Travel and Tourism Newsletter – March 2010
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.
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.
This month, a variety of new trends are shaping the industry:
- China’s online travel booking users in 2009 reached 30.24 million, increasing 77.9 percent from the previous year, according to a report released recently by China Internet Network Information Center (CNNIC). (Online travel booking users exceeds 30 million in China)
- In 2009, more than 47.5 million Chinese travelled across the border, an increase of 4% compared to 2008. Social media is an increasingly important tool to reach the younger, affluent and techno-savvy Chinese. (ChinaTravelTrends.com, new interactive platform for China outbound tourism)
- China Tourism Academy estimates as many as 54 million tourists will go abroad this year, up from 47 million in 2009. (Number of outbound tourists soaring)
You will find the full newsletter below. Please don’t hesitate to contact us with your comments and suggestions and please do let me know if you do not wish to receive the newsletter at my email, oliynyks@ruderfinnasia.com or by return email.
Best regards,
Shari Oliynyk
Director, Travel & Tourism
China Travel Industry News
Chinese spend Spring Festival overseas and show their spending power
Online travel booking users exceeds 30 million in China
ChinaTravelTrends.com, new interactive platform for China outbound tourism
Number of outbound tourists soaring
Consumer and Economic News
China Can Cap 2010 Consumer Price Index at 3%, Chen Dongqi Says
Destination News
Number of Chinese citizens to U.S. to reach one million in five years
Team Australia Business Events Educational held in Beijing
Burj Khalifa, malls and beaches entice Chinese tourists
‘Real America’ opens its doors to big spending Chinese tourists
Hotel News
Starwood Hotels & Resorts Opens Its 1000th Hotel- in Qiandao, China
Airline News
Transaero to Launch Direct Moscow-Beijing Route in June
Beijing, China Joins Emirates A380 ‘Capital Club’
Air China to Launch Premium Economy on Domestic Routes
Other News
Chongqing to Build 20 Luxury Cruise Ships
China Travel Industry News
Chinese spend Spring Festival overseas and show their spending power
China Information News, March 1, 2010
That “Chinese Spring Festival is a business opportunity” has practically become a world consensus. In this past golden week, Chinese people’s spending power forced other countries to recognize the significance of Spring Festival to them. The latest statistics from China Union Pay released on the 20th show that from Feb.13 to 19, the domestic cross-bank bankcard transactions reached 56.9 billion yuan, with an increase of 47% and 25% respectively, and the overseas cards transaction amount increased by nearly 80%.
Onlinetravel booking users exceeds 30 million in China
Travel Daily News, March 12, 2010
China’s online travel booking users in 2009 reached 30.24 million, increasing 77.9 percent from the previous year, according to a report released recently by China Internet Network Information Center (CNNIC). Ctrip, the one-stop China travel service, also says its number of members has reached 30 million.
The growth rate of 77.9 is second only to online payment (80.9 percent) and exceeds online stock trading (67 percent), online banking (62.3 percent) and online shopping (45.9 percent).
As of December 30, China’s web users has reached 384 million, Internet penetration rate has amounted to 28.9 percent and online travel booking rate has reached 7.9 percent. It is believed that there is huge potential for the development of online travel booking.
ChinaTravelTrends.com,new interactive platform for China outbound tourism
Travel Daily News, March 15, 2010
With more than 50 million outbound travellers expected to leave China in 2010, the Chinese outbound market is attracting more and more attention of destinations around the world. In step with the Chinese economic miracle, China has built a tourism infrastructure from scratch, which now handles close to 2 billion domestic trips and is more and more embracing outbound travel.
The Chinese Outbound market is one of the few source markets which continued to grow even during the global economic crisis. In 2009, more than 47.5 million Chinese travelled across the border, an increase of 4% compared to 2008. The Chinese government has recently declared it will give more support to the growth of outbound tourism in the future with at least 9% more outbound travellers planned every year.
With growing choice and sophistication of the Chinese travellers, destinations and companies have to use up-to-date communication to get the attention and capture imagination of these high-spending customers.
Social media is increasingly important especially for the younger, affluent and techno-savvy Chinese. Word of Mouth and Word of Mouse are key elements of reaching this crucial segment of the Chinese outbound market. It is also an excellent barometer of the rapidly evolving consumer trends and interests that are relevant for destinations seeking to attract a greater share of this market.
Numberof outbound tourists soaring
China Daily, March 29, 2010
China Tourism Academy estimates as many as 54 million tourists will go abroad this year, up from 47 million in 2009, reports Yu Tianyu from Beijing.
According to the United Nations World Tourism Organization, China will be the world’s fourth-largest source of outbound tourists by 2020, with 100 million overseas visits.
A report by AC Nielson showed that Asian countries were the top choice for Chinese tourists with more than 60 percent of respondents favoring the destination. The region’s popularity was followed by Europe and Oceania.
According to statistics from travel search engine Qunar.com, top destinations for travelers departing from Beijing were Hong Kong, Tokyo, Seoul, Singapore, Bangkok, New York, Paris, Kuala Lumpur, London and Sydney.
Ma Nan, marketing manager of Beijing UTS International Travel Service Co Ltd, said his company was expecting a 20 percent rise this year in tourists visiting South Africa, Egypt, Japan, the US and island countries in Southeast Asia, despite a possible 5 percent year-on-year rise in prices.
Consumer and Economic News
ChinaCan Cap 2010 Consumer Price Index at 3%, Chen Dongqi Says
Business Week, March 29, 2010
China’s 2010 inflation, as measured by the Consumer Price Index, is “controllable” in the near term and can be capped at 3 percent, said the deputy research director of the country’s planning ministry.
China’s economic growth is likely to be about 10 percent this year, Chen Dongqi said today at a conference in Beijing. The country is unlikely to see a so-called double-dip recession, he said.
Destination News
Numberof Chinese citizens to U.S. to reach one million in five years
China Trade News, March 2, 2010
U.S. Deputy Assistant Secretary of State Michael Kirby said the expected growth rate of yearly visa applications in China for travel to the United States is expected to be 16% to 20% or 1 million people in 5 years.
TeamAustralia Business Events Educational held in Beijing
www.travelweekly-china.com, March 19, 2010
The three day Team Australia Business Events Educational (TABEE) was held in Beijing from March 15 to 17. TABEE is the largest M.I.C.E event organized by Tourism Australia in Asia and a key measure to promote the rich and diverse M.I.C.E resources in Australia to the Asia market in the next 12 months.
BurjKhalifa, malls and beaches entice Chinese tourists
The National, March 28, 2010
So many Chinese tourists are visiting Dubai that Jumeirah Beach is beginning to resemble a Chinese beach resort.
Chinese tourism officials say Dubai is rapidly becoming a favourite destination for travellers, who are taking advantage of their healthy economy and better deals on package tours.
About 150,000 Chinese tourists visited Dubai in 2009, according to the Beijing office of Dubai’s Department of Tourism and Commerce Marketing (DTCM). The year before, Dubai hosted 96,300 Chinese hotel guests, indicating a 55.8 per cent rise in Chinese visitors in one year.
“The number of tourists to Dubai is growing rapidly,” said Ivy Gao, a senior executive at the DTCM office who has been to the UAE four times. She expects an increase this year of 15 to 20 per cent.
Tourist numbers have jumped since September, when the UAE secured “approved destination status” in China, which meant agencies could advertise the Emirates and send tour groups.
This year, the DTCM plans to extend promotional activities to about 10 “second-tier” Chinese cities. Until now, it has focused on Beijing, Shanghai and Guangzhou, in which it opened offices in 2008.
A four-day, three-night tour to the UAE costs about 5,000 yuan (Dh2,690) with airfare. The Chinese tourists’ trips often include legs in Turkey, Egypt or the Maldives.
Within the UAE, the typical itinerary features a night in the Burj al Arab, two nights in a four-star hotel, a desert safari and a trip to Abu Dhabi.
‘Real America’opens its doors to big spending Chinese tourists
CNNGo, 31 March, 2010
California, Hawaii and Vegas are old news; it’s American states that have traditionally been off the beaten path for Chinese visitors that are the new tourist hot spots.
As the number of Chinese visiting the United States skyrockets — it’s expected to jump 15 percent to 556,000 this year and exceed 800,000 by 2013, according to the U.S. Department of Commerce — it’s not just the tried and true destinations of California, Las Vegas, Hawaii and New York that are welcoming the tour busses. Despite budget cuts, state tourism boards across the country are making an eager push to woo Chinese tourists, rolling out lists of initiatives to show these savvy travelers why their corners of the map deserve a visit.
According to the UN World Tourism Organization, there will be 100 million Chinese international travelers by 2020. Chinese travelers spend more than their counterparts in any other country — about $7,200 per person per trip, according to the U.S. Commerce Department. This month, President Obama signed the Travel Promotion Act, which will establish a national tourism board to encourage foreigners to visit the United States.
In April, the National Tour Association will open a Visit USA Center in Shanghai. The center will provide information on travel tour packages, destinations and tour operators, and will offer a facility for U.S. companies to use when in Shanghai to expand travel and tourism business opportunities.
Hotel News
StarwoodHotels & Resorts Opens Its 1000th Hotel- in Qiandao, China
Market Watch, March 31, 2010
Starwood Hotels & Resorts Worldwide announced today that the company has reached an important milestone in its history, opening its 1000th hotel and resort. Starwood’s 1000th hotel, which debuts today, is the Sheraton Qiandao Lake Resort located on the shores of China’s famed Qiandao Lake, also, aptly known as the Lake of Thousand Islands.
“We are delighted to welcome our 1000th hotel, and the fact that it is a Sheraton in China seems pre-destined,” said Frits van Paasschen, President and CEO of Starwood. “This hotel is emblematic of both our history and our bright future. As Starwood’s largest and most global brand, Sheraton provided us early footholds in emerging markets, including China in the early 1980s when we were the first international hotel there. Today, Starwood is the world’s most global hotel company — with plans to open 300 hotels in the next three to four years — and for the first time we have more hotels outside the U.S. than inside. And there is no more fertile ground to grow than in China where we plan to double our footprint to 100 hotels by 2012.”
CautiousOptimism and Focus on Domestic Tourism at the China Hotel Development and Financing Conference 2010
www.etbmice.com, April 1, 2010
After a very challenging 2009, hotel industry experts expressed a more optimistic outlook for 2010, particularly with regards to occupancy growth. There was, however, much caution as significant amount of new supply is expected to enter several key markets, such as Beijing, Shanghai and Hangzhou. Cities such as Guangzhou, Shenzhen and Sanya continue to offer glimmers of hope for the industry.
According to leaders of major international hotel management companies at the conference, strong performances of hotels in the first quarter of 2010 have boosted confidence in that market recovery is on its way. Cost control, staff efficiency and training remain top priorities of the industry as companies seize the opportunity to review operations of existing properties. New opportunities for hotel development, on the other hand, were identified in cities located close to and suburbs of key cities, with appropriate brand placement a focus for the hotel management companies. There was much interest surrounding large-scale resort development. The government-backed development of Hainan Island into an international tourism island proved to be a hot topic at the conference.
Based on analysis by the China International Capital Corporation Limited (CICC), 3 key trends will emerge in the Chinese market in the next 5 to 10 years. The currently export driven economy will shift to focus on the domestic market, as domestic disposable income increases amidst a relatively weaker global environment. As corporations move inland to explore cost efficiencies, central and western cities will become stronger economic drivers in comparison to coastal cities. The service industry will continue to gain increasing importance in economic development, over the manufacturing industry. 2009 was the first year in history when net imports surpassed exports in the country.
Airline News
Transaeroto Launch Direct Moscow-Beijing Route in June
China Hospitality News, March 5, 2010
Russian Transaero Airlines has announced that plans launch a direct air route from Moscow to Beijing starting from June 4, 2010.
Flights UN865/866 will be scheduled on Tuesdays and Fridays. Transaero says that the flights will have Chinese-speakers on their cabin crew and meals will cater to both Chinese and Russian tastes.
Beijing,China Joins Emirates A380 ‘Capital Club’
Odyssey Media Group, March 15, 2010
The world’s most populous country, China, will fittingly receive the aviation world’s largest commercial aircraft with the start of Emirates A380 Dubai-Beijing-Dubai services on 1st August 2010.
The new service signals the first A380 operation to China, and follows an impressive series of A380-firsts to New Zealand, Thailand and Korea by the Dubai-based airline.
The 517-seater A380 will be deployed on the existing EK 306 service that departs Dubai daily at 04:10 hrs, touching down in the Chinese capital city at 15:10 hrs. Return flight EK 307 takes off from Beijing Capital International Airport at 23:55 hrs, landing at Terminal 3, Dubai International Airport at 04:20 hrs the following day.
AirChina To Launch Premium Economy On Domestic Routes
Air China, March 22, 2010
Air China has announced plans to launch a Premium Economy class on selected domestic routes in the near future. Premium Economy class will be available on new Airbus A330-300s and will offer each passenger 10cm more width than Economy class and an individual entertainment system. Air China will be the first domestic airline to offer this service. Premium Economy will initially be available on domestic flights for business travellers such as the Beijing- Shanghai and Beijing- Guangzhou routes.
Over the coming years, Air China plans to purchase 23 Airbus A330-300 aircraft with Premium Economy seating. A330-300 aircraft have 311 seats, with 20 seats in the first three rows of the economy cabin reserved for Premium Economy passengers. The space between each row measures 92 centimeters, providing comfort comparable to first class seats found in normal, narrow-body aircraft.
Other News
Chongqingto Build 20 Luxury Cruise Ships
China Hospitality News, March 10, 2010
Tan Xiwei, the deputy mayor of Chongqing, said during a recent interview that Chongqing will have 20 luxury cruise ships in three years and will develop them as a tourist destination on the Three Gorges.
According to Tan there are currently 14 five-star luxury cruise ships in Chongqing, and they are more popular than ordinary ones. This shows the demand for cruises from tourists are changing from the former sightseeing only to the current combination of leisure and sightseeing. Luxury cruises have a better added value than ordinary sightseeing cruises.
The new luxury cruise ships will have entertainment venues, supermarkets, swimming pools, and other service facilities. It is expected that there will be as least a million outbound tourists and five million domestic tourists each year taking a cruise to visit the Three Gorges.
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