Archive for the ‘Tourism’ Category

Dear Elizabeth,

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.

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

Outbound travel warming up due to RMB appreciation, European and American trips popular

Chinese tourists don’t have to apply for Transit Without Visa

Private Customized Travel is Rising

Chinese group tour to US to expand to 27 provinces and cities

Outbound travel to UK warming up, but tour guides are insufficient

China Consumer and Economic News

Chinese agents feel the crunch

Luxury Goods Consumption of the Chinese People to Account for 50% of the World’s in the Next 15 Years

Destination News

Brunei ramps up presence in Chinese market

US to issue more visas to attract Chinese tourists

Florida Tourism and Delta Air Lines launch New Year trip, inviting 1,000 Chinese tourists

Foreign tourism departments accelerate expansion in China

Tourism Australia attracts tourists in Guangzhou

Greater China Travel Mission 2011 of Australia held to explore Chinese market

UK promotes travel resources with the Olympic Games

Hotel News

Fairmont Hotel and Residences to Open in Chengdu

Swissotel Signs Hotel in Chengdu

Shangri-La launches Kerry Hotel, Beijing

Hilton Worldwide to groom hospitality talent in China

Oakwood introduces Premier brand to China

Sheraton to add four hotels in China by year-end

Starwood Plans China Growth

Airline News

Scoot to fly to Australasia, China

CZ takes off China, Perth direct

Lufthansa likely to axe Guangzhou

China Travel Industry News

Outbound travel warming up due to RMB appreciation, European and American trips popular
National Business Daily, November 16, 2011
Xia Bing

Spring Festival outbound travel is warming up, even though there are still three months left. The appreciation of the RMB has provided a big boost in the promotion of outbound travel. Long-distance trips to Europe, America, Australia and South Asia are very popular.

Chinese tourists don’t have to apply for Transit Without Visa
www.travelweekly-china.com, November 19, 2011

Air Canada has announced that Chinese tourists who fly to the US and Hong Kong from Mainland China on Air Canada don’t have to apply for the Transit Without Visa (TWOV). At the same time, Chinese tourists flying to appointed Canadian and US cities will enjoy more discounts and convenience in buying air ticket packages, which are suitable for flights to destinations, including Vancouver, Calgary, Edmonton, Winnipeg, Saskatoon, Toronto, Ottawa, Montreal, Halifax and Charlottetown.

Private Customized Travel is Rising
Jiefang Daily, November 22, 2011
Li Bao Hua

High-end customized travel is rising and it has accounted for 5% of traditional travel agencies’ business.  A large travel agency has received over 20 orders of the kind this year. Many travel agencies say more and more elite travelers are making similar demand.

Chinese group tour to US to expand to 27 provinces and cities
TTG China, November 22, 2011

Reporters learned from the 22nd China-United States Joint Commission on Commerce and Trade that Henan, Jiangxi and Guizhou will be allowed to send group tours to the US. In total, China will have 27 provinces and cities going on group tours to the US.

Outbound travel to UK warming up, but tour guides are insufficient
TTG China, November 22, 2011

The outbound travel to the UK is warming up in China. With the increasing numbers of outbound Chinese tourists, travel agencies are finding it hard to supply high quality tour guides to meet demand. Travel trade professionals said that the British Tourist Authority should increase investment in tour guide training. In addition, the travel market in the UK also faces the problem of inadequate resources and inconvenient visa procedures.

China Consumer and Economic News

Chinese agents feel the crunch
TTG Asia, November 1, 2011
Amee Enriquez and Brian Higgs

The US and Eurozone financial crisis is keeping inbound tour operators in China on the edge of their seats, with some saying that business from these segments has yet to recover. Guo Lingmei, spokesperson of Beijing-based BTG International Travel and Tours, which handles inbound leisure tours, said that sales had been steadily declining by 30 per cent every year since the 2008 financial crisis.  As a result, more attention has been given to developing outbound tours, especially at a time when a strengthening Renminbi is fuelling Chinese consumers’ travel purchases.

Luxury Goods Consumption of the Chinese People to Account for 50% of the World’s in the Next 15 Years
China Business News, November 22, 2011
Zheng Shuang

China is becoming the new country for European luxury goods companies as the European luxury goods market is slowing down. Greg Furman, Founder & Chairman of the Luxury Marketing Council, said at the “Luxury Goods in China” summit that Chinese luxury goods consumption to account for 50% of global luxury consumption within the next 15 years. A McKinsey research report indicates China’s luxury goods consumption had increased from 5 billion yuan in 1998 to 80 billion yuan in 2010.

Destination News

Brunei ramps up presence in Chinese market
TTG Asia, November 1, 2011
Brian Higgs

BRUNEI is looking to grow MICE and leisure traffic from mainland China through a series of marketing initiatives that target eastern and southern China. The NTO organised a series of seminars and roadshows in Shanghai, Ningbo and Hangzhou in July last year, and Zhuhai, Guangzhou and Shenzhen in July this year.

US to issue more visas to attract Chinese tourists
TTG China, November 10, 2011

Facing growing visa demands from China and Brazil, the US government is planning to attract more tourists from the two countries. For the first time, America’s Tourism Department has finally begun reshaping its image with regards to tourism. The US Department of State said on November 8th that the US hopes to process over 4 million visa applications from China and Brazil by 2013.

Florida Tourism and Delta Air Lines launch New Year trip, inviting 1,000 Chinese tourists
TTG China, November 11, 2011

The Florida Tourism Industry Marketing Corporation and Delta Air Lines have launched the “New Year Trip”, inviting 1,000 Chinese tourists to welcome the Spring Festival in Florida from January 18th to 29th. Chinese tourists will spend a happy Spring Festival on the East Coast of the US, in Miami and Orlando.

Foreign tourism departments accelerate expansion in China
Beijing Business Today, November 10, 2011

Foreign tourism departments, including Tourism Australia, Tourism New Zealand and the tourism department of Spain, are accelerating the promotion of travel packages at the end of this year. They are aiming to attract more Chinese tourists in the coming ten years.

TourismAustralia attracts tourists in Guangzhou
Guangzhou Daily, November 4, 2011
Wang Fei

Yesterday, Tourism Australia led representatives from Queensland, South Australia and Tasmania and held the first press conference about the travel packages for the 2012 Spring Festival in Guangzhou. They also launched five all-new trips for the next year to attract tourists in Guangzhou.

Greater China Travel Mission 2011 of Australia held to explore Chinese market
Beijing Times, November 9, 2011
Liu Gang

From November 6th to 9th, the 3rd Greater China Travel Mission 2011 of Australia was held in Nanjing. Tourism departments of seven states in Australia, eight Australian and Chinese airlines, 59 scenic spots and 80 travel agencies from Australia negotiated with 150 travel agencies from Mainland China, Hong Kong and Taiwan. They talked about the innovative marketing.

UK promotes travel resources with the Olympic Games
TTG China, November 21, 2011

Following the launch of the large campaign, “Great Britain, You are Invited”, 31 British travel agencies began talks about cooperating with their Chinese counterparts today in Beijing. The British Tourist Authority said it will promote the travel resources of the country leveraging the Olympic Games in the China market.

Hotel News

Fairmont Hotel and Residences to Open in Chengdu
www.asiatraveltips.com , November 15, 2011

Fairmont Hotels & Resorts has signed a new property in Chengdu, the capital of the Sichuan province in Western China.

“Chengdu is one of the fastest growing cities in China, and we are excited to expand our presence in the country to the Western region,” said Jennifer Fox, President, Fairmont Hotels & Resorts. “Its stature as an economic, transportation, and communications hub of Western China, coupled with its cosmopolitan offerings and proximity to natural attractions ensures demand from both business and leisure travelers.”

Swissotel Signs Hotel in Chengdu
www.asiatraveltips.com , November 15, 2011

Swissotel Hotels & Resorts has expanded its portfolio of hotels in China with the signing of the Swissotel Chengdu in Sichuan province. With hotels already operating successfully in Shanghai, Beijing, Foshan and Kunshan, the Swissotel Chengdu will be the fifth hotel in China for the international hotel chain, and its first hotel in the west of the People’s Republic.

Shangri-La launches Kerry Hotel, Beijing
TTG Asia, November 21, 2011

SHANGRI-LA Hotels & Resorts officially opened its second Kerry Hotel on Saturday, marking the completion of the first phase of a multimillion-dollar refurbishment of Kerry Centre Hotel, Beijing.

Hilton Worldwide to groom hospitality talent in China
TTG Asia, November 30, 2011

HILTON Worldwide signed an agreement with Les Roches Jin Jiang International Hotel Management College (LRJJ) in China for a Hilton Class programme that will offer workplace training and other curricula for students.

Under the partnership, Hilton Worldwide and LRJJ will select 20 top first-year students every year. Each will be offered three full-time internships at Hilton Worldwide’s managed properties throughout their course, gaining 18 months of training.

Oakwood introduces Premier brand to China
TTG Asia

OAKWOOD Asia Pacific will be launching its Oakwood Premier brand in China with the launch of the 225-key Oakwood Premier Guangzhou in first quarter 2012. Oakwood Premier Guangzhou will be the second serviced apartment opened by Oakwood Asia Pacific in the capital of Guangdong province. The first was Oakwood Gold Arch Residence Guangzhou on Er Sha Island. With the launch of Oakwood Premier Guangzhou, Oakwood’s portfolio in China will be boosted to seven properties in six destinations, including Beijing, Chengdu, Hangzhou, Shanghai and Hong Kong.

Sheraton to add four hotels in China by year-end
TTG Asia, November 25, 2011

STARWOOD Hotels & Resorts Worldwide will open another four Sheraton branded properties in China before the end of 2011. This fall, Sheraton will open its first hotel in Hangzhou and Daqing, and its second hotel in Xian and Changzhou. Eight Sheraton hotels and resorts have already opened this year in Beijing, Shanghai, Guangzhou, Chongqing, Zhenjiang, Hainan, Jinzhou and Changzhou. With the addition of these 12 properties, Sheraton will grow its portfolio in Greater China to 46 hotels by year’s end, moving Starwood closer to its goal of operating 100 hotels in the region by end-2012.

Starwood Plans China Growth
www.etravelblackboardasia.com, November 3, 2011

Expanding its Asia presence, Starwood Hotels & Resorts Worldwide has released plans to open five more Sheraton hotels in China before the end of this year. The five new hotels are to open up in Hangzhou, Xian, Daqing and two in Changzhou and are a strategic move to expand the Sheraton brand within the country. The news comes in addition to seven other properties opening up across the country, increasing the brands footprint in China to 46 hotels in Greater China by the end of this year and 100 properties by the end of 2012.

Airline and Air Travel News

Scoot to fly to Australasia, China
TTG Asia, November 1, 2011

SINGAPORE Airlines (SIA) new low-cost carrier (LCC), Scoot, will operate on medium and long haul routes, including to Australia and China.

CZ takes off China, Perth direct
www.etravelblackboardasia.com , November 9, 2011

Aiming to build passenger numbers between China and Perth, China Southern Airlines has launched the first-ever direct flights between the two regions. The Tourism head explained the new eight hour service would enable the city to achieve its tourism goals as well as strengthen business and trade links with China.

Lufthansa likely to axe Guangzhou
Business Traveller Asia, November 14, 2011

Star Alliance fans wishing to patronise Lufthansa for their trips between Europe and Guangzhou in southern China may have to opt for an alternative next year. Lufthansa launched its Frankfurt-Guangzhou in 2004. If it is axed, as expected, Lufthansa will be following in the footsteps of OneWorld member Finnair. The Finnish flag-carrier inaugurated Helsinki-Guangzhou service in 2005 only to scrap it three years later.

Welcome to Ruder Finn’s travel and tourism newsletter.

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.

Welcome to Ruder Finn’s travel and tourism newsletter.

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:

Outbound travel continues to grow…

• According to the statistics of entravel.com, the outbound travel market in China in the first half of 2011 reached US$35 billion. Driven by the growing number of outbound travellers and growing purchasing power of the RMB, China’s outbound travel market is expected to reach US$71 billion by the end of 2011, up 29%.
• China is likely to become the number one international tourism source market in the world by 2015 according to China Outbound Tourism Research Institute (COTRI) director, Professor Wolfgang Arlt.
• The Maldives received more than 65,000 Chinese tourists in the first five months of this year, a 56.7 percent increase over the same period of 2010, according to the latest figures. Figures from the Maldivian tourism authorities show that the number of Chinese tourists to the Maldives accounted for 16.6 percent of total foreign tourists from January to May, ranking number one among foreign visitors, followed by Italy with 48,000 tourists, Britain, Germany and France.
• Hilton is to roll out a global welcome program for Chinese travelers as it seeks to capture a larger part of China’s outbound tourism pie.

With the number of Chinese outbound tourists expected to reach a whopping 65 million this year, it’s not surprising that hotels are pulling out all the stops to attract them.

Inbound tourism remains impressive…

During the first five months of 2011, China welcomed a total of 55.3 million international arrivals, a gain of 1.2% in terms of growth which equates to some 637,500 additional international visits.

Chinese travellers continue to be big spenders…

Chinese travellers nearly doubled their spending on tax-free goods in 2010 to 1.3 billion euros ($1.84 billion), tax-free transaction specialist Global Blue said Tuesday.

The firm, owned by Barclays Private Equity and a leader in processing duty-free purchases, said in a statement that in the 12 months to March it handled 16.3 million traveller transactions, up 29%, and 5.7 million currency transactions, up 4.2%. Total transactions at 22 million were up 33% combined, it said.

Chinese emerge as the major consumer of four and five star hotel booking…

Results from the Annual China Hotel Industry Study 2011 found that among the key trends that have emerged in the Chinese hotel sector over the past five years to 2010, is that the majority of four or five star bookings are made by domestic travellers. “This significant shift, which has been evident in all corporate, leisure and MICE segments, is reflective of a changing market environment in China,” the report read.

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.comor 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

Outbound travel market to grow 30%

China Tourism Academy: travel consumption to see many highlights in the second half of this year

Accident, delays have agents dodging China’s bullet trains

Destination Trends – China

Increased tourism from China, India signals industry growth

Expedia Stays Local in China

China Consumer and Economic News

The Chinese Luxury Traveller – a White Paper revealed by The Hurun Report

Is the Asian luxury traveller dictated by culture, wealth or both?

Chinese skiers worth targeting

Duty-free specialist says Chinese tourist spending soars

Luxury brands in Taiwan gear up for China tourists

Destination News

Australia’s tourism growth lies with China

Cebu Pacific promotes Philippines tourism in China

Maldives Records New High in Chinese Tourists

None finer than China for NSW

Tourism Queensland opens microblog on Sina to gather popularity with online interactions

Tourism Vancouver enters China

Spain aims to welcome one million Chinese tourists in 2020

Hotel News

China to get Sheraton boost

Shanghai to get another Marriott

Fairmont Hotels partners with Air China

St. Regis to launch first property in South China

World’s Top Three Hotel Groups Flood to Open Hotels in Guangzhou CBD

Shanghai’s Surprises

China hotels double profits

STR Reports Latest Global Hotel Performance

Traditional Chinese welcome coming to Hilton hotels

Airline News

Etihad plans non-stop Shanghai service

Finnair to Launch Flights to Chongqing in 2012

Shenzhen Airlines to Join Star Alliance in 2012

Jetstar to launch new Singapore-China link

Qantas looks to China, Asia for growth

Maldives airline targets China outbound

China Travel Industry News

Outbound travel market to grow 30%
The Beijing News, July 1, 2011

According to the statistics of entravel.com, the outbound travel market in China in the first half of 2011 reached US$35 billion. Driven by growing outbound travellers and growing purchasing power from the RMB appreciation, China’s outbound travel market is expected to reach US$71 billion by the end of 2011, up 29%.

China Tourism Academy: travel consumption to see many highlights in the second half of this year
www.travelweekly-china.com, July 8, 2011

Recently, China Tourism Academy released the 2011 first half year travel industry report. According to the report, travel consumption will see many highlights in the second half of this year. The summer market, the 90th Anniversary of China’s Communist Party, red travel, National Day Golden Week and China Tourism Day will boost the growth of the travel market.

Accident, delays have agents dodging China’s bullet trains
TTG Asia, July 29, 2011
Maggie Rauch

LOCAL travel agents are now advising clients to fly or take regular trains – especially on the Beijing-Shanghai route – after a tragic accident on July 23 left 39 dead in Wenzhou.

Destination Trends – China
PATA, July 26, 2011

During the first five months of 2011, China welcomed a total of 55.3 million international arrivals, a gain of 1.2% in growth terms which equates to some 637,500 additional international visits.

Increased tourism from China, India signals industry growth
www.chinatraveltrends.com, July 6, 2011

Recent research by the Australian Bureau of Statistics (ABS) has shown a rise in the number of tourists visiting from China and India. Arrivals from China rose by 15.6% and from India by 5%, compared with May last year. Small Business Minister Nick Sherry, also the Minister Assisting on Tourism, responded to the statistics by claiming that arrivals from China could reach as many as 900,000 a year by the end of the decade. “China is already Australia’s largest inbound market by value at more than $3 billion last year. With the right investments, marketing and products, this market has the potential to contribute $6 billion to $9 billion annually by 2020,” he said.

Expedia Stays Local In China
www.chinatraveltrends.com, July 3, 2011

Expedia (EXPE) CEO Dara Khosrowshahi knows China is a tough market to crack but says the web travel firm has the right strategy for the Middle Kingdom. One key battleground in China is hotel rooms. Some analysts say Hotels.com, Expedia’s hotel unit, needs to take a more offline approach in China, where most consumers book rooms by phone or in-person through travel agencies.

“We are very focused on going online (in China) first,” Khosrowshahi said in an interview. “We’ll give up the offline market to some extent in order to focus on the highest growth segment of the market — which is online.”

He says online travel is showing signs of rising fast in Asia, as it did in the U.S. and Europe.

China Consumer and Economic News

The Chinese Luxury Traveller – a White Paper revealed by The Hurun Report
ILTM Asia, July 2011

There are now a million millionaires in China, looking for increasingly sophisticated luxury travel solutions. This rise in demand is driven by the appreciation of the renminbi, making the international travel less expensive, an easing of visa application processes and the meteoric rise of private wealth.

China is now home to the largest number of self-made millionaires and billionaires in the world. Among these wealthy individuals there has been a surge of interest in drinking fine wines, whisky and collecting art, especially watches and Chinese classical art.

Is the Asian luxury traveller dictated by culture, wealth or both?
ILTM Asia, July 2011

Panellists felt that Asian luxury travellers wanted the same things as their counterparts in the west, but with adjustments to match cultural sensitivities and needs.

Luxury suppliers need to be more attentive and intuitive and not treat Asian travellers as one homogenous group, as travellers from different countries in the region have different expectations of treatment and deliverables.

Chinese skiers worth targeting
www.etravelblackboardasia.com, July 20, 2011

Australian tourist authorities have reported that 700,000 new skiers are hitting the slopes in China each year and interest is continually growing. Snowy Mountains Tourism executive director Gary Grant has been discussing with Chinese resorts on how they can improve their facilities and enrich customer experience.

Duty-free specialist says Chinese tourist spending soars
www.chinatraveltrends.com, July 22, 2011

Chinese travellers nearly doubled their spending on tax-free goods in 2010 to 1.3 billion euros ($1.84 billion), tax-free transaction specialist Global Blue said Tuesday.

The firm, owned by Barclays Private Equity and a leader in processing duty-free purchases, said in a statement that in the 12 months to March it handled 16.3 million traveller transactions, up 29 per cent, and 5.7 million currency transactions, up 4.2 per cent. Total transactions at 22 million were up 33 per cent combined, it said.

This was the first time that Chinese travellers led spending on tax-free goods, ahead of the Russians, Japanese, Americans and Indonesians, Global Blue said.

It said France accounted for 19 per cent of the total tax-free spending, followed by Britain and Italy each with 15 per cent, Singapore 12 per cent and Germany 12 per cent.

Luxury brands in Taiwan gear up for China tourists
www.chinatraveltrends.com, July 18, 2011

TAIPEI — Chinese businesswoman Jiang Guihong devours fashion and is exactly the type of high-spending tourist that Taiwan’s high-end retailers are trying to attract — and they are spending millions to do so.

While a political thaw between Beijing and Taipei has been welcomed, shops on the island see the moment more as an opportunity to cash in, with many of them gearing up for a surge in mainland visitors such as Jiang, who spends big.

It is Taiwan’s recent decision to allow solo Chinese travellers to visit — the first 300 arrived in Taipei on June 28 — that has led retailers to invest.

Taiwanese official data shows that more than 2.2 million Chinese visitors have arrived since a new, economy-minded Taipei government relaxed the rules three years ago in an effort to mend ties with Beijing, following decades of marred relations since the two sides split in 1949 after a civil war.

The influx has generated about $3.8 billion in revenue for the island.

Destination News

Australia’s tourism growth lies with China
www.etravelblackboardasia.com, July 1, 2011

China is likely to become the number one international tourism source market in the world by 2015 according to China Outbound Tourism Research Institute (COTRI) director Professor Wolfgang Arlt.

According to COTRI research, between 1995 and 2010, Chinese tourism grew by 815 per cent while the global tourism figures increased by 7.3 per cent.

Cebu Pacific promotes Philippines tourism in China
TTG Asia, July 7, 2011

CEBU Pacific (CEB) is helping the Philippines’ Department of Tourism (DOT) promote the country in China. With the growing number of Chinese travellers heading to the Philippines for shopping, sightseeing, cultural and beach holidays, according to Gerard Panga, Philippine Tourism attaché to Shanghai, the airline has partnered with the DOT for a calendar of promotional events in China throughout 2011.

Maldives Records New High in Chinese Tourists
www.xinhuanet.com, July 5, 2011

The Maldives received more than 65,000 Chinese tourists in the first five months of this year, a 56.7 percent increase over the same period of 2010, according to the latest figures. Figures from the Maldivian tourism authorities show that the number of Chinese tourists to the Maldives accounted for 16.6 percent of the total foreign tourists from January to May, ranking top of foreign visitors, followed by Italy with 48,000 tourists, Britain, Germany and France.

None finer than China for New South Wales (NSW)
www.etravelblackboardasia.com, July 22, 2011

According to Destination NSW, China is the number one market for NSW visitor nights and expenditure, with 288,000 Chinese tourists spending 10.8 million nights in NSW year ending March 2011, injecting AUD$1.1billion into the economy.

Destination NSW figures reveal that the Chinese market to Australia is forecasted to grow by 127 percent between 2010 and 2020 to reach almost one million visitors.

Tourism Queensland opens microblog on Sina to gather popularity with online interactions
www.sina.com.cn, July 14, 2011

Today, Tourism Queensland opened its official microblog on sina.com to attract more Chinese tourists to experience the unique travel resources of Queensland and called on them to make their own Queensland travel plans. Grace Pan, director of Tourism Queensland Greater China, said the microblog is opened to provide travel information and introduce a unique, interactive travel experience in Queensland.

Tourism Vancouver enters China
Trading Up, July 2011

On April 26th, i2i Group (China) became the official agency of Tourism Vancouver’s business in China, involving tourism exploration, marketing, public relations and sales. i2i’s Shanghai Branch will be in charge of pushing the sales of travel products of Vancouver and providing strategic advisory services.

Spain aims to welcome one million Chinese tourists in 2020
www.chinatraveltrends.com, July 12, 2011

Spain, Europe’s second-most visited country after France, aims to welcome one million Chinese tourists in 2020, the government said Tuesday.

The country received 89,523 Chinese tourists in 2009, the last year for which figures are available, and Tourism Minister Miguel Sebastian said this figure should rise to 300,000 in 2012.

To increase the number of visitors from China, Spain plans to ease visa requirements for Chinese nationals, encourage more direct flights between the two countries and open more tourist offices in the Asian giant, he added.

The government also plans to publish guides about Spain in mandarin and encourage restaurants and hotels to offer foods and opening hours that are more suited to Chinese tastes.

Spain has just two tourist offices in China, in Beijing and Guangzhou and Air China, China’s only national flag carrier, is currently the sole airline to offer direct flights between the two nations.

Most overseas trips by Chinese are to other Asian destinations, but they are increasingly heading to Europe and the United States as restrictions on travel to these regions ease.

Hotel News

China to get Sheraton boost
www.etravelblackboardasia.com, July 4, 2011

Starwood Hotels and Resorts will open seven new Sheraton properties in China by the end of September, underlining the group’s ambition of operating 100 hotels across the country by 2013.

The seven new hotels comprise the Sheraton Zhenjiang Hotel, Sheraton Shenzhou Peninsula Resort (Wanning), Sheraton Hangzhou Wetland Park Resort, Sheraton Guangzhou Hotel and Sheraton Guangzhou Huadu Resort (both Guangdong), Sheraton Xian North City Hotel and Sheraton Dongcheng Hotel in Beijing, where the brand first debuted more than 25 years ago.

The news follows the recent announcement by Starwood that it would endeavour to open one new hotel in China every two weeks.

Shanghai to get another Marriott
TTG Asia, July 18, 2011

The Shanghai Marriott Hotel City Centre is scheduled to open in downtown Shanghai in September.

Fairmont Hotels partners with Air China
www.businesstraveller.asia, July 14, 2011
Alisha Haridasani

Fairmont Hotels and Resorts’ loyalty programme, Fairmont President’s Club, has partnered with Air China’s frequent flyer programme, Phoenix Miles, in order to open up another platform for members to accumulate miles.  The programme enables members of Fairmont President’s Club to earn 500 Phoenix Miles with each qualifying stay at any property, defined as rooms purchased under the published rates, corporate or package rates.

St. Regis to launch first property in South China
TTG Asia, July 22, 2011

ST. REGIS Hotels & Resorts will open in November South China’s first St. Regis Resort, on Hainan Island. Besides facilities including an Iridium Spa, the property will be the first on the island to offer butler service to all guests.

World’s Top Three Hotel Groups Flood to Open Hotels in Guangzhou CBD
Southern Metropolitan Daily, July 20, 2011
Zou Wei

Hilton Guangzhou will begin a trial operation in Tianhe CBD. The official opening is scheduled on August 18. Sheraton Guangzhou will begin a trial operation on July 22. W and The Four Seasons will open before the end of the year. 14 luxury hotels will be opened in Tianhe CBD in Guangzhou in the coming year. 10 hotels are affiliated to international well-known hotel groups.

Shanghai’s Surprises
TTG Asia, June 10, 2011

Significant 2011 hotel openings in Shanghai include the 574-room Kerry Hotel Pudong and the 401-room Jumeirah Himalayas, also in Pudong. The 720-room Marriot Hotel City Centre nearly People’s Square and the 307-room Andaz in Xintiandi are both slated for summer. Total existing internationally-branded rooms in Shanghai is expected to reach 40,306 by the end of 2011, up from 23,236 at the end of 2008, based on Jones Lang LaSalle data.

China hotels double profits
TTG, July 27, 2011

Some of China’s hotels more than doubled their operating profits over 2010, a drastic rise after “hitting rock bottom” in 2009. According to a Horwath study, all star-rating categories saw a gross operating profit rise over last year, however, three star hotels lead the increase with a 52 percent rise on the prior year.

Results from the Annual China Hotel Industry Study 2011 found that among the key trends that have emerged in the Chinese hotel sector over the past five years to 2010, is that the majority of four or five star bookings are made by domestic travellers. “This significant shift, which has been evident in all corporate, leisure and MICE segments, is reflective of a changing market environment in China,” the report read.

STR Reports Latest Global Hotel Performance
www.asiatraveltips.com, July 26, 2011

According to data compiled by STR Global, hotels in the Asia Pacific region experienced mostly positive results in the three key performance metrics during June 2011 when reported in U.S. dollars.

In year-on-year measurements, the Asia Pacific region’s occupancy ended the month virtually flat with a 0.6% increase to 65.2%, ADR increased 13.3% to US$133.79, and RevPAR jumped 13.9% to US$87.22.

Only two out of the six months so far this year reported occupancy increases against the corresponding month in 2010. Whilst the demand across the region continued to grow (2% for the first half of the year), the new supply entering the region (3% for the same timeframe) kept the occupancy levels under pressure. Added to that is the reduced demand due to the earthquake and tsunami in Japan and key events like the World Expo in Shanghai last year.

Shanghai, China, reported the largest decrease in all three key performance metrics: Occupancy fell 27.6% to 58.5%, ADR was down 11.5% to CNY788.14, and RevPAR decreased 35.9% to CNY461.11.

Traditional Chinese welcome coming to Hilton hotels
www.chinatraveltrends.com, July 15, 2011

Hilton is to roll out a global welcome program for Chinese travelers as it seeks to capture a larger part of China’s outbound tourism pie.

The hotel chain announced July 11 that a new “Hilton Huanying” package will debut this August in 30 properties around the world, including San Francisco, New York City, Vancouver, London, Tokyo and Sydney.

This includes providing a front desk team member fluent in Chinese, tea kettles and selection of Chinese teas available in rooms, dedicated Chinese television channels and a welcome letter written in Chinese. Participating hotels will also roll out specific breakfast offerings such as congee (rice porridge) with condiments, fried rice or fried noodles, a dim sum selection and fried dough fritters (crullers), along with Chinese tea. Guests will also be offered Chinese cutlery, such as chopsticks, Chinese spoons and a soy sauce dishes.

With the number of Chinese outbound tourists expected to reach a whopping 65 million this year, it’s somewhat unsurprising hotels are pulling out all the stops to attract them.

In April this year, French chain Accor announced a similar welcome package for Chinese and Indian guests would be offered by its brands in Australia, which include Sofitel, Pullman, Novotel, ibis and Motel 6, with additional food, entertainment and staff training to be rolled out to select properties.

Airline and Air Travel News

Etihad plans non-stop Shanghai service
www.etravelblackboardasia.com, July 6, 2011

The Abu Dhabi based carrier, Etihad, continues to expand its footprint in China, releasing plans to launch daily non-stop services between Abu Dhabi and Shanghai.

Subject to approval, the new service is expected to commence from 1 March next year as a strategic move by the carrier to target the region’s growing travel market.

Finnair to Launch Flights to Chongqing in 2012
www.asiatraveltips.com, July 7, 2011

Finnair has said it will launch direct flights to Chongqing, one of the largest and fastest-growing cities in China. The new route is scheduled to begin in May 2012.

Chongqing Airport’s growth potential is huge. The airport has already opened 140 routes to more than 80 cities in China and Asia, and the airport is undergoing expansion. When the expansion is complete in 2015, the airport will be capable of receiving 45 million passengers a year.

Shenzhen Airlines to Join Star Alliance in 2012
Online Travel Review, July 7, 2011
Jared Blank

Shenzhen Airlines will join Star Alliance in the second half of 2012. The airline, which is a subsidiary of Star Alliance member Air China, will boost the Alliance’s flights in Shanghai and add new service to 5 cities: Juzhou (Zhejiang Province), Linyi, Qinhuangdao, Shijiazhuang and Zhoushan.

Jetstar to launch new Singapore-China link
TTG Asia, July 11, 2011

Jetstar Airways will start a new three-weekly Singapore-Ningbo service from September 9. The service will be expanded to four weekly flights from October 31.

Qantas looks to China, Asia for growth
www.etravelblackboardasia.com, July 21, 2011

The emerging markets of South East Asia, India and particularly, China, are expected to feature largely in Qantas’ soon-to-be-revealed expansion plans as the airline looks to replicate the success of the Jetstar model in Asia. The flag carrier will unveil its plans for its international operations on 24 August, an announcement Qantas CEO, Alan Joyce said “will signal the beginning of the phased transformation of Qantas over the coming years”

Maldives airline targets China outbound
TTG Asia, July 27, 2011
Feizal Samath

Mega Maldives, the country’s sole international carrier, recently launched non-stop Beijing-Male flights, adding to scheduled Shanghai and Hong Kong services. The airline, focusing on the lucrative China outbound market, began operations earlier this year, with flights to Hong Kong and then Shanghai. The carrier operates a total of 18 flights a month, with six flights to each of the three Chinese destinations.

Welcome to Ruder Finn’s travel and tourism newsletter.

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:

There is less downward pressure on hotel room rates from new supply in 2011…

Some 6,838 rooms are expected to open this year, compared to 8,864 in 2010, as per Jones Lang LaSalle Hotels. Only 1,877 new rooms are currently slated for 2012.

Chinese are playing catch-up at a stunning pace…

• In 2010, Chinese took a record 57.4 million trips outside the mainland – a 20 percent jump from 2009 and a more than fivefold increase over the number who traveled abroad in 2000. China, which became Asia’s largest source of outbound tourists in 2002, is set to have another banner year in 2011 with outbound trips growing to 65 million, projects the China Tourism Academy (CTA).
• According to the Hurun Report Chinese Luxury Traveler White Paper, 90 percent of China’s rich traveled overseas in 2010. Chinese shoppers are for the first time ranked No. 1 in terms of spending on tax-free shopping, accounting for 17% of total worldwide spending.
• According to Global Blue Statistics on Chinese shopping and spending from April 2010-March 2100, Chinese shoppers are for the first time ranked No. 1 in terms of spending on tax-free shopping, accounting for 17% of total worldwide spending.

Brand matters to Chinese luxury travellers…

Chinese luxury travellershave become more discerning of hotel brands in recent years, and their growing appetite for fresh experiences has proven a challenge for travel agents.

China’s luxury goods consumers are younger…

• The World Luxury Association’s 2010-2011 official report indicates the total consumption in the Chinese Mainland increased from $9.4 billion in 2009 to $10.7 billion in 2010. China’s luxury goods consumption has experienced the fastest growth in the world. Its luxury goods consumption is expected to surpass the US and top the world by 2012. 73% of China’s luxury goods consumers are less than 45 years old.45% of China’s luxury goods consumers are 18-34 years old.
• Beijing-based Hua Yang International Business Travel CEO, Kitch Yang, saidup to 30 per cent of his high-end clientele consists of travellers aged 40 years and below. “With the older generation of wealthy Chinese, it is difficult to sell travel products like spa retreats, cruises and resorts,” he said.
• According to the Hurun Report Chinese Luxury Traveler White Paper,the average age of the super rich (with an annual income of RMB100 million and above) is 43 and four years older than the average millionaire.

China to become world’s largest luxury goods market…

On June 1st, the Chinese Academy of Social Sciences released the English version of the Commerce Blue Paper. According to the Paper, luxury goods sales in China rose 23% to RMB68.4 billion in 2010, with growth higher than the world average. It is predicted that China will become the world’s largest luxury goods market by 2015.

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

Taiwan opens up to Chinese FIT travel

Baidu ventures into travel search with Qunar acquisition

Beijing–Shanghai Bullet Train

Royal Caribbean’s Voyager heads to China

Taiwan to welcome individual travel from China

China Consumer and Economic News

China ranks world No.3 in number of millionaire households

China to become world’s largest luxury goods market

China under great inflationary pressure: NDRC

Chinese tourist growth: Australia’s next Gold Rush

China’s Luxury Goods Consumers are Younger

Off to See the World

New China upper class emerges

Brand matters to Chinese luxury travellers

Hurun: 90% of China’s Rich Traveled Overseas in 2010

Chinese Luxury Traveler White Paper

Destination News

Chinese are spending up BIG in Australia

Govt funds industry’s Chinese education

Australia unveils 10-year plan to explore China’s travel market, aiming to attract 860,000 tourists a year

The First Chinese-enabled ATMs to Appear in Dubai

World’s most liveablecity Vancouver invites Chinese tourists

London Development Agency China branch established

Hotel News

Starwood Relocates Global Headquarters to China

IHG Signs Three New Academies in China

International Forum on China Hotel Brand Development

Hotel Group strikes Accor-d with Chinese market

Starwood’s Growth in China Surges with More Than 70 Hotels and 90+ New Hotels in the Pipeline

Looking Beyond China Deals

Chinese Hotel Groups Dominate Asia Pacific Ranking

Sheraton to Open Seven Hotels in China This Summer

Shanghai’s Surprise

Airline News

China Eastern Joins SkyTeam

Air China revamps business class and expands premium economy

China Southern Airlines begins direct flights between Vancouver, Guangzhou

Hainan Airlines to Launch China-Russia Route

China Eastern Airline Sets a Date for China Flights to Hawaii

China Southern Airlines launches Guangzhou – Amsterdam service on Jun 8

SAS to Launch Flights between Copenhagen and Shanghai

Air China launches Sina Weibo flight campaign

Xiamen Airlines Plans to Join SkyTeam Alliance

Air China is Officially Certified as 4-star Airline for 2011

Airlines slash prices to beat trains

China Travel Industry News

Taiwan opens up to Chinese FIT travel

www.conceirge.com, May 31, 2011

The roaring tiger has gone and built itself a $34-billion Beijing to Shanghai high-speed rail link, opening this June—almost a year ahead of schedule.

What does this mean for travelers between the two megacities? An 818-mile journey will clock in at an easy, breezy five hours instead of ten.

Royal Caribbean’s Voyager heads to Chinawww.etravelblackboardasia.com, June 10, 2011

CEO and president of Royal Caribbean International, Adam Goldstein, announced on Wednesday that ‘Voyager of the Seas’ will be based in Asia from June 2012 before heading to Australia.

Designed to offer new cruise experiences to Chinese vacationers, the move is also expected to attract passengers from around the world with the view to visit China and sail around Asia.

Taiwan to welcome individual travel from Chinawww.etravelblackboardasia.com, June 15, 2011

From 28 June 2011, individual travellers from mainland China will be allowed to visit Taiwan following the relaxing of a decades-old travel embargo to the island.

The two sides have also agreed to increase cross-strait passenger flights from 370 to 558 per week.

Travel between China and Taiwan has skyrocketed since Taiwan President Ma Ying-jeou took office in 2008, with a ban on mainland visitors to the island lifted that year.

According to government figures, China was the biggest source of visitors to Taiwan last year, with more than 1.63 million tourists visiting the island, an increase of 67 per cent on the year before.

China Consumer and Economic News

China ranks world No.3 in number of millionaire households

www.etravelblackboardasia.com, June 8, 2011

Asserting the value of the Chinese market to Australia’s travel industry, the Chinese Ambassador to Australia Chen Yuming said travel between the countries has grown.

According to Mr. Yuming, in 2010, some 550,000 Chinese visitors travelled to Australia while 660,000 Australians travelled to China.

Mr. Yuming likened the growth to Australia’s Gold Rush period which saw an influx of Chinese to Australia.

China’s Luxury Goods Consumers are Younger

www.ttgasia.com, (reporting from International Luxury Travel Market Asia, Shanghai), June 14, 2011
Karen Yue

The profile of wealthy Chinese travellers is becoming younger, resulting in increasing demand for travel experiences and products that are different from those enjoyed by their older counterparts.

Beijing-based Hua Yang International Business Travel CEO, Kitch Yang, said up to 30 per cent of his high-end clientele consists of travellers aged 40 years and below.

“With the older generation of wealthy Chinese, it is difficult to sell travel products like spa retreats, cruises and resorts,” he said. “The younger travellers are more open to new travel ideas, and we are starting to sell more unique products such as wine tours, which is still a new concept for the Chinese market.”

Brand matters to Chinese luxury travellerswww.ttgasia.com, (reporting from International Luxury Travel Market Asia, Shanghai), June 14, 2011
Karen Yue

Chinese luxury travellers have become more discerning of hotel brands in recent years, and their growing appetite for fresh experiences has proven a challenge for travel agents.

Sun Bo, president of Beijing-based luxury travel agency Sun Pala, said: “Chinese luxury travellers did not care much about hotel brands in the past, and tended to leave it to their travel agents to choose their accommodation.”

“In the past three years, however, these travellers have become more aware. They now want their travel agents to tell them which are the recommended big brands, and will then make the choice themselves.”

Hurun: 90% of China’s Rich Traveled Overseas in 2010

www.etravelblackboardasia.com, June 3, 2011

The first three months of 2011, Australia saw 188,600 British visitors, a fall of 11.7 percent compared with the same period last year.  However visitors from China rose 23.2 percent, with 179,500 arriving during the first three months of 2011.

The Chinese enjoy spending money whilst on holidays and according to Tourism Australia, Chinese visitors spend on average AUD$6803 (Equivalent to RMB 47,121). Chinese visitors aged between 15 to 29 also stay and spend twice as much as British tourists with the average nights spent being 112.

Govt funds industry’s Chinese educationwww.etravelblackboardasia.com, June 9, 2011

The Australian Government has pledged practical and monetary support to boost its tourism industry’s understanding of the much-courted Chinese traveller.

According to Australia’s Tourism Minister Martin Ferguson, the AUD1 million (Equivalent to RMB 7 million) grant funding will put “an emphasis on quality” as it aims to boost industry awareness of the needs of the Chinese market “including through tour guides, accreditation and the use of technology for independent travellers”.

China is Australia’s most valuable inbound tourism market, worth AUD3 billion (Equivalent to RMB 21 billion) to Australia per annum, and forecast to bring AUD6 billion (Equivalent to RMB 41.6 billion)into the country within the next decade.

Australia unveils 10-year plan to explore China’s travel market, aiming to attract 860,000 tourists a yearwww.huanqiu.com, June 9, 2011

Australian Federal Tourism Minister Martin Ferguson unveiled the new 10-year plan to fully explore China’s travel market at the Australia-China Tourism Summit held on June 8th in Cairns. The China 2020 Strategic Plan is being launched to maintain the competitiveness of Australia’s travel and tourism industry in China’s outbound travel market. Australia plans to attract 860,000 Chinese tourists a year by 2020 and ensure overnight spend reach A$9.5 billion (Equivalent to RMB 65.8 billion).

The First Chinese-enabled ATMs to Appear in Dubaiwww.travelweekly-china.com, June 2, 2011

Dubai Business and Tourism Industry Promotion Bureau’s latest figure indicates China has become Dubai’s eighth largest sources of travelers. 100,000 Chinese travelers are expected to arrive in Dubai in the first half of 2011. China is expected to become Dubai’s largest source of travelers in the future. Both Dubai’s government and enterprises are reaching out with olive branches to Chinese travelers. Emirates Airline and Etihad Airways will cancel the fuel surcharge to cut the prices of air tickets. RAKBANK announced the launch of the first Chinese-enabled Automatic Teller Machines (ATMs) in the GCC. As of today, the Bank has deployed 19 such ATMs across various residential and business locations in the emirates of Sharjah, Dubai, and Abu Dhabi.

World’s most liveable city Vancouver invites Chinese tourists

www.travelweekly-china.com, June 16, 2011

On June 16th, the London Development Agency China branch was established. The London Development Agency is the official promotional organization of London’s mayor.  The London Development Agency has established offices in Beijing and Shanghai, focusing on investment and close cooperation with the headquarters of the Agency.

Hotel News

Starwood Relocates Global Headquarters to Chinawww.asiatraveltips.com, June 7, 2011

Starwood is moving its Senior Leadership Team to China for one month. From 8 June through 11 July 2011, Starwood President & CEO Frits van Paasschen and the company’s top executives will be headquartered in Shanghai, where they will conduct day-to-day business.

This unique relocation underscores Starwood’s growth in China, which recently became its second largest market outside of the U.S. and its fastest growing.

From their home base in Shanghai, van Paasschen and seven members of his senior leadership team will conduct daily business in an unconventional effort to understand, appreciate and ultimately leverage different cultural perspectives and approaches to business.

During its month abroad, Starwood’s senior leadership team will also bolster the company’s guest loyalty outreach among Chinese travelers.

IHG Signs Three New Academies in Chinawww.asiatraveltips.com, June 2, 2011

InterContinental Hotels Group has signed three new Academies in China.

The three colleges, each of which has strong tourism and hospitality management programmes, are Tianjin Vocational Institute, Guangzhou City Construction College and the Shenzhen Polytechnic.

With 150 hotels currently open in China, IHG is one of China’s biggest employers in the hotel industry with 52,000 employees. The company also plans to double its presence with another 150 hotels, requiring an additional 90,000 employees, in the next five years.

Each IHG Academy works with a local tourism college or vocational institution to offer theoretical sessions by university faculty members, industry lectures by senior IHG executives and hands-on internships. Every year, the IHG Academies collectively produce more than 5,000 experienced graduates ready to enter the hospitality industry.

International Forum on China Hotel Brand Developmentwww.asiatraveltips.com, June 2, 2011

Organisedand hosted by the School of Hotel and Tourism Management (SHTM) of The Hong Kong Polytechnic University (PolyU), the Fourth International Forum on China Hotel Brand Development kicked off on Wednesday, at PolyU’s teaching and research hotel, Hotel ICON.

Hotel Group strikes Accor-d with Chinese marketwww.etravelblackboardasia.com, June 15, 2011

Accor Hotel group will initially introduce the new China “Optimum Service Standards” in 10 – 15 of their largest hotels located in cities that traditionally attract large numbers of Chinese visitors.  The program has been specially designed to cater for the needs of Chinese guests offering services which include Chinese speaking reception and concierge staff, Chinese preferred breakfast menus and Chinese TV channels and newspapers.  In 2010, Accor’s Hotels recorded a 28.6 per cent increase in Chinese business compared to 2009, and the forecast for 2011 is expected to be similar.

Starwood’s Growth in China Surges with More Than 70 Hotels and 90+ New Hotels in the Pipelinewww.blog.voyagertravel.com.au, June 13, 2011

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is lengthening its long established lead as the largest high-end hotel operator in China with more than 70 existing hotels and a pipeline of over 90 new hotels. China is now Starwood’s second largest hotel market in the world, behind only the United States, and in 2011, Starwood will open one hotel every two weeks in China.

Looking Beyond China Deals

www.asiatraveltips.com, June 24, 2011

MKG Hospitality has released its 2011 ranking of hotel groups for the Asia Pacific region based on room numbers.

Chinese groups dominated the regional ranking with Home Inns coming in first place with almost 94,000 rooms, having added an impressive 22,000 rooms to their network while Jin Jiang dropped to second place with almost 90,000 rooms.

Jin Jiang was expected to be first place again, but MKG said that the lack of information on their recent development and new hotel openings compelled it to keep the same figures as last year.

7 Days Group Ltd. has the largest growth in the Asia Pacific ranking. They almost doubled their hotel supply by adding 23,500 rooms to their network bringing their tally up to 56,500 rooms and fifth place.

Sheraton to Open Seven Hotels in China This Summerwww.asiatraveltips.com, June 23, 2011

Starwood’s Sheraton brand is to open seven more hotels in China before the end of September 2011.

In the next two years, nearly half of all new Starwood hotels slated to open in China will fly the Sheraton flag. This summer, Sheraton will open its second hotel in Beijing, its second in Xian, and its first in Chongqing, Yantai, Guangzhou, Zhenjiang, Wanning and Hangzhou.

With the addition of these seven hotels, Sheraton will grow its portfolio to 42 hotels in China by year’s end, moving Starwood closer to its goal of operating 100 hotels in China by the end of 2012.

Shanghai’s Surprise

www.asiatraveltips.com, June 22, 2011

China Eastern and its subsidiary Shanghai Airlines officially joined the SkyTeam global airline alliance at a ceremony held in Beijing on Tuesday.

In welcoming these Shanghai-based airlines, SkyTeam now offers 10% more daily departures to and from the Greater China region.

China Eastern and Shanghai Airlines bring 32 new destinations to SkyTeam’s global network, including Chinese cities such as Jiayuguan, the pass of the famous Silk Road. New international destinations are Macau and Colombo.

Air China revamps business class and expands premium economy

here.

The carrier’s premium economy product, launched last year, has so far been fitted on the A330-300 aircraft and has been deployed on more routes such as between Beijing and Shenzhen, Hangzhou and Dusseldorf, offering passengers a 37-inch seat pitch and 17-inch width. Initially, this product featured on the Beijing-Shanghai, Beijing-Guangzhou and Beijing-London routes.

China Southern Airlines begins direct flights between Vancouver, Guangzhou

www.wcarn.com, June 16, 2011

China Eastern Airlines is ready to begin twice-weekly flights from Shanghai to Honolulu on Aug. 9, the Hawaii Tourism Authority says.

China Southern Airlines launches Guangzhou – Amsterdam service on Jun 8www.carnoc.com,June 7, 2011

On June 7, China Southern Airlines launches 3 weekly Guangzhou – Amsterdam service on board Airbus A330-200 aircraft.

SAS to Launch Flights between Copenhagen and Shanghaiwww.asiatraveltips.com,June 13, 2011

SAS is to launch new Copenhagen-Shanghai services on 1 March 2012. The five-time weekly service will offer short and smooth connections time from all over Scandinavia and European destinations such as London, Munich, Paris, Berlin, Warsaw, Vienna and the Baltic capitals to Shanghai.

Air China launches Sina Weibo flight campaignwww.asiatraveltips.com,June 8, 2011

Air China joins hands with Sina Weibo to launch a special flight online on Sina Weibo, China’s twitter. Starting from 1st June till 20th June, the online campaign aims to invite microbloggers in Beijing to fly with Air China and visit International Horticultural Exposition 2011 Xi’an on 1st July.

Xiamen Airlines Plans to Join SkyTeam Alliancewww.wcarn.com,June 8, 2011

China Southern Airlines subsidiary Xiamen Airlines plans to join SkyTeam. CZ joined SkyTeam in November 2007. Signaling its ambition to have greater international reach, Xiamen ordered six 787s last month. It plans to use the Dreamliners, slated for delivery in 2014 and 2015, to launch flights to Europe and the U.S. from its Xiamen base and Fuzhou. Joining SkyTeam is seen as way to further advance its international ambitions.

Air China is Officially Certified as 4-star Airline for 2011www.airlinequality.com,June 28, 2011

Edward Plaisted, Chairman and CEO of Skytrax: “Air China has made great strides in the last 6-months and the airline’s official 4-Star ranking is well-deserved.  Skytrax star ranking audit examines more than 800 areas of product and service delivery, both on the ground and in the air. The assessment provides an accurate and independent guide for travellers around the world, and Air China passengers can look forward to a much higher quality of product and service.”

Airlines slash prices to beat trains

Welcome to Ruder Finn’s travel and tourism newsletter.

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:

China’s millionaires are a growing group…
China has 960,000 individuals in China with personal wealth of RMB 10 million (equivalent to US$1.5 million, Euro 1.1 million, GBP 950,000) and 60,000 individuals with more than RMB 100 million.

China’s luxury good consumption continues to climb…

• China will account for about 20 percent of global luxury sales in 2015. It is predicted that China’s 13 million households (with annual incomes between 100,000 Yuan and 200,000 Yuan) will be the biggest source for the luxury good enterprise’s growth (they account for about 12% market share) and 76 million households will reach this income bracket by 2015.
• Luxury goods sales in mainland China rose 30% last year. From 2007 to 2010, the age of the youngest consumers of luxury products went from 35 to 25.

Spending by Chinese tourists is increasing…

• Chinese Visa card holders became one of the biggest international consumer groups in the US in 2010. Spending of Chinese Visa cardholders rose 64% from US$700 million(equivalent to RMB 4.5 billion) in 2009 to US$1.1 billion(equivalent to RMB 7.1 billion) in 2010.
• The shopping of Chinese tourists rose 60%. According to the data from Global Blue, the average spending of Chinese tourists reached 1,300 Euros(equivalent to RMB 12,112) , compared with 650 Euros(RMB 6,056) in 2005.
• From last March to this March, the spending of Chinese tourists in New Zealand rose 9%.
• The average outbound hotel spend of Chinese tourists was RMB1,001 in 2010, jumping from the 14th place in 2009 to the 7th place.

RevPAR is on the rise…

the performance of the Chinese market shows continued year-on-year growth in RevPAR (revenue per available room) for the first four months of 2011 with a 7.7% increase to CNY462. All cities but Suzhou reported RevPAR increases.

If you have any comments or suggestions on the newsletter, 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.comor 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 contact 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

Outbound departures reached 16 million in the first quarter of 2011

Local governments establish “tourism commissions”, does this mean tourism bureaus cannot manage tourism?

$3.7 billion – The estimated cost of building Shanghai Disneyland theme park

Three joint venture travel agencies become pilots for outbound travel

China, Japan unite for tourism

China Consumer and Economic News

Chinese Travelers in Dubai Hit New High in 2010

Chinese travellers interested in travel in Tasmania, with growing tourists

Visa: Chinese tourists become biggest consumers in US

Hurun Report to release luxury travel white paper in June in association with ILTM

Tax free shopping of Chinese tourists in France soared 60% last year

Luxury Goods Boost High-end Consumption

Outbound hotel spending of Chinese tourists ranks No.7 in the world

Chinese tourists become major driving force for US tourism industry recovery

Travel spending of Chinese tourists in New Zealand rises

China’s Luxury Goods Consumption Grows 30% a Year

Food, communication to boost Chinese spending in NZ

New wireless clients of Ctrip.com launched, users can check flights with mobile phones

Destination News

China, US soften NZ fall

Revolutionizing touring mode, Sovereign Hill actively seeks innovative promotions in China

Australia hopes to become top destination for business travel

New Zealand steps up efforts in developing eco-tourism

Chic Outlet Shopping Villages in Europe expects cooperation with Chinese companies to attract more Chinese tourists

Tourism Vancouver enters China, i2i Group obtains authorization

Australia develops travel service trade with China

Hotel News

“Peninsula Class” Program Promotes Shanghai’s History and Culture

Fairmont and Mandarin Oriental – Antique Hotels Becoming Popular

RevPAR Increases for Hotels in China

IHG Signs Six New Hotels in China with Poly Real Estate

Airline News

Western Australia tourism minister visiting Shanghai, planning to quadruple investment in China in next fiscal year

Strategic Airlines eyes China

United Airlines Launches Los Angeles – Shanghai Flights

JAL and China Eastern Airlines Expand Partnership

China Travel Industry News

Outbound departures reached 16 million in the first quarter of 2011
Travel Link Daily,May 4, 2011

According to the statistics of EnTravel Inc, outbound departures from China reached about 16 million in the first quarter of 2011, up 16.5% year on year. The online outbound travel orders in the first quarter rose 33% year on year. In terms of outbound destinations, departures from China’s mainland to Taiwan reached 1.662 million in 2010, up 69% compared with 2009, the highest growth among destinations. Travel from the Chinese mainland to Taiwan is fully opened. In addition, many Chinese tourists have abandoned plans to travel to Japan and are now planning to visit Taiwan and surrounding regions because of the earthquake in Japan. EnTravel predicts that Taiwan will overtake Japan as the third most popular destination for Chinese tourists in 2011.

Local governments establish “tourism commissions”, does this mean tourism bureaus cannot manage tourism?
China Economic Weekly, May 16, 2011
Yao Dong Qin

Before the first National Tourism Day on May 15, Beijing tourism bureau was renamed Beijing Municipal Commission of Tourism Development. It is now part of the municipal government from an affiliate unit. This has been regarded as a move by Beijing tourism to integrate departments to coordinate tourism as a whole.

$3.7 billion – The estimated cost of building Shanghai Disneyland theme park
Enterprise China, May 2011

Walt Disney has broken ground on its long-awaited first theme park in mainland China. The US$3.7 billion, 3.9 square-kilometer Shanghai Disneyland park will open in about five years. It is part of a resort that will include two hotels and a dining and retail area, at a total cost of US$4.4 billion. The project is a joint venture between Disney and state-owned Shanghai Shendi Group, with the government entity holding a 57%stake. Disney will also have a 70% stake in the management company that collects operating fees. The Shanghai government said last month that it expects 7.3 million visitors in the first year.

Three joint venture travel agencies become pilots for outbound travel
People’s Daily, May 24, 2011

The National Tourism Administration has decided on the first three joint venture travel agencies who will be pilots for Chinese outbound travel. Those three agencies are TUI China Travel, CITS AMEX and JTB New Century.

China, Japan unite for tourism
http://www.etravelblackboardasia.com/, May 24, 2011

China and Japan are working together to boost tourism into Japan after the Japan earthquake earlier this year.

Japan’s Prime Minister Naoto Kan and Chinese Premier Wen Jiabao agreed in Tokyo that up to 100 tourism administrators and travel company presidents will visit Japan from the 30^th of May this year to attend an exchange forum to be held in Tokyo and Osaka.

As well as targeting industry officials, campaigns will be launched to encourage younger travelers to go back to the region, with China inviting up to 500 Japanese youth from disaster-hit regions to the forum to work with 50 Japan based earthquake and disaster experts.

China Consumer and Economic News

Chinese Travellers in Dubai Hit New High in 2010
www.zwhz.com, April.29,2011
Jin Gao

According to statistics from the Dubai Department of Tourism, Dubai attracted 8,684,387 domestic and foreign travelers in 2010, up 10.69% from 2008. Chinese travelers in Dubai rose 14.48% to 152,076, ranking 12th in foreign travelers in Dubai.

Chinese travellers interested in travel in Tasmania, with growing tourists
www.chinanews.com.cn, May 2, 2011

Travelers from China and Hong Kong are developing a growing interest in Tasmania, resulting in big rewards for some local tourism operators.

Visa: Chinese tourists become biggest consumers in US
www.travelweekly-china.com, May 5, 2011

According to Visa’s report, “Tourism Outlook: USA 2011, ”Chinese Visa card holders became one of the biggest international consumer groups in the US in 2010. Spending of Chinese Visa cardholders rose 64% from US$700 million in 2009 to US$1.1 billion in 2010.

Hurun Report to release luxury travel white paper in June in association with ILTM
www.hurun.net, May 5, 2011

According to the Hurun Research Institute in an April 2011 report, China has 960,000 individuals in China with personal wealth of RMB 10 million (equivalent to US$1.5 million, Euro 1.1 million, GBP 950,000) and 60,000 individuals with more than RMB 100 million.  Maldives is 5th and Dubai is 9th on the Preferred International Luxury Destinations list.

Tax free shopping of Chinese tourists in France soared 60% last year
www.travelweekly-china.com, May 6, 2011

According to the latest survey of Global Refund, tax free shopping of foreign tourists in France reached approximately 3 billion Euros(Equivalent to RMB 28 billion) in 2010, up 35% year on year. The shopping of Chinese tourists rose 60%. According to the data from Global Blue, the average spending of Chinese tourists reached 1,300 Euros (RMB 12,112), compared with 650 Euros (RMB 6,056) in 2005.

Luxury Goods Boost High-end Consumption
China Fashion Weekly, May 6, 2011
Zhou Zhou

McKinsey & Co said in a report that China will account for about 20 percent of global luxury sales in 2015. It predicted that China’s 13 million households (with annual incomes between 100,000 Yuan and 200,000 Yuan) will be the biggest source for the luxury good enterprise’s growth (they account for about 12% market share) and 76 million households will reach this income bracket by 2015. The consumption market is polarizing and shows two trends: luxury goods consumption is growing rapidly, while online shopping and bargaining shopping is becoming a trend. China’s luxury goods market will continue to expand.

Outbound hotel spending of Chinese tourists ranks No.7 in the world
www.travelweekly-china.com, May 11, 2011

According to the latest Hotel Price Index (HPI) of hotels.com, the average outbound hotel spend of Chinese tourists was RMB1, 001 in 2010, jumping from the 14th place in 2009 to the 7th place. The US, Russia, Japan, Australia, South Korea and Malaysia are the top six.

Chinese tourists become major driving force for US tourism industry recovery
www.travelweekly-china.com, May 11, 2011

According to the latest data from the US Commerce Department, tourism in the US recovered strongly in 2010, mainly driven by tourists from Asia Pacific, especially from China. The tourism income of the US reached US$134.5 billion in 2010. Population of tourists from the Asia Pacific rose 18% last year, 39% more Chinese tourists travelled to the US last year.

Travel spending of Chinese tourists in New Zealand rises
www.travelweekly-china.com, May 11, 2011

Despite the continuous appreciation of the New Zealand dollar through this past year, tourists from China have not been deterred and are actually increasing their spending. From last March to this March, the spending of Chinese tourists in New Zealand rose 9%.

China’s Luxury Goods Consumption Grows 30% a Year
Consumption Daily,May 20, 2011
Li Ling

According to a joint market report released by Bain & Company and the Association of Luxury Producers in Italy, China has overtaken Japan as the world’s second largest luxury goods consumer, only second to the US, if calculating the overseas purchasing power of Chinese tourists. The report pointed out that luxury goods sales in mainland China rose 30% last year. From 2007 to 2010, the age of the youngest consumers of luxury products went from 35 to 25.

Food, communication to boost Chinese spending in NZ
http://www.etravelblackboardasia.com/, May 26, 2011

Efficient communication and increased menu options catering to growing Chinese visitors could boost income for tourism operators, Tourism New Zealand chief executive Kevin Bowler explained.

The industry leader said a study by Stuff.co found that Chinese visitors were open to spending more on trips, but were unable to understand options, which were not explained to them properly.

Inbound arrival figures from China are up by 20 percent and according to Air New Zealand chief executive Norm Thompson the market will soon be New Zealand’s third largest.

New wireless clients of Ctrip.com launched, users can check flights with mobile phones
http://www.travelweekly-china.com, May 27, 2011

On May 26th, Ctrip.com officially launched the 2.1 version of their iPhone and Android applications. The new apps have improved in practicality, convenience and fun. The most practical function is that users can check flight information with mobile phones.

Destination News

China, US soften NZ fall
Travel Blackboard, May 10, 2011

Recent statistics for international arrivals into New Zealand fell by 27,710 (down 11 percent) for March 2011, compared to the same month last year. Despite this, arrival numbers were up for China at 7.1 per cent, USA up 1.2 percent and Singapore up 8.7 percent. Tourism New Zealand chief executive Kevin Bowler said, “The drop in arrivals for March in a number of key markets was in line with what had been anticipated following events in both Christchurch and Japan”. While New Zealand is experiencing some challenges with arrival numbers, they are confident that arrival numbers will return to a healthier level later this year with the New Zealand Ski Season approaching and Rugby world cup 2011.

Revolutionizing touring mode, Sovereign Hill actively seeks innovative promotions in China
www.travelweekly-china.com, May 3, 2011

On April 29, Australia’s famous gold panning scenic spot, Sovereign Hill, disclosed the winners of its “Go for Gold” campaign in China. Launched last September, the campaign presented about RMB 70,000 worth of 24K gold to some travel agencies which have sent the most tourist groups to Sovereign Hill.

Australia hopes to become top destination for business travel
www.travelweekly-china.com, May 16, 2011

During a two-week Asia tour from May 12th to 23rd, 22 representatives from Australia will visit the Chinese mainland, Chinese Taiwan, Thailand, Malaysia, Singapore and Indonesia, promoting Australia’s comprehensive ability and complete facilities for hosting world-class business events.

New Zealand steps up efforts in developing eco-tourism
www.travelweekly-china.com, May 17, 2011

At present, New Zealand is stepping up efforts in developing eco-tourism and discovering environmentally-friendly tourism modes, aimed at providing more opportunities for tourists to see nature. According to the Ministry of Economic Development of New Zealand, from last March to this March, 2.5 million foreign tourists visited the country, including 130,000 from China, up 28.9% from a year earlier.

ic Outlet Shopping Villages in Europe expects cooperation with Chinese companies to attract more Chinese tourists
www.travelweekly-china.com, May 17, 2011

Sarah Bartlett, general manager of public relations for Chic Outlet Shopping Villages in Europe, said that spending of Chinese tourists at Chic Outlet Shopping Villages rose 51%. China has become one of its most important sources of customers. Chic Outlet Shopping Villages in Europe has established cooperation agreements with nine companies in China, aiming to attract more Chinese tourists.

Tourism Vancouver enters China, i2i Group obtains authorization
www.qianlong.com, May 18, 2011

i2i Group (China) has obtained the official authorization of the agency of Tourism Vancouver’s business in China, involving tourism exploration, marketing, public relations and sales. i2i’s Shanghai Branch will be in charge of pushing the sales of travel products of Vancouver and providing strategy advisory services.

Australia develops travel service trade with China
International Business Daily, May 18, 2011

Johnny Nee, Tourism Australia’s Regional General Manager for North Asia, said Asia is a major strategic region in the 2020 potential plan for Australia’s travel and tourism industry. He said China will become the biggest spot light. China has become the third largest tourist source for Australia. He said the Australian government attaches much importance to the travel service trade with China.

Hotel News

“Peninsula Class” Program Promotes Shanghai’s History and Culture
Oggi, May, 2011

Peninsula Shanghai announced its special program – “Peninsula Class”. Based on the unique philosophy of the Peninsula Hotel Group, the program combines traditional features of Shanghai and helps travellers learn more about the history of China and Chinese culture through customized personalized classes in art and culture, gourmet and fine wines, lifestyle and children’s education.

Fairmont and Mandarin Oriental – Historic Hotels Becoming Popular
Voyage, May, 2011

Fairmont and Mandarin Oriental, which have just entered China, are both famous for their historic hotels. Fairmont has several historic hotels in Banff National Park in Alberta, which are very famous.

RevPAR Increases for Hotels in China
http://www.asiatraveltips.com/, May 27, 2011

According to STR Global, the performance of the Chinese market shows continued year-on-year growth in RevPAR (revenue per available room) for the first four months of 2011 with a 7.7% increase to CNY462. All cities but Suzhou reported RevPAR increases.

The STR Global Pipeline Report for April 2011 indicates significant development growth with 502 hotel projects in construction, final planning and planning across the country. This represents more than 164,900 rooms and is an expected increase of 13% on the existing room stock.

STR Global, a leading provider of market data to the world’s hotel industry, now has more than 980 Chinese hotels participating in its benchmarking survey. This represents more than 280,000 guestrooms and enables STR Global to report on 21 cities across China including Hong Kong and Macau.  The hotel performance data is confidentially collected from local hotel brands including Metropark, HNA Hotels and Jin Jiang, plus international brands such as Holiday Inn, Marriott, Sheraton, Sofitel, Super 8 and Ascott.

IHG Signs Six New Hotels in China with Poly Real Estate
http://www.asiatraveltips.com/, May 27, 2011

InterContinental Hotels Group has signed a strategic cooperation and three-brand, six-hotel management contract with Poly Real Estate, making it one of IHG’s largest owners in China.

This strategic cooperation will add a total of 1,773 hotel rooms to IHG’s Greater China pipeline. The six new hotels, which are located in Guangdong and Jiangxi provinces, consist of three InterContinental hotels, two Crown Plaza hotels and one Holiday Inn hotel.

Airline and Air Travel News

Western Australia tourism minister visiting Shanghai, planning to quadruple investment in China in next fiscal year
www.travelweekly-china.com, May 6, 2011

Kim Hames, Deputy Premier of Western Australia and the Minister of Health and Tourism revealed that Western Australia came to negotiate with China Southern Airlines, hoping to open a direct flight from China to Perth. Stephanie Buckland, CEO of Tourism Western Australia, said that that company will quadruple its investment in China in the next fiscal year.

Strategic Airlines eyes China
http://www.etravelblackboardasia.com, May 23, 2011

Strategic Airlines has lodged an application for 1,911 weekly seats on the Australia-China route as the carrier looks to commence services between the two countries from September this year.

United Airlines Launches Los Angeles – Shanghai Flights
http://www.asiatraveltips.com, Monday, May 23, 2011

United Airlines has launched its first-ever flights between Los Angeles and Shanghai, China. The new daily nonstop flights provide a link between the second-largest city in the U.S. and one of the Mainland China’s most important centers for finance and trade.

JAL and China Eastern Airlines Expand Partnership
http://www.asiatraveltips.com/, May 26, 2011

Japan Airlines is expanding its partnership with China Eastern Airlines (MU) by increasing the number of eligible flights under the airlines’ Mileage Partnership Agreement making it easier for customers to earn and redeem mileage.

Welcome to Ruder Finn’s travel and tourism newsletter! After a several month hiatus, we are back bringing you the latest news and trends in the travel and tourism industry. We would like to thank all of you who expressed support by requesting the newsletter! In response, we have put together this issue with the latest intelligence from January through March. We will resume our monthly newsletter with the April issue.

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.

Welcome to Ruder Finn’s travel and tourism newsletter.

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!

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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.

Welcome to Ruder Finn’s travel and tourism newsletter.

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.

Welcome to Ruder Finn’s travel and tourism newsletter.

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.

Welcome to Ruder Finn’s travel and tourism newsletter. 

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 new trends are shaping the industry:

• Many travel agencies predicted that Hong Kong, Macau, Korea, Japan, Thailand, Europe, America and Canada will be the hottest destinations for outbound travel during the National Day holiday.
• Visitors from China, to the UK are predicted to rise by 89 per cent, bringing just under an extra 100,000 travellers by 2014, the fastest increase in tourism to the UK from any country.
• A new and burgeoning market of middle-class Chinese are arriving in such numbers that the chief executive of Tourism Victoria, Greg Hywood, expects Chinese tourists to overtake New Zealanders in the next four years.  Surging through the airport last month were the Japanese, their numbers up 69 per cent on a year ago, Chinese up 58 per cent, Singaporeans up 46 per cent and Malaysians up 33 per cent, according to official counts.
• iResearch reports that Qunar.com has now bypassed Ctrip.com and now ranks in first position in term of Unique Visitors Per Day.
• Foreign tourists spent about 20% more in the USA during the first six months of 2010 than they did a year earlier, Visa reported.  Brazilian and Chinese tourists showed the largest increases in this year’s surge, combining to spend more than $1.1 billion during the first half of the year and boosting spending by more than 70% each.

You will find the full newsletter below.  Please don’t hesitate to contact us with your comments and suggestions.  Also, please do let us know if you do not wish to receive this newsletter at my email, 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

Tecent launches on-line tour reservation service

Travel agencies with Chinese and foreign investments permitted to apply for outbound travel service

International tourist arrivals up 7.0% on last year

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

Outbound travel during National Day holiday to enjoy robust growth

China Consumer and Economic News

China to become world’s no. 2 economy in 2010

Visa and CUP battle for China’s outbound tour market potential

BCCI for August issued

New landscape of tourism websites

Destination News

Guam Visitors Bureau joins 2010 American tour roadshow

Chinese Rediscover America as Tourist Spending Surges

Number of Chinese visitors to UK creates new high

Chinese Investors Ogle Hawaii’s Hotels but Visa Bottleneck Hinders Action

British high-tier tourism organizers offer luxury tourism products for Chinese visitors

Win a free tour to New York

Tours to Los Angeles- hot

Chinese tourists translate to a new gold rush in Australia

Chinese travel surge to Guam

U.S. Department of Commerce’s new Corporation for Travel Promotion

Airline News

British Airways launches “Business Trip Plan”

China Travel Industry News

Tecent launches on-line tour reservation service

www.travelweekly-china.com, September 6, 2010

Domestic website Tecent has launched an on-line tour reservation service called “QQ Tour”, which includes air ticket and hotel reservations.

Travel agencies with Chinese and foreign investments permitted to apply for outbound travel service

Beijing Times, September 8, 2010

Following the issue of a circular from CNTA and the Ministry of Commerce, travel agencies with Chinese and foreign investments are now permitted to apply to provide outbound travel services.

 International tourist arrivals up 7.0% on last year

www.travelweekly-china.com, September 9, 2010

World tourism rebounded this year, led by Asia and the Middle East, the United Nations World Tourism Organization (UNWTO) said. International tourist arrivals totalled 421 million in the first six months of 2010, up 7.0 percent on last year, the UNWTO said in a report.

 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 an extra 100,000 travellers to these shores, by 2014, the fastest increase in tourism to the UK from any country.

 Outbound travel during National Day holiday to enjoy robust growth

Beijing Times, September 16, 2010

Many travel agencies predicted that Hong Kong, Macau, Korea, Japan, Thailand, Europe, America and Canada will be the hottest destinations for outbound travel during the National Day holiday.

China Consumer and Economic News

China to become world’s no. 2 economy in 2010

Eurobiz China, September, 2010

China’s second-quarter GDP exceeded that of Japan, putting the country on course to usurp its East Asian neighbour as the world’s second largest economy this year.  Tokyo announced that national economic output from April to June reached EUR 1.01 trillion, short of the 1.05 trillion reported by Beijing.  China crept ahead of Japan at the end of last year, largely because its economy tends to run hotter for seasonal reasons.  Analysts see outpacing Japan in an early quarter as a strong sign that China will finish 2010 as the world’s second-largest economy in US dollar terms.  The country’s nominal GDP of EUR 3.9 trillion is still well short of the US’s EUR 11.75 trillion, but it is expected to close the gap within 20 years.  

Visa and CUP battle for China’s outbound tour market potential

Beijing Business Today, September 10, 2010

A report in June stated that as of August 1, Visa will forbid banks that are members of its global network from using the CUP settlement channel when processing transactions outside mainland China involving credit cards carrying the Visa logo. The conflict between Visa and China UnionPay (CUP) is a sign of the strong competition for the outbound tourism market. China is a key market for outbound tourism within the Asia Pacific region, and their tourist’s expenditure amount to a considerable source of income for either Visa or CUP.

BCCI for August issued

Shanghai Morning Post, September 10, 2010

The Bankcard Consumer Confidence Index (BCCI), compiled by Xinhua News Agency, and China UnionPay, the national bankcard association, was 86.36 in August, down by 0.01 points from June and up 0.17 from one year early. The slight drop of BCCI was because of a short-term rise in prices.

New landscape of tourism websites

www.travelweekly-china.com, September 17, 2010

iResearch reports that Qunar.com has bypassed Ctrip.com and now ranks in first position in term of Unique Visitors Per Day.

Destination News

Guam Visitors Bureau joins 2010 American tour roadshow

www.travelweekly-china.com, September 2, 2010

The Guam Visitors Bureau participated in the 2010 American tour roadshow from August 18 to 24 in certain Chinese cities.

Chinese Rediscover America as Tourist Spending Surges

Daily Finance, September 1, 2010

Brazilian and Chinese visitors led a resurgence in foreign tourism spending within the U.S. in the first half of the year, giving hope to domestic hoteliers, airline companies and others that the travel-spending slump of 2008 and 2009 is over, according to a recent report.  Foreign tourists spent about 20% more in the USA during the first six months of 2010 than they did a year earlier, Visa reported.  Brazilian and Chinese tourists showed the largest increases in this year’s surge, combining to spend more than $1.1 billion during the first half of the year and boosting spending by more than 70% each.

Number of Chinese visitors to UK creates new high

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

According to the latest report about immigrants in UK, the number of visas for people visiting and studying in UK has recently seen a rapid increase. However, the number of work visas, highly skilled worker visas and PSW (Post Study Worker) visas has decreased. Visitors from Mainland China were the main source of tour visitors UK in 2009.

Chinese Investors Ogle Hawaii’s Hotels but Visa Bottleneck Hinders Action

Real State Channel, September 9, 2010

Chinese investors see a brand new market opening up for them in Hawaii’s hotel industry and Chinese tourists are eager to visit the state as well, but both groups are hamstrung by a bureaucratic bottleneck in obtaining travel visas, according to the Honolulu Star-Advertiser.

A lack of direct flights and monetary policies have also slowed the Chinese presence in Hawaii, both as investors and tourists, the newspaper reports.

Waikiki has been one of several locations the Chinese are looking at.

To get visas to the United States, Chinese must be interviewed in person at a U.S. visa office. The full application process can take months, and many applicants are rejected. The Star-Advertiser reports the Hawaii Tourism Authority expects visa and flight challenges will cause visitors from China this year to fall about 18 percent below their target to 63,300. Next year, HTA has forecast Chinese visitors will rise about 34 percent to 85,000 if charter flights come.

“Visas are still the biggest problem for Hawaii’s visitor industry. They are a much bigger problem than direct flights,” said C.J. Chen, chief executive officer of BCM International

British high-tier tourism organizers offer luxury tourism products for Chinese visitors

www.163.com, September 15, 2010

The New West End Company and London Luxury have launched two luxury tourism products especially for Chinese high-tier, tour clients – the London Luxury Collection and London Luxury Club.

Win a free tour to New York

www.travelweekly-china.com, September 16, 2010

NYC & Company China Office collaborated with GTA and Continental Airlines to launch a “sales competition” for the Chinese travel agency industry. From September 15, 2010 to February 28, 2011, staff members of travel agencies will have the chance to win a tour to New York for training if they meet the related requirements.

Tours to Los Angeles- hot

www.travelweekly-china.com, September 20, 2010

The Los Angeles Convention and Visitors Bureau has launched new tours for the Christmas period, which are currently very popular in the market.

Chinese tourists translate to a new gold rush in Australia

The Age, September 22, 2010

Victoria and Melbourne are in the grip of a new gold rush – Asian tourism – with Melbourne Airport reporting a 15 per cent jump in international visitors last month.

The increase led to a record 477,000 passengers passing through the airport last month, up almost 61,000 on the same time last year.

Surging through the airport last month were the Japanese, their numbers up 69 per cent on a year ago, Chinese up 58 per cent, Singaporeans up 46 per cent and Malaysians up 33 per cent, according to official counts.

In absolute numbers, New Zealanders still led the way with 48,500 traversing the terminals last month, although the Chinese are a gathering force, with 27,000 passing through Melbourne.

A new and burgeoning market of middle-class Chinese are arriving in such numbers that the chief executive of Tourism Victoria, Greg Hywood, expects Chinese tourists to overtake New Zealanders in the next four years.

“China is going to be a huge provider of export income through tourism,” he said.

Chinese travel surge to Guam

PATA, September 26, 2010

There is a tremendous surge in Chinese outbound travel this year. According to data compiled by the Chinese government and backed by the Ivy Alliance Tourism Consulting Company, Chinese outbound departures grew to 47.66-million in 2009. By 2010, researchers expect that number to grow to 83-million.

In view of this, the Pacific Asia Travel Association (PATA) and Guam Visitors Bureau (GVB) have partnered for the China Outbound Travel Market Symposium, to help local businesses respond to rising interest from Chinese travellers in island resorts locations like Guam. As of September 8th, preliminary GVB data shows 3,387-Chinese travellers have visited Guam since January.  With an average daily spend of US$600-to-800 per visitor, the incentive for local businesses – from restaurants and hotels to retail shops, scenic spots, and optional tours – to cater to the growing market is apparent.

U.S. Department of Commerce’s new Corporation for Travel Promotion

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

California Travel & Tourism Commission president Caroline Beteta was named to the board of directors of the U.S. Department of Commerce’s new Corporation for Travel Promotion. The new board will work on global tourism marketing for the country. Beteta announced her intentions to take China-US tourism cooperation as her top duty.

Airline News

British Airways launches “Business Trip Plan”

www.travelweekly-china.com, August 31, 2010

On August 26, British Airways launched its “Business Trip Plan”, a service for Chinese SMEs. Chinese companies will enjoy discounted air tickets and other services at a preferential price.