CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Prof. Dr. Wolfgang Georg Arlt
How can Ireland Attract More Visitors from China,
the World’s Largest International Tourism Source Market?
Cork October 2012
Third Annual Tourism Policy Workshop
Dromoland/Ireland Nov. 3rd, 2012
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
COTRI China Outbound Tourism Research Institute
is the world's leading independent research institute for information,
training, quality assessment, research, and consulting relating to the
Chinese outbound tourism market.
Established:
2004
Director:
Prof. Dr. Wolfgang Georg Arlt
Headquarter:
Heide/Germany
China office:
Beijing
COTRI Headquarter Germany
Fritz-Thiedemann Ring 20
25746 Heide, Germany
Fax +49 481 8555 121
Phone +49 481 8555 523
info@china-outbound.com
COTRI China Office
101/2B Gui Gu Liang Cheng
1 Nong Da Nan Rd
Beijing 100084, P.R. of China
Phone +86 13 4260 36722
china@china-outbound.com
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Information
Training & Quality
Consulting
Success in the
Chinese tourism
source market
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Prof. Dr. Wolfgang Georg Arlt FRGS
Active in P.R. of China since 1978
Former owner of Inbound Tour Operator
China -> Europe
COTRI founder and director since 2004
Professor for International Tourism
Management at West Coast University of
Applied Sciences Germany (Heide)
Visiting Professor at universities in China
and United Kingdom
Fritz-Thiedemann Ring 20
25746 Heide / Germany
Phone +49 481 85 55 523
Fax +49 481 85 55 121
E mail info@chinabound.com
Room 101, Building 2B, Gui Gu Liang
Cheng, No. 1 Nong Da Nan Rd., Haidian
District, Beijing 100084/P.R. of China
Phone +8613820418485
E mail china@china-outbound.com
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
China – A tale of two countries
China has developed into the number one producer of
many things - Gold, TV sets, Cell Phones, Solar Panels,
Beer, Apples, Cars, Carbon Dioxide and much more.
In cases where the country
is still only number two,
like tomatoes and space
stations, this is going
to change soon.
We all know that spiel.
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
China – A tale of two countries
Hope: Can Chinese Consumers save the world economy?
And Gloom: Be very afraid of the China Bubble
(Recent TIME Magazine headlines)
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
China – A tale of two countries
2012 - A critical year not only in the Maya calendar
Bo Xilai
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Survey results from Bank of China/Hurun (10/2012):
44% of all Chinese with more than one 10 million
RMB (1.25 million Euro) in personal wealth (about one
million households) are considering emigration.
85% of all Chinese with more than one 10 million
RMB in personal wealth are planning to send their
child to study at a foreign university.
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
February 2012: Study “China 2030” by World Bank and the Development
Research Center of the State Council of the People’s Republic of China
Six messages:
1. Structural reform is needed, no more double-digit GDP growth rates
2. Pace of innovation needs to increase
3. Environmental problems need to be solved
4. Rising inequality needs to be reversed, stronger social system needed
5. Fiscal fiscal system is weak, needs to be strenghtened
6. Need to become a pro-active stakeholder in the global economy
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
So – if it does not appear to be a good idea to invest
in Chinese real estate or stocks just now, why is
China’s outbound tourism still growing (and will
continue to do so)?
China Outbound Tourism 1995-2011 in million border-crossings
Source: COTRI, CNTA, CTA
80.0
70.0
57.4
28.9 31.0
7.1
7.6
8.2
8.4
9.2 10.5 12.1
16.6
34.5
41.0
45.8 47.5
20.2
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Est.
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
2011:
70.3 million border crossing, 69 billion US$ total spending
No. 3 source market globally in border crossing, No. 2 in
spending
2012:
COTRI estimate 80+ million border crossings, 85+ billion
US$ total spending (up to June 39 million crossing
App. 3 million Chinese travels within Europe (without Russia)
“Golden Week” October 2012: 30% increase travels to Europe
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Impressive growth, but in the past:
90% of the Mainland Chinese travelers stayed within Asia
Those who travel further concentrated mainly on the most
famous sights in the most famous cities in major destinations
Spending concentrated on shopping, not on tourism services
Destinations and companies off the beaten track often
experienced the much-hyped Chinese tourists a Fata Morgana.
With the Second Wave of Chinese Outbound Tourism
fuelled by the New Chinese Tourists, this is now changing.
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Enters the NEW CHINESE TOURIST
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
More self-organized travelers from China are
slowing down and spreading further afield.
Increasingly travel-savvy and globally connected,
below 45 years and green, the New Chinese Tourist
are arriving in special locations, doing special things
and are staying for more than just a snapshot.
Niche products for the first time get a chance to
profit from Chinese customers – and even small
niches in China mean big numbers.
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
New Chinese Tourists - where do they come from?
15 years experience since the official start of outbound
leisure tourism from China
More than 1.5 million Chinese have studied outside
China since 1978; most of them went back
More than 1 million persons in China enjoy a personal
wealth of more than ten million RMB (1.6 million US$);
average age of Chinese millionaire: 39 y
China is the global no. 1 internet user country
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
“Self-organized” travellers are not be confused with
“individual” travellers in the western sense.
More experience and language skills still lead to
“half-organized” trips with tour operators providing
visa, air trip and maybe a few hotel bookings.
New Chinese Tourists are still Chinese: They are still
happy to see signage and other information in Chinese
as a sign of respect for their country, they will still rely
mainly on peer group information from other Chinese
travellers, they will still travel, especially outside Asia,
for prestige and education, not for holidays.
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Travelling long distance means for Chinese
outbound travellers first of all:
Investment
in
- Personal prestige
- Social capital
- Learning
- Business opportunities
- Real Estate / companies
- Soft power
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
The low price, low quality Chinese package outbound
tourism will suffer from the pending economic crash
in China, annual growth rates in terms of number of
persons travelling may fall below the 20% mark.
But the New Chinese Tourists will continue to go
abroad, as the motives for international travel –
prestige, networking, distinction – will stay the same.
New Chinese Tourists provide new opportunities to
new destinations, but require adapted products and
the usage of relevant marketing channels.
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
How can Ireland Attract More New Chinese Tourists?
Necessity for product, process, organisational and
marketing innovation based on sound information:
a. Good market research about how to position Ireland
for different market segments in China
b. Training and know-how for the Irish tourism service
providers and DMOs
c. Adapting tourism services to Chinese expectations
d. Increasing visibility in China as a destination actively
Welcoming Chinese visitors
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Training and Quality
Chinese Tourists Welcoming
City Label
Chinese Tourists Welcoming
Quality Label
Chinese Tourists Welcoming
Training Programme
Are You Ready For Chinese International
Travellers?
CTW Chinese Tourists Welcoming
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Consulting
Market Research
Product Development,
Adaptation and
Marketing
Coaching
• Online and offline customised interviews and
questionnaires
• Dedicated Focus groups
• Market segment specific product development
• Adaptation of existing products to Chinese customer
demands and expectations
• Online and offline media Marketing plan development
• Short term and long term support to individual
companies, organisations and cooperation networks
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CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
What attracts Chinese Tourists to Ireland?
Results of interview (Nov. 1st, 2012) with UK-based ITO
bringing Chinese groups into UK & Ireland:
- Lot of interest, positive image, Visa problem solved
- Selling Scotland and Ireland together
- Selling ferry trip as “mini cruise” experience
- Not enough story-telling
- Not enough symbolic acts of welcoming Chinese
- Not enough product adaptation
- Great potential for coming years
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
What attracts New Chinese Tourists to Ireland –
or keeps them from coming?
Helping
Hindering
„Ireland“ known place (picturesque island
somewhere near England, but not UK)
Not in the mental map of Chinese visitors
to Europe (less than Iceland)
Empty page, easy to fill with positive image
(green, clean, authentic, easy to reach)
Not known as place welcoming Chinese
guests
General Ireland image fitting for New
Chinese Tourists
Not clear what to see and do, peers have
not visited the place
English speaking inhabitants
No Schengen visa (but UK visa)
Good place for investment, studies and golf
No direct flights (but ferry and air to UK)
Ambassadors in place:
No participation at B2B fairs like COTTM
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
To sum up:
Is there a chance to earn serious money from Chinese
visitors to Ireland? YES.
Has been done enough to use the new opportunities the
Chinese market offers in the form of the New Chinese
Tourists? NO.
When should Ireland start to put itself onto the mental
map of affluent sophisticated Chinese travelers? NOW.
www.china-outbound.com
CHINA OUTBOUND TOURISM RESEARCH INSTITUTE
Thank you for you attention – looking forward
to your questions and comments during the discussion!
Contact: arlt@china-outbound.com
www.china-outbound.com
www.chinatraveltrends.com
MEET COTRI AT WTM LONDON (Stand AS95) Nov. 5-8
COTRI CHINA OUTBOUND WORKSHOP AT WTM:
Wed. Nov. 7 16.30-18.00 h South Gallery Room 17
www.china-outbound.com