01 Professor zhang china’s tourism policy readjustment & outbound tourism development

中国社会科学院旅游研究中心TOURISM RESEARCH CENTRE

CHINESE ACADEMY OF SOCIAL SCIENCES

博采众长 精益求精

北京月坛北小街 2 号 100836 电话／传真： 86-010 －68053991

Email:[email protected]

CHINA’S TOURISM POLICY CHINA’S TOURISM POLICY READJUSTMENT & READJUSTMENT &

OUTBOUND TOURISM OUTBOUND TOURISM DEVELOPMENTDEVELOPMENT

Zhang GuangruiZhang GuangruiTourism Research CentreTourism Research Centre

Chinese Academy of Social SciencesChinese Academy of Social Sciences

BACKGROUNDERBACKGROUNDER

Facts & PoliciesFacts & Policies

IIChina’s Tourism in the China’s Tourism in the

Past DecadePast Decade

TOURISM IN GENERALTOURISM IN GENERAL

• In the first decade of the new century, China’s tourism has grown very fast against the unstable and changeable world political and economic situation.

• China has been one of the world top international tourism destinations, ranked around 4 or 3 according to UNWTO, and one of the top source countries as well.

• China’s rank has been upgraded from 71 in 2007 to 39 in 2011 in Travel & Tourism Competitiveness Index prepared by WEF.

OUTBOUND TOURISM:SIZE & GROWTHOUTBOUND TOURISM:SIZE & GROWTH

YEAR DEPARTURES GROWTH (%)

2000 10,472,600 13.40

2001 12,000,000 11.50

2002 16,600,000 36.86

2003 20,220,000 21.80

2004 28,850,000 42.68

2005 31,000,000 7.50

2006 34,520,000 11.30

2007 40,950,000 18.60

2008 45,840,000 11.90

2009 47,500,000 3.60

2010 57,390,000 20.80

World attention to China’s tourism World attention to China’s tourism has turned gradually from has turned gradually from

““CHINA VISIT”CHINA VISIT”

to to

““CHNIESE VISITOR”CHNIESE VISITOR”

Major Reasons for Outbound Major Reasons for Outbound Travel GrowthTravel Growth

• Economic Reform----high economic growth leads to increasing income and foreign exchange reserves

• China’s Open policy----relaxing control of outbound travels

• Release of long-term accumulated tourism demand

• Improved world situation and bilateral diplomatic relationship

• Aggressive tourism promotions by the overseas tourist destinations

At the time of global financial At the time of global financial CrisisCrisis

• China’s economy keeps growing

• Chinese currency remains strong against the US dollar and other main currencies

• Active and successful promotions by foreign destinations towards Chinese market

• New and attractive products created for the market

IIIIRepositioning of Repositioning of

National Strategy & National Strategy & Market PriorityMarket Priority

Policy repositioning---- National Strategy

The central government has decided to turn tourism into a pillar industry with strategic importance to the national economy and a modern service industry that better meets the aspirations of the general public.

Readjustment of market priority order

–stress on the development of domestic tourism

–actively promote inbound tourism

–develop outbound tourism in an orderly way

Readjustment of public holiday arrangement

Long-holidays– Spring Festival & National Day

• Short breaks:– New Year’s Day /(Jan) / Qingming Festival

(April )– May Day / Duanwujie (Boating festival,

June)– Mid-Autumn Festival (moon festival, Sept.)

• Paid Holiday:– 5 days for people working 1-10 years / 10

days for people working 11-20 years / 15 days for people working over 20 years

• National & local tourism & leisure programs

OTHERE OUTBOUND TRAVEL-RELATED POLICIES

PASSPORT ISSUANCE

from tight control to free application

FOREIGN EXCHANGE ALLOWANCE

from tight control to free purchase

TRAVEL MODE

Group tours & independent travels

SOURCE REGIONS

From a number of large cities to more cities & regions in the country

PREFERABLE POLICIES

to some specific destinations such as HK, Macau & Taiwan

IIIIIIChina’s Outbound China’s Outbound

Tourism:Tourism:Major Changes & its Major Changes & its

FutureFuture

Destination SelectionDestination SelectionFrom the government guidance to self-

chosen by the residents

----Special permission to HK, Macau & Taiwan

----ADS agreement with specific countries

From short-haul destinations to long-haul ones

From mass market destinations to up-market ones

From multi-country tours to longer stays in one or two destinations.

Travel ModeTravel ModeGroup tours (with family or friends)

• More countries per trip to the long-haul destinations, and more cities to the short-haul destinations

• Cheap tours

Independent travels• Only one or two countries to the long-haul

destination, or one favorable place in a trip• DIY routes • Backpackers or self-driving tours

Travel TimeTravel Time• Long holidays

– week-long holidays known as “golden week” and vocations for special group of people such as students, especially after the annual university entrance exams

• Short breaks– special festivals for 3-day holidays

• Pre- or post- golden weeks– for consideration of travel budget and comforts

• Paid holidays– Extended public holidays

Main InterestsMain Interests

• Sightseeing is the most outstanding interest to prove that “I have been there”, therefore the more countries, places, attractions to visit, the more satisfied;

• Special interest, more people now would like to gain some specific experience of seeking knowledge, understanding, or leisure and health (event participants, honeymoons, shopping, medical & wellness tours, and etc.);

Something to considerSomething to considerExternal factors

Hot topic talked at the high-ranking government leaders’ overseas visits

visa issues

Hainan Island development

Mega events

Movie induced attractions

Right & interest protection

Public expenditure on travel restricted

Foreign or joint-venture operators

Tourist demand • Quality product or

cheap tours• Traditional products

or new products and themed products

• Up-market or mass market

• Shopping or no shopping

• ……

The FutureThe Future• UNWTO’s earlier forecast

– The world No.4 top generating country with 100mn outbound visitors up to 2020

• China’s forecast– 83 mn outbound visitors up to 2015

• USA’s forecast– In the next decade, Chinese visitors may

increase by over 150%

• PATA’s forecast

• …….

Chinese MarketChinese Market for Thailand for Thailand

Some Hints & Some Hints & RecommendationsRecommendations

IITo Understand the To Understand the

Country and People in Country and People in GeneralGeneral

China is a large country, with a long history, big population and vast area, and diversified cultures, therefore the Chinese people as tourists have their own features in tourism demand.

As a large country, residents are different from one region to another in terms of tourism demand and travel behavior due to the difference of

Natural environment (tropical & cold; plain & mountains; vast grassland and desert, etc)

Economic condition ( the east & west; coastal & inland; urban and rural;)

Cultural & ethnic background (various ethnic groups, religions, and traditions, languages and dialects)

As a large country, the Chinese more love to see something huge in size, known as the world’s tops, or something very unique– mountains and rivers

– temples, statues

– National Parks and theme parks

– Tall and large buildings and structures

– Local culture

As an ancient country, Chinese people love to see something very old and famous such as– World famous monuments

– World heritage sites

– Well-known palaces and other famed buildings, sites exposed or mentioned in the classic or modern movies, TV series, or best sellers, and something related to well-known celebrities or stars .

• As a developing country, the Chinese people love to see something very modern and fashionable that might be difficult to find at home.

• As a country with large population, the Chinese love something jolly and noisy, such as Disney-type theme parks, or bazaars, shopping streets or malls.

II

Chinese visitors Vs.

the Westerners

Chinese visitors are rather different from the Westerners in tourism behavior

----not veteran tourists, many are first timers having never been away from the home country;

----not independent, loving to be with their family members, friends or some people they know;

----conservative, for alien food and environment, not active to communicate with strangers or other Chinese living overseas;

----not adventurers, often followers rather than path-breakers;

----less culture-oriented, more like sightseeing than serious understanding;

---ill-informed, lack of information and knowledge of outside world;

IIIIIISome Hints and Some Hints and

RecommendationsRecommendations

Target Market SelectionTarget Market Selection• Target market should be clear

– Where• up-market----large cities (the national and

provincial capitals, and the eastern coastal regions)

• Mass market----second tier cities or middle and western cities, particular for the sea-related products

– Who• Youngsters, office ladies• Middle-aged• “Silver market”

Means for Information Distribution Means for Information Distribution

• Up-market– Internet, websites– Special journals, such as specific periodicals

for airline VIP lounges, clubs and gold cardholder newsletters

• Youth market– Internet, websites, blogs– Language: Chinese, English– Fashion journals and magazine

• Family market– Local newspapers ( reportage & ads)– TV commercials– “framedia” (in the community, lifts, corridors) – “mobile tv” on the transportation means

(public bus, metro, taxi)

• “Silver market”– Local newspapers (evening papers )– Home-distributing brochures or pamphlets– Community “framedia” & “mobile tv”

Product DevelopmentProduct Development

• General tours– Long holidays (week-long holidays), such

Spring Festival, National Day Holidays, and summer & winter school holidays

– Short city breaks (for 3 days), short holidays relating to traditional festivals

• Special products– Wedding cerebration tours (local traditional or

western wedding ceremonies, family gatherings, and other related services)

– Birthday or marriage anniversary celebrations for the aged

– foreign festival tours, such Xmas Day, Valentine's Day, Mother’s Day

– Medical & wellness tours– Island tours

• Special student exchange tours (with family)– University students and teachers– Secondary school students and family

Spring Festival in China 中国的春节

New considerationsNew considerations

• Price pitfalls– Shopping, wishful

or forced?– Self-paid

program: free choice of the tourists or that of tour guides?

• Security and safety– natural disasters– social disorder– Terrorism

New destinations and value for money

Tourism enterprises: going abroad

Recommendations• More tourism offices in China• VISA : free, valid longer, multiple entry,

aiming at independent & repeated visitors• More Information distribution channels• Quality products• Creative & themed tours (medical & wellness

tours, , wedding tours , for up-market)• Special products for Spring Festival (the

most important non-religious festival in the world

• Incentive tours for some companies

CONCLUSIONCONCLUSION

Collaboration and cooperation among government organizations, business operators and academics is always important for tourism development of the destination and source countries. It is believed that tourism growth between our two countries will remain constant, beneficial for both the country and people.

working together is the working together is the key to successkey to success

谢谢大家谢谢大家

中国社会科学院旅游研究中心 CASSTRC