Number of outbound visitors amounts to be 57.39 million in 2010
CTA and Ctrip.com announce rankings of popular cities and top 10 outbound destinations during 2011 Spring Festival
Four predictions for the 2011 tourism market
“Group-buying” travel wins popularity during Spring Festival; Industry insiders say it will not threaten the status of traditional travel agents in the short term
China’s travel bug spreads, bodes well for luxury
Report says China’s tourism ranks 39th in the world; number of outbound tourists in third place
Chinese to spend more on travel than Hong Kong, Taiwan travelers
China outbound soars
Chinese outbound enjoys double-digit growth
China’s women leading the international tourism charge, says report
Have Money, Will Travel
Tourism destinations for Chinese citizens reaches 140 in 2010
57 million Chinese tourists set to visit abroad in 2011
FIT to China is “the big story”
China’s tourism competitiveness level moves up to 39th worldwide
China’s tourism revenue up 20 pct in 2010
Macau December Casino Sales Rise 66% on China Tourism
Luxury players to converge in China for ILTM Asia 2011

China Consumer and Economic News
People’s Bank of China (PBC) raises interest rates
Trade surplus sees sharp decrease; RMB appreciation pressure relieved
Year-on-year increasing scopes of Consumer Price Index (CPI) to range from 4% to 4.3%
Domestic consumer market sees growth
PBOC survey: residents’ willingness to consume declines to the lowest since 1999

Destination News
Australia tour gets hot
Chinese Visitors to NZ surges in Nov
China expects to be largest guest source for Sydney
About one thousand Chinese people to pass Spring Festival in Los Angeles
Air China to increase direct flights between Los Angeles and Beijing
Disney California Adventure Park has 2-hour time exclusively for Chinese tour groups
British shops ‘will need Chinese currency’ amid China tourists surge
With growing demand for shopping and entertainment, number of Chinese tourists traveling to US hits new high
Malaysia woos Chinese business tourism market
Myanmar – an emerging destination for Chinese tourists?
Chinese tourism boom predicted
Cambodia sees Chinese visitors as potential boost to tourism
Chinese outbound tourism to India set for big take-off
Chinese tourism to South Africa rises
China plays major role in Australian tourism growth: report

Hotel News
Kempinski expands China footprint
Six Senses to open China resort
New World Hotels to Expand China Presence
China hotel rates growing steadily by 19%
Fairmont announces new property in China in late 2012
Wyndham ups presence in China and Thailand

Airline News
China to lead air travel boom
China Southern to open direct air lines to Auckland and Vancouver next month
ANA to tap Chinese budget travel with new LCC
KLM launches flights to Xiamen
United Airlines Celebrating Los Angeles – Shanghai Launch
Jetstar starts new Singapore-Hangzhou link
Myanmar extends VOA to MAI’s Guangzhou route

China Travel Industry News
China may surpass Japan in tourism stakes
China Daily, March 31, 2011
Yang Ning
China is expected to overtake Japan and become the world’s second-largest travel and tourism market, at home and abroad, by 2013, according to a report released by the Boston Consulting Group (BCG) on Wednesday. China currently accounts for 6 percent of revenue from global tourism. That proportion will increase to 8 percent in 2013 and 14 percent in 2020, the report said.

Ctrip.com issues “Report of 2011 Tourists’ Propensity for Travel”
www.travelweekly-china.com, December 29, 2010
On December 29, Ctrip.com issued the “Report of 2011 Tourists’ Propensity for Travel”. Several thousand web visitors took part in the survey. The survey showed: 1) citizens have high propensity to tour; 2) self-service and leisure tours to be the main type of tourism; 3) websites are the main channels for tour reservations; 4) expenditure on tours will rise in 2011; 5) and purchasing a house is the top reason to rein in the tourism spending.

An inventory of 2010 tourism market
Mirror, January 18, 2011
The heads of China’s 5 top travel agencies expressed their opinions about 2010 and 2011 tourism market. In 2010, Canada was the highlight of the tourism market after it received ADS from China.

Number of outbound visitors amounts to be 57.39 million in 2010
www.travelweekly-china.com, January 31, 2011
According to the information from the national tourism work conference, the number of outbound tourists in 2010 amounted to be 57.39 million, a year-on-year increase of 20.4%. Chairman of CNTA Shao Qiwei said, in 2010, China signed cooperative agreements with six countries including signing ADS with Canada.

CTA and Ctrip.com announce rankings of popular cities and top 10 outbound destinations during 2011 Spring Festival
www.travelweekly-china.com, January 31, 2011
China Tourism Academy (CTA) and Ctrip.com announced the rankings of the most popular cities and the top 10 outbound destinations during the 2011 Spring Festival. For the outbound tourism market, Hong Kong, Macau and Southeast Asia received the majority of tourists. The top 10 popular outbound destinations in order of rank were Hong Kong, Phuket, Singapore, Bangkok, Bali, Seoul, the Maldives, Cambodia, Tokyo and Kuala Lumpur.

Four predictions for the 2011 tourism market
Beijing Business Today, February 10, 2011
Shi Xin
The heads of China’s top travel agencies made predictions for 2011 tourism: 1) in-depth tours to outperform sightseeing tours; 2) the growth of outbound travel to be higher than that of domestic travel; 3) 2011 to be a stable year for the tourism market and 4) elderly tourists and family groups will be a key part of the tourism market. In the article it stated that, CITS planned to introduce more tourism products to countries like Canada, America and more.

“Group-buying” travel wins popularity during Spring Festival; Industry insiders say it will not threaten the status of traditional travel agents in the short term
International Business Daily, February 14, 2011
Zhang Yun Zhong
During the Spring Festival holiday, group-buying travel deals won popularity in the booming tourism market. However, industry insiders analyzed that websites for booking group tour travel websites will not threaten traditional travel agents in the short term.

China’s travel bug spreads, bodes well for luxury
www.travelweekly-china.com, February 18, 2011
China’s itch for travelling abroad is spreading to second-tier cities, feeding a boom that is benefiting the tourism and retail industries across the globe and putting the country on the cusp of overtaking the United States as the largest outbound tourism market.

Report says China’s tourism ranks 39th in the world; number of outbound tourists in third place
Wen Hui Bao, March 8, 2011
Wang Zhao, Liu Yang
According to the Travel & Tourism Competitiveness Report 2011 released by World Economic Forum on March 7, China’s tourism competitiveness ranks 39th in the world. In addition, the number of Chinese outbound tourists ranked third and Chinese tourists have become an important force driving the development of global tourism.

Chinese to spend more on travel than Hong Kong, Taiwan travelers
TTG Asia, February 11, 2011
Tourists from mainland China are expected to spend more on leisure travel this year compared to their counterparts from Hong Kong and Taiwan, according to a report released yesterday by Hong Kong-based Travelzoo Asia Pacific. Mainland Chinese travellers said they would spend an average of US$3,780 per person, while the numbers of Hong Kong and Taiwanese travellers were US$2,670 and US$1,782 respectively. The report revealed that ecotourism holidays, with a focus on Tibet, was a trend to watch among Chinese travellers this year. It also found that the increasingly sophisticated Chinese tourist was keen on exotic and luxury vacations at spa resorts, especially those with en-suite facilities.

China outbound soars
TTG Asia, January 17, 2011
An estimated 54 million Chinese travelled overseas last year, spending around US$48 billion, according to findings by the China Tourism Academy (CTA). The CTA expects three million additional Chinese travellers to cross their borders this year, spending an additional US$7 billion.

Chinese outbound enjoys double-digit growth
Heide, January 13, 2011
Chinese travellers were out in full force last year, with the government-linked China Tourism Academy (CTA) estimating around 54 million who ventured abroad, spending some US$48 billion. A further increase of three million Chinese travellers are expected this year, with CTA anticipating a growth in expenditure of US$7 billion. “The increasing direct foreign investment of Chinese companies overseas also results in more business travellers from China going places.”

China’s women leading the international tourism charge, says report
The Independent, March 7, 2011
The “2010 Trend Report of Women’s Travel” claims the amount spent on travel by “well educated and well-paid” single Chinese women rose to 4,300 yuan (468 euros) last year – up 20 percent year-on-year, eclipsing the nine percent rise in the same figures for men. And while that may not seem a massive amount on the face of it, cobble this together with the knowledge that an estimated 65 million Chinese will travel overseas this year – and an estimated 100 million by 2020 – -and we’re talking pretty significant numbers by anyone’s standards. The report has been released by Qunar.com – the world’s largest Chinese-language online travel search engine – and it also claims that in China’s women are responsible for 65 percent of decisions made about travel products and expenditure. In China already the tourism industry has picked up on the trend and is working hard to address the specific needs of the female traveler.

Have Money, Will Travel
Reuters, February 2, 2011
Alan Wheatley, Vinu Pilakkot
With mainland Chinese buying 56 percent of their luxury goods abroad, high-end retailers outside China — principally Hong Kong — stand to be the big beneficiaries of the unfolding boom in tourism and disposable incomes. Fischer and Kou estimated that mainland Chinese demand for luxury goods would soar to 42 percent of the global total by 2020 from just 13 percent in 2010.

Tourism destinations for Chinese citizens reaches 140 in 2010
People’s Daily, January 19, 2011
The number of the tourism destinations for Chinese citizens hit 140 in 2010, with the number of outbound tourists up by 20 percent year on year, said tourism authorities Tuesday. The number of outbound Chinese tourists reached 57.4 million in 2010, up 20.4 percent year on year, said Shao Qiwei, head of the National Tourism Administration, at the National Tourism Working Conference. China signed seven tourism exchange and cooperation agreements with six countries in 2010. Revenue generated by tourism in China hit 1.57 trillion yuan (238.5 billion U.S. dollars) in 2010, up 21.7 percent on the previous year, said Shao.

57 million Chinese tourists set to visit abroad in 2011
China Daily, January 13, 2011
Beijing – A record 56 million mainland tourists traveled overseas last year, Shao Qiwei, head of the China National Tourism Administration, said on Wednesday. That number is 2 million more than an earlier estimate of 54 million, and is also an increase of 8.3 million over 2009. “China’s tourism has entered a new round of golden development, thanks to fast economic development, the growth of people’s incomes and further opening-up,” he said. Industry analysts said it is the first time that the number of mainland tourists going overseas has exceeded that of inbound overnight tourists.

FIT to China is “the big story”
TTG Asia, March 9, 2011
Raini Hamdi
FIT travel to China is “the big on-going growth story”, according to TUI China, which reports an ever-increasing demand for flexible and more individualised travel itineraries for all key regions in China from all its major source markets. Schneider also noted a strong increase in demand for the company’s adventure and soft adventure itineraries. Increasingly, Tibet, the Silk Road, Yunnan and Sichuan are proving to be popular destinations within China.

China’s tourism competitiveness level moves up to 39th worldwide
China Business News, March 11, 2011
The competitiveness of China’s tourism industry ranked 39th worldwide, which is a leap forward from its ranking of 62nd four years ago, according to the “2011 Global Tourism Competitiveness Report” released by the World Economic Forum, which is headquartered in Geneva, Switzerland, on March 7.

China’s tourism revenue up 20 pct in 2010
Global Times, January 13, 2011
China earned 1.55 trillion yuan ($234.8 billion) in tourism revenues last year, an increase of 20 percent year on year, as the industry rid itself of the shadow of the global financial crisis.

Further, some 2.1 billion domestic trips were made, up 11 percent from one year ago, according to figures released by the National Tourism Administration (NTA). Those trips generated 1.25 trillion yuan in revenues. Inbound trips increased 6 percent year on year to 134 million, producing revenues of $45 billion. He cited the prediction by the World Tourism Organization that China would become the world’s largest tourist destination by 2015.

Macau December Casino Sales Rise 66% on China Tourism
Bloomberg, January 5, 2011
Casino revenue in Macau, the world’s largest casino hub, surged 66 percent to 18.9 billion patacas ($2.36 billion U.S. dollars) in December as an increasing number of Chinese gamblers visited the city.

Sales for casinos in Macau, the only place in China where they’re legal, surged 58 percent to 188.3 billion patacas last year, according to data from Macau’s Gaming Inspection and Coordination Bureau. China, which contributes more than half the number of tourists to Macau, may grow 10 percent in 2010, according to the median forecast of 18 economists surveyed by Bloomberg.

Macau’s visitor arrivals rose 15 percent to 22.7 million in the first eleven months the city’s tourism agency said. Tourists from mainland China increased 20.5 percent in the first 11 months, according to the agency’s data.

Luxury players to converge in China for ILTM Asia 2011
TTG Asia, March 3, 2011
The ranks of china’s out-bound market continue to swell, with the UN World Tourism Organization predicting that mainland Chinese travelers will take 100 million trips overseas by 2015. It is against this backdrop that the International Luxury Travel Market (ILTM) Asia will hold its fifth outing in Shanghai from June 13 to 16. “There is huge growth to come,” said Frank Zheng of Luxe China Club and VIP buyer at ILTM Asia 2011 on the Chinese luxury market. “Chinese consumers are finding it a lot more interesting to travel and are increasingly interested in luxury and variety at the top end of the scale. The yuan is expected to rise in value, and visa restrictions are diminishing every day.”

First time exhibitors at the show include Lodges of New Zealand, Tourism Fiji, and Song Saa Private Island, which opens in Cambodia this November. Six Senses Resorts & Spas will unveil a number of new properties including Six Senses Laamu in the Maldives, opening in April. ILTM Asia 2011 also counts Orient Express, India’s The Maharaja’s Express, InterContinental Hotels Group and The Ritz-Carlton Company as exhibitors.

China Consumer and Economic News
People’s Bank of China (PBC) raises interest rates
Guangzhou Daily December 27, 2010
Wang Liang, Chen Hai Ling
PBC last Saturday announced a rise in the lending and deposit interest rates for the second time this year to cope with inflation. The rise of interest rates will boost the fluidity.

Trade surplus sees sharp decrease; RMB appreciation pressure relieved
21st Century Business Herald, January 11, 2011
In December of 2010, China’s trade surplus saw a sharp decrease to US$13.08 billion, creating a historical low for the past 8 months. The data, in part, reflects the pressure of RMB appreciation. In 2010, China’s trade surplus amounted to US$183.1 billion, based on the data from the General Administration of Customs. Analysts said that the decreasing growth rate of the trade surplus is a trend because there is the policy to rein in surplus through expansion of imports. On the other hand, analysts have said that the RMB will continue to grow in a small range of 3% to 5% versus the US dollar in 2011

Year-on-year increasing scopes of Consumer Price Index (CPI) to range from 4% to 4.3%
Economic Information Daily, February 16, 2011
Fang Hua
The National Bureau of Statistics of China on February 15 announced the CPI in January had the year-on-year increase of 4.9%, demonstrating heavy pressure from inflation. It is forecasted that the CPI will fall during the third quarter. The expert forecasted the year-on-year increased scope of the CPI that will range from 4% to 4.3%.

Domestic consumer market sees growth
Shanghai Securities News, March 4, 2011
The draft of the Twelfth Five-Year Plan is likely to list the increasing consumption rate of residents. This provokes hot discussions among the Chinese People’s Political Consultative Conference (CPPCC) members. Analysts said China’s residents’ rate of consumption will see a turning point this year. A report from China Galaxy Securities predicts that the consumption rate is likely to reach 48.8% in 2011. Consumer product industries including culture, sports, travel, etc. will benefit from consumption rate growth.

PBOC survey: residents’ willingness to consume declines to the lowest since 1999
National Business Daily, March 17, 2011
On March 16, PBOC released the results of three surveys conducted in Q1. According to the surveys, residents’ willingness to consume declined to its lowest since 1999; demand for bank loans rose for two consecutive months; the business climate index increased to its highest.

Destination News
Australia tour gets hot
Beijing Business Today, December 23, 2010
Liu Xin
According to travel agencies in Beijing, outbound travel is very hot now in Beijing, and Australia is “the hot” destination for Beijing visitors. An official from a tourism website said it was because February is warm season in Australia and Australia has a lot of festivals during that period.

Chinese Visitors to NZ surges in Nov
www.travelweekly-china.com, December 27, 2010
Arrival data released by Statistics New Zealand shows that 14,875 Chinese visitors arrived in New Zealand during November, an increase of 34.5 per cent from November 2009 and an all-time record for Chinese visitors in the month of November. Tourism New Zealand’s Chief Executive Kevin Bowler said, “In the year to November arrivals from China have been phenomenal, showing growth of 15 percent. We’ve had 120,222 Chinese arrivals in the past 12 months, and the continued growth is great news for the New Zealand tourism operators in the lead up to Christmas and the summer peak tourism season.”

China expects to be largest guest source for Sydney
www.travelweekly-china.com, January 8, 2011
Wang Jing
Tourism New South Wales announced on January 17th that it has launched a brochure in China named “Go to Sydney with the CUP Card and Enjoy One Free Visitor Free Tour”. With the brochure in hand, every 2 Chinese visitors who plan their Sydney tour can enjoy one free visitor service.

About one thousand Chinese people to pass Spring Festival in Los Angeles
www.travelweekly-china.com, January 21, 2011
According to American World Journal, for the 2011 Spring Festival, about one thousand Chinese visitors will spend the Festival in Los Angeles. The estimate for spending for each visitor is from about RMB 19,980 to RMB 28,000.

Air China to increase direct flights between Los Angeles and Beijing
www.travelweekly-china.com, January 24, 2011
Air China will increase the direct flights between Los Angeles and Beijing from September 1, 2011 to two daily.

Disney California Adventure Park has 2-hour time exclusively for Chinese tour groups
Mirror, February 5, 2011
Wang Jing Yu
During the Spring Festival, Disney California Adventure Park had a 2-hour time slot exclusively for Chinese tour groups. Disney California Adventure Park also arranged some celebrations and food for Chinese people.

British shops ‘will need Chinese currency’ amid China tourists surge
www.travelweekly-china.com, February 15, 2011
British shops will soon need to start keeping Chinese currency amid a surge in tourists and brands becoming owned by China businessman, Oxford University experts warn.

With growing demand for shopping and entertainment, number of Chinese tourists traveling to US hits new high
www.travelweekly-china.com, March 23, 2011
The number of Chinese tourists travelling to the United States is growing fast at above 50%, driven by shopping and entertainment demands of the middle class. Many tourists buy luxury goods and even articles for daily use in the United States as prices there are lower than in China. RMB appreciation is also an important factor.

Malaysia woos Chinese business tourism market
TTG Asia, January 17, 2011
S Puvaneswary
Malaysia Convention & Exhibition Bureau (MyCEB) aims to increase business tourism arrivals from China by five per cent this year, to reach 1.12 million delegates over last year’s target of 1.07 million.

Myanmar – an emerging destination for Chinese tourists?
China Travel Trends, February 11, 2011
Although Chinese tourists visited Myanmar in large numbers, most of them came to the country to look for business opportunities, and are not much of a benefit for the tourism industry. Thai tourists lead the tourist inflow into Asian countries every year, followed by Chinese tourists. Asian tourists to Myanmar include Thai, Chinese, Japanese, Korean, Indian, Malaysian, Singaporean and Chinese Taipei, and Chinese tourists make up ten percent of the total every year.

Myanmar will grant visa-on-arrival for cross-border tourists entering by road from Teng Chong, southwestern Yunnan province of China, to travel deep into Myanmar’s tourist sites by air en route the border town of Myitkyina in the northernmost Kachin state.

Chinese tourism boom predicted
World News Australia, January 20, 2011
China’s Hainan Airlines, has launched direct flights between two southern Chinese cities and Sydney, as tourism authorities predict that China is on its way to becoming Australia’s biggest inbound tourism market, SBS’ Cassandra Hill reports. Hainan Airlines and Sydney Airport executives say that there is a strong demand from the booming economic centres of Shenzen and Hangzhou. Jetstar is also set to start flights from Hangzhou and China Southern Airlines has already expanded its flights between Guangzhou and Australia’s east coast. The Tourism and Transport Forum says China is Australia’s fastest growing market.

Cambodia sees Chinese visitors as potential boost to tourism
People’s Daily Online, January 17, 2011
In addition to the significant roles contributed by China to the country’s development that is admired by Cambodian leaders, Cambodia is also seeing Chinese visitors as a potential boost to tourism. China is now recorded as the third largest source of foreign tourists to Cambodia, according to statistics of the tourism ministry. The latest figure showed that 177,636 Chinese visited Cambodia in 2010, an increase of 38.55 percent over 2009.

Chinese outbound tourism to India set for big take-off
People’s Daily Online, January 17, 2011
In 2009, 96,997 Chinese tourists made their way to India, accounting for 1.9 percent of total foreign arrivals in the country. About 41.5 percent of Chinese tourists came to India for leisure, holidays and recreation while 50.4 percent came for business and other professional reasons. A total of 4.1 percent were visiting friends and relatives, according to the Tourism Ministry of India.

Although China came in at 12th among the tourist generating markets for India, it is the fastest growing market with a compound annual growth rate of 16 percent.

Chinese tourism to South Africa rises
China Daily, January 7, 2011
Chinese tourists to South Africa between January to October last year reached a total of 55,874, an increase of 65.5 per cent in 2009. The growth was boosted by the soccer World Cup, according to South African Tourism.

China plays major role in Australian tourism growth: report
Xinhua, March 9, 2011
China has surpassed the United Kingdom (UK) as Australia’s most valuable tourism market, a survey released by the Australian Government Department of Resources, Energy and Tourism on Wednesday found. Almost 5,441,000 people went to Australia in 2010 and they spent 18 billion AU dollars (18.13 billion U.S. dollars) on their trips, the report said. In terms of total goods and services, they contributed 24 billion AU dollars (24.17 billion U.S. dollars).

Hotel News
Kempinski expands China footprint
TTG Asia, March 14, 2011
Prudence Lui
German-based Kempinski Hotels will grow its portfolio in China from nine to 30 hotels by 2015, with six five-star properties scheduled to open this year.

Aside from Kempinski Hotel Huizhou, Kempinski Hotel Guiyang, The ONE Executive Suites Shanghai, Kempinski Hotel Xiamen, Kempinski Hotel Qingdao and Kempinski Hotel Haitang Bay Sanya—all of which are scheduled to open by end 2011— the group will branch out into Chongqing and Taiyuan next year. This will be followed by Yixing and Sanya in 2013.

Six Senses to open China resort
TTG Asia, February 18, 2011
Bangkok-based Six Senses Resorts & Spas will open its first resort in China in 2013. Located at the foot of Sichuan province’s Qing Cheng Mountain – a UNESCO World Cultural and Natural Heritage Site – Six Senses Qing Cheng Mountain will encompass Taoist and Chinese architecture and design principles.

New World Hotels to Expand China Presence
www.odysseymediagroup.com, January 24, 2011
New World Hotels will open five new properties in China by 2014, furthering its aim to establish footholds in strategic locations across the country. In addition to Beijing, the other selected locations are targeted for economic development by the government. These represent untapped potential for business and leisure travel and present new opportunities for five-star hotel development.

China hotel rates growing steadily by 19%
www.chinatraveltrends.com, March 23, 2011
Hotels.com® Hotel Price Index™ (HPI®) reports that China second and third tier cities hotel price are growing steadily. Compared to 2009, China’s overall hotel price index went up by 19%.

The report indicates that a number of China’s second tier cities are showing remarkable growth, including Chengdu (21%) and Shenzhen (16%). While other Chinese cities are showing steady increases – Hangzhou (8%), Nanjing (5%), Qingdao (5%) and Xi’An (3%). Other first tier cities such as Shanghai (23%) and Guangzhou (29%) have demonstrated significant hotel price growth due to major events in 2010 including the Shanghai Expo and Asian Games.

Fairmont announces new property in China in late 2012
www.travelandtourworld.com, March 16, 2011
Fairmont Hotels & Resorts is expanding its presence in Asia Pacific region. It has announced the addition of a new property in China, the Fairmont Nanjing which is scheduled to open in late 2012. The project is being developed by Jiangsu Golden Land Group Real Estate Development Col, Ltd. (‘Jingao’), a Nanjing-based real estate company focused on commercial and residential enterprises

Wyndham ups presence in China and Thailand
TTG Asia, March 18, 2011
Having opened nearly 100 properties across Asia-Pacific last year, Wyndham Hotel Group will add two more to its regional portfolio, one in Sanya, China, and another in Khao Lak, Thailand.

The 26-storey Wyndham Sanya Resort, to be built by Sanya Hengsen Industrial Investment Co., is expected to open in January 2014.

The group said the addition of the Sanya resort strengthened its position as the largest US-based hotel company in China, where the company franchises 301 hotels representing more than 46,000 rooms under the Wyndham, Ramada, Howard Johnson, Days Inn and Super 8 brands. There are now 14 Wyndham hotels open or under development in China.

Airline and Air Travel News
China to lead air travel boom
TTG Asia, February 15, 2011
Asia-Pacific’s international passenger demand is expected to grow by 7.6 percent by 2014, and China in particular looks set to lead the charge, according to an industry report released yesterday by the International Air Transport Association (IATA). With the fastest growing international and domestic markets in the world, 214 million (181 million domestic and 33 million international) out of 360 million new passengers on Asia-Pacific routes in 2014 will be from China.

International air travel
International passenger numbers around the world are expected to rise from 952 million in 2009 to 1.3 billion passengers in 2014, reflecting a compound annual growth rate (CAGR) of 5.9 per cent. The fastest growing markets for international passenger traffic will be China (10.8 per cent), the UAE (10.2 per cent), Vietnam (10.2 per cent), Malaysia (10.1 per cent) and Sri Lanka (9.5 per cent).

Domestic air travel
Domestic passenger numbers around the world are expected to rise from 1.5 billion in 2009 to over 2 billion in 2014, reflecting a CAGR of 5.7 per cent. By 2014, the five largest markets for domestic air travel will be the US (671 million), China (379 million), Japan (102 million), Brazil (90 million) and India (69 million).

China Southern to open direct air lines to Auckland and Vancouver next month
New Express, March 23, 2011
Starting next month, China Southern will open direct airline routes to Auckland, Amsterdam and Vancouver. The number of international airline routes will be increased.

ANA to tap Chinese budget travel with new LCC
TTG Asia, February 10, 2011
Japan’s All Nippon Airways (ANA) has designs on the Chinese budget travel market, with plans to launch a new low-cost carrier (LCC) by mid-February. A joint venture with Hong Kong-based First Eastern Investment Group, A&F-Aviation will initially be based in Osaka’s Kansai International Airport, servicing limited destinations in China and Japan from October, while also offering Japanese domestic flights. It will increase the number of routes to 20 within five years. First Eastern chairman Victor Chu said the LCC would challenge Air China and Japan Airlines on Chinese routes, while its major hubs would include Beijing, Shanghai, Hangzhou, Shenzhen and Guangzhou, as well as Hong Kong and Macau.

KLM launches flights to Xiamen
www.travelweeklyweb.com, March 29, 2011
KLM Royal Dutch Airlines has launched flights to Xiamen International Airport in China. The new scheduled service brings the frequency of weekly flights from Amsterdam to Greater China to a total of 73. KLM offers, together with partner China Southern Airlines, a total of 53 weekly services to China.

United Airlines Celebrating Los Angeles – Shanghai Launch
www.odysseymediagroup.com, March 8, 2011
United Airlines is celebrating the airline’s inaugural service between Los Angeles and mainland China’s commercial and financial center with special fares for economy and business travel and a special Mileage Plus bonus offer.

Customers flying in United Economy between Los Angeles and Shanghai may purchase roundtrip fares beginning at $788*, for outbound travel between May 20, 2011, and June 17, 2011. Tickets must be purchased by March 28, 2011.

Jetstar starts new Singapore-Hangzhou link
TTG Asia, March 23, 2011
JETSTAR launched its four-times-weekly service to Hangzhou yesterday, becoming the first carrier to offer direct flights between Singapore and the Chinese city south of Shanghai. This brings the airline’s Greater China network to seven destinations, including four to the mainland. It also flies to Guilin, Haikou, Shantou, Hong Kong, Macau and Taipei.

Myanmar extends VOA to MAI’s Guangzhou route
TTG Asia, March 29, 2011
MYANMAR has granted visa-on-arrival (VOA) to foreign visitors arriving in Yangon on Myanmar Airways International’s (MAI) twice-weekly direct flights from Guangzhou effective March 21.

MAI assistant marketing manager Aye Mra Tha said the number of visitors arriving from Guangzhou was relatively small and that the airline was expecting the VOA service to help stimulate more interest in the destination.

However, an article profiling medical representatives’ work show that local and international trade associations have cooperated based on shared ground and common interests.  Additionally, reports of local manufacturers’ comments on the impact of the Essential Drug List System echo concerns expressed by international pharmaceutical businesses on the effects of price control measures.

News relating to multinational business investment and activities in China abound over the course of the month. This trend contrasts with one expert’s view that China has shifted its focus to social welfare developments for the next five years from its previous focus on GDP growth.

News in the region reflects the robust growth prospects of medical tourism as well as opportunities for servicing the aging market.  News from Singapore points to new frontiers in medical services through innovative design of future hospitals and integration of web applications for disease management.  In addition, news reports on the lack of patient compliance in Hong Kong offered a rare glimpse of implications for public resources and health outcomes.

This month’s media reporting in China suggests a need for the international business community to engage in a communication strategy that reflects an awareness and engagement on issues of importance to the Chinese public.  The overarching themes of healthcare affordability and accessibility have driven a framework of discussions and policy considerations.  Until the public perceives business initiatives as part of the solution to these issues, the viewpoint will likely persist of business endeavors as self-serving and conflicting with the public interests.

各位尊敬的业界同仁:

这将是我们最后一次给您发送月度新闻摘要。我们决定终止该月报。今后，我们将转向为您提供其他种类的行业观察和服务。罗德公关亚洲区为客户提供量身定做的公关策略和咨询服务，以及在企业传播、医疗和健康传播等方面的专业指导性意见。

如需详细信息，敬请垂询Mai Tran，电子邮箱：mtran@ruderfinnasia.com 。

媒体报道摘要

三月份关于降价令频出 外资药“特权”已被陆续剥夺的媒体报道阐述外资与本地药企利益分歧的观点。竞争对手邮件曝光跨国药企缜密商战; 康芝药业指责强生“不正当竞争” “尼美舒利”很受伤？等报道也延伸了此类观点的表述。

媒体对医药代表工作的报导则显示其实中外医药企业有更多雷同的立场及互利的合作空间（一个医药代表的一天）。而媒体关于国内药企对基本药物招标的评论（委员热议基药制度 药价虚低比药价虚高更危险）也回响了外资对药价控制措施提出的看法。

针对药品一降价即消失的说法，发改委剖析药品降价致廉价药暂消失现象并表明严治药品变脸 降价药不会一降就死。与其同时，本月外资药企在华的投资和商业消息密集。此趋势对比一专家评论, “十二五”规划与“十一五”规划相比，“十一五”规划偏重于追求“国强”，而“十二五”规划则强调追求“民富”（幸福感五年十二问：住房是第一关注）。

北京大学政府管理学院教授顾昕提出神木医改模式就是有管理的竞争的看法。卫生部政策与管理研究专家委员、北京大学中国经济研究中心教授李玲则针对国务院推进公立医院试点改革 要求提高医生待遇表示：“《通知》中确有亮点，但还需下重力、动真格。”媒体揣测，安徽模式或将推广全国 医改“安徽模式”。而两会地方官哭穷：无地可卖 上一任已卖光了的报导，也指向医改关于地方、中央财政安排的挑战。

三月份的媒体报道显示，跨国企业需要一套反映企业关切并积极参与中国公众关注的话题的传播战略。“看病难，看病贵”一直是主导医疗讨论和政策考量的主题框架。直至公众舆论认可商业活动为解决“看病难，看病贵”的有效解决方案内容，商业活动或将持续受制于舆论的质疑。

Medical Reform

Acknowledging that medical reform challenges remain, China announces plans to continue to ramp up healthcare spending.

The National Development and Reform Commission announced the latest round of price cuts on pharmaceuticals to reduce public medical expenses by RMB 10 billion annual.  This will affect over 164 types of medicines involving 1300 formulations, including 140 medical formulations offered by foreign-invested companies.  Nanfang Metropolitan News interviewed businesses for their responses to the new price-cut measure and reported:

• Foreign-invested pharmaceutical businesses sounded alarms over the impact that the measure would have on business investment and risk projections.  Others expressed concerns that the policy may have overlooked past long-term investments involved in bringing the medicines to market.  RDPAC (The China Association of Enterprises with Foreign Investment R&D-based Pharmaceutical Association Committee) expressed its understanding of the policy as measures to reduce healthcare cost and burden on individuals.  The association also suggested that other cost-reducing options may serve to reduce medical costs as well.
• Domestic manufacturers, however, welcome the measure, and some businesses view it as a means to remedy market distortions caused by preferential pricing schemes enjoyed by foreign businesses.  An expert of the Chinese Pharmaceutical Business Management Association pointed out, “The concept of original R&D medicine is a manufactured and confusing concept.  It confuses the differentiation between patent and non-patent medicines.  In most cases, original R&D medicines are treated as patent medicines and have enjoyed long-term high pricing advantages.”
• Based on interviews conducted by the journalist, a significant number of representatives of the national congress attribute rising medical costs in China to the high pricing of original R&D medicines.
• 降价令频出 外资药“特权”已被陆续剥夺

According to Nanfang Daily, news of the pharmaceutical price cuts drew widespread comments posted by netizens.  According to the report:

• Over 15,000 netizens logged on to comment at qq.com alone within the first few hours following the NDRC’s announcement.
• One Guangzhou netizen wrote, “The news of the price cuts is like the long-awaited rain in a drought.”  Others expressed worries, “The price cuts will not have the intended impact.  Drugs will be repackaged and sold at the original price.  Further price cuts will only mean additional repackaging.”
• Experts expect minimal impact of the measure on local pharmacies as consumers have access to most of the therapies through hospital formulary.
• A security brokerage analyst also predicted that future price-cut trends may focus on high-price oncology therapies.  He mentioned the already low price margin for most commonly used medicines sold in pharmacies and the limited chances of further price reduction.
• 162种药品降价逾两成 减轻群众负担近100亿

First Financial Daily reported on interviews with local pharmaceutical business leaders who also serve as representatives of the People’s National Congress or CPPCC members.  According to the report:

• A common thread implies that the price-driven bidding approach of the Essential Drug List has forced out those manufacturers with higher production standards.
• An expert of the China Pharmaceutical Business Management Association offered that structural reform—separating the management and ownership structure of public hospitals—is central to improving healthcare affordability and accessibility.  The expert also pointed out that pharmaceutical pricing would need more market-based mechanisms to improve the quality of price management.
• 委员热议基药制度 药价虚低比药价虚高更危险

The NDRC defended the efficacy of price-reduction measures to improve healthcare affordability.  According to China Youth News:

• With reference to reports that many reduced pharmaceuticals either disappear or are repackaged to evade price-cut measures, an official identified what he considered out-dated misperceptions.  He asserted that newly introduced measures require evidence of superior efficacy for new formulations.  Merely repackaged pharmaceuticals do not qualify for exemption from reduced-price regulations.
• The official also highlighted the need for actively encouraging market-based measures as well as government interventions.
• In all, the NDRC has implemented 27 rounds of price reductions over the years.  Public discontent with issues of healthcare affordability and accessibility has continued unabated, however.
• 发改委：严治药品变脸 降价药不会一降就死

According to a separate news report, NDRC disclosed that in 2007 it had commissioned a study to investigate claims that medicines disappear or appear repackaged after undergoing price reductions.  The report disputed the claims. In addition, the article stated:

• In spite of complaints by manufacturers, the price-reduction measures have not forced any manufacturers out of business.
• An NDRC staff member commented, “Price adjustment only addresses symptoms of the problem.  Addressing the challenges of healthcare affordability would require deepening of the reform by separating the functions of healthcare service and pharmaceutical prescriptions.”
• The most important message from the new round of price-reduction heralds changes underway in the government’s approach to price adjustments and price management.  According to the NDRC staff member, in June 2010, the commission published an opinion piece outlining guidelines for pharmaceutical price management. Just before its release for public review and comments, the media exposed information on the sale of so-called reduced-cost medicines at profit margins of over 300%. This resulted in a delay of the launch of the proposed price-management measure.
• 发改委剖析药品降价致廉价药暂消失现象

The Economic Observer News published an article authored by Peking University Professor Gu Xing, and two other leading commentators on medical reform.  In the article, Gu argued for a “managed competitive” framework for guiding medical reform.  Citing the Shen-Mu model, Gu argued that Shen-Mu, in fact, demonstrates the feasibility of a “managed market-based; managed competition” model he advocates.  Under his proposed model, the healthcare system would provide:

• universal coverage with the government playing an active and effective role for funding;
• negotiation by the public health insurance authority on behalf of the insured with service providers; and
• healthcare service organizations operating under a market-based system with the government acting as the sole purchaser, supervisor, and promoter in the healthcare system.

….Shen-Mu is a province in Shaanxi that gained national notoriety for its model of offering free healthcare to its residents.  Gu urges the media and other public opinion commentators to broaden their understanding of the underlying working mechanisms of the model instead of drawing conclusions based on their interpretation of a “free healthcare” system.   (有管理的竞争)

The media interviewed Li Ling, a Peking University professor and Ministry of Health expert commissioner on policy and management research, on her view of a notice by the State Council on public hospital reforms for 2011. According to the report, this notice specifically places the topic of a compensation system for frontline medical workers on the working agenda.  Some officials view the notice as signifying a real breakthrough in hospital reforms; others criticize its lack of innovative thinking.  In Professor Li’s view, the merit of the notice depends on the following issues and their outcomes:

• Recruitment and retention of medical professionals.  Investments in community hospitals, for example, have resulted in procurement of sophisticated medical equipment that no one knows how to operate.
• Development of the management skills of hospital directors.  Most hospital directors rose from the medical ranks and have limited management expertise and experience.
• A system for incentivizing medical professionals.  Citing past state-owned enterprise management experience, Professor Li argues that offering doctors housing, education, and retirement benefits as part of a compensation package would facilitate interaction with doctors.
• 国务院推进公立医院试点改革 要求提高医生待遇

The 21^st Century Economic Herald called the Anhui Model a possible model for national roll-out.  The Anhui model, noted for its comprehensive approach, effectively implemented the Essential Drug System on schedule.  Key elements of the approach include government compensation mechanisms, a performance evaluation system, and a centralized tendering and pharmaceutical supply logistics system.  (2011年新医改收官，安徽模式或将推广全国 医改“安徽模式”调查)

One expert pointed out, “The government needs to figure out a sustainable funding mechanism that will not hurt the interests of stakeholders.”  Such a sustainable scheme would also involve financing input from the local governments.  News of the widespread complaints by local government officials about dwindling supply of lands for the auctioning sheds light on the challenges for a sustainable funding scheme.   Land auctions represent a key part of local government financing schemes.  (两会地方官哭穷：无地可卖 上一任已卖光了)

An expert interviewed by the weekly publication, Outlook, commented that “enriching citizens” will be the priority of the 12^th Five-Year Plan, replacing the focus of promoting national strength during the 11^th Five-Year Plan.  The level of well-being experienced by citizens will replace economic growth as a key leading indicator of development in China with housing a lead area of public concerns, according to the magazine.  (幸福感五年十二问：住房是第一关注)

China Youth News reported on the divergent profiles of work for individuals claiming the job title of a medical representative.  The article pointed out the popular perception that medical representatives serve as “sales-public relations” agents who contribute to the rising cost of healthcare.  To address the issue, the China Pharmaceutical Business Management Association is working with RDPAC to promote RDPAC’s medical representative certification program among 4,000 domestic pharmaceutical companies, according to the report.  (一个医药代表的一天)

Shanghai to reform healthcare

China to lower prices on medicine

China promises to improve public hospitals, cut their dependence on drug sales, lower costs

China to slash drug prices, saving 1.5 billion USD

Business & Initiatives

Xin Kuai Bao (New Express News) wrote that an anonymous package containing internal employee emails showed that Johnson & Johnson may have intentionally planned and launched a campaign challenging the safety of Nimesulide, an active ingredient used in pediatric cold medicines by local competitors.  Kan-Zhi Pharmaceuticals, a local manufacturer, filed complaints with Hainan’s Bureau of Industry and Commerce and alleged that Johnson & Johnson played a key role in “distorting and exaggerating facts; intentionally supporting and maliciously attacking competitors.”  The incident, according to the news report, has escalated from a “negative campaign” involving two competitors to one involving “a local manufacturer’s defense and fight against a multinational.”  (竞争对手邮件曝光跨国药企缜密商战; 康芝药业指责强生“不正当竞争” “尼美舒利”很受伤？)

While many see the latest pharmaceutical price-cut measure as part of overall reform initiatives to improve affordability, inflation pressure stands out as another force driving price control (China cuts maximum retail price of drugs to help tame inflation).  This pressure to contain prices applies to consumer products as well (集体涨价背后有无垄断魅影;  日用消费品提价方式今后将会非常隐蔽).

Medical diagnostic equipment company Roche Diagnostics sees more potential in China from its ongoing healthcare reforms. (The Right Diagnosis)

Bayer HealthCare relocates to China

Bayer boss puts faith in pipeline and China for future growth

Emerging Markets to Account for 25% of Merck Sales by 2013: CEO

Novartis acquires 85% stake in Chinese vaccine company Zhejiang Tianyuan

GE to Increase Focus on Chinese Market

Medtronic opens Shanghai base for China operations

MSD :  Supporting China’s Medical Reform through Price Reduction. (默沙东中国总裁：降价挺医改)

Health & Wellness

A recent study estimates that more than 170 million Chinese suffer from a mental disorder. (China: Slipping through the cracks)

Racotomain scare in China (China: Unawareness means many buyers are cheated)

China’s economy for kids to double within 5 years: report

Public Health

China Finds Traces of Radioactive Material in Atmosphere of Coastal Areas

Debate Continues After China Arrests Salt Panic Culprit

In TB fight, business and society gain from corporate responsibility

Additional News from the Greater China and Other Markets:

Hong Kong

HK hospitals looking to raise delivery charges

HA introduces new structure & remuneration for supporting staff

Shock finding in failure to follow doctors’ orders

Taiwan

Taiwanese companies promote medical tourism in Beijing

New care system to be launched in participating hospitals

Singapore

Where innovation’s a matter of life and death

New breakthrough in skin cancer research

Cancer research lab launched

Medical care within 30mins reach of each patient

Ageing with peace of mind

‘Silent’ strokes linked to dementia
Dementia not just about memory loss

Sleeping disorder affects 15% of S’poreans

NUH houses new fertility training centre

Re-designing hospitals for the future

Sole earner, sole caregiver
S’pore unveils Web app to monitor arthritis

More TB cases in Singapore last year

S’pore faces challenges to be among best in health care

Korea

Korea set to be world’s most aged country in 2050

UAE, South Korea sign MoU in health care

South Korea’s boom in medical tourism

Incidents exposing the volatile nature of doctor-patient relations also attracted online and media attention.  A doctor’s insensitive comments regarding a dying patient on her micro-blog went viral and drew widespread commentary.  Insensitivity also might have prompted a deceased patient’s relatives to assault doctors in a Shanghai hospital.  Another report cited research showing that 80% of medical confrontations arise from medical staff members’ attitude and improper language.

On the issue of healthcare’s affordability and accessibility, a study cited by the Chinese Academy of Social Science found that the new medical reform has reduced the costs for patients, especially among rural and low-income families.  However, over 70% of respondents to the people.com.cn survey said that healthcare remains too expensive.

The State Council issued a document outlining five areas to advance medical reforms, including an increase in annual subsidies for healthcare insurance premiums from 120 to 200 yuan.  Health Minister Chen also responded to inquiries about the challenges of making healthcare affordable and accessible.  The 21^st Economic Herald published an article by Professor Gu Xing of Peking University titled “UK’s Universal Health Scheme Moving Toward a Market-Based System.”

In the region, the media reported on news relating to public health initiatives and concerns.  Hong Kong’s government raised tobacco products’ prices in a bid to discourage their use.  Taiwan’s Department of Health reportedly is considering legislation to restrict television ads for fast foods to combat obesity.  In Korea, public health worries have arisen since the foot and mouth epidemic, and Singapore reported a big jump in endometrial cancer among Singaporean women.

February’s media reports in China showed the government’s responsiveness to the public’s concerns and the challenges to implementing policies.  Professor Gu’s article, published in a leading newspaper, indicates that the debate over the mechanism for providing basic healthcare remains vibrant.  Reports on the volatile state of doctor-patient relations also underscore the urgent need for a viable solution as this round of reform pushes toward its final year.  As for the business community, the news and opinion trends suggest a need for a communication platform that supports vibrant debate on the best approach to promote both the reform’s goals and harmonious relations among key stakeholders.

Ruder Finn Asia offers an issue tracking, analysis, and advisory service on behalf of clients.  The service is designed specifically to a client’s strategic positioning and competitive profile and provides insights to guide corporate, medical, and health communications.  For more information on this service, please contact Mai Tran at mtran@ruderfinnasia.com.

媒体报道摘要

二月份期间，《新世纪》周刊报道的“镉米杀机”引发媒体对环境污染话题的关注。根据《新世纪》周刊报道，“重金属镉正通过污染土壤侵入稻米；学者抽样调查显示中国多地市场上约10％大米镉超标；中国在多种重金属污染的稻米之前几不设防。” 人民网推出两会专题调查，就百姓最关注的热点、焦点问题征集网民意见。十大热点中，环境污染位居第六。这是环境污染首度入选十大热点话题。新华网也报导，国务院总理温家宝27日时指出，“我们绝不能再以牺牲环境的代价来换取高速增长。”

医患关系的话题也因为“冷血医生”微博让病人下班再死而成为公众聚焦话题。另据媒体报道，医院态度冷漠，可能也是上海“医闹”刺伤医生的导火线之一。其它媒体评论也指出，八成医疗纠纷源于医务人员态度及用语问题。

中国社科院发布的“社会蓝皮书”——《2010年社会形式分析与预测》中，公布了零点研究咨询集团最新完成的《2010年中国居民生活质量指数调查报告》。该报告显示，新医改已使公众医疗负担有所减轻。人民网征集的网民意见则显示，72%网友认为看病贵。

据中国网报导，国务院办公厅近日下发关于印发医药卫生体制五项重点改革2011年度主要工作安排的通知。通知明确，今年政府对新农合和城镇居民医保补助标准均由上一年每人每年120元提高到200元。卫生部部长陈竺在作深化医药卫生体制改革形势报告时，分析并回应了群众“看病难、看病贵”6大问题。 而21世纪经济报道刊登了北京大学政府管理学院教授顾昕撰写关于英国全民免费医疗走向市场化的文章。

本月的媒体报导显示政府对解决“看病难，看病贵”所采取的积极措施及在过去两年的执行医改过程中所遇及的挑战。顾昕教授的文章显示公众舆论对于最佳运行基本医疗方案持续的热烈探索。而媒体对于医患事件的报道，亦显示公众对于此话题的关注。这些新闻和舆论趋势意味着企业可以通过提供一个传播平台的形式，支持各方舆论对于推动医改目标和促进医患和谐关系的探索。

罗德公关为客户提供一套“论点追踪、分析、和咨询”的服务方案。该服务依据客户业务需求，为客户提供策劃及執行公共事務和公共關係傳播的工作的參考。詳情請洽：Mai Tran (mtran@ruderfinnasia.com)。

Medical Reform

A doctor’s insensitive comments regarding a dying patient went viral online and attracted widespread media attention.  According to Nanfang Daily:

• The doctor, dubbed a “cold-blooded doctor” by netizens, allegedly wrote, “Please die after I’m off duty,” “Good news!  The patient died in the afternoon.  I can get a good night’s sleep!” among other entries.  The doctor has since claimed that her blog was breached by hackers and that she did not write these entries.
• The micro-blog was reposted some 10,000 times and generated several thousand disapproving comments on the site.  Netizens also tracked down the doctor’s identity and the location where she works in Guangzhou.
• Liao Xinbo, deputy director of Guangzhou’s Health Office, acknowledged the entries’ negative impact on medical workers and added, “The issue is this doctor’s values, which could be because of her immaturity.  The media do not need to sensationalize the incident.”
• 微博让病人“下班再死”女医生被调洗衣房（图）

In another incident, a deceased patient’s relatives assaulted doctors in a hospital in Shanghai.

One writer urged doctors to adopt pleasant manners to improve their relations with patients, citing a study that found that medical workers’ poor attitude, communication skills and professional ethics cause 80% of medical disputes.  A reader whose comment received the most “like” votes wrote, “Ridiculous.  Please substantiate your claim (that medical disputes are due to poor communication).  Too much energy already is wasted on communication.  Many problems cannot be resolved with communication.  We should all face this reality.”  (八成医疗纠纷源于医务人员态度及用语问题; Readers’ Comments)

The Chinese Academy of Social Science cited a research showing that the new medical reform has achieved measurable progress.  According to China Business Times, the academy found:

• Rural and low-income families have experienced the most significant reduction in financial burden from the new medical reform.
• Community healthcare facilities’ overall capabilities and quality have risen.  The improvement is especially noticeable in the area of infrastructure and hardware improvement.
• Although efforts to reduce healthchare’s financial burden have made progress, the actual improvement continues to lag behind the public’s expectations.  In a similar study in 2009, close to 60% of respondents reported confidence in the new medical reform plan; over 70% expressed confidence in the Basic Healthcare System’s effect on reducing the financial burden.
• 2010中国居民生活质量指数报告显示：新医改已使公众医疗负担有所减轻

However, an online survey organized by people.com.cn found that 72% of participating netizens consider healthcare too expensive.  According to the report:

• Medical reform is seventh on the list of the top 10 issues ahead of the national congressional meetings, based on the votes of netizens who participated in the survey.  Medical reform ranked eighth in 2010 and third in 2009.  In 2009, drug safety tied with food safety for second place on the list.
• Drug safety has not made the list in 2011 and food safety has dropped to ninth place.
• Over 70% of respondents reported that healthcare remains expensive, and 46% reported that medical reform must abandon the practice of using pharmaceutical sales to finance medical operations.
• “两会”网民关注十大热点：环境污染首度入选

The State Council announced that annual subsidies for medical insurance premiums would increase from 120 to 200 yuan.  (China pledges more efforts to reform health care; 我国医保补助标准由每人每年120元提至200元)

Health Minister Chen also responded to inquiries regarding the challenges to making healthcare affordable and accessible.  According to the Xinhua Agency:

• Chen reported that there are two types healthcare inaccessibility:
  • The first is “absolute inaccessibility,” which is the lack of adequate basic medical services.  This problem is especially pronounced in central and western China.
  • The other type of inaccessibility is a lack of high-quality medical resources to meet the demand.  This problem is especially acute when patients with minor ailments seek care in large hospitals instead of low-level hospitals.
• Chen pointed out that there are also several types of affordability. 
  • The first is a patient’s subjective experience, by which he measures the price relative to his perception of the value of healthcare services and results.
  • Another type of affordability relates to a family’s ability to pay.
  • The third type relates to society’s ability to pay.  Unless medical costs are properly controlled, when they exceed what the overall society can afford, they impede economic sustainability and development.
• Remedies for addressing these issues should include:
  • Expediting the development of basic health insurance to lower the proportion of personal contributions in healthcare expenditures: The percentage of personal contributions had fallen to 38.2% by 2009, compared to 60% in 2001.  The goal during the 12^th Five-Year Plan is to move this number below 30% by the end of the five years.
  • Solid implementation of the National Basic Drug System: Chen reported that in areas that have implemented the zero sales margin policy, drug prices have declined by 30%.
  • Increase the number of medical gatekeepers at the community level: This will include building and procuring equipment for hospitals and other medical facilities.  A plan is being initiated to train 60,000 community primary care doctors as well.
  • Promote preventive health care including establishing health files for rural and urban residents, and providing chronic disease management and free physical examinations for those aged 65 and older.  The budget for public health services will increase to 25 yuan per person, from 17.5 yuan in 2010.
• 陈竺：深化医药卫生体制改革 逐步缓解群众看病就医问题

Xinhua English also covered Health Minister Chen’s address, focusing its report on China’s plan to further ease the cost of medical services.

The 21^st Economic Herald published an article by Professor Gu Xing of Peking University titled “UK’s Universal Health Scheme Moving Toward a Market-Based System.”  According to Gu, China’s key guiding principles for the reform are to “provide basic insurance, strengthen grassroots healthcare services, and establish a healthcare operating system.”  In his view, China’s efforts on this operating system have lagged behind the other two principles.  Gu wrote that the UK’s experience reforming its system of paying for primary healthcare could offer valuable insights on this last goal.

(英国全民免费医疗走向市场化)

Business & Initiatives

• Pharmaceutical Economics News reported that a quiet game-change is taking place in the glucose-lowering drug market, a market long dominated by foreign businesses.  According to the report, United Laboratories announced that it has secured production permits for three insulin preparations in China, giving the company a portfolio of four insulin products.  According to industry experts, very few domestic companies currently have the capability to produce this high-profit-margin (estimated to be over 70%) drug.  Analysts expect the company to enjoy a significant price advantage over its high-priced foreign competitors.  (决战胰岛素 内外资企业“火拼”降糖药市场)
• Bayer says to expand China R&D centre
• GE Healthcare aims to boost medical facile ties

Health & Wellness

• New Century Weekly reported that the heavy metal cadmium is poisoning rice through the contaminated soil in rice fields.  According to random tests scholars conducted, an estimated 10% of the rice in China exceeds the upper safety limit of cadmium in the grain.  Most worrying is that China has no policy guidelines governing agricultural planting on contaminated land.  A significant number of known contaminated lands continue to be used for agricultural purposes.  One estimate puts the total amount of contaminated land at 180 million mu (1 mu = 666 square meters), with cadmium-contaminated land accounting for 80 million mu.  (镉米杀机)
• Another article posted on china.com pointed out that the problem of contaminated agricultural land was first raised in 2007.  Since then, the situation of land pollution has deteriorated.  The article quoted an authority who estimated the annual contamination of crops by heavy metal at 12 million tons, which causes an economic loss estimated at 20 billion yuan.  Although the central government has introduced measures to contain pollution and treat the affected land, officials and businesses chasing high GDP and strong economic performance often overlook the issue.  (叩问农地污染:“中毒”怎会越来越重)
• One in 7 Chinese travel for health care
• Flu season has some turning to Chinese remedies
• China Cuts Economic Growth Target as Premier Wen Calls for Sustainability

Public Health

China’s Smoking Costs Have Risen More Than 300 Percent

China too connected to IV meds

Gates Foundation to improve child vaccines in China

China to crack down on antibiotics abuse

Additional News from the Greater China and Other Markets:

Hong Kong

• Tobacco taxes increased by 41.5%.
• Chinese University of Hong Kong plans to build a specialized, nonprofit, private hospital
• Hong Kong’s doctors are threatening to take action to force the Hospital Authority to do something about their heavy workload and poor morale.
• The record 65,000 runners participating in Sunday’s Hong Kong Standard Chartered Marathon are advised to put personal health and safety above all else.

Taiwan

• The Department of Health (DOH) is mulling regulations that would restrict the airing of fast food TV commercials to certain times to combat obesity.
• The Centers for Disease Control (CDC) yesterday announced this year’s first confirmed case of psittacosis (parrot fever) in the nation.
• Government might lift ban on additives in US beef products.

Singapore

• Big jump in endometrial cancer among Singaporean women
  Dr. Chua Hong Choon takes over as CEO of IMH
• Over 2,500 honored at Singhealth awards
• “No surge” in post-CNY MC requests
• Health screening on wheels
• “Single, low-income caregivers need more support”
• New framework for health screening tests
• Regulations for managed care companies

Korea

• Oriental medical doctors struggle for survival
• Public health worries after foot and mouth epidemic in South Korea

With this newsletter, we aim to provide our clients and others in the travel and tourism industry with a broad overview of the latest trends and newest regulations related to the Chinese travel and tourism industry.

This month, a variety of trends are shaping the industry:

A significant number of Chinese continue to travel with a purpose…

• A 2008 study by the European Travel Commission, an industry group, estimates that Chinese tourists reserve more than a third of their holiday budgets for shopping.
• Tourism is certainly not about discovering new food. A 2006 survey of Chinese coach travellers found that 46% had eaten “European” food only once, and 10% not at all, during holidays on the continent.

Chinese tourists are becoming more and more sophisticated…

Jiang Yiyi, from the Centre for Recreation and Tourism Research at Peking University, said outbound tourists are generally well educated, with at least a 5,000-yuan ($750) monthly income, and are aged from 25 to 44.  “They speak English and use the Internet. These tourists are also willing to try new things,” she said. Chinese tourists are filling the gap left by other tourists for a number of destinations…

• The International Visitor Survey Far North Queensland for the year that ended in September 2010 shows Chinese holiday makers are up by 81 per cent
• Ho Chi Minh City’s Department of Culture, Sports and Tourism, said there has been an increase of 189% Chinese visitors, as compared to last year.
• The number of Chinese tourists to the US is set to pass the 1 million mark by the end of this year, the National Tourism Administration of China said. The 2 million mark is likely to be passed in 2015, the State agency said.
• A fall in the number of visitors to New Zealand from Britain and continental Europe was offset by more tourists from China (up 34.5 per cent to 14,875).

If you have any comments or suggestions on the summary above or the full newsletter below, please don’t hesitate to contact us.  Also, do please do let us know if you do not wish to receive this newsletter by getting in touch with me at oliynyks@ruderfinnasia.com or by return email.

Best regards,
Shari Oliynyk
Director, Travel & Tourism

About Ruder Finn China’s Travel and Tourism Experience

Over the past 12 years, Ruder Finn China has developed and implemented numerous multi-faceted public relations programs in the travel and tourism sector.  Ruder Finn’s work on behalf of international clients includes projects and programs promoting countries, airlines, resorts and major tourist destinations.

Ruder Finn China’s travel and tourism experience, combined with its worldwide track record, offers its clients a combination of truly knowledgeable local and international teams, delivering results that meet their needs and objectives – on time and on budget.  Feel free to get in touch with us to discuss your requirements.  Our contact information is indicated at the beginning of this newsletter.  We look forward to hearing from you!

China Travel Industry News

The Travel Gold Rush 2020

High-tier tourism market not influenced by hike of CPI

Invitation process opens for ILTM Asia 2011

India, China to drive global tourism industry

China’s tourists are carving out a new European itinerary, with some unexpected stops

Foreign-invested travel agencies “will bring more experience and benefit”

“Innovation” becomes key word for online travel service

Travelport is first foreign GDS to partner with a university in China

Five highlights for tours during Spring Festival

Ctrip.com issues “Report on 2011 Tourists’ Propensities”

China Consumer and Economic News

MasterCard Spending During Shanghai World Expo

BCCI picks up slightly

New sign of macro adjustment about inflation from Central Economic Working Conference

Over one quarter of the urban population use online banks

Exchange rates for RMB rise in Nov

Destination News

Individual Chinese tourists could bring in US$40 million to Taiwan

French tourism products promoted

America tour without security deposits

Number of Chinese visitors to Far North Queensland doubles in 12 months

Surge in Chinese visitors to Ho Chi Minh City

Free and easy tour in Australia

Britain opens new visa service centre in Beijing

Business before fun for Chinese travellers to India

Brisbane makes China top priority for MICE trip promotion

Chinese head to U.S. for Christmas

Surge in Chinese tourists to New Zealand offsets fewer Europeans

Australia tours getting hot for Spring Festival

10-day California tour quotes not over RMB 20,000

South Australia Tourism launches interactive microsite

Hotel News

Boutique Series by Kosmopolito debuts in China

IHG launches The Hotel Indigo brand

Club Med Opens First Int’l All-Inclusive Ski Resort in China

Conrad, Doubletree properties open in China

Airline News

Dubai considers selling stake in Emirates

Air China launches flight-shuttle bus combined ticket for domestic routes

China Travel Industry News

The Travel Gold Rush 2020
Travel Weekly Web, December 1, 2010
Amadeus and Oxford Economics have just released The Travel Gold Rush 2020, a recent study featuring the key findings in the global travel and tourism industry.

Here are some key points from The Travel Gold Rush 2020:

• The global travel industry is making an uneven recovery from the recession. 2010 has seen a return to growth with global arrivals increasing 5.6 percent in the first six months of the year. However, Europe remains sluggish and there are lingering economic concerns. Hotspots remain Latin America and Asia-Pacific.
• Asia will represent one third of travel spending by 2020 – up from 21 percent today.  Asia will account for nearly 22 percent of global arrivals by 2020 (up from 18 percent in 2008) and the region’s residents will account for 32 percent of travel spending by 2020.
• The global aviation industry mirrors these trends. Whilst it is forecast to return to profitability in 2010, its forecast annual net profit margin is only 0.5 percent. Questions over industry viability and the need for new revenue sources remain.
• Agents face the additional challenges of the demise of commission-based travel and increasing use of the internet in place of traditional F2F contact; and thus likely to reinvent their role as bespoke travel advisors and as a trusted source of information.

Options for Growth

Ancillary revenue generation has spread from low cost carriers (LCC) to major carriers and become an increasingly important source of revenues; however uncertainty remains about how important they will be in the long term, especially to major carriers. Nonetheless, with estimates suggesting that ancillary revenues contribute anything up to 35 percent of revenues in the future, the industry needs to fully understand where the opportunities lie.

Exploring The New Frontiers

Emerging nations’ travel habits remain the great unknown. The demographic trends associated with Western travellers may be less relevant when applied to the emerging markets.

Macroeconomic Forecasts for Future Travel

As indicated below, in terms of resident trips abroad, average 10 year growth rates range from 4.1 percent per annum (Europe) to 6.0 percent per annum (Asia Pacific) with China in isolation accounting for 6.9 percent.

High-tier tourism market not influenced by hike of CPI
Nanfang Daily, December 1, 2010
China’s CPI continued to rise in Q3.  Chen Baiyu, President of GZL International Travel Service Co., Ltd was recently quoted as saying that the tourism market will be in part impacted by the CPI rise, however high-tier tourism should not be affected.

Invitation process opens for ILTM Asia 2011
Travel Weekly Web, December 7, 2010
Invitations to take part in ILTM (International Luxury Travel Market) Asia, the only luxury travel event dedicated to luxury travel buyers from across the Asia-Pacific region, are now open to VIP Buyers and Exhibitors at the 2011 event, 13 – 16 June 2011, Shanghai.  ILTM Asia is exclusively created for Pan-Asian buyers, planners and designers of luxury travel to meet directly with the world’s leading luxury travel suppliers in a series of bespoke pre-scheduled one-to-one meetings. Founded on a strict qualification process for both buyers and suppliers, ILTM Asia only brings together the very best from the global luxury travel community to this exclusive, ‘invitation-only’ event.

India, China to drive global tourism industry
Indian Express, December 8, 2010
According to Hospitality 2015: Game Changers or Spectators by Deloitte, the middle classes of China and India along with the aging population of the US are the two key demographic trends that will create new patterns of travel and demand.  It says the middle classes of China and India will create new trends as their travel patterns evolve from domestic to regional to international.

China’s tourists are carving out a new European itinerary, with some unexpected stops
Economist, December 16, 2010
In China foreign travel is part of a slightly different compact between the state and the new middle classes: unprecedented freedom and fun in exchange for the maintenance of one-party rule at home.

China’s newly mobile middle classes like to visit established European spots like the Eiffel Tower, the Louvre and Venice’s Grand Canal. But the visitors have also marked out a grand tour all of their own, shaped by China’s fast-developing consumer culture and by distinctive quirks of culture, history and politics. The result is jaw-dropping fame, back in China, for a list of places that some Europeans would struggle to pinpoint on a map: places like Trier, Metzingen, Verona, Luxembourg, Lucerne and the Swiss Alp known as Mount Titlis.

A sketch map of the Chinese grand tour must begin in France, the country seen as offering all the essential European virtues: history, romance, luxury and quality. Paris shops such as Louis Vuitton are essential stops: witness their Mandarin-speaking staff.  The south of the country is also popular, thanks in part to a slushy Chinese television mini-series, “Dreams Link”, which was filmed amid the lavender fields and walled citadels of the Midi.  China’s freshly minted millionaires and billionaires are particularly obsessed with the wine country of Bordeaux, as red wine has taken over from expensive brandy as the business lubricant of choice.

From France, Chinese groups typically travel south towards Italy via the casinos in Nice or Monaco. Venice and Rome are stops for every nation’s tourists, but the Chinese grand tour also demands a visit to Verona.

In Germany cities such as Bonn and Trier are as important as more obvious sites like Cologne and Frankfurt (a hub for many China flights).  A short drive from Frankfurt, Metzingen (headquarters to suit maker Hugo Boss) is home to several factory outlets, where Chinese shoppers vie with Russians and Indians as the biggest spenders.

As France means wine and handbags, Belgium means chocolate. Most Chinese think Belgian chocolate too sweet, although this does not stop them buying large quantities for friends and colleagues back home.

Many of the Chinese tourists in the Benelux countries are members of daibiaotuan, official or business delegations with a reputation as boondoggles. As a result of this bureaucratic orientation, the grand tour’s Belgian leg includes stops outside the Berlaymont, as the headquarters of the European Commission is known.  In Luxembourg the Chinese tourists pause just long enough to photograph the palace of its reigning grand duke.

France, Germany, Belgium and Luxembourg all lie within the Schengen Area, a border-free zone that can be visited on a single visa. This appeals to Chinese tourists, who must submit reams of papers and face a long list of intrusive questions about their finances, employment and personal circumstances to obtain visas for Europe. In 2008 Switzerland joined the Schengen club and Chinese visitor numbers instantly soared.  In Switzerland the essential stop is the canton of Lucerne. With a lake, an historic city and mountains all in a compact area, it amounts to a “mini-Switzerland”, saving time. Surprisingly few tourists visit Britain.

Enjoyment isn’t the point

Chinese tourists know they are more coveted for their money than loved in Europe. In surveys of Chinese travel agents, the continent is most frequently described as “beautiful” and “historic” – but rarely as friendly. Europeans are described as both “civilised” and “cold”. Even before they leave China, the travellers are nagged to mind their manners and told to act as “ambassadors” for their country. Several times in the past few years the Spiritual Civilisation Steering Committee of the country’s Communist Party has issued chivvying circulars calling on Chinese tourists to avoid queue-jumping, loudness or haggling in shops with fixed prices.

The European travel industry uses the sniffy phrase “sleep cheap, shop expensive” to describe Chinese visitors. Chinese tour operators are notorious for bargaining down travel and hotel costs. A 2008 study by the European Travel Commission, an industry group, estimates that Chinese tourists reserve more than a third of their holiday budgets for shopping.

Tourism is certainly not about discovering new food. A 2006 survey of Chinese coach travellers found that 46% had eaten “European” food only once, and 10% not at all, during holidays on the continent.  This is because excitement and acquisition are prized over pleasant, relaxing experiences. The Chinese are keen on European luxury, they just aren’t so interested in luxurious hotels and lavish meals. Coming from a newly affluent, increasingly unequal society, they have a strong preference for the accumulation of material goods. After all, a Swiss watch lasts a lifetime, whereas “if you want a good bed, you can have that at home.”

A new vision of Europe

The face of Chinese tourism is also rapidly changing. The heyday of the daibiaotuan has passed. A decade ago, an official fancying a holiday more or less had to land a spot on one of these delegations, paid for from state or company funds or by joint-venture partners from the West. Today, such delegations are under much more scrutiny, and tourist visas are easier to obtain. Many travellers are now on their second or third visit to Europe: group tours are duly slowing down and stopping to savour local culture. Individual tourism is tipped as the next big thing. Yet individual visitors may create itineraries no more conventional than those dictated by tour groups.  Their list of important sights and experiences does not resemble the genteel image that Europeans have of their own homeland—it includes more duty-free shopping, for a start. But it is a fresh vision. With their economic power and hunger for new experiences, China’s restless middle classes have conjured a new Europe into life.

Foreign-invested travel agencies “will bring more experience and benefit”
The Beijing News, December 24, 2010
In July, China began to permit foreign travel agencies to engage in outbound travel services in the Chinese market. Sun Changcai, a manager from CITS, shared his views on this subject, stating that this will bring more concepts and experience to Chinese counterparts as foreign tourism operations began 100 years before those in China.

“Innovation” becomes key word for online travel service
China Consumer Journal, December 27^th, 2011
According to a report issued by the travel website www.qunar.com, the online travel service offers more convenient services for visitors compared with conventional service styles. “Innovation” has become the highlight word for online travel services.

Travelport is first foreign GDS to partner with a university in China
Travel Weekly Asia, December 27, 2010
Travelport, the business services provider to the global travel industry, has signed a groundbreaking training partnership agreement with Shanghai DongHua University. This is the first time a Chinese university has partnered with a foreign GDS for training.  The new Travelport training course is open to fourth year students studying travel and tourism at the university.

Five highlights for tours during Spring Festival
Mirror, December 28, 2010
A recent survey shows that the highlights for 2011’s Spring Festival tour are : 1) chartered plane tours, 2) Canadian and American tour, 3)higher-tier tours, 4) island tours and 5) New Year’s Eve dinners abroad.

Ctrip.com issues “Report on 2011 Tourists’ Propensities”
www.travelweekly-china.com, December 29, 2010
On December 29, Ctrip.com issued the “Report on 2011 Tourists’ Propensities for Tours”. Several thousand web citizens took part in the survey.  The results showed: 1) citizens continue to favour tours; 2) self-service and leisure tours are the preferred tours; 3) websites are the main channels for tour reservations; 4) expenditures on tours will rise in 2011; 5) over-spending at home is the top reason why consumption abroad is reigned in.

China Consumer and Economic News

MasterCard Spending During Shanghai World Expo
Asia Travel Tips, December 3, 2010
Total spending by MasterCard cardholders in Shanghai during the Shanghai World Exposition (Expo) 2010, held between 1 May and 31 October 2010, more than doubled from the same period last year. The total number of transactions made by MasterCard cardholders in Shanghai also rose by just over 100% during the Expo period.

BCCI picks up slightly
Shanghai Morning Post, December 12, 2010
UnionPay and Xinhua News Agency have jointly released the Xinhua • CUP Bankcard Consumer Confidence Index (BCCI for short) for November 2010. Statistics show that in November, the BCCI was 85.86, achieving a year-on-year increase of 0.17 but a month-on-month drop of 0.81 of a percentage point. Cardholders’ expectations for price dropped and short-term income growth combined to slightly push the BCCI up.

New sign of macro adjustment about inflation from Central Economic Working Conference
21^st Century Business Herald, December 13, 2010
Li Daokui, academic member to the central bank’s monetary policy committee (PBOC Monetary Policy Committee), forecasted that the economic growth in 2011 will range from 10.3% to 10.5% and that the CPI will be over 3% but no more than 5%.

Over one quarter of the urban population use online banks
Beijing Youth Daily, December 16, 2010
According to a survey from CFCA (China Financial Certification Authority), 26% of urban residents use online banking services on a regular basis.

Exchange rates for RMB rise in Nov
21st Century Business Herald, December 17, 2010
On December 16, according to data from BIS (Bank for International Settlements), RMB nominal and actual exchange rates have resumed their upward trend from the slight fall in November, with rising groups of 0.72% and 0.47% from last month. Rising scopes have reached 32.8% and 56.6% since 1994, respectively.

Destination News

Individual Chinese tourists could bring in US$40 mil. to Taiwan
The China Post, December 8, 2010
Taiwan’s tourism business could well be poised to gain an excess US$40 million in revenue next year as mainland Chinese tourists will be allowed to Taiwan for individual visits starting Jan. 1, a local realty agency has forecasted.

Taiwan’s Tourism Bureau will launch its individual visit scheme for business tourists from Beijing and Shanghai at the start of the next year, allowing a maximum of 500 individual tourists to enter Taiwan daily on top of the current quota for visitors in tour groups. This signals a theoretical increase of mainland tourists of over 180,000.

Taking into consideration the average buying power of mainland Chinese tourists of US $232 per person per day, the individual tourists could potentially bring extra revenues of over US$40 million to the Taiwan market, said Bright Lee, communications manager of the Yung-Ching Realty Group

French tourism products promoted
www.travelweekly-china.com, December 8, 2010
The tourism promotion entitled “Have a Date with France” was recently held in Beijing, Shanghai and Guangzhou. Atout France China Office collaborated with 22 French tourism agencies that were promoting their products.

America tour without security deposits
www.travelweekly-china.com, December 13, 2010
Nanhu International Travel Service has launched a tour to America that does not require a security deposit. Previously, visitors were required to pay RMB 50,000 as security deposit before being permitted to participate in tours to America.

Number of Chinese visitors to Far North Queensland doubles in 12 months
www.travelweekly-china.com, December 13, 2010
The number of Chinese visiting the Far North has almost doubled in a year, while the numbers of Japanese are almost back to the pre-global financial crisis levels, the latest data reveals. The International Visitor Survey for the year that ended in September 2010 shows Chinese holiday makers are up by 81 per cent to 58,000, while the Japanese have almost topped 100,000 (up 1 per cent to 98,000). Overall, international holidaymakers to the region have grown by 1 per cent to total 612,000, up 6000 on 2009.

Surge in Chinese visitors to Ho Chi Minh City
Saigon Daily, December 13, 2010
The number of Chinese visitors travelling to Ho Chi Minh City by air has increased dramatically in the first eleven months of this year. The city’s Department of Culture, Sports and Tourism, said there has been an increase of 189%, as compared to last year.

The department said that China has become one of the top sources of foreign arrivals in the city for the very first time. Vietnam welcomes from between 70,000- 90,000 Chinese visitors each month.

Free and easy tour in Australia
www.travelweekly-china.com, December 14, 2010
After nearly one year of operations, the self-service tourism product “A Wonderful Holiday at Qantas” jointly organized by Qantas, Tourism NSW and Melbourne, Victoria, Australia, has had a remarkable amount of attention. The organizations recently upgraded and renamed their tourism product.

Britain opens new visa service centre in Beijing
Beijing Times, December 16, 2010
The new British visa service centre began operations on December 15^th, and is twice the size of the old centre.

Business before fun for Chinese
The Telegraph India, December 17, 2010
For the Chinese, an India trip means business before leisure.  A survey by the Indian tourism ministry shows that more Chinese, compared with other foreign visitors, come with “business and professional’’ purposes. Of the 96,997 Chinese who came to India in 2009, as many as 50.4 per cent said business was their priority.  Another 41.5 per cent said they had come on vacation and were looking for recreation, while the remaining 4.1 per cent had come to “visit friends and relatives’’.  This is in keeping with the history of Chinese tourism to India, for Faxian and Xuanzang too came on business — to learn about Buddhism and acquire Buddhist texts — in the fifth and seventh centuries.

Brisbane makes China top priority for MICE trip promotion
www.travelweekly-china.com, December 20, 2010
Brisbane Marketing Director Business Events Annabel Sullivan recently travelled to Shanghai to meet with counterparts in Shanghai for further cooperation opportunities and held an industry training meeting to promote her city’s MICE resources.

Chinese head to U.S. for Christmas
China Daily, December 23, 2010
Thousands of Chinese tourists will spend the Christmas holiday period in the United States this year.

New York City, California, and Hawaii are among the more popular destinations as organizations such as United Airlines, Disneyland Park in California, the California Travel and Tourism Commission and the Hawaii Tourism Authority have been begun promoting luxury tours.

“The American tours for the coming holidays are the most luxurious and comfortable ones since the US opened as a tourist destination for Chinese citizens in 2008,” said Liu Chuang, manager of the American marketing department of byecity.com, one of the biggest online tourist agencies in China.

As a result, the number of Chinese tourists to the US is set to pass the 1 million mark by the end of this year, the National Tourism Administration of China said. And the 2 million mark is likely to be passed in 2015, the State agency said.

Guo Jianing, vice-general manager of Total Travel International Travel Services Co Ltd, said that thanks to the increase in personal income and the depreciation of the dollar, outbound tourism for his company has risen 30 percent this year.

Jiang Yiyi, from the centre for recreation and tourism research at Peking University, said outbound tourists are generally well educated, with at least a 5,000-yuan ($750) monthly income, and are aged from 25 to 44.

“They speak English and use the Internet. These tourists are also willing to try new things,” she said.

Surge in Chinese tourists to New Zealand offsets fewer Europeans
Stuff.co.nz, December 23, 2010
A record number of visitors from China helped boost the number of tourists to New Zealand by 3 per cent in November.

Last month 226,500 visitors came to New Zealand for a short period, Statistics New Zealand said yesterday. The numbers were up 6600 on the same month a year ago, but 3400 below the record for November in 2006.

A fall in the number of visitors from Britain and continental Europe was offset by more tourists from China (up 34.5 per cent to 14,875).

The Chinese market, boosted by growing trade with New Zealand and new direct air links, grew by 15 per cent in the year to the end of November, to 120,222.

Australia tours getting hot for Spring Festival
Beijing Business Today, December 23, 2010
According to travel agencies in Beijing, outbound travel registration is currently very popular in Beijing and Australia is the top destination for the city’s tourists. An official from a tourism website reasons that this is due to February being a peak season for Chinese travel and that Australia is favoured as it hosts several festivals during this period.

10-day California tour quotes not over RMB 20,000
www.people.com.cn, December 27, 2010
California Travel & Tourism Commission has launched a 10-day deluxe tour to California with quote of no more than RMB 20,000. So far, over 100 visitors in Guangzhou have registered for the tour.

South Australia Tourism launches interactive microsite
www.travelweekly-china.com, December 27, 2010
South Australia Tourism has launched the interactive microsite www.gotosa.net for visitors to gain easy access to see South Australia via mouse-click.

Hotel News

Boutique Series by Kosmopolito debuts in China
Travel Weekly Asia, November 29, 2010
Kosmopolito Hotels has announced the launch of Yue @ Century Park, Shanghai. The design-led hotel is the first in the Boutique Series by Kosmopolito in China. Other hotels in the Boutique Series include award-winning Lan Kwai Fong @ Kau U Fong, Central Park, and Cosmo Hong Kong. Hotels under the Boutique Series by Kosmopolito are experiential with design elements weaved into creative features.

IHG launches The Hotel Indigo brand
Travel Weekly Asia, December 3, 2010
Hotel Indigo, IHG’s upscale boutique brand, hosted a grand event in Shanghai, China, to celebrate its brand launch in Asia Pacific.  Hotel Indigo Shanghai, the  184-room property on the Bund and the first Hotel Indigo in the region, is expected to open by the end of 2010.

Club Med Opens First Int’l All-Inclusive Ski Resort In China
Hotel Interactive, December 7. 2010
Sixty years after its creation, Club Med officially opens the very first international ski resort in China, Club Med Yabuli, on Nov. 27, 2010.  This is Club Med’s first undertaking in China.

Conrad, Doubletree properties open in China
Travel Weekly, December 30, 2010
The luxury Conrad brand has made its debut on the Chinese mainland with the opening of the Conrad Sanya Haitang Bay. Opening alongside the Conrad is the Doubletree Resort Sanya Haitang Bay. Hilton Worldwide owns both the Conrad and Doubletree brands.

Airline News

Dubai considers selling stake in Emirates
Breaking Travel News, December 1, 2010
Investors from around the world will be offered an opportunity to take a stake in Emirates Airlines as Dubai considers the sale of state assets.  The emirate remains approximately $110 billion in debt to creditors, despite a bailout from neighbouring Abu Dhabi earlier this year.  With swathes of its debt due for repayment over the next two years, all options are being considered.

The emirate is “working on opening the capital of some of our leading companies to the public,” explained Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Airlines and a three-man committee charged with plotting the emirate’s economic recovery.  Control of the airline would remain with Dubai for the foreseeable future Sheik Al Maktoum said.

Air China launches flight-shuttle bus combined ticket for domestic routes
Travel Weekly Asia, December 27, 2010
Air China today became the first Chinese airline to offer combined tickets that include domestic flights and shuttle bus services to nearby cities. The first combined flight-shuttle bus ticket will connect Tianjin via shuttle bus with domestic flights passing through Beijing. The service will later be expanded to hub cities such as Shanghai and Chengdu, connecting them via shuttle bus to their peripheral cities.

The new service will expand Air China’s network and make it much more convenient for passengers living in cities surrounding the nation’s airport hubs. Previously, passengers transferring to or from a shuttle bus had to fill out a form to carry on their journey. But now passengers are able to check, book and buy combined tickets on Air China’s website or through the sales hotline.

We have compiled a selection of news reports for China and Asia, including the headlines and a short summary in English, to share within your company. This monthly News Summary does not pretend to be exhaustive but allows you to get a sense of what we see as important trends in our sector, based on the reports we read both in print and on the web. This summary covers four categories – Medical Reform, Business Initiatives, Health & Wellness and Public Health – and will touch on news from Greater China and other markets.

We hope you find the next H&W News Summary valuable, and we invite you to provide feedback and suggestions on how we can make it more relevant to you.

In December, public grievances about healthcare affordability and access in China gained an official acknowledgment: legislators conducted an inquiry with government officials reporting on the progress (or lack of progress) of medical reform.  The entire inquiry was broadcasted through a webcast.

If the event indicated the government’s determination to resolve the healthcare issues, some industry insiders viewed the State Council’s decision to allow private capital to invest in hospitals as marking a shift of influence from the “government-led” camp to the “market-driven” camp on the medical reform.

With public grievances on healthcare unabated as this round of the medical reform plan enters the third and final year, industry insiders noted a quiet “notch up” in the decision-making body of medical reform policies from ministerial level to the Office of Medical Reform under the State Council.  Following the announcement to encourage foreign investment into the hospital sector, the office noted that the key focus of the reform for 2011 is to restore the social welfare nature of grassroots health organizations and that future initiatives will focus on fine-tuning the mechanisms of the basic drug system.

In the region, Taiwan and Chinese mainland signed a medical and health care cooperation agreement in a move to jointly combat epidemics and ensure the quality of traditional Chinese medicine.  Taiwan also reported revisions to its national insurance scheme which has accumulated a debt sum of more than NT$ 130 billion (US$ 4.2 billion), risking bankruptcy unless reform is undertaken.  Separately, Hong Kong’s health authority urges influenza vaccination for targeted groups.

Singapore’s news mainly touched on local healthcare services firm, Raffles Medical, and its plan to build a hospital in China.   An expert pointed out that many hospital processes in Singapore are not supported by IT systems.   This has often created duplicate work, clerical errors or redundancies.  Korea, on the other hand, is reported to be on track to bring the concept of ubiquitous health, or U-health, to reality.  Under the system, a patient’s body vital statistics can be monitored continuously from an environment away from the hospitals.  Other news in the region highlighted the rising affluence and demand for sophisticated healthcare will drive the market for medical devices in Asia higher.

December’s news in China indicates that public opinion continues to influence the direction of the healthcare market landscape in China.  The implication for the business community is the need for a communication strategy that contributes to the ongoing debate.  The secretary of the China Pharmaceutical Industry Association, for example, noted, “Pharmaceutical enterprises have been blamed for contributing to the high cost of healthcare… The introduction of competition into public hospitals is conducive to breaking through a traditional and stagnant thinking mode, which has intensified the pressure to reform.”

Ruder Finn Asia offers an issue tracking, analysis, and advisory service on behalf of clients.  The service is designed specifically to a client’s strategic positioning and competitive profile and provides insights to guide corporate, medical, and health communications.  For more information on this service, please contact Mai Tran at mtran@ruderfinnasia.com.

媒体报道摘要

公众舆论对“看病难，看病贵”的观点于12月获得更高层次的认可：十一届全国人大常委会第十八次会议举行联组会议，就国务院关于深化医药卫生体制改革工作情况的报告开展专题询问。整个讯问过程通过网络广播广播。（网络直播询问新医改）部分官员于会议上表示，医疗卫生体制改革工作启动以来，其成效已经初步显现出来，“看病难、看病贵”的问题初步得到了缓解。 部分机构则指出，称看病难看病贵初步缓解说法为时过早。

如果人大常委的专题讯问显示政府解决医疗问题的决心，部分行业专家认为国务院鼓励社会资金办医院的举措则指向医改的影响力由“政府派”转移至“市场派”。（民资办医院正式开闸 内资踊跃外资谨慎）

该篇报导也指出，明年是医改3年重点实施方案的最后一年， “与人们印象中卫生部主导医改不同，近期多项医改政策均由“国务院医改领导小组办公室”做出。” 业内人士表示，“此前一段时间，医改领导小组在各地组织了调研，颇为低调，今后相关政策还将陆续出台。”该办公室主任朱之鑫于20日讲话中指出，“明年医改重点确定：基层医疗将回归公益。”未来工作将在建立基层医疗新机制上下功夫。

新闻舆论对于社会资金办医的看法多为正面。以新京报为例，该社论表示：社会资本终于迎来进军医疗服务业的春天。

持“市场”观点的人士，如北京大学光华管理学院卫生经济与管理系主任刘国恩表示，此次新政对民营医疗机构和公立医疗机构“一视同仁”，社会资本举办的非营利性医疗机构，将和公立医院具有同样的待遇（社会资本进入医疗市场缺少清晰规则）。 北京大学政府管理学院教授顾昕也表示，　　“开放可能引来骗子；但不开放，变革的机会和可能性是零”（民资办医院正式开闸 内资踊跃外资谨慎）。

个别评论则表示“唯有使医生在医疗改革中受益，广大医生才能自觉地参与改革。其中，破除垄断才是医改关键。” 部分媒体也指出，在中央放宽社会资本进入医疗市场的同时，曾被卖出的公立医院又“被回购”，社资办医能否破解看病难仍待观察。

本月的新闻显示，公众舆论持续影响医疗市场的形势。对于医疗企业界而言，这意味着企业界需要一套传播战略，在市场讨论和探索医疗改革话题的过程中做贡献。以中国化学制药工业协会秘书长周燕为例，他在接受采访时表示，“‘看病贵’曾被指责为药企的唯利是图，现被普遍归结于‘药价虚高’。我们认为，根本问题在于医疗卫生体制改革严重滞后和补偿机制不到位。公立医院改革引入竞争机制，有益于打破传统思维和固化模式，增强改革的紧迫感。”

罗德公关为客户提供一套“论点追踪、分析、和咨询”的服务方案。该服务依据客户业务需求，为客户提供策劃及執行公共事務和公共關係傳播的工作的參考。詳情請洽：Mai Tran (mtran@ruderfinnasia.com)。

Medical Reform

The State Council opens the door to private investments into the hospital sector (China woos private, foreign capital to reform healthcare).

Legal Weekend reported that the State Council’s announcement signified five breakthroughs, according to Wang Hufeng, a scholar from the School of Public Administration at Renmin University:

1. Encourage and support private capital’s entry into the healthcare sector while proposing adjustments and give priority considerations to private investments in healthcare resources.
2. Encourage private investors’ participation in the reform of public hospitals.
3. Allow offshore capital to establish healthcare facilities with a “special emphasis for investment from Hong Kong, Macao, and Taiwan to enjoy preferential policies.  From a research perspective, this signifies the value these regions experience for the development of the healthcare sector in the hinterland.”
4. Comprehensive improvements in the working environment of private-sector-financed hospitals, from healthcare workers to medical facilities, medical reimbursement qualifications, price, and taxation policies.  The new measures aim to achieve “equality at unprecedented levels.”
5. The key focus is on encouraging private investments in not-for-profit medical facilities to “mobilize the private sector to support the development of not-for-profit organizations through donations and other methods.” (社会资本进入医疗市场缺少清晰规则)

Editorial reactions to the announcement are mostly positively.  New Beijing News for example applauded the new measures as a positive move to promote competition in the hospital sector to support the goals of medical reform. (社会资本终于迎来进军医疗服务业的春天)

Comments from individuals long identified as representing the pro-market camp perspective are cautiously optimistic:

• Liu Go’en of Peking University commented that privately operated medical facilities now have the basic conditions for survival now that the measures allow these facilities to qualify for medical reimbursements as enjoyed by public hospitals. (社会资本进入医疗市场缺少清晰规则)
• Gu Xing, also of Peking University, commented that the “liberalization may attract charlatans; but without the liberalization, the opportunity and possibility for reform is zero.”

（民资办医院正式开闸 内资踊跃外资谨慎）

The Century Weekly of Caing.com noted that while the news has cheered domestic investors, foreign investors remain cautious.  According to the report:

• The State Council’s decision has come almost two years after the introduction of the new round of medical reform.  With the three-year reform having already passed the mid-point milestone, public grievances on “kan bin nan, kan bin gui” (poor healthcare affordability and accessibility) continue unabated and confrontations and conflicts between doctors and patients have not seen improvements.
• While small domestic investors are excited by the news, international investors remain cautious.  According to an investment official of the British Embassy in China, foreign investors may opt for an indirect investment in the beginning, such as “collaborating with a Level III hospital and participating in the acquisition of hospitals in second-tier cities.”
• The article also noted that recently a number of medical reform policies have been led by the Office of Medical Reform Leading Group under the State Council.  According to an unnamed source close to the National Reform and Development Commission, the Group has been quite low key but experts expect the Group to introduce additional measures in the coming year.  The Group is led by Executive Vice-Premier Li Keqiang and consists of representatives from 16 ministries and departments.
• Some industry insiders view the new policy as indicating a shift of influence from the “government-led” camp to the “market-driven” camp.
• Gu Xing, a noted pro-market opinion leader, disagreed.  He noted that the new medical reform never denied the validity of the market mechanism.  In general, he believes that the “government is taking a lead in medical insurance and purchases of medical services using the insurance while supporting competition in medical services.”（民资办医院正式开闸 内资踊跃外资谨慎）

A commentator wrote that until doctors are granted the freedom to work as their own agents and their interests align with the goals of medical reform, the new measures would not be able to overhaul the monopoly that public hospitals enjoy.  (毕舸：破除垄断才是医改关键）

In the meantime, editorial media also noted municipalities “re-purchasing” hospitals sold a few years back and questioned whether the different activities by the central and local governments would lead to the goals of improved healthcare affordability and access.  (曾被卖出的公立医院又“被回购” 能否破解看病难)

Media widely reported on the Special Issue Inquiry in which representatives of the NPC Standing Committee questioned healthcare officials over the progress and issues of medical reform (Ministers taken to task over healthcare reforms).  News reports highlighted a number of issues raised by representatives, including a child who incurred a medical bill of 10,000 yuan while being treated for a fever and that China reports an annual usage of eight bottles of IV injections per person.  Commentators also challenged claims by government officials that the reform to date has been successful.  (机构称看病难看病贵初步缓解说法为时过早).

Business & Initiatives

GE Appoints Two Company Officers

Bayer to expand in China

Foreign firms get slice of China medical market

West’s drugmakers look for China buys

GE Healthcare eyes grassroots

Health & Wellness

Food becomes a hot issue in China

China improves well-being of people with disabilities

Public Health

China faces uphill battle against HIV

Chinese Newspaper Says AIDS Advertisement ‘Not Friendly’

‘China Daily’ Newspaper Rejects AIDS Healthcare Foundation Ad Exposing China’s Misuse of Global Fund

Additional News from the Greater China and Other Markets:

Hong Kong

Influenza vaccination urged for target groups
Deregistration of pharmaceutical products containing propoxyphene

Taiwan

Mainland, Taiwan negotiators sign agreement on medical, health care cooperation
Taiwan will not open doors to Chinese generic drugs soon
Taiwan to reform health insurance scheme

Singapore

Raffles Medical’s China plans
The Pharmaceutical Market: Singapore – Healthcare and Medical …
Rising affluence will drive demand for medical devices in Asia
Healthcare IT trails banking industry by 25 years
New residency system for specialist doctors

Korea

Foreign visitors to reach 8.8 million
South Korea positions for digital healthcare push

With this newsletter, we aim to provide our clients and others in the travel and tourism industry with a broad overview of the latest trends and newest regulations related to the Chinese travel and tourism industry.

This month, one trend still dominates the news:

Outbound travel from China continues to rise exponentially for business as well as pleasure…

Travelling Chinese spent US$43.7 billion (31 billion euro) on tourism in 2009 – a rise of 21 per cent year on year. As a result, tourism operators are gearing up for an influx of Chinese tourists. Hotels in Europe and North America are currently developing novel Mandarin check-in services for Chinese tourists – which are actually situated half a world away.

Record numbers of Chinese are now heading overseas each year – 54 million are expected to make plans for international travel by the time 2010 draws to a close

According to the American Express Global Business Travel Forecast, in China, expenditure for business travel is expected to increase by 17% in 2010, making it the sector leader in the Asia-Pacific region.

On the domestic front…
Shanghai hotels are facing swift and deep drops in rates of up to 50 per cent now that the World Expo has concluded.

If you have any comments or suggestions on the summary above or the full newsletter below, please don’t hesitate to contact us.  Also, do please do let us know if you do not wish to receive this newsletter by getting in touch with me at oliynyks@ruderfinnasia.com or by return email.

Best regards,
Shari Oliynyk
Director, Travel & Tourism

About Ruder Finn China’s Travel and Tourism Experience

Over the past 12 years, Ruder Finn China has developed and implemented numerous multi-faceted public relations programs in the travel and tourism sector.  Ruder Finn’s work on behalf of international clients includes projects and programs promoting countries, airlines, resorts and major tourist destinations.

Ruder Finn China’s travel and tourism experience, combined with its worldwide track record, offers its clients a combination of truly knowledgeable local and international teams, delivering results that meet their needs and objectives – on time and on budget.  Feel free to get in touch with us to discuss your requirements.  Our contact information is indicated at the beginning of this newsletter.  We look forward to hearing from you!

China Travel Industry News

Preparing to welcome tourists, Chinese-style

UNWTO to assist China in designing National Tourism Law

China published 2010 ranking list of outbound tourism

Latest figures of Mainland Chinese travellers to Hong Kong released at WTM 2010

Surprisingly, Gay and Lesbian tourists share problems with Chinese outbound tourists. – WTM London 2010

Emerging markets and Social Media seen as biggest growth opportunity by travel industry – WTM London 2010

Chinese outbound market growing more than 20% in first eight months of 2010 – WTM London 2010

China prepares for tourism fair – and the world wants in on the action

International tourist arrivals back at pre-crisis peak level

Shanghai eyes premier MICE hub status

Tourists to Hainan to enjoy duty-free discounts

China Consumer and Economic News

Fast economic growth in China to boost expenditure on business trips in 2011

China Central Bank chief foresees major economic changes

BCCI for October issued

Baidu Struggled in China Too

New Tax Leads Chinese to Shop at Home

Destination News

China seen as crucial market for South Africa tourism

Tourism New South Wales launches self-driving manual

China visitors to US expected to rise more than 300% in next few years

SeaWorld Adventure Park opens China office

Indonesia expects to attract more Chinese tourists through active promotion

Mainland tourists to Taiwan expected to hit 1.2m in 2010

National Tour Association inaugurates office in Shanghai

Airline News

Spring Festival to Bring China-Guam Charter Flights

Hotel News

Shanghai rates on downward trend

China Travel Industry News

Preparing to welcome tourists, Chinese-style

The Independent Relax News, November 4, 2010

Tourism operators the whole world over are gearing up for an influx of Chinese tourists over the next decade and they are looking at some pretty novel ways of trying to make them feel at home.  Hotels in Europe and North America are currently developing Mandarin check-in services for Chinese tourists – which are actually situated half a world away.  “A check-in machine could link them with someone who does speak the language but they could be in Shanghai or anywhere else,” Asiawide Hospitality Solutions president and CEO Kevin Murphy told the China Daily.  “The hotel industry is starting to think of a range of options right now,” he said.

Travelling Chinese spent US$43.7 billion (31 billion euro) on tourism in 2009 – a rise of 21 per cent year on year. And the United Nation’s World Tourism Organisation says it is only a matter of time before they spend more than visitors from the traditional international travel leaders Germany, the United States and the United Kingdom.

Colliers International, which looks after tourism real estate investment in Asia, says operators have to be more specific when it comes to dealing with the needs of Chinese tourists.  “They like shopping, theme parks and, of course, eating,” said their regional director, David Faulkner.

UNWTO to assist China in designing National Tourism Law

eTurbo News, November 5, 2010

The UNWTO will assist the government of China in the formulation of its first ever national tourism law. Visiting the organization’s headquarters, a high-level delegation led by parliamentarians of the China National People’s Congress and the China National Tourism Administration (CNTA), agreed to request the technical and political support of UNWTO to design its normative framework for tourism.

Through the CNTA, China will follow the positive experiences of different UNWTO member countries in implementing a national tourism legislation.

China published 2010 ranking list of outbound tourism

People’s Daily, November 9, 2010

Recently, China Tourism Academy and Ctrip.com jointly published the “2010 Ranking List of Chinese Outbound Tourism in Q3.” It is reported that the scale of Chinese outbound tourism has reached 15.42 million people in the third quarter and its growth rate has reached 23.5 percent.  The growth rate of Chinese tourists travelling to Japan and South Korea increased more than 30 percent.

In addition, the growth rate of Chinese tourists travelling to Russia increased more than 13 percent, which ranked in the top 10 and is the only European country on the list. It is reported that the growth rate of outbound tourists has nearly reached 16 percent for the Asian region in the third quarter, and the growth rate of outbound tourists has nearly reached 33 percent for the Americas. Tourism to the African region increased 132 percent due to the 2010 FIFA World Cup South Africa.

Latest figures of Mainland Chinese travellers to Hong Kong released at WTM 2010

World Travel Mart, November 10, 2010

Hong Kong is still the No. 1 destination for Mainland Chinese travellers. During a workshop at WTM 2010 the latest figures were released by the Hong Kong Tourism Board, showing an increase of 28.1% of Mainland Chinese coming to Hong Kong for the first three quarters of 2010, compared to the same period 2009. This translates into 16.5 million travels, more than half of them based on the simplified IVS visa procedure. For many the visit to the “comfort zone” Hong Kong with little language and culture problems is the first taste of the outside world.

Surprisingly, Gay and Lesbian tourists share problems with Chinese outbound tourists. – WTM London 2010

World Travel Mart, November 10, 2010

A growing market which, after being ignored for years, has now come into the focus of most tourism destination managers and tourism industry leaders. The target group is rather easy to identify and communicate with, spends more and more willingly when travelling and exhibits demand structures which are often complementary to those of other markets, helping to fill for instance seasonal gaps.

They are promised customized products and a special welcome by the global tourism industry, only to find out when they are travelling that these promises have yet to filter down to the rank and file, who very often lacks basic training and information about this customer group and consequently fail to deliver high levels of service standards.

If you think we are talking about Chinese outbound tourists, you are certainly right. But from a press release for the WTM World Travel Market 2010 in London by OutNowConsulting, it becomes clear that Chinese international travellers are sharing their fate with the global Gay and Lesbian community.

Emerging markets and Social Media seen as biggest growth opportunity by travel industry – WTM London 2010

World Travel Mart, November 10, 2010

The organizers of WTM have published the result of a recent survey of more than 1,200 leading tourism industry persons. One result: emerging markets, mainly the BRIC countries Brazil, Russia, India and China, are seen by 29% as the single most important growth opportunity for the global tourism industry in the next five years. After technological advances, Social Media are named as the third-biggest opportunity by 20% of the surveyed. All other aspects only reach single-digit importance.

China as a source market for international tourism is getting into the focus of more and more destinations especially in times of crisis and slow recovery. For example Croatia, not a typical Chinese outbound hotspot, saw an increase in Jan-Oct 2010 of 67% more visitors from China, beaten only by South Korea as the fasted-growing market for Croatia, in a situation of an overall growth of just 2%.

Chinese outbound market growing more than 20% in first eight months of 2010 – WTM London 2010

World Travel Mart, November 10, 2010

Shao Qiwei, Chairman of the China National Tourism Administration of China, attended the WTM 2010, wherein he confirmed the growth rate of Chinese outbound tourism for the first eight month of the year 2010 to be 21% compared to the same period of last year. That is in line with reports from a number of destinations and would translate to an overall number for 2010 of about 58 million border-crossings from Mainland China.

Overall, when talking to exhibitors, visitors and journalists about the Chinese outbound market, two points were mentioned again and again: Firstly, nobody is questioning any more the importance of this market segment. Secondly, everybody is searching for contacts to Chinese tour operators which can organize products for the luxury tourism demand from China.

China prepares for tourism fair – and the world wants in on the action

The Independent, November 16, 2010

China is this week hosting its largest annual tourism fair at a time when it seems the whole world is lining up to tap into what has now become a vast market – both inbound and outbound.

The China International Travel Mart is expected to attract more than 100,000 people, more than half of them members of the public keen to expand their travel options.

CITM is fast becoming a major show on the tourism calendar and could soon be nipping at the heels of its Western counterparts such as February’s New York Times Travel Show, ITB Berlin in March and the Global Travel and Tourism Summit to be held in Las Vegas in May.

Record numbers of Chinese are now heading overseas each year – 54 million are expected to make plans for international travel by the time 2010 draws to a close – with Hong Kong and Macau the most popular destinations.

But other markets are keen to cash in on the growing Chinese market.  South Korea, for example, for the first nine months of the year saw a 43.9 per cent rise in visits from mainland Chinese, the number rising to 1.43 million after a series of Chinese-based promotions and advertising campaigns. And Japan – after a similar campaign – saw Chinese visitor numbers rise by 39.3 percent in September (to 138,000).

International tourist arrivals back at pre-crisis peak level

www.travelweekly-china.com, November 18, 2010

Results through August 2010 prove that international tourism continues to recover from the decline under the impact of the economic crisis. In the first eight months of this year, the number of international tourist arrivals exceeded the record achieved during the same period of the pre-crisis year 2008. According to the latest issue of the UNWTO World Tourism Barometer, worldwide arrivals between January and August 2010 totalled 642 million, 1 million more than in the same period of the record year 2008.

Shanghai eyes premier MICE hub status

TTG Travel Hub Daily News, November 19, 2010

SHANGHAI is looking to beef up its MICE facilities, as it sets its sights on being Asia’s conventions and exhibitions hub.  Just last year alone, the city hosted 771 large-scale meetings with around 1,000 delegates each, said Shanghai Municipal Tourism Administration chairman Dao Shu Ming. Total exhibition space in Shanghai will eventually reach 150,000m², with a new 60,000m² exhibition centre currently being built near Hongqiao Airport.  With the expansion of train networks, accessibility has also improved, making Shanghai an attractive destination for international mega-events, said Dao.

Looking ahead, Dao said the city had also identified trends in travel demand. Visitors from Europe, for example, were showing a growing interest in Chinese culture. Shanghai, which already has 100 museums, will see how it can further develop products suited for this market. Asian visitors, on the other hand, were keen on mini-vacations of shorter lengths, he added.

Tourists to Hainan to enjoy duty-free discounts

People’s Daily Online, November 26, 2010

If you’re in China, you may not have to go to Hong Kong to get your duty free cosmetics and liquor anymore. Hainan Island, a popular tourist destination in Southern China, is continuing efforts to transform itself into a top international tourist Mecca.

A local official says the policy is expected to take effect in 2011. Under it, tourists who make purchases in Haikou, Sanya, Bo’ao and Wanning will receive tax rebates when leaving the province. Plans are underway to build expansive duty-free malls to attract world-renowned brands. The policy is expected to provide a 30 to 70 percent discount for tourists.

China Consumer and Economic News

Fast economic growth in China to boost expenditure on business trips in 2011

www.travelweekly-china.com, October 28, 2010

Business travel hotel rates and airfare are expected to increase by 10% in 2011 in the world next year, according to the American Express Global Business Travel Forecast. In China, the expenditure for business travel is expected to increase by 17%, making it the sector leader in the Asia-Pacific region.

China Central Bank chief foresees major economic changes

cn.reuters.com, November 3, 2010

China’s economy may witness far-reaching changes in the next five years but progress towards capital account convertibility and internationalisation of the yuan will be gradual, central bank governor Zhou Xiaochuan said. At a meeting of the Institute of International Finance (IIF), Zhou said China’s five-year plan for the period 2011-2016 would emphasise promoting domestic demand, most notably, consumption.

BCCI for October issued

www.caijing.com.cn, November 9, 2010

On November 9, CUP and Xinhua News Agency jointly issued BCCI (Bankcard Consumer Confidence Index). The data showed BCCI in October was 85.69, down 1.69% from one year early and down 0.63 from a month ago. BCCI showed the consumers’ consumption on supermarkets, food, garments and other daily items rose by 17% over last month, demonstrating the rise of consumption on necessities.

Baidu Struggled in China Too

New York Times, November 16, 2010

Google failed in China because it did not understand the Chinese Internet market, not because the playing field was unfairly tilted against it, says Robin Li, the chief executive of Baidu, the Chinese search engine that dominates in China.

“China is a very different market,” said Mr. Li. “It’s growing, meaning conditions change every day. If you’re not close to that market it’s difficult to keep up.”  Mr. Li said that he had also struggled with the government censorship that Google cited when it ended its Chinese operations earlier this year. He said that his first inclination when he left the United States to start Baidu was to move to Hong Kong. This way, he could avoid some of the restrictions on the Chinese mainland. But such a move would have been impossible for a Chinese company, he said.  “They would call me some kind of anti-government person, my life would be ruined” he said. “If a U.S. company were to ignore Chinese law, they would still call them strategic partners.”

Instead, Baidu stayed in China and accepted censorship as a price of doing business, along with China’s onerous bureaucracy, slow connection speeds and a low computer penetration rate. It focused on what it could control, he said, and did not worry about what it could not.

Doing so has worked out well for Baidu. Its stock price has nearly tripled since November 2009. Its revenue has increased 15 times in the five years since he turned down offers to sell the company for over $1 billion shortly before its initial public offering in 2005. The company is looking to expand internationally, although it has no plans to move into the United States.

The Chinese Internet market today still presents enormous room for growth, said Mr. Li. There are about 420 million Chinese Internet users, practically all of who use Baidu, he said. There are more than twice that many mobile phones in the country.

New Tax Leads Chinese to Shop at Home

New Epoch Weekly, November 26, 2010

In the last few years high-end retailers around the world have learned that Chinese are ready to shop. Due to new duties levied by the Chinese state, the shopping spree may be coming to an end.  Chinese tourists have been eager to shop for luxury goods in Western cities because of price. The prices for luxury merchandise on Fifth Avenue in New York City are only about 1/4 to 1/3 of those in Shanghai and Beijing.

In August, Chinese Customs announced steep, new duties on any merchandise brought back into the country for personal use that exceeds 5,000 yuan (approx US$750; US$1,500 is the average monthly, urban wage in China) in value.

Beginning Aug. 1, a 20 percent tax began being applied to leather, fur, products made of leather and fur, cameras, camcorders, and audio and video appliances. A 30 percent tax is applied to watches, clocks, and their parts. A 50 percent tax is applied to cosmetics, alcohol and tobacco. A tax of 100 percent is applied to laptop computers, cell phones, and cameras.

Destination News

China seen as crucial market for South Africa tourism

Business Day South Africa, November 2, 2010

South Africa is hopeful that a deal lifting travel curbs on Chinese citizens will be reached by May.

Tourism Minister, Marthinus van Schalkwyk, said “I have also held several talks with various airlines, including South African Airways, regarding the introduction of direct flights to Shanghai and Beijing and I am confident we will see these flights in place within the next two years.”

The latest figures from SA Tourism show that in July, 6278 Chinese travelled to SA, up 70% from July last year. In the first seven months of the year, 36851 Chinese tourists visited SA, 61% more than last year.

Tourism New South Wales launches self-driving manual

www.travelweekly-china.com, November 15, 2010

Tourism New South Wales announced it has launched a new self-driven tour manual with more detailed information about the province for Chinese visitors.

China visitors to US expected to rise more than 300% in next few years

Global Times, November 22, 2010

Barbara Logan, VP of Meeting and Event Services at US Travel, said it is forecasted that the number of visitor arrivals from China to America to rise by 346% during period of 2009-2015.

SeaWorld Adventure Park opens China office

www.travelweekly-china.com, November 22, 2010

Foreseeing tremendous potential growth of their Chinese market, SeaWorld Adventure Park, from San Diego in California, recently opened a China office.  The number of visitor arrivals from China to California in recent years has reached 250,000 to 300,000 per year.

Indonesia expects to attract more Chinese tourists through active promotion

www.xinhuanet.com, November 26, 2010

Indonesia is expected to attract more Chinese tourists through active tourism promotion in China, such as the 12th China International Travel Mart (CITM) and the World Expo Shanghai China (WESC) 2010.

Chinese tourists are the fifth largest group in Indonesia after Singaporians, Malaysians, Japanese and Australians. Last year, as many as 356,000 Chinese tourists visited Indonesia out of total 6.5 million of foreign tourist.

Mainland tourists to Taiwan expected to hit 1.2m in 2010

Xinhua, November 26, 2010

Some 1.2 million mainlanders will visit Taiwan in 2010, a spokesman for the Taiwan Affairs Office of the State Council forecast Wednesday.  Figures from the TSTA show 979,000 mainland tourists had visited Taiwan as of Nov. 4.

National Tour Association inaugurates office in Shanghai

www.travelweekly-china.com, November 30, 2010

On November 20^th, the United States’ National Tour Association (NTA) held an opening ceremony to commemorate its office opening in Shanghai.  This is the first NTA overseas office in the world.

Airline News

Spring Festival to Bring China-Guam Charter Flights

Cri.cn, November 26, 2010

The Guam Visitors Bureau will launch charter flights from Beijing, Shanghai, Hangzhou and Shenyang to Guam, respectively during 2011′s Spring Festival to attract more Chinese tourists.

The charter flights are collaborated efforts between the American Continental Airlines and China’s domestic tourism industry. Starting from February, 9, charter flights will fly from China to Guam, including three from Beijing, three from Shanghai, two from Hangzhou and one from Shenyang. More than 1,300 tourists are expected to spend the Spring Festival in Guam.

Hotel News

Shanghai rates on downward trend

TTG Travel Hub Daily News, November 19, 2010

Shanghai hotels are facing swift and deep drops in rates of up to 50 per cent now that the World Expo has concluded.

China Comfort Travel outbound sales department representative, Zhou Wei, said international five-star hotels “would suffer the most” because they were the ones that targeted international Expo-goers”, while mid-range local hotels would not see rates dropping as substantially because “they would continue to see demand from domestic travellers”.

Indeed, a director of sales of an international luxury hotel said her rates had plunged from RMB 3,000 (US$452) a night to a mere RMB1,500 now. In contrast, local Mandarin Hotel director of sales, Michael Li, said its two three- to four-star properties were seeing rates of between RMB350 (US$53) and RMB400 now, compared to RMB500 during the Expo.

While the story shed light on the deeper issue of hospital financing, Beijing’s claim that close to 50% of the hospitals are operating in deficit drew criticism over hospitals’ use of resources.  The minister of health also alluded to a similar point when he said that hospitals should not blindly pursue expansions.  The financing issue is especially pressing in view of the “eruption” of healthcare demand due to the expansion of medical coverage.

As a remedy to promote healthcare affordability and accessibility, the National Development and Reform Commission announced the latest round of price cuts on pharmaceuticals.  Therapies that had enjoyed differential pricing status were targeted.  This round of price cuts focused mainly on therapies marketed by international pharmaceutical companies.

Separately, a patient-initiated ranking of good/bad doctors drew over 100,000 visits since its posting in October.  Patients’ impressions of doctors’ attitudes such as patience and professional integrity on prescriptions turned out to be the overriding qualities of concern in the ranking.  The Ministry of Health’s support of an upcoming TV program suggests efforts to promote understanding on the issue of doctor-patient relations.

International healthcare businesses are also aggressively positioning themselves by expanding into OTCs, launching medical IT platforms, deepening investments in R&D facilities, and expanding their geographic coverage in key therapy areas.

In the region, news on Singapore shows the country’s ambition to develop a competitive edge in hospital management and services.  Korea’s large conglomerates are also aggressively taking position in the healthcare and medical sectors.  Taiwan, on the other hand, is developing a niche in home care and biotechnology, while news in Hong Kong focused on public health concerns.

In our view, the key take away from this month’s news reports in China is that patients trust other patients’ opinions.  In addition, the news suggests an emergent influence of online public opinion to promote transparency and accountability in local government and hospitals.  Reprints of the stories in the traditional media suggest that the trends are viewed as potentially beneficial to the goals of medical reform.  For the business community, these trends indicate the need for a communications strategy that tracks emerging trends, in addition to one that responds to developments underpinned by already rooted opinion frames.

Ruder Finn Asia offers an issue tracking, analysis, and advisory service on behalf of clients.  The service is designed specifically to a client’s strategic positioning and competitive profile and provides insights to guide corporate, medical, and health communications.  For more information on this service, please contact Mai Tran at mtran@ruderfinnasia.com

媒体报道摘要

媒体于11月期间关注医务人员收受回扣的话题。据新华社报道，杭州一论坛出现一网帖，惊爆杭州多家医院数十名医生收受回扣。网帖发出之后，网民踊跃跟帖，同时传统媒体相继报道，当地医院和卫生部门也展开调查。  (网帖曝光杭州多家医院数十名医生“回扣清单”(图)；卫生部回应回扣清单称决不姑息商业贿赂行为；一篇网帖 凭什么引发医院自查；杭州“医药回扣门”调查结果污辱公众智商; 人民日报连登五篇读者来信 称医院卖药猫腻多; 浙江省副省长：医务人员收受回扣红包依然存在)

该新闻虽然暴露了更深层医院财政资源的问题，但北京市卫生局提出目前超过50%的医疗项目存在不同程度的亏损，却引起不少对于医院运用资金情况的评论。(“逾五成医疗项目亏损”应看怎么个亏法)  卫生部长也指出，大医院盲目扩张加剧看病难。而其它报道如，医疗需求井喷或致新一轮看病难，更进一步的突显医院资金运用的问题。

为解决看病贵看病难，国家发改委发出通知，单独定价药物将平均降价19%。此次降价涉及外资制药公司为主的原研等单独定价品种药物。

另外，一份名为2010年版济南医生“红黑榜”的帖子成为网民热捧的“看病指南”。目前，这一榜单跟帖数千条，浏览量达11万多人次。而之后推出的济南儿科医生“红黑榜”浏览量超过15万人次。据报导，网上的评价多以服务态度为主要标准。(网络热推医生“红黑榜”) 卫生部对即将推出的大型医疗职业剧《医者仁心》给予了高度的评价，也显示政府积极促进公众对医患关系的理解。(卫生部高度评价《医者仁心》 直面医患矛盾(图))

媒体报道同时显示，跨国企业—包括微软（Microsoft, iSoftStone Launch HealthVault PHR Platform in China），GE（GE医疗下乡 拓展中国基层医疗市场）, 赛诺非安万特等（Sanofi-Aventis eyes OTC market； 诺和诺德投资扩建中国糖尿病研发中心； 礼来中国糖尿病战略投资升级）– 正积极布局市场战略。

我们认为本月媒体报道最值得关注的是病患评价对其它病患观点的影响力。此外，杭州回扣门也反映了网民对医院和地方政府的影响。传统媒体对网络消息的转载意味着这些趋势对医改目标的正面作用。对于医药企业而言，我们认为这些趋势显示，传播战略除了回应已经成形的舆论论点，应该更加积极追踪正在形成的舆论影响。

罗德公关为客户提供一套“论点追踪、分析、和咨询”的服务方案。该服务依据客户业务需求，为客户提供策劃及執行公共事務和公共關係傳播的工作的參考。詳情請洽：Mai Tran (mtran@ruderfinnasia.com)

Medical Reform

An anonymous posting that exposed a detailed list of kickbacks to doctors in Zhejiang prompted the editorial media to focus on the topic of corruption:

According to Xinhua Net, an anonymous netizen wrote on a Hangzhou Web forum that he found a flash disk that contained a Word document listing details of kickbacks to doctors in Hangzhou.  The company involved was a medical diagnostics company.  (网帖曝光杭州多家医院数十名医生“回扣清单”(图))

Jiankang News reported that an official of the local health authority indicated that the government will take disciplinary action if the reported corruption is confirmed.  The paper also reported that the Ministry of Health has learned that the situation of commercial bribery involving medical purchases has worsened recently.  The ministry has already dispatched seven inspection teams in early November to investigate local activities and will file a report by the end of the month.  The report will be used to guide measures to discipline corrupt conduct. (卫生部回应回扣清单称决不姑息商业贿赂行为)

A commentator mused on why a Web posting prompted the hospital to undertake an investigation.  He further wrote, “If this report is true, it is no wonder why the healthcare cost is so high…  What is true is that after all these rounds of medical reform, doctors receiving kickbacks remains a rampant practice.”  (一篇网帖 凭什么引发医院自查)

Following a report by the named hospital on the results of its investigation, a commentator wrote that the findings are an insult to “the public’s IQ.”  (杭州“医药回扣门”调查结果污辱公众智商)   People’s Daily also reported that investigation results were doubted after the hospital bribery list was posted online in east China.

People’s Daily featured five patients’ stories that also supported the view of doctors abusing their power at the expense of patients’ interests.  (人民日报连登五篇读者来信 称医院卖药猫腻多)

The core issue driving the corruption is hospital financing as pointed out by Zhejiang’s deputy provincial governor:

…kickbacks remain a rampant practice.  Until the issue of medical workers’ compensation is addressed, the corrupt practices will continue to compromise the effectiveness of the medical reform.  (浙江省副省长：医务人员收受回扣红包依然存在).

However, claims by Beijing that 50% of its hospitals are operating in deficit drew criticism over the cause of the financing shortfall.

A commentator questioned the cause of the deficit.  He wrote, “When most people walk into a hospital, they tend to lament hospitals are getting richer and richer.  The buildings are getting taller; its facilities looking like a five-star hotel; and all of its equipment is imported from the U.S. or Europe.”  He further wrote that budget shortfalls are caused by hospitals blindly engaging in expansion projects. (“逾五成医疗项目亏损”应看怎么个亏法)

Such a perspective echoed the minister of health’s view that blind expansions undertaken by large hospitals are exacerbating the issue of healthcare accessibility.

The director of Shanghai Sheng Kang Hospital Development Center, the local government’s hospital investment management arm, commented that the term “blind expansion” should be rephrased as “disorderly expansion.”  The core cause of the expansion trend is the ineffectiveness of government planning.  (卫生部长：大医院盲目扩张加剧看病难).

The need to promote more efficient use of financial resources is especially acute in view of the “eruption” of medical demand:

According to the director of the Office of Medical Service Supervision under the Ministry of Health, based on data from the recent three years, outpatient traffic in hospitals has expanded by some 100 million visits per year.  The volume of hospitalization has increased by 10 million stays.  The pace of increase means that China will need to expand the equivalent of the entire hospital capacity of Australia every two years.  China is also close to capacity on hospital bed utilization in provincial hospitals and has only 0.7 physicians (of international standard qualification) per 1,000 people.  The strong growth and resource shortage may drive a new round of healthcare challenges. (医疗需求井喷或致新一轮看病难).

Therapies that enjoyed differential pricing treatment in the past are the most recent targets of the National Development and Reform Commission.

According to Reuters, China is to cut the retail price of many medicines by an average of 19% from Dec. 12 in a bid to rein in the country’s rising healthcare bill.  Prices for some individual drugs will fall a lot more than 19%, with Bristol-Myers Squibb’s heart medicine Capoten set to come down by 35% and Roche’s antibiotic Rocephin by 30%.  (China to slash drug prices by 19 pct to cut costs).  Bloomberg Business Week also reported China Slashes Roche, Bristol-Myers Drugs to Pare Medical Costs.

According to China Business News, the latest round of price reduction affected 17 categories of medicines, including antibiotics and cardiovascular therapies.  The story cited the price cut in the context of the larger anti-inflation measures that the commission is undertaking.  Lower production costs due to technological advancement was also cited as the rationale for the price cuts.    (单独定价药物将平均降价19%).

Earlier reports on the story profiled arguments in favor of eliminating preferential price treatments for these therapies.  In addition to the argument of cost containment as a means to improve healthcare affordability, the articles quoted perspectives on the need to allow local manufacturers to compete fairly in their own market.  According to the reports, many of the therapies are off patent and equivalent generics by local producers are widely available.  As such, the therapies do not offer added medical value to justify the differential pricing treatment.  (发改委部署药物降价 欲废除外资药超国民待遇)

Shanghai is reportedly deliberating price reduction or exclusion of preferentially priced medications from its essential drug amendment list. (上海酝酿抑制高价药 外资单独定价药或出局)

Xinhua Net reported that a patient-compiled ranking of good and bad OB-GYN doctors in Jinan drew over 110,000 viewers since its posting in October.  The ranking involved 20 doctors in 8 hospitals.  A ranking of pediatricians has drawn over 150,000 visits.  Similar rankings have been published in Beijing, Shanghai, Shenzhen, and Suzhou by local netizens. (网络热推医生“红黑榜”)

According to the website that posted the rankings, the original intent was for the list to serve as a reference for patients.  However, due to the factual nature of the list, many patients have now followed the list diligently and would queue for doctors recommended in the list.

A sociology professor at Shandong University commented that the proliferation of the list indicates patient dissatisfaction with public health services, and the list reflects the current state of doctor-patient relations.  He also offered that the ranking can serve as an effective measure for the government and hospitals to promote better services.

A doctor listed under “bad doctors” criticized that the ranking is based on subjective criteria such as patient impressions.  A hospital administrator also criticized the list for its overreliance on patients’ experience instead of an objective ranking of a doctor’s professional qualifications and professionalism.

The Ministry of Health praised the upcoming TV drama “The Doctors” for the program’s honest treatment of the issue of doctor-patient relations.  The program is scheduled to air on Dec. 9 on CCTV 8.  According to the news report by Sina, the Ministry of Health gave the program a high level of attention.  During the script development and production stage, Ministry of Health Spokesperson Deng Hai Hua acted as a director of production supervision.  The ministry also organized experts to review the draft program and provided professional comments.  (卫生部高度评价《医者仁心》 直面医患矛盾(图))  A similarly themed TV program based on a book by Liu Liu was canceled two weeks before filming.  (《心术》开机两周停拍 剧本不完善编剧主动叫停)

China aims to cover at least 70% of personal healthcare costs

Ministry of Health: the key task of deepening medical reform is to strengthen basic services

Business & Initiatives

Microsoft, iSoftStone Launch HealthVault PHR Platform in China

Sanofi-Aventis eyes OTC market

Analysis: Drug industry doses up on emerging markets

Merck Climbs on the Emerging Markets Bandwagon

Healthcare provider seeks to grow bigger

GE医疗下乡 拓展中国基层医疗市场

GE setting up 6 healthcare R&D centers in China

诺和诺德投资扩建中国糖尿病研发中心

礼来中国糖尿病战略投资升级

Healthcare provider seeks to grow bigger

GE Healthcare Sees 20% Revenue Growth in China Through 2015

Siemens eyes top spot for medical devices in China

Health & Wellness

China AIDS death toll up nearly 20,000 in a year

Diabetes treatment costs China US$25bn per year

China Spends RMB 173.4 Billion (US$25 Billion) A Year On Diabetes Treatment

China now global diabetes epicenter

Yunan Bai Yao, a well-known Chinese medicine brand, indicated that the company has been contemplating entering the cosmeceutical sector.  The company’s toothpaste ranks number five in China, making it the only domestic brand in the top five toothpaste brands.    (云南白药代表招标会现场透露：或将涉足药妆行业)

Following a CCTV program’s expose on hydrogenated oil, the public’s confidence over the issue of food safety has been challenged again.  (没有行业标准 市场管理混乱, 氢化油食品遭遇“寒流”)。

Public Health

Health reforms light moves to change China’s smoking culture

Cost of smoking higher than revenue

Additional News from the Greater China and Other Markets:

Hong Kong

Hong Kong hospital reports possible airborne influenza transmission

Avian influenza case detected in Hong Kong: WHO

How airborne influenza may spread

Medical pioneer closing in on AIDS vaccine

PRIVATE DOCTORS KEY TO E-HEALTH UPTAKE IN HONG KONG

Taiwan

Singapore healthcare firm to survey Taiwan market

Biotech industry to continue to prosper: President

Taiwan eyes home health-care market with medical innovations

Singapore

No known case of bird flu in Singapore, says MOH

Singapore Outlines Need For Safer, Better And Cheaper Drugs

SINGAPORE : Singapore medical tourism business grows despite competition

Singapore’s prestigious, pristine healthcare services

SINGAPORE TO BUILD MORE ‘HASSLE FREE’ HOSPITALS

Healthcare institutions need to continually innovate: MM Lee

Hospitals in Singapore to Observe Cleaner Practices to Reduce Hospital Infections

Korea

Leading Korean Health IT Provider Selects U.S.-based eProtex for Medical Device Security

The role of government incentives for health tourism and medical travel

LG Uplus to enter health care business

South Korean Hospitals Increasingly Adopt Healthcare IT to Remain Competitive, Finds Frost&Sullivan

Chaebol rush into medical business

Samsung, SK bid for medical firm Medison – sources

Hospitals to get rating for service quality

This optimism contrasted with the more somber note made by an investment consultancy on the lack of meaningful progress in the medical reform.  The anticipated adjustment to measures relating to the Essential Drug System also captured the attention of the editorial media.  The media reported that the “zero-margin” policy may be abandoned and the original planned system of designated production and distribution favored by major domestic suppliers adopted.

The news that captured the most attention in terms of follow-up commentaries, however, was the story that a district government in Hangzhou spent 300 million yuan to buy back the health institutes it sold for 75 million yuan to private investors between 2002 and 2003.  Commentators viewed the price as an expensive lesson for buying back public service responsibilities previously abdicated by the district government.

In the region, biomedicals are also capturing the attention of the Singapore government, which announced a plan to invest S$3.7 billion to further develop the biomedical sciences sector.  IT and electronic businesses are also expanding their presence in the healthcare sector in the region with Agilent Technologies announcing its plan to open a global bioanalytical instruments facility in Singapore and Samsung reported to be mulling an investment in a medical equipment company.

This month’s news reports suggest a generally optimistic prospect for biomedical and medical IT businesses.  In China, for business aiming to capitalize on opportunities from the medical reform, the evolving nature of the healthcare service system continues to present challenge.  Judging from the issue frames expressed through commentaries, public opinion remains critical of the medical reform’s progress to date and shall continue to represent a key force in influencing the future policy direction of the market.

Ruder Finn Asia offers an issue tracking, analysis, and advisory service on behalf of clients.  The service is designed specifically to a client’s strategic positioning and competitive profile and provides insights to guide corporate, medical, and health communications.  For more information on this service, please contact us.

媒体报道摘要

媒体于十月份广泛报有关“十二五”对生物医药与药品流通行业影响的利好消息。  北京、上海及其它省份纷纷相继推出配套政策。(生物医药产业振兴规划:三大领域受益最明显)

相对这乐观的前景预测，媒体对医改的进展的报导则显示各方观点的议论。卫生部部长陈竺表示，我国新一轮的医改，自去年启动以来进展顺利，基本医疗保障覆盖已超90%人口。 此外，经济观察报也报导，虚高药价得到控制。

中投顾问对医改进展的进度则持谨慎态度。该顾问公司发表的分析研究指出，“新医改已经过去一大半，其当初中央财政8500亿的拨款也所剩无几，但是为什么中央及地方投入这么大的财力和精力，医改仍然停滞不前？”（新医改方案进行大半仍浮于表面）。另根据新快报报导，广东省卫生厅副厅长廖新波在自己的博客上发起投票， 74%的网友选择“看病报销比例大了，自费也多了”。廖新波说，在一年半的实践中，很多问题都找不着北，或者重新陷入“政府与市场”之争。 (医改一年半费用降了吗?)

此外，媒体也关注关于调查称零差率实施困难基本药物政策面临调整的消息。据报道，基本药物“零差率”多处遇阻 或重回老路，国内几大医药集团目前已经就基本药物回归定点生产、定点配送的达成了初步的协议,接下来,他们或将向国家相关部门集体建言。

最受到舆论关注的则是有关杭州余杭区政府全资回购股份制卫生院的消息。多数舆论观点由3亿赎回卫生院 这“学费”太贵角度切入，南方日报则刊登舆论提出需要在出售与购回间思考“市场化”含义的观点。另宿迁医院引国资 公私合作”办医疗之路待尝试则体现该地方政府在类似问题的处理采取的不同尝试。

本月媒体报导的取向显示市场对生化医药领域的乐观态度。而对希望凭借医改商机发展的企业而言，医疗服务模式的转化的进程将持续是行业面临的最大的挑战之一。就媒体对医改进展采取的报道倾向看来，公众舆论对医改和未来市场形势的发展将持续形成一定的影响。

罗德公关为客户提供一套“论点追踪、分析、和咨询”的服务方案。该服务依据客户业务需求，为客户提供策劃及執行公共事務和公共關係傳播的工作的參考，请随时与我们联系。

Medical Reform

The Communist Party of China Central Committee has proposed the nation’s new five-year development program for 2011 to 2015.  On the social development front, the government indicated that China is to improve public services.

In addition, biomedical is listed as one of the key strategic areas for economic development.  The five-year plan for the pharmaceutical distribution sector is expected to continue the theme of consolidation and increased scale and strength.

According to China Security Net (生物医药产业振兴规划:三大领域受益最明显):

….The preliminary plan has confirmed the value of industry production target to exceed 300 billion yuan, a 200% increase from the value of 2009. Beijing, Shanghai and other provinces have all introduced supplementary 12^th five-year plan for their biomedical sectors.

…Medical equipment and vaccines are areas attracting the most market attention. Presently, the medical equipment market represents 14% of the overall medical market in China, compared with 42% in international markets. As for the vaccines market, the global vaccine market is 38 billion US while China’s market is estimated at 5 to 6 billion yuan.

…The pharmaceutical distribution sector’s 12^th five–year plan aims to nurture one to two key national market players with annual sales value in excess of 100 billion yuan and 20 regional market players with annual sales value in excess of 10 billiion yuan. The development key for the sector continues to be consolidation and increasing scale and strength.

In an investment analysis and prospect report covering 2010 to 2015, an investment consultancy pointed out that the progress of medical reform remains stagnant even as the reform has passed its half-way schedule and most of the 850 billion yuan expended.  The report urged the government to seriously identify areas that stalled the progress in order to right the reform’s track within the remaining schedule. （新医改方案进行大半仍浮于表面）

The media reported on the government’s report of key medical reform achievements:

China Broadcast News reported that the health insurance system is now extended to 90% of China’s population, according to the minister of health. (基本医疗保障覆盖已超90%人口)

The Economic Observer reported that the Essential Drug List has achieved an average savings of 25% to 30% on drugs, although it remains to be seen if the fiscal financing structure is sustainable. (虚高药价得到控制)

Great progress made in rural medical reform: minister

…in addition to questions and possible changes to the essential drug system:

Liao Xingbo, deputy health official of Guangzhou Province, who is an active blogger questioned whether healthcare charges have been lowered. According to an informal survey he conducted through his blog, 74% of respondents reported that “while there is an increase in the proportion of reimbursement, the out-of-pocket expenses are higher.” (医改一年半费用降了吗?)

Separately, the essential drug policy may undergo significant adjustment, according to Pharmaceutical Economics News. The report cited an unnamed source from a state-owned enterprise who indicated that the system might revert to the original proposed plan of designated production and distributions. (调查称零差率实施困难 基本药物政策面临调整) This is due to the difficulties that the government has had in implementing the “zero-margin” policy. (基本药物“零差率”多处遇阻或重回老路)

The news that a district government spent 300 million yuan to buy back 28 health institutes it sold to private investors for 75 million yuan set off an avanlache of editorial commentary.  (杭州余杭区政府全资回购股份制卫生院)

Most view the experience as a pricey lesson by the district government that had abandoned its public service mission. (3亿赎回卫生院 这“学费”太贵)

Others called for an investigation and demanded transparency for the decision to buy back the institutes. (在出售与购回间思考“市场化”含义)

Another city in Jiangsu that sold off its 134 hospitals a decade ago to private investors found an alternative way to qualify for government medical reform funding.  The city has established an investment management center that will manage and supervise non-public funded national healthcare assets.  The city has since successfully devised a new model for private-public partnerships.  (宿迁医院引国资 公私合作”办医疗之路待尝试)

Business & Initiatives

• China to be top three prescription drug market, but Merck’s Kellogg says don’t inflate emerging markets gains.
• Forbes China Rich List Focus: The Business Aftermath of H1N1
• Roche Diagnostics launches a diabetic care training program for community doctors in China
• (糖尿病管理培训：以社区为主战场), and a commentator writes that revolution in healthcare delivery (is) underway in the Asia/Pacific region.

Health & Wellness

• Ageing problem grips China… but also presents untapped business opportunities (银发经济蛋糕”为何鲜有人切?).
• Following the footsteps of multinational pharmaceutical and healthcare companies, Chinese medicine businesses are poised to enter the consumer healthcare sector (药企进军日化带来中医药新生 外资争相进入).

Public Health

• A blood shortage in China prompted the Red Cross to call for blood donations.
• One commentator wrote that the shortage reflects public dissatisfaction with the professional ethics of doctors and hospitals.  According to the commentator, the public is frustrated with hospitals charging high prices for blood transfusions while taking blood from the public for free (“血荒”背后的公众情绪值得重视).

Additional News from the Greater China and Other Markets:

Hong Kong
Hong Kong to increase public healthcare expenses
Hong Kong air kills more than SARS, pressuring Tsang

Taiwan
TAIWAN: Investors see medical tourism potential in Taiwan
Serious illnesses account for 27% of medical costs

Singapore
SINGAPORE: Latest medical tourism statistics from Singapore
Agilent Technologies Opens Global Bio Analytical Instruments Facility In Singapore

Korea
Samsung Electronics mulls stake in medical firm

With this newsletter, we aim to provide our clients and others in travel and tourism industry with a broad overview of the latest trends and newest regulations related to the Chinese travel and tourism industry.

This month, a variety of trends are shaping the industry:

• Adoption of online booking is picking up as China’s travel market continues to grow, with an 11% uptick in the number of travellers last year.  While only 10% of 2009 trips were booked online, that proportion should double by 2011. Tourism is projected to be a $2.3 billion industry by 2013.

It has been suggested that eLong and Ctrip’s shortcomings are likely largely due to China’s global distribution system (GDS), which is closed to outside competition.  However, China has a vibrant ecosystem in another area that holds promise for online travel marketing and distribution—social media.

Web users use China’s leading travel search and booking sites at higher rates than do their peers in North America and Europe.  Ctrip, eLong, Qunar.com, Kuxun.com and Daodao.com and Baidu.com include social elements and offer searchable user-generated reviews, but their social search capabilities are limited to within their own sites.

The online travel market has been growing strongly, noticeably faster than the offline segment. Growth in the online sector is being propelled by increasing internet penetration, growing discretionary spending of consumers and Credit card usage, at a CAGR (Compound Annual Growth Rate) of 24%.

The latest data shows that operating income from third-party tourism reservation online agents in the third quarter amounted to RMB 1.72 billion, a year-on-year increase of 65.8% and up 27.1% from last quarter.

• There is a tremendous appetite for travel amongst well-heeled Chinese as demonstrated by the fact that almost half of the Chinese households with annual income of USD 30,000 and above planned to spend on international personal air travel in second half of this year.

The number of tourists visiting the UK from China, for example, are predicted to rise by 89 per cent, bringing just under 100,000 extra travellers to these shores, by 2014, the fastest increase in tourism to the UK from any country.

Thailand is on track to welcome one million arrivals from China this year and 1.3 million for the next.

Over 2 million Chinese tourists are expected to visit the United States by 2015 if the current momentum of rapid outbound tourism growth continues. Arrivals of Chinese tourists in the United States jumped 33 percent from one year ago to 730,000 during the first eight months this year.

China’s tourism industry has boomed as the country’s per capita gross domestic product (GDP) reached 4,000 U.S. dollars this year. China’s tourists spent 43.7 billion U.S. dollars overseas in 2009 and about 54 million Chinese tourists will travel overseas and spend 48 billion U.S. dollars this year.  China’s outbound travellers will top 100 million and their spending overseas will total 100 billion U.S. dollars by 2015.

• If the process of applying for a visa is disagreeable, tourists will be put off from visiting. In Europe it is so unpleasant that over 450,000 tourists are deterred from going there.  Twenty-six percent of all potential Chinese clients cancelled their trips to Europe owing to the slow processing of Schengen Visas. Visa processing by the UK is identified as that most likely to cause potential visitors to give up on their travel plans, closely followed by France. Germany was ranked as the best consular authority at processing visas

If you have any comments or suggestions on the summary above or the full newsletter below, please don’t hesitate to contact us.  Also, do please do let us know if you do not wish to receive this newsletter by getting in touch with me at oliynyks@ruderfinnasia.com or by return email.

Best regards,
Shari Oliynyk
Director, Travel & Tourism

About Ruder Finn China’s Travel and Tourism Experience

Over the past 12 years, Ruder Finn China has developed and implemented numerous multi-faceted public relations programs in the travel and tourism sector.  Ruder Finn’s work on behalf of international clients includes projects and programs promoting countries, airlines, resorts and major tourist destinations.

Ruder Finn China’s travel and tourism experience, combined with its worldwide track record, offers its clients a combination of truly knowledgeable local and international teams, delivering results that meet their needs and objectives – on time and on budget.  Feel free to get in touch with us to discuss your requirements.  Our contact information is indicated at the beginning of this newsletter.  We look forward to hearing from you!

China Travel Industry News

Self-guided tour the hot favourite during National Day holiday

China to work out Travel Law

Weeklong holiday propels high-tier tourism market

Travel Search: What’s holding China back?

Holiday tourism booms

Beijing Capital Airport Sees September Numbers Up 18.7%

Shanghai Airports See 35.9% Increase In September Traffic

Operating income from the third-party tourism reservation online agents amounts to be RMB 1.72 billion

China Consumer and Economic News

Government confirms Google’s license renewal

Online travel market in China is booming as internet and credit card usage soars, finds Netscribes

Travelex, Bank of China and MasterCard Launch Cash Passport

Destination News

89 per cent rise in Chinese visitors to the UK predicted as ‘BRIC’ and European tourism grow

Seattle Convention & Visitors Bureau and Washington State Tourism kick off China tour

China tourists return to Thailand

Maiden California-bound tour group arrive in Los Angeles

Beijing Tourism Administration announces new marketing partnership with NY Knicks

China’s tourist arrivals in U.S. to top 2 million by 2015: official

Brisbane’s ‘Ambassadors for Life’ program targets Chinese students, tourists and business events

Active America-China Summit confirmed

European visa is unpleasant process for Chinese travelers

Airline News

Air France, China Southern Airlines joint venture

70% of airline passengers want more self-service functions

Hotel News

Wyndham Continues Expansion with Three New Luxury Hotels in China

Pullman Oceanview Sanya Bay Resort and Spa to be Accor’s 100th hotel in China

Other News

Expo welcomes 50 million visitors

China to build top-class yacht port in Tianjin

Shanghai Disneyland to Start Construction In November

Expo 2010 Shanghai: Making an Impact

China Travel Industry News

Self-guided tour the hot favourite during National Day holiday

www.travelweekly-china.com, September 28, 2010

According to Ctrip.com, ‘self-guided’ tours have become the main form of travel during the National Day holiday. Tourists are looking to reserve travel agencies’ additional services such as airport pick-up, one-day tours, ticketing for scenic spots and insurance.

China to work out Travel Law

www.travelweekly-china.com, September 29, 2010

On September 27, China Tourism Academy Vice President Dai Bin announced that China is formulating a “Travel Law”. This law will emphasize the implementation and security of citizens’ rights.

Weeklong holiday propels high-tier tourism market

www.travelweekly-china.com, September 30, 2010

According to Ctrip.com, top-level tourism products such as tours to Africa, the Middle East, Oceania and Southeast Asia were the hottest items being booked for the weeklong holiday.

Travel Search: What’s holding China back?

China Daily, October 4, 2010

As China’s travel market continues to grow, with an 11% uptick in the number of travellers last year, adoption of online booking is picking up as well. While only 10% of 2009 trips were booked online, that proportion should double by 2011, forecasts China-based Internet research firm iResearch.

How best to serve the search needs of the travellers, who feed what iResearch projects will be a $2.3 billion industry by 2013, was a hot topic at the recent China Travel Distribution Summit in Beijing. Presentations and discussions led by industry experts from China’s top online travel companies, as well as from the greater Asia-Pacific region, the United States, and Europe, indicated that Web-based travel search here still lags behind other markets. Travellers here still have no option for tailored search supported by broad social media tracking.

Online Booking Challenges

One reason for the slow pace of search innovations might be the lack of a well-developed Web-based market for travel products. China still has catching up to do in the automation of its online travel booking process, said Ram Badrinathan, general manager, Asia-Pacific, for PhoCusWright. He commented that China’s online travel booking options have not developed at the same pace as expectations, and compared online travel booking in China unfavourably to the other emerging Asian giant.

“In India, you can book, cancel and reschedule online without talking to a person,” he said.  “With Ctrip and Elong, you can’t do this.” He also noted that India reached this point without a well-developed broadband market or Web penetration to rival China’s.

Badrinathan suggested that eLong and Ctrip’s shortcomings are likely largely due to China’s global distribution system (GDS), which is closed to outside competition.

Immobilized

In naming key coming trends for the travel search and distribution space, Glenn Fogel, executive vice president at Priceline.com, singled out an area where China lags far behind other markets: mobile. China’s smartphone market, fragmented with a number of competing platforms, has a dearth of practical apps. Fogel didn’t speculate about China’s mobile environment, but predicted that in the North American market, strong search and booking apps would be emerging soon. He noted that using an app designed for travel was “habit-forming,” and “better than going to a mobile browser.”

Social Scene

While China’s online booking and mobile infrastructure may be lacking, it has a vibrant ecosystem in another area that holds promise for online travel marketing and distribution—social media.

One of the travel industry’s biggest believers in the power of social media in China is Jens Thraenhart, partner of DragonTrail, a Beijing–based company that works with travel clients to execute social media campaigns for the Chinese market. Thraenhart notes that although globally popular social media such as Facebook, Twitter and YouTube are all blocked in China. Web users here can use China-based copycat sites and use them at higher rates than do their peers in North America and Europe.

Social media is very promising for travel marketing on the mainland, says Bob Cao, chief analyst of Chinese Internet research firm iResearch. “On social media, there is a lower threshold for people to acquire, share and get feedback,” Cao says. “The cost of communicating is reduced significantly.”

But China still lacks a meta search site for travel that intelligently combs various social media to deliver targeted results.  All of China’s leading travel search and booking sites—including Ctrip, eLong, Qunar.com, Kuxun.com and Daodao.com—include social elements and offer searchable user-generated reviews, but their social search capabilities are limited to within the site itself. Almost five years after Uptake.com and similar sites launched in the United States, offering ways for travellers to easily tap social networks for tips on all aspects of a trip, Chinese travellers still have no such option for search.

China’s top options for travel search, including the sites named above and also the market’s overall search leader, Google-clone Baidu.com, still focus primarily on searches for hotels and air tickets, with less emphasis on tourist attractions and restaurants.

“One type of search is for the route—How can I get there? That area is relatively well served in China,” says Wei Liu, general manager of search engine marketing at Baidu. “Another is for scenic spots, and few companies in domestic China engage in that. What are the best tourist spots, best local food—as a search engine we need to provide all of this.”

Competition is Coming

With so much untapped opportunity and so many underserved needs, local companies with travel search expertise are undoubtedly looking at grabbing more market share by developing the right products, and international players appear to be kicking at the tires.  Japan’s Rakuten Travel is eyeing expansion, and while Taiwan and Korea are natural next steps.

Baidu is also refining its travel search options, but travel-specific metasearch sites would always be necessary.

Holiday tourism booms

China Travel Trends, October 7, 2010

Statistics issued by the National Holiday Office showed that 119 resorts throughout the country received more than 4.27 million tourists during the first four days of the Golden Week, a 19 percent increase on last year. Tourism revenue also jumped 36 percent over the same period for the preceding year.

Beijing Capital Airport Sees September Numbers Up 18.7%

China Hospitality News, October 15, 2010

Airport operator Beijing Capital International Airport Company has said that passenger traffic in September 2010 at the airport increased to 6.36 million: up 18.7% from a year earlier.

In the first nine months of 2010, Beijing Capital Airport handled 55.31 million passengers, 14% more than in the same period of last year. The number of domestic passengers rose by 18% in September, while international passengers and that from Hong Kong, Macau and Taiwan rose by 21.2%.

Figures released by the operator also showed that aircraft takeoffs and landings rose 5.9% year on year to 43,200 in September 2010.  Domestic flights rose 3.5%, while overseas flights and flights to Hong Kong, Macau, and Taiwan rose by 15.8%.

Shanghai Airports See 35.9% Increase In September Traffic

China Hospitality News, October 25, 2010

The Shanghai Airport Authority recently announced that in September 2010 passenger traffic at the city’s two main airports, Shanghai Hongqiao International Airport and Shanghai Pudong International Airport, rose 35.9% year on year to 3.72 million.

Operating income from the third-party tourism reservation online agents amounts to RMB 1.72 billion

www.travelweekly-china.com, October 21, 2010

The latest data from iResearch shows that the operating income from third-party tourism reservation online agents in the third quarter amounted to RMB 1.72 billion, a year-on-year increase of 65.8% and up 27.1% from last quarter.

China Consumer and Economic News

Government confirms Google’s license renewal

Eurobiz, September 2010

China’s Ministry of Industry and Information Technology confirmed that Google’s internet operating license has been renewed.  Although Google officials said that they expected the renewal to go smoothly, the announcement followed weeks of speculation that Beijing would use the license renewal as leverage against the internet search engine, following months of tension between the two sides.  Google’s China operator, Beijing Guxiang Information Technology Company, had pledged to “abide by Chinese law” to secure the license renewal.  The government renewal documentation stated that approval came after “making improvements”.

Online travel market in China is booming as internet and credit card usage soars, finds Netscribes

Netscribes, September 30, 2010

Netscribes, a knowledge consulting solutions company, has launched the report Online Travel Market in China 2010. The online travel market has been growing strongly, noticeably faster than the offline segment. Growth in this sector is being propelled by increasing internet penetration and growing discretionary spending of consumers, at a CAGR (Compound Annual Growth Rate) of 24%. 

Travelex, Bank of China and MasterCard Launch Cash Passport

Asia Travel Tips, October 14, 2010

Travelex, a leading foreign exchange specialist, has officially launched an innovative electronic traveller’s cheque named “Cash Passport MasterCard”, in collaboration with the Bank of China (BOC) and MasterCard.

The “Cash Passport MasterCard” is available in three foreign currencies, including USD, Euro and GBP. By topping up the e-traveller’s cheques in advance, users are able to use them at more than 30 million MasterCard acceptance locations including over 1 million ATMs with MasterCard logo for local currency withdrawals overseas.

According to official statistics, the number of outbound travellers in 2010 is expected to reach 53 million annually, including Chinese students going abroad for their education.

“MasterCard’s latest travel survey demonstrates that almost half of the Chinese households with annual income of USD 30,000 and above planned to spend on international personal air travel in second half of this year. There is a tremendous appetite for travel amongst the well-heeled Chinese.

Destination News

89 per cent rise in Chinese visitors predicted as ‘BRIC’ and European tourism grow

www.travelweekly-china.com, September 27, 2010

The number of tourists visiting the UK from the fast-growing ‘BRIC’ economies – Brazil, Russia, India and China – is set to leap, according to a new report from VisitBritain.  Visitors from China, for example, are predicted to rise by 89 per cent, bringing just under 100,000 extra travellers to these shores, by 2014, the fastest increase in tourism to the UK from any country.

Seattle Convention & Visitors Bureau and Washington State Tourism kick off China tour

www.travelweekly-china.com, September 29, 2010

The Seattle Convention & Visitors Bureau held a China tour from September 15 to 17 in Beijing and Shanghai for the promotion of tours. A total of 9 tour agencies and cities’ tourism promotion commissions from the state of Washington visited China.

China tourists return to Thailand

TTG Travel Hub, October 1, 2010

THE TOURISM Authority of Thailand (TAT) and the Thai-Chinese Tourism Alliance Association (TCTA) have reported a healthy rebound in arrivals from China after the advisory for the kingdom was lifted in early July.  This follows an exemption of a tourist visa fee for Chinese tourists and a host of stimulus campaigns, including a 60 million baht (US$1.97 million) advertisement series, to restore travellers’ confidence.

Despite the recent Thai political crisis, the country is on track to welcome one million arrivals from China this year and 1.3 million for the next, according to TAT and TCTA.  In the first eight months of this year, arrivals from China jumped 54.57 per cent year-on-year to 685,215 visitors, despite a drop in numbers in April, May and June.

The number of flights and air seats from China has also increased by 18 per cent and 17 per cent respectively, over last year.

Maiden California-bound tour group arrive in Los Angeles

www.travelweekly-china.com, October 8, 2010

The maiden California-bound tour group from China has arrived in Los Angeles. The tour is jointly organized by the California Travel & Tourism Commission and United Airlines.

Beijing Tourism Administration announces new marketing partnership with NY Knicks

Xinhua, October 9, 2010

The Beijing Tourism Administration (BTA) on Saturday announced a new marketing partnership with the New York Knicks for the 2010-11 season.  The multi-platform partnership includes branding opportunities, hospitality, a sweepstakes, and experiential marketing opportunities at Madison Square Garden and on NYKnicks.com.

After being associated with the Los Angeles Lakers for the 2009-10 season and having reached an increment of U.S. visitors to Beijing of 22 percent during the first 6 months of 2010, the BTA decided to establish a marketing partnership with New York Knicks.

During the 2010-11 season BTA will receive prominent brand exposure during two select Knicks matchups – December 15 vs. Boston Celtics and March 4 vs. Cleveland Cavaliers – and will run an online sweepstakes providing one lucky Knicks fan with an all-inclusive trip to Beijing.

China’s tourist arrivals in U.S. to top 2 million by 2015

Xinhua, October 10, 2010

Over 2 million Chinese tourists are expected to visit the United States, and 3 million U.S. tourists will visit China, by 2015 if the current momentum of rapid outbound tourism growth continues, forecasted by Shao Qiwei, head of the National Tourism Administration (NTA).

According to the NTA statistics, arrivals of Chinese tourists in the United States jumped 33 percent from one year ago to 730,000 during the first eight months this year, while 1.33 million U.S. tourists travelled to China during the January-August period, up 17 percent year on year.

Shao said also that China’s tourism industry has boomed as the country’s per capita gross domestic product (GDP) reaches 4,000 U.S. dollars this year

China’s tourists spent 43.7 billion U.S. dollars overseas in 2009, and about 54 million Chinese tourists will travel overseas and spend 48 billion U.S. dollars this year, according to a report by the China Tourism Academy.  The report said China’s outbound travellers will top 100 million and their spending overseas will total 100 billion U.S. dollars by 2015.

Brisbane’s ‘Ambassadors for Life’ program targets Chinese students, tourists and business events

www.travelweekly-china.com, October 12, 2010

Brisbane Marketing, the city’s economic development agency, is the recipient of a $500,000 Australian Government TQUAL grant to attract international students, leisure visitors and conventions from Mainland China to the greater Brisbane region.

Active America-China Summit confirmed

www.travelweekly-china.com, October 15, 2010

The Active America-China-China Tourism Summit, organized by NAJ (North American Journeys) and the i2i Group will be held in Nevada in April 2011.

European visa is unpleasant process for Chinese travellers

China Travel Trends, October 26, 2010

The process of applying for a visa to visit Europe is so unpleasant that over 450,000 tourists are deterred from coming. This is a core finding of the latest European Tour Operators Association (ETOA) report on visa applications. Indian and Chinese tourists applying for Visas are most likely encounter bad communication and red tape.

Visa processing by the UK is identified as that most likely to cause potential visitors to give up on their travel plans, closely followed by France. Before being granted a visa to come to the UK, Chinese citizens have to fill out forms in English and present themselves at a consulate, where they are finger printed and interrogated about their life, wealth and prospects. As part of this process, some applicants are denied visas, but a greater number give up because the process is too painful or takes too long.  Over 58,000 tourists cancelled their trips to the UK owing to slow visa processing, and ETOA estimates that nearly 314,000 decided not even to apply.

“Applications clearly have to be made available in the applicants’ mother tongue,” says Tom Jenkins, Executive Director of ETOA. “Not doing so breaks a basic rule of sales and certainly acts as a disincentive to travel. It displays a sweeping arrogance to applicants. It is inconceivable that China would force Europeans to fill out visa applications in Chinese.”

Despite the fact that China has been singled out as one of the most important growth markets for Europe, 26% of all potential Chinese clients cancelled their trips to Europe owing to the slow processing of Schengen Visas.

Germany was ranked as the best consular authority at processing visas – with punctuality, speed of processing, flexibility and friendliness being the most important factors.

Airline News

Air France, China Southern Airlines joint venture

e-Travelblackboard, September 28, 2010

Air France KLM has signed a deal with China Southern Airlines between Paris and Guangzhou in southeast China.  Profits obtained by the new company would be split equally, Air France Chief Executive Officer Pierre-Henri Gourgeon said.  He also announced that Air France would sign a similar deal with China Eastern Airlines in the Paris to Shanghai route before the end of next year.  “As of 45 flights per week from Paris and 39 from Amsterdam, we are the largest European carrier in the Chinese market,” he said.

70% of airline passengers want more self-service functions

www.travelweekly-china.com, October 13, 2010

A global survey from the self check-in service system in the airline industry has shown that demands in service have extended to certain new fields and that users are increasingly inclined to using website, automatic service kiosks and mobile phones to check in.

Hotel News

Wyndham Continues Expansion with Three New Luxury Hotels in China

Wyndham Hotels Group, October 15, 2010

Following the recent opening of two luxury hotels in the cities of Shanghai and Chengdu, Wyndham Hotel Group, the world’s largest hotel company with nearly 7,200 hotels and 13 brands, announced its continued expansion in China with management agreements for three new Wyndham Hotels and Resorts properties in Boao, located in south China’s Hainan Island province.

The properties include the 300-room Wyndham Grand Boao Resort and Spa, to be part of the brand’s prestigious Wyndham Grand Collection; the 106-room Wyndham Boao Resort; and the 350-room Wyndham Boao Resort and Conference Center. The three hotels are owned by Hainan Baolian City (Boao) Company Limited who is also developing the 337-room, luxury Wyndham Grand Baolian Hotel Shanghai scheduled to open in late 2011.

The announcement strengthens Wyndham Hotel Group’s position as the largest U.S.-based hotel company in China with 250 hotels representing over 40,000 rooms under the Wyndham Hotels and Resorts, Ramada, Howard Johnson, Days Inn and Super 8 brands. With the addition of these new signings, there are now 11 Wyndham branded properties currently open or under development in China.

Pullman Oceanview Sanya Bay Resort and Spa to be Accor’s 100th hotel in China

Accor Hotels, October 19, 2010

Accor, the largest international operator of hotels in Asia Pacific proudly announces a significant milestone achievement – with the opening of Pullman Oceanview Sanya Bay Resort and Spa next month, Accor will operate 100 hotels with 26,500 rooms in 42 cities throughout the country within seven unique hotel brands from economy to luxury.  Furthermore Accor has commitments in China for a further 40 hotels through 2013.

China is today one of Accor’s most significant growth markets in the region and has experienced the fastest rate of growth with 43 hotels having opened in the past three years. This growth has seen Accor establish a diversified portfolio of 23 luxury hotels, 15 upscale hotels, 18 mid-scale and 43 economy hotels.

Other News

Expo welcomes 50 million visitors

Insight, October 2010

Over 50 million people have officially visited the Shanghai 2010 World Expo, with the 50 millionth visitors crossing the gates at 5:31 pm on the 133^rd day of the Expo.  Expo organisers are gearing up to welcome a surge of visitors during the Mid-Autumn Festival and National Day holiday, as well as the Shanghai Tourism Festival.  Pavilions are closing down for maintenance repairs, and tickets for October are being restricted.  Online travel agency Ctrip.com estimates there could be 600,000 to 700,000 visitors per day during the month of October, with visitors aiming to visit the Expo before it closes on October 31.  Around 18 million Expo tickets have been purchased but remain unused.

China to build top-class yacht port in Tianjin

Xinhua, October 13, 2010

China plans to build a top-class yacht port in the northern city of Tianjin by the year-end, which will allow the country’s super-rich to dock their luxury vessels at a port near the capital Beijing, local officials said Wednesday.

The port will cover an area of 900,000 square meters in Tianjin’s booming Binhai district and will have 750 berths to accommodate 300-foot-long (about 91.5 meters) luxury yachts, Yang Shihao, a deputy head of Binhai district, said at a tourism festival Wednesday.  Five-star hotels, commercial streets, along with yacht manufacturing and repair bases, will also be set up in the port area.

Yang said the project would cost 9 billion yuan (about 1.35 billion U.S. dollars).

Only people with an annual income of over 200,000 yuan (30,000 U.S. dollars) will be allowed to sign up for membership to the yacht club to rent a luxury vessel, while members who intend to buy a yacht should have an annual income of over 2 million yuan (300,000 U.S. dollars), officials said.

Shanghai Disneyland to Start Construction In November

China Hospitality News, October 19, 2010

According to reports in the Chinese media, construction on the Shanghai Disneyland Resort is expected to kick off in November 2010, following the closure of the 2010 Shanghai World Expo.  The first phase of the project will include a theme park and supporting facilities and will span four square kilometres with the theme park covering one square kilometre.  The project is expected to take five to six years to finish.

In November 2009, the municipal government of Shanghai obtained approval from the National Development and Reform Commission to build the Disneyland Resort in the city.  Shanghai Disneyland’s Chinese partner, Shanghai Shendi Shendi Group Corporation, was established in August 2010. The Chinese company will set up a joint venture with Walt Disney to oversee the project.

Expo 2010 Shanghai: Making an Impact

Ruder Finn’s Jean-Michel Dumont for Public Affairs, Third Quarter 2010

The main attractions at the Shanghai Expo are the country pavilions.  Most of the 190 countries taking part are government-sponsored and some have spent lavish amounts to showcase their country, making it an integral part of a nation-branding exercise in China.  The China Pavilion cost USD220 million while the Saudi Arabian Pavilion, by far the favourite foreign pavilion among Chinese visitors, cost USD160 million.

The Shanghai Expo is the largest in the history of World Expo.  It is Shanghai’s debut onto the world’s stage after Beijing’s 2008 Olympics.  The rest of the world, which is still unstable from the economic downturn, is turning to China for a piece of the action.  For those who do not have a foothold in China, this is the time to change that and for those who are already here, they want affirmation if not enhancement of their commitment. Country pavilions highlighted their environmental achievements and focused on business opportunities in the world’s largest market.

Pavilions get a fair share of publicity through the official Expo media machine.  However, in order to get more exposure, governments and companies have hired professional public relations consultants to leverage the event.  Ruder Finn is being consulted by several of the pavilions such as the USA Pavilion, Brazil Pavilion, Columbia Pavilion and the Montréal Pavilion.  It also represented several corporations and companies that either featured themselves or their brands in the latest pavilions or around the Expo.  These include the French and Hong Kong Governments, Michelin, DHL, Boeing and the Victoria and Albert Museum among others.

The USA Pavilion, which attracts an average of 42,000 visitors a day, promotes itself through both traditional media and online social media platforms.  These synergised online-offline efforts have driven audiences to converse and interact and further initiate new conversations.  The wide range of social media platforms delivered information and messages about the attractions and latest events using Twitter and influential bloggers.

The Brazilian Pavilion took the Expo opportunity to let China know more about Brazil’s multiple attractions, from culture to tourism, and to attract potential investors.

The Montréal Pavilion used the Expo to promote the city, the culture and business and environmental investment opportunities.  By using different communications platforms, they communicated events such as the celebration of Montréal Day, highlighting the 25^th Anniversary of Shanghai’s Sister City.  Online activities included interaction through social media and weekly competitions.

For everyone, the Shanghai World Expo is the largest and longest public relations platform and an opportunity not to be missed.