Travel and Tourism Newsletter – May 2010
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.
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:
- A new “400-number” (free of charge) system is now available for tourists who have applied for outbound travel visas. (Travel agencies introduce visa progress checking function)
- China outbound surged 14.5 per cent in the first quarter to 7.71 million, far outstripping an eight per cent growth in inbound travel to 12.86 million. (China outbound grew 14.5% in first quarter)
- A recent poll revealed that 75% of Chinese plan to travel more, and is the only country of all polled to have a majority of respondents (81%) believing their economy will improve in the next year. (75% of Chinese plan to travel more)
- Japan’s Foreign Minister Katsuya Okada has said that new entry requirements for Chinese tourists would make around 16 million Chinese households eligible to apply for visas, roughly 10 times the current level Japan eases restrictions on Chinese business visitors
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
Travel agencies introduce visa progress checking function
Demand and supply imbalance of outbound tourism
Market for travel search engines in China to reach 170 million yuan this year
Asia Luxury Travel Market 2010 to kick off in Shanghai
Ctrip.com builds largest tourism call center worldwide
China outbound grew 14.5% in first quarter
Tourist complaint validity extended from current 60 days to 90 days
75% of Chinese plan to travel more
Travelport Releases Findings of China Online Travel Survey
eLong.com introduces mobile phone travel reservation services
Taobao.com to enter on-line travel market, challenging Ctrip.com
Qunar.com Launches Air Ticket + Hotel Search Service
Expedia increases on-line travel investment in China, to invest another $50 million
Consumer and Economic News
Chinese cities’ competitiveness stronger in north while weaker in south
Search on mobile phones more convenient than internet
China’s radio, film and television network covering world’s largest population
Destination News
Post Olympics passion, Canadian tourism ready for 2010
Highlights of World Expo pavilions
‘Australia Unlimited’ announced as nation’s new brand
Japan eases restrictions on Chinese business visitors
Tourism promotion conference for France’s Centre-Val de Loire held in Expo Park
South Africa makes its presence felt in China
U.S. attracting Chinese tourists by lifting travel visa restrictions
Hotel News
Jumeirah reduces dependence on UK/Europe
Global hotel investments surge
Airline News
Dragonair responds to healthy demand for regional destinations
Japan Airlines and China Eastern Airlines expand codeshare pact
China Travel Industry News
Travel agencies introduce visa progress checking fuction
www.travelweekly-china.com, May 5, 2010
A new “400-number” (free of charge) system is now available for tourists who have applied for outbound travel visas. As of today, applicants will be able to check the status of their request by giving their travel time and date of birth.
Demand and supply imbalance of outbound tourism
Beijing Business Today, May 6, 2010
Despite the general economic gloom of 2009, China’s outbound tourism experienced considerable growth. However, travel agencies and enterprises are not fully prepared for the huge market demands, and consequently the outbound tourism market’s supply and demand will remain a problem for some time. Current features of the sector are low coverage in accident insurance and easier visa application processes. Experts urge for standardization in the outbound market. Chinese travel enterprises are strongly advised to focus on intensive development, while foreign invested travel enterprises are recommended to prepare a sound layout before entering into the China market.
Market for travel search engines in China to reach 170 million yuan this year
www.travelweekly-china.com, May 6, 2010
The latest data from market analysis institution EntGroup.cn, the market for travel search engines in China will reach 170 million yuan this year, signalling a 113% growth compared with 2009.
New edition of Outbound Travel Model Contract Text introduced, indemnity in advance required from travel agencies
www.travelweekly-china.com, May 6, 2010
When items purchased by tourists at recommended shopping sites turn out to be fake products, advance-indemnity is required from travel agencies if the products cannot be changed or returned, according to the new edition of the Outbound Travel Model Contract Text printed by the National Tourism Administration of the PRC and State Administration for Industry & Commerce of the PRC.
Asia Luxury Travel Market 2010 to kick off in Shanghai
www.travelweekly-china.com, May 10, 2010
The Asia Luxury Travel Market 2010 will be held in Shanghai, China in Shanghai International Convention Center from June 14 to 17. This is the only B2B exhibition for leading global luxury travel suppliers and the most senior of Asian luxury travel buyers.
Ctrip.com builds largest tourism call center worldwide
www.travelweekly-china.com, May 11, 2010
The Ctrip Information Technology Building, funded by ctrip.com, was finished on May 8 in Nantong, Jiangsu. As the second call center for ctrip.com, the building is currently the largest tourism call center in the world.
China outbound grew 14.5% in first quarter
TTG Asia, May 11, 2010
CHINA outbound surged 14.5 per cent in the first quarter to 7.71 million, far outstripping an eight per cent growth in inbound travel to 12.86 million. The latest figures were reported by China National Tourism Administration (CNTA) vice chairman Zhu Shanzhong, who expects a strong inbound recovery this year – with the World Expo being staged in Shanghai – after last year’s dip of four per cent to a total of 50.88 million visitors.
But while inbound stages a comeback, it is the outbound and domestic travel segments that are expected to remain the rising stars of China tourism. Last year, both sectors saw growths of four per cent to 47.7 million and 11 per cent to 1.9 billion respectively despite setbacks including the global financial crisis, the H1N1 scare and earthquakes.
Tourist complaint validity extended from current 60 days to 90 days
www.travelweekly-china.com, May 21, 2010
The China National Tourism Administration has released the “Processing Methods of Tourist Complaints” to be effective from July 1, 2010. According to the Methods, the validity of tourists’ complaints will be extended from the current 60 days to 90 days. Institutions responsible for the settlement of tourist complaints should handle them within five working days. In addition, the Methods clearly define when and how to use travel agencies’ quality margins as compensation.
75% of Chinese plan to travel more
Marist Poll, May 21, 2010
A first-of-its-kind poll of business travelers from four major economies commissioned by Marriott Hotels & Resorts indicates that 2010 may be shaping up as a year of transition from economic pessimism to greater confidence. The survey polled 1,207 respondents in four countries- the United States, United Kingdom, Germany and China.
The poll revealed that 75% of Chinese plan to travel more, and is the only country of all polled to have a majority of respondents (81%) believing their economy will improve in the next year. Furthermore, in China, only 13% fear job loss in the coming year, although once its economy improves, 66% of Chinese business travellers intend to seek new jobs.
Most responders in all four countries say business travel gives their companies and their careers a competitive edge. More than nine in 10 agree business travel is important to achieve business goals, reaching a high of 96% among the Chinese. Eco-friendly accommodations are considered a necessity by a majority of respondents across all four cultures, but especially in China, where 83% of business travelers indicate a hotel’s sustainability efforts are important.
Travelport Releases Findings of China Online Travel Survey
Travelport Mediaroom, May 21, 2010
Travelport has revealed the findings of an online survey that highlights business and leisure travel trends across 12 countries, including the People’s Republic of China (PRC). The survey on travel behaviour was conducted by independent research firm, The Futures Company, with a sample size of 1,000 plus respondents for each country.
The survey found that PRC business travellers particularly valued products such as seat assignments, hot meals and fast track security, and that a third of respondents preferred group travel. “PRC leisure travellers were champions at thinking ahead and trip planning with more than 40% booking accommodation, insurance, airport transfers, event tickets and attractions all in one go,” said Jeff Clarke, CEO and President, Travelport Limited.
“It is clear from this survey that PRC travellers are looking to purchase a range of services at one time, right down to the detail of additional baggage allowance and even restaurant reservations. Using technology to aggregate travel-specific content that enables travel agents and consumers to book a diversity of travel products will be essential to developing the fast growing travel industry in China along with payment and settlement systems that support the buying process,” Clarke added.
eLong.com introduces mobile phone travel reservation services
www.travelweekly-china.com, May 25, 2010
eLong.com officially introduced mobile phone travel reservation services on May 21. Mobile phone users can enjoy real-time queries for hotels and air ticket booking services after logging onto m.elong.com.
Taobao.com to enter on-line travel market, challenging Ctrip.com
www.travelweekly-china.com, May 26, 2010
On May 18, Ctrip.com released its first quarter financial report, suggesting that its market share in the on-line travel market is as high as 55.6% and the largest in the industry. On May 19, Asia’s largest online retail business Taobao.com immediately announced it would soon be launching “Taobao Travel”.
Qunar.com Launches Air Ticket + Hotel Search Service
www.travelweekly-china.com, May 26, 2010
Qunar.com, the website that originally engaged in air ticket price and comparison search services, has just introduced a hotel search service. The site will invest one third of its R&D resources to develop vacation tours and community products.
Expedia increases on-line travel investment in China, to invest another $50 million
www.travelweekly-china.com, May 31, 2010
The world’s largest on-line travel company Expedia announced on May 26 its plan to pump at least $50 million in to China by the end of 2011 through its website TripAdvisor. At the same time, it will expand its hotel market share and continue acquisitions in China.
Consumer and Economic News
Chinese cities’ competitiveness stronger in north while weaker in south
International Finance News, May 6, 2010
In 2009, subtle changes took place in the competitiveness pattern of Chinese cities while their overall international status improved. The viability of southeastern coastal cities declined while cities in northern and central China experienced rapid improvements. Cities across the nation enjoyed stronger competitiveness and cities with potential developed their own unique features. Finally, the edge of southeastern cities was slightly down, the gap between national cities narrowed; provincial cities’ competitiveness seemed to reverse and rapid development took place in central and western provinces.
Search on mobile phones more convenient than internet
www.travelweekly-china.com, May 13, 2010
According to telecommunications experts, the mobile search application is rapidly becoming a popular way to find information on the go, due to the rapid development of 3G and smart phones in recent years.
China’s radio, film and television network covering world’s largest population
gb.cri.cn, May 25, 2010
The Asia Media Summit 2010 kicked off in Beijing on May 25. During the inauguration, Wang Taihua from China’s State Administration of Radio, Film, and Television, announced that China has developed a radio, film and television network that covers the largest population in the world, and will strive to promote the development of digital broadcasting.
Destination News
Post Olympics passion, Canadian tourism ready for 2010
Tourism, May 2010
According to industry insiders, Canada is expected to become a hot four-season travel destination for Chinese tourists this year, due to the post-Olympics effect and the continuous impact of tourism promotion activities. As another measure to promote Canada tourism, four large Chinese travel agencies were invited to attend the closing ceremony of the Winter Games and engaged in in-depth discussion with Tony Clement, Minister of the Canada Industry Department, on China-Canada tourism relations.
British Tourist Authority and Shanghai World Expo British Pavilion Join Hands to Promote UK Tourism on Shanghai Foreign Language Channel
www.travelweekly-china.com, May 5, 2010
From May 3, 2010, the column “That’s Entertainment”, broadcast with the name of British Tourist Authority and Expo 2010 Shanghai’s British Pavilion, will be broadcast on the Shanghai Foreign Language Channel at 18:45 from Monday to Friday to promote British tourism to Chinese audiences. This is one of the BTA and British Pavilion’s key media campaigns, and will run for the duration of the Expo.
Highlights of World Expo pavilions
San Xiang Metropolis News, May 6, 2010
Between the pavilions of Japan, France and Canada at Expo 2010 Shanghai, Canadian Pavilion is said to be the most interesting. The C-shaped Pavilion was designed and built by Cirque du Soleil. Over 165 dancers, musicians, painters and actors will perform there throughout the duration of the Expo, and the Cirque du Soleil will also provide five celebration performances.
‘Australia Unlimited’ announced as nation’s new brand
ABC Radio Australia News, May 14, 2010
Australia’s Trade Minister, Simon Crean, has announced that the phrase ‘Australia Unlimited’ will be used to promote the country in a fresh drive to attract overseas tourists. The branding exercise was decided on last year and launches at the Expo 2010 Shanghai next week. The government has allocated $US17.9 million to promote it over the next four years.
Japan eases restrictions on Chinese business visitors
Business Traveller, May 19, 2010
Japan is to relax visa conditions for individual Chinese travellers from July 1. Currently Japanese visas have only been issued to individual Chinese tourists, who can show evidence of considerable financial assets, or Chinese citizens who are travelling as part of a group tour. New regulations will allow mid-level corporate and government employees and their families to be granted visas. The Japanese government is keen to expand both business and leisure visits to the country. Foreign Minister Katsuya Okada said that the new entry requirements would make around 16 million Chinese households eligible to apply for the visas, roughly 10 times the current level.
Tourism promotion conference for France’s Centre-Val de Loire held in Expo Park
www.travelweekly-china.com, May 24, 2010
Atout France recently hosted a tourism promotion conference for France’s Centre-Val de Loire took place at the French Pavilion in Expo 2010 Shanghai. The region, recognized as the back garden of France, was introduced to the travel industry, media and the public.
South Africa makes its presence felt in China
TTG Asia Daily News, May 27, 2010
CAPITALISING on World Cup 2010 publicity, South African Tourism has strengthened its presence in China with a dedicated office in Beijing. The NTO relocated from the South African Embassy to its new office in the city’s Sanlitun district on May 24. Marthinus van Schalkwyk, South Africa’s minister of tourism, said: “China is one of our key source markets in Asia. In 2009, we welcomed 45,326 Chinese travellers, up 12.4 per cent compared to the previous year.” Heading the Beijing office is Bradley Brouwer, previously regional manager Asia-Pacific based in Japan. Brouwer said: “In July, we will organise trade workshops in Beijing, Shanghai and Hong Kong.”
U.S. attracting Chinese tourists by lifting travel visa restrictions
21st Century Business Herald, May 31, 2010
The United States is expected to further soften the examination and approval rules for tavel visas from Chinese applicants, as well as expanding the visa scope. According to Roger Dow, president and CEO of the U.S. Travel Association, the visa approval process is expected to be improved and remote video visas might be introduced in the near future if appropriate. Dow also shared that the U.S. plans to attract 600,000 Chinese tourists this year, and hopes for that figure to reach 1 million by 2013.
Hotel News
Jumeirah reduces dependence on UK/Europe
TTG Asia, May 6, 2010
In the last 18 months, the Jumeirah group has opened offices in Singapore, Tokyo, Shanghai and Sydney, an act that has helped change its feeder market composition, 90 per cent of which was Europe (with the UK accounting for 75 per cent and the rest comprising Russia, Germany and other German-speaking markets).
Particularly astounding was the growth from China: during the Chinese Lunar New Year season in February, Chinese packed its Burj Al Arab in Dubai, shifting the mix to 40 per cent China market that month.
Global hotel investments surge
TTG Asia, May 6, 2010
The global hotel investment market surged 53 per cent, with first quarter transaction volumes hitting US$2.8 billion from US$1.8 billion year-on-year, according to Jones Lang LaSalle Hotels. The percentage increase in volumes for Asia-Pacific, including Australia, with transaction volumes reaching US$736 million. The Asia-Pacific tally was split between Asia and Australia, but the Asia-only share was down 23.6 per cent compared to Q1 2009 when volumes were boosted by China and India. Three cities ended March with more than 5,000 rooms in the total active pipeline: Bangkok (9,032 rooms), New Delhi (6,731) and Beijing (5,775).
Airline News
Dragonair responds to healthy demand for regional destinations
Business Traveller, May 25, 2010
Dragonair intends to beef up services to Wuhan and Kaoshiung in July and take delivery of two new Airbus A320s in August to handle increased frequencies due to buoyant demand for regional destinations. It links Hong Kong with 17 destinations on mainland China
http://asia.businesstraveller.com/asia-pacific/news/dragonair
Japan Airlines and China Eastern Airlines expand codeshare pact
Business Traveller, May 28, 2010
Anticipating increased passenger traffic when the Japanese government eases visa restrictions on Chinese nationals from July 1, Japan Airlines (JAL) and China Eastern Airlines (MU) have expanded their codeshare agreement. From June 3, JAL will begin codeshare on seven daily MU-operated flights between Shanghai (Pudong) and three other Chinese cities – Xian, Wuhan and Shenzhen. Furthermore, both airlines agreed to increase the frequency – from four to nine flights daily – on two existing codeshare routes connecting Shanghai with Chengdu and Chongqing. With the expanded codeshare agreement, JAL will have its JL indicator on 16 daily flights operated by MU that links Shanghai with five cities in China. JAL, which currently codeshares with China Eastern on 22 routes between China and Japan, plans to enhance its China domestic network through such partnerships.
Digg It | Reddit | De.lic.ious
