PHILIPPINE PHILIPPINE MARKETING MARKETING PLAN FOR PLAN FOR CHINA CHINA
Dec 16, 2015
PHILIPPINE PHILIPPINE MARKETING MARKETING PLAN FOR PLAN FOR
CHINACHINA
Outline of PresentationOutline of Presentation
Background on ChinaBackground on China
Outbound Travel from ChinaOutbound Travel from China– 10-year Chinese Outbound Travel Market10-year Chinese Outbound Travel Market– China Outbound vis-à-vis East Asian CountriesChina Outbound vis-à-vis East Asian Countries– Destinations of Chinese TouristsDestinations of Chinese Tourists– Travel PreferencesTravel Preferences
ArrangementsArrangements Sources of InformationSources of Information
– Profile of Outbound Chinese TravelerProfile of Outbound Chinese Traveler Demographic ProfileDemographic Profile Travel Profile Travel Profile
– Growth trendGrowth trend– Factors fueling outbound travel growthFactors fueling outbound travel growth
Chinese Tourists to the PhilippinesChinese Tourists to the Philippines– 10-year Visitor Arrivals from China10-year Visitor Arrivals from China– Profile of Chinese VisitorsProfile of Chinese Visitors– Flight frequencies between the Philippines and ChinaFlight frequencies between the Philippines and China
Outline of PresentationOutline of Presentation
Competitive AnalysisCompetitive Analysis– Arrivals from China to ASEAN CountriesArrivals from China to ASEAN Countries– Air Seats Capacity between China and ASEAN CountriesAir Seats Capacity between China and ASEAN Countries– Comparative Profile of Chinese Visitors in the Comparative Profile of Chinese Visitors in the
Philippines and ThailandPhilippines and Thailand– Tour Products and PackagesTour Products and Packages– Marketing Strategy and ToolsMarketing Strategy and Tools
Issues and Action PlanIssues and Action Plan
Philippine Tourism Marketing Plan for ChinaPhilippine Tourism Marketing Plan for China– ObjectivesObjectives– StrategiesStrategies– Marketing ToolsMarketing Tools– Work and Financial PlansWork and Financial Plans– Communication PlanCommunication Plan– Monitoring and EvaluationMonitoring and Evaluation
BackgroundBackground
DemographicDemographic PopulationPopulation
– 1.298 Billion as of July 20041.298 Billion as of July 2004– 15 – 64 years account for 70% of the population15 – 64 years account for 70% of the population– 56 ethnic groups with the Han as the largest group 56 ethnic groups with the Han as the largest group
accounting for approximately 91% of the populationaccounting for approximately 91% of the population
Mandarin is the standard dialect widely spoken and Mandarin is the standard dialect widely spoken and understood with Cantonese commonly used in the province understood with Cantonese commonly used in the province of Guangdongof Guangdong
Fourth largest country in the world with 9.3 million sq. km. Fourth largest country in the world with 9.3 million sq. km. land arealand area
23 provinces, 5 autonomous regions and 4 municipalities23 provinces, 5 autonomous regions and 4 municipalities
Major business centers are Beijing, Shanghai, and Major business centers are Beijing, Shanghai, and GuangzhouGuangzhou
Economic GrowthEconomic Growth
1999 2000 2001 2002 2003
Gross Domestic Product (%) 7.1 8.0 7.3 7.0 7.4
GDP per capita Current Price in Yuan 6,551 7,086 7,651 8,214 9,073 Current Price in US$ 789 853 921 990 1,093 % 6.2 7.3 6.8 6.5
6.9
Source: Asian Development Bank Outlook 2003 Report
Family Income and Outbound Family Income and Outbound Travel PlansTravel Plans
Family Monthly One Journey Two Journeys Three Journeys
Income
Less than US$ 180 25%
US$ 180 – US$ 360 55% 2%
US$ 361 – US$ 550 70% 9%
More than US$ 550 34% 58% 3%
Source: SSIC 2000: Survey of Five Cities
Outbound Outbound Travel from Travel from
ChinaChina
Top Tourist Destinations, Top Tourist Destinations, 20032003
Visitor VolumeVisitor Volume Visitor ReceiptsVisitor Receipts
( in Million)( in Million) (in US$ Billion) (in US$ Billion)
FranceFrance 75.075.0 36.636.6
SpainSpain 52.552.5 41.741.7
United StatesUnited States 40.440.4 65.165.1
ItalyItaly 39.639.6 31.231.2
ChinaChina 33.033.0 17.417.4
United KingdomUnited Kingdom 24.824.8 19.419.4
AustriaAustria 19.119.1 13.613.6
MexicoMexico 18.718.7 n/a n/a
GermanyGermany 18.418.4 19.119.1
CanadaCanada 17.517.5 n/a n/a
20,200
16,602
12,133
10,4729,066 8,426 8,170
6,230
4,5203,730 3,740
0
5,000
10,000
15,000
20,000
25,000
2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993
Chinese Outbound TravelChinese Outbound Travel(in Thousand)(in Thousand)
Growth Rate 21% 37% 16% 13% 7% 3% 32% 38% 21% (.002%)
China Outbound Travel vs. China Outbound Travel vs. Outbound Travel from East Asia Outbound Travel from East Asia
(2003)(2003)
CountryCountry Volume Volume
ChinaChina 20,200,00020,200,000JapanJapan 13,296,33013,296,330KoreaKorea 7,086,323 7,086,323TaiwanTaiwan 5,923,072 5,923,072Hong KongHong Kong 8,380,467* 8,380,467*
*exclude outbound to Mainland *exclude outbound to Mainland ChinaChina
China Outbound Market China Outbound Market
Total Outbound to Asia in 2002 – Total Outbound to Asia in 2002 – 14,271,519 (which includes outbound 14,271,519 (which includes outbound travel to Special Administrative Regions)travel to Special Administrative Regions)
By 2020, WTO predicts China will have By 2020, WTO predicts China will have more than 100 million outbound more than 100 million outbound travelers travelers
Source: WTO ReportSource: WTO Report
Destinations of Chinese Destinations of Chinese TouristsTourists
Destinations 2001 2000 Growth Rate
Hong Kong SAR 4,448,583 4,142,191 7%Macao SAR 3,005,733 1,644,421 82%Thailand 695,372 707,456 (1%)Vietnam 672,372 n/a n/aRussia 606,102 n/a n/aRepublic of Korea 482,308 400,958 20%Malaysia 453,206 n/a n/aJapan 391,384 595,660 (34%)Australia 171,900 126,852 36%
Preferences of Chinese Preferences of Chinese TravelersTravelers
Extremely price – consciousExtremely price – conscious
– Price is a major considerationPrice is a major consideration– Tour cost has to be cheapTour cost has to be cheap– Mass market and not high-end nor deluxeMass market and not high-end nor deluxe– No optional tours but would not mind paying extra to go No optional tours but would not mind paying extra to go
shopping or take part in activities not included in the shopping or take part in activities not included in the package. Extra cost must not be too highpackage. Extra cost must not be too high
– 3-star accommodation3-star accommodation– Demand compliance with tour descriptionDemand compliance with tour description
Information in Chinese languageInformation in Chinese language– Word-of-mouth communication from friends and Word-of-mouth communication from friends and
relatives is still an important information sourcerelatives is still an important information source
Preferences of Chinese Preferences of Chinese TravelersTravelers
Multi/Single-destination tied with Multi/Single-destination tied with varied interesting spotsvaried interesting spots
– Beautiful sceneryBeautiful scenery– Shop authentic but cheap souvenirs for Shop authentic but cheap souvenirs for
neighbors, colleagues, etc.neighbors, colleagues, etc.– Relaxation, knowledge and experience Relaxation, knowledge and experience
different culturedifferent culture– Taste different foodTaste different food– Give status in the communityGive status in the community
Sources of InformationSources of Information
Travel AgentsTravel Agents 38%38%
Books/ Newspapers/ TVBooks/ Newspapers/ TV 33%33%
Word of MouthWord of Mouth 18%18%
Brochures/ FlyersBrochures/ Flyers 7% 7%
InternetInternet 2% 2%
Source: PATA China Outbound Travel Study, 1994
Travel Agency, 33%
Personal, 29%
Semi-Independent
TA, 10%
Own Employer, 9%
Parent Company, 9%
Other, 7%
Travel Arrangements for Pleasure Travel Arrangements for Pleasure TravelersTravelers
Source: PATA China Outbound Travel Study, 1994
Readership of Different Types of Readership of Different Types of MagazinesMagazines
Type of MagazineType of Magazine Pleasure TravelerPleasure Traveler Business Business TravelerTraveler
Major news magazinesMajor news magazines 50%50% 61%61%
Digest magazinesDigest magazines 44%44% 46%46%
General interest magazinesGeneral interest magazines 44%44% 35%35%
Film/TV magazinesFilm/TV magazines 34%34% 18%18%
Travel magazinesTravel magazines 24%24% 13%13%
Professional magazinesProfessional magazines 24%24% 45%45%
Sports magazinesSports magazines 22%22% 27%27%
Source: PATA China Outbound Travel Study, 1994
Demographic Profile of Chinese Demographic Profile of Chinese TravelerTraveler
SexSexMaleMale 71%71%FemaleFemale 29%29%
AgeAge30 or younger30 or younger 27%27%31 – 5031 – 50 49%49%51 and older51 and older 22%22%
EducationEducationNo higher educationNo higher education 20%20%Less than4 yearsLess than4 years 27%27%4 years and more4 years and more 52%52%
PositionPositionTop/SeniorTop/Senior 33%33%Middle-levelMiddle-level 50%50%OtherOther 15%15%
Monthly household incomeMonthly household incomeLess than1600 yuanLess than1600 yuan 30%30%1601 – 2400 yuan1601 – 2400 yuan 32%32%More than 2401 yuanMore than 2401 yuan 34%34%
Marital StatusMarital StatusMarriedMarried 78%78%Non-marriedNon-married 20%20%
Source: PATA China Outbound Travel Study, 1994
Travel Profile of Chinese TouristTravel Profile of Chinese Tourist
Purpose of VisitPurpose of Visit
Business (64%)Business (64%)Visiting partnersVisiting partners 24%24%ConventionsConventions 12%12%Exchange toursExchange tours 10%10%Sports/ CulturalSports/ Cultural 2% 2%OthersOthers 13%13%
Pleasure (39%)Pleasure (39%)SightseeingSightseeing 19%19%Visiting relativesVisiting relatives 16%16%Visiting friendsVisiting friends 2% 2%Sports/ CulturalSports/ Cultural 2% 2%
Frequency of travelFrequency of travel1 trip1 trip 59%59%2 trips2 trips 19%19%3 or more trips3 or more trips 20%20%
Length of most recent tripsLength of most recent tripsOne week or lessOne week or less 19%19%8 to 21 days8 to 21 days 54%54%More than three weeksMore than three weeks26%26%
TraveledTraveledAloneAlone 21%21%With others (78%)With others (78%)
DelegationDelegation 16%16%Company TripCompany Trip 40%40%Package TourPackage Tour 14%14%Spouse/ChildrenSpouse/Children 6% 6%
Source: PATA China Outbound Travel Study, 1994
Most Popular Items Chinese Buy When Most Popular Items Chinese Buy When Traveling AbroadTraveling Abroad
Source: PATA China Outbound Travel Study, 1994
ItemsItems Pleasure TravelerPleasure Traveler Business Business TravelerTraveler
Food/ candy/ chocolateFood/ candy/ chocolate 57%57% 50%50%Liquor/ TabacoLiquor/ Tabaco 34%34% 36%36%Women’s clothingWomen’s clothing 36%36% 17%17%SouvenirSouvenir 30%30% 20%20%Men’s clothingMen’s clothing 31%31% 17%17%JewelryJewelry 25%25% 19%19%ElectronicsElectronics 18%18% 20%20%Leather goodsLeather goods 17%17% 12%12%
Market SegmentMarket Segment
59% 41%1992
Business Purpose Pleasure Purpose
46% 54%2000
Source: PATA China Outbound Travel Study, 1994
Chinese Travel OutlookChinese Travel Outlook
Type of travelersType of travelersPleasurePleasure 54%54%Business (46%)Business (46%)
EconomicEconomic 48%48%Non-economicNon-economic 40%40%
Frequency of travelFrequency of travelOnceOnce 38%38%TwiceTwice 46%46%FrequentFrequent 70%70%
CityCityBeijingBeijing 61%61%ShanghaiShanghai 39%39%GuangzhouGuangzhou 38%38%
Place of workPlace of workForeign-invested/foreignForeign-invested/foreign owned enterprisesowned enterprises 51%51%State enterprisesState enterprises 48%48%Academic/ researchAcademic/ research 48%48%GovernmentGovernment 41%41%Other non-profit orgsOther non-profit orgs 33%33%
Have relatives living abroadHave relatives living abroadYesYes 48%48%NoNo 26%26%
Source: PATA China Outbound Travel Study, 1994
Major Sources of Outbound Major Sources of Outbound TravelTravel
Beijing ShanghaiGuangdong
(Peking)
Population 13 M 16 M 72.70 MUrban Population 4.7 M 7.5 M 2.6 M (Guangzhou)Per Capita Income US$ 13,471 US$ 13,602 US$ 2,029
Capital of Industrial/Political/Economic
China Financial/Technological/
Commercial Cultural CenterCenter
Places of interests Shops 83% 85% 93% Historical sites 65% 75% 66% Theme parks 46% 45% 58% Museums 41% 35% 41% Casino/ Bar 13% 9% 15%
Chinese Travel OutlookChinese Travel Outlook Rising rapidly and will be first tourist source Rising rapidly and will be first tourist source
nation by 2020nation by 2020
Major visitor-generating market for ASEAN Major visitor-generating market for ASEAN destinationsdestinations
77thth largest tourism spender in the world largest tourism spender in the world
Global trend for short - haul travelGlobal trend for short - haul travel
Workers enjoy seven-day holidays on May 1 (International Workers enjoy seven-day holidays on May 1 (International Workers Day) and October (National Day) for a total of 14 Workers Day) and October (National Day) for a total of 14 days yearlydays yearly
Factors Fuelling Outbound Travel Factors Fuelling Outbound Travel GrowthGrowth
Growing gross national income which is Growing gross national income which is number six (6) in the worldnumber six (6) in the world
Growing disposable income with household Growing disposable income with household savings in urban and rural areas exceeding 10 savings in urban and rural areas exceeding 10 trillion RMB. GDP per capita is expected to trillion RMB. GDP per capita is expected to reach US$ 1,000reach US$ 1,000
Shifting consumption pattern from dressing Shifting consumption pattern from dressing warmly and eating one’s fill, to living a well-warmly and eating one’s fill, to living a well-off lifeoff life
Factors Fuelling Outbound Travel Factors Fuelling Outbound Travel GrowthGrowth
Outbound travel restriction are being relaxedOutbound travel restriction are being relaxed
– Exit clearance has been lifted since 01 February Exit clearance has been lifted since 01 February 2002, However, Chinese traveling abroad must 2002, However, Chinese traveling abroad must obtain or hold a valid visa issued by a foreign obtain or hold a valid visa issued by a foreign government before they are allowed to exit Chinagovernment before they are allowed to exit China
– Chinese tourists can take between US$ 3,000 – Chinese tourists can take between US$ 3,000 – US$ 5,000 on a trip abroadUS$ 5,000 on a trip abroad
– Outbound tourists can also buy foreign currency Outbound tourists can also buy foreign currency themselves rather than thru travel agencythemselves rather than thru travel agency
– More travel agencies are being allowed to More travel agencies are being allowed to operate outbound toursoperate outbound tours
Simplification of passport application proceduresSimplification of passport application procedures
Factors Fuelling Outbound Travel Factors Fuelling Outbound Travel GrowthGrowth
Improving air capacity infrastructure. By 2019, China Improving air capacity infrastructure. By 2019, China is projected to have 22,000 passenger airplanes which is projected to have 22,000 passenger airplanes which is more than 10 times the world’s totalis more than 10 times the world’s total
Increasing number of destinations being granted ADS Increasing number of destinations being granted ADS from 4 in 1992 (Thailand, Malaysia, Singapore and from 4 in 1992 (Thailand, Malaysia, Singapore and Philippines) to 73 in September 2004Philippines) to 73 in September 2004
Outbound tour is no longer a once-in-a-lifetime event. Outbound tour is no longer a once-in-a-lifetime event. Repeat outbound travel is becoming common.Repeat outbound travel is becoming common.
Middle-class families are becoming main force. Middle-class families are becoming main force. Middle-aged travelers and educated young adults with Middle-aged travelers and educated young adults with high incomes comprise a big proportion of outbound high incomes comprise a big proportion of outbound touriststourists
List of ADS CountriesList of ADS CountriesYear Countries
1983 Hong Kong, Macau
1988 Thailand
1990 Singapore, Malaysia
1992 Philippines
1999 Australia, New Zealand, Republic of Korea
2000 Japan, Vietnam, Cambodia, Myanmar, Brunei
2002 Nepal, Indonesia, Malta, Turkey, Egypt
2003 Germany, India, Maldives, Sri Lanka, South Africa
Croatia, Hungary, Pakistan, Cuba
2004 Austria, Belgium, Cyprus, Denmark, Estonia, Finland
France, Greece, Italy, Latvia, Lithuania, Luxembourg
Netherlands, Poland, Portugal, Ireland, Slovakia,
Slovenia, Spain, Sweden, Norway, Iceland,
Switzerland, Liechtenstein, Romania, Zimbabwe,
Brazil, Tanzania, Russia, Ethiopia
Chinese Passport and Visa Chinese Passport and Visa BeforeBefore
– Chinese citizens wishing to travel overseas need Chinese citizens wishing to travel overseas need to apply for a passport which is valid only for the to apply for a passport which is valid only for the journey appliedjourney applied
– Invitation from foreign country is requiredInvitation from foreign country is required
– For ADS countries, invitation is not required but For ADS countries, invitation is not required but the number of Chinese citizens visiting said the number of Chinese citizens visiting said countries is established through “quota system” countries is established through “quota system” for authorized travel agents only allowed to sell for authorized travel agents only allowed to sell outbound toursoutbound tours
– Exit clearance is requiredExit clearance is required
Chinese Passport and Visa Chinese Passport and Visa
AfterAfter
– July 2000: Chinese citizens can obtain July 2000: Chinese citizens can obtain passport without an invitation letter from passport without an invitation letter from foreign country but requirement to obtain foreign country but requirement to obtain “permission” /exit permit or visa for each “permission” /exit permit or visa for each journey remainsjourney remains
– February 2002: Exit clearance has been lifted, February 2002: Exit clearance has been lifted, however, valid visa from foreign country to be however, valid visa from foreign country to be visited must be secured before Chinese tourists visited must be secured before Chinese tourists are allowed to exit China are allowed to exit China
Chinese Chinese Tourists to Tourists to
the the PhilippinesPhilippines
Arrivals from China to the PhilippinesArrivals from China to the Philippines1993 - 20031993 - 2003
0
5000
10000
15000
20000
25000
30000
35000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 200332% -7% 83% 21% 27% -13% -31% 29% 47%
7,0119,259
8,606
15,757
19,093
24,252
21,220
14,724
18,937
27,803
Source: A/D Cards
% increase/ decrease
32,039
15.2%
Profile of Visitors from China to Profile of Visitors from China to the Philippines, 2003the Philippines, 2003
SexMale 61.61%Female 33.45%
Age25 – 34 years old 25.22%35 – 44 years old 31.51%45 – 54 years old 17.37%
OccupationProfessional/ Managerial/ Administrative 24.57%Clerical/ Sales Services 1.23%Housewife 4.54%Student/ Minor 4.51%Not Stated 60.09%
Purpose of VisitHoliday 40.69%Business 8.83%VFR 8.21%Convention 1.19%Official Mission 0.26%Not Stated 37.52%
ActivitiesShopping 94.80%Sightseeing 10.30%Sports 1.90%Conference 1.30%Others 1.30%Beach Holiday 0.60%Incentive Travel 0.60%
Profile of Visitors from China to Profile of Visitors from China to the Philippines, 2003the Philippines, 2003
Type of AccommodationHotel 16.07%Apartel/ Rented Homes 3.76%Homes of Relatives/ Friends
5.63%Not Stated 74.55%
Travel ArrangementsPackage 32.27%Independent 17.86%Not Stated 49.87%
Frequency of VisitFirst Visit 32.92%Repeat Visit 20.79%Not Stated 46.29%
Average Daily Expenditure (in US$)
Accommodation 20.06Shopping 11.35Food/ Beverage 9.72 Local Transport 3.19
Entertainment/ Recreation 2.93Guided Tour 0.19Miscellaneous 8.77
US$ 56.21
Average Length of Stay 11.10 nights
Visitor Receipts US$ 19,900 M
Profile of Visitors from China to Profile of Visitors from China to the Philippines, 2003the Philippines, 2003
Things like most about the Philippines
Warm, hospitable and kind people 37.60%Beautiful scenery/ nice beaches 20.70%Good climate 14.10%Good food/ liquor/ fruits 8.50
Things dislike most about the Philippines
Heavy traffic 36.20%Air/ water pollution/ dirty environment/ bad roads
32.10%Crime incidents/ poor peace and order 23.30%Widespread poverty beggars 4.80%Cheating, reckless/ dishonest taxi drivers 2.60%
Flight Frequencies between Philippines and Flight Frequencies between Philippines and ChinaChina
(as of October 2004)(as of October 2004)
China Southern Airline (96,252)China Southern Airline (96,252)>> Peking (Beijing) – Xiamen – Manila (Daily) Peking (Beijing) – Xiamen – Manila (Daily)>> Canton (Guangzhou) – Laoag (Wed, Fri, Sun) Canton (Guangzhou) – Laoag (Wed, Fri, Sun)> Shanghai – Laoag (Fri, Sun)> Shanghai – Laoag (Fri, Sun)
Philippines Airlines (117,832)Philippines Airlines (117,832)> Shanghai - Manila (Daily)> Shanghai - Manila (Daily)> Xiamen - Manila (4 times)> Xiamen - Manila (4 times)
Cebu Pacific (38,688)Cebu Pacific (38,688)> Canton (Guangzhou) – Subic – Manila (Fri, Sun)> Canton (Guangzhou) – Subic – Manila (Fri, Sun)> Manila – Xiamen (Sun)> Manila – Xiamen (Sun)
Based on CAB Summer ScheduleBased on CAB Summer Schedule
Entitlements 624,000
Utilized entitlements 214,084
Visas Issued by Philippine Consulate General Visas Issued by Philippine Consulate General January – September 2004January – September 2004
Type of VisaType of Visa BeijingBeijing ShanghaiShanghaiTotalTotal
PleasurePleasureIndividualsIndividuals 4,5974,597 Tour groupsTour groups 2,399 2,399
BusinessBusiness 1,5231,523 OfficialOfficial 6 6 Crew membersCrew members 96 96 StudentStudent 1 1
TotalTotal 4,8364,836 8,6228,622 13,45813,458
Strengths, Weaknesses, Opportunities Strengths, Weaknesses, Opportunities and Threats (SWOT) of the Philippines and Threats (SWOT) of the Philippines
as a destinationas a destinationfor Chinese touristsfor Chinese tourists
StrengthsStrengths
- natural scenery (beaches, - natural scenery (beaches, etc.)etc.)
- friendly to Chinese (Chinese - friendly to Chinese (Chinese heritage of Filipinos)heritage of Filipinos)
- different culture - different culture
- variety of seafood (for - variety of seafood (for southern Chinese) and sunny southern Chinese) and sunny island resorts (for island resorts (for northerners)northerners)
- proximity to China- proximity to China
- English-language facility- English-language facility
WeaknessesWeaknesses
- lack of information on Philippine - lack of information on Philippine destinations (consumers and destinations (consumers and tour operators)tour operators)
- pricing (high price and not one - pricing (high price and not one price) price)
- negative image re: security - negative image re: security problemsproblems
- no variety in tour offerings- no variety in tour offerings
- lack of infrastructure - lack of infrastructure developmentdevelopment
- lack of professional Mandarin-- lack of professional Mandarin-speaking tour guidesspeaking tour guides
- aside from Manila, no direct - aside from Manila, no direct flights from China to Cebu and flights from China to Cebu and DavaoDavao
-- fragmented private sectorfragmented private sector
OpportunitiesOpportunities
- compared to Bali and Phuket, - compared to Bali and Phuket, several Chinese tour several Chinese tour operators prefer Boracayoperators prefer Boracay
- China is a seller’s market, so - China is a seller’s market, so with enough local advertising with enough local advertising and information to operators and information to operators and consumers , Philippine and consumers , Philippine tour packages can be pushed tour packages can be pushed moremore
- China is used to charters - China is used to charters
- good relationship established - good relationship established between DOT and CNTA and between DOT and CNTA and local officialslocal officials
- large portion of outbound - large portion of outbound market are first-timers out of market are first-timers out of ChinaChina
- Future events in China - Future events in China require them to learn English require them to learn English fast (i.e., 2008 Olympics)fast (i.e., 2008 Olympics)
ThreatsThreats
- More countries granted Approved - More countries granted Approved Destination Status (ADS) as of Destination Status (ADS) as of 2003 especially in Europe2003 especially in Europe
- terrorism and security problems- terrorism and security problems
- aggressive marketing and - aggressive marketing and sufficient budgetsufficient budget
Strengths, Weaknesses, Opportunities Strengths, Weaknesses, Opportunities and Threats (SWOT) of the Philippines and Threats (SWOT) of the Philippines
as a destinationas a destinationfor Chinese touristsfor Chinese tourists
Approved Destination Status Approved Destination Status (ADS)(ADS)
According to the China National Tourism Administration According to the China National Tourism Administration (CNTA), several countries who have been granted ADS , (CNTA), several countries who have been granted ADS , have not been successful in getting substantial share have not been successful in getting substantial share of the Chinese outbound market due to : of the Chinese outbound market due to :
– no advertising for tour offerings in publications of travel agenciesno advertising for tour offerings in publications of travel agencies
– high price is a major obstaclehigh price is a major obstacle
– no brochures and lack of communications making it difficult for no brochures and lack of communications making it difficult for Chinese travel agencies to promote new destinationsChinese travel agencies to promote new destinations
– more professional tour guides requiredmore professional tour guides required
COMPETITORS’ PACKAGESCOMPETITORS’ PACKAGES
ThailandThailand - Beijing-Phuket, 6 days – 5 - Beijing-Phuket, 6 days – 5
nites, with airfare nites, with airfare
3980 RMB or 3980 RMB or $ 485.$ 485.
- Beijing-Bangkok-Pattaya - Beijing-Bangkok-Pattaya (full board), 6 days-5 nites, (full board), 6 days-5 nites, 4480 RMB or 4480 RMB or $ 545 or $ 545 or $691 $691 during high season during high season (May and Oct)(May and Oct)
• Thailand spent $200,000 in Thailand spent $200,000 in advertising in China during advertising in China during 11stst year of operation year of operation
PhilippinesPhilippines
- Beijing-Manila-Cebu, - Beijing-Manila-Cebu, 6 days-5 nites, 5980 6 days-5 nites, 5980 RMB or $ 728.RMB or $ 728.
Philippines
Singapore
Indonesia
Vietnam
Malaysia
China
Thailand
MAP OF ASIA