Five ways tourism needs to improve to attract Chinese travellers
01 February 2023 – Business Day
Return of
visitors from China can give global tourism and retail sectors the economic
boost they need so badly
Before the
Covid-19 pandemic, China was the world’s largest source of outbound tourists,
who took 170-million trips and contributed $253bn to the global economy in
2019.
In 2023,
Chinese travellers are projected to take 110-million international trips, two-thirds
of the 2019 level, according to the China Outbound Tourism Research Institute
(Cotri), which provides consulting and training on the Chinese outbound market.
The return
of Chinese travellers is the economic boost that the global tourism and retail sectors
have been missing. According to a sentiment survey compiled in December by data
and marketing agency Dragon Trail International, more than half of polled
travellers from mainland China indicated they would be ready to travel as soon
as restrictions were removed, and 32% planned to travel within two years; more
than half indicated that they planned to spend more on travel over the next
year than they did before Covid-19.
But there’s
a caveat: destinations hoping to cash in again will need to take a fresh
approach that speaks to the Chinese traveller who has spent three years away
from the world.
“The
Chinese outbound tourist will not be the same as they were before; you have to
prepare and adapt for that,” says Wolfgang Georg Arlt, CEO at Cotri. “We have
changed; China has changed.”
There’s
time to prepare. Chinese tourists aren’t expected to travel far in large
numbers until the second half of the year. China’s group tour package sales
ban, enacted in the pandemic’s early days, has yet to lift. Prices are up — way
up. Visa processing will be a bottleneck because foreign consulates reduced
staff. Major airlines will also need time to resume flights.
“There may
be pent-up demand that drives more flights, but the schedules into April and
beyond are still quite speculative at this moment,” says Mike Arnot, a
spokesperson for Cirium, an aviation analytics company. China state television
reported that US and Chinese airlines have submitted applications to resume up
to 700 flights per week from 34 countries.
Until then,
here are five major adjustments that destinations and brands need to consider
in connection with global tourism’s biggest market.
Serve
Diverse Travellers
A mistake
that will prove costly to destinations and businesses is to cling to the dated perception
that all Chinese tourists are the same. “Any answer to the question, ‘What are
the Chinese people doing?’ is wrong,” says Arlt.
Sienna
Parulis-Cook, director of communications at Dragon Trail International, agrees
that the travel industry should better prepare for understanding that China’s
outbound travel market is not monolithic. “It’s very segmented,” she says. The
first wave of long-haul travellers in 2023 will be experienced independent
travellers, including millennials, Gen-Z and luxury travellers, adds
Parulis-Cook.
While some
will visit neighbouring Asian countries because they’re easy to get to,
inexpensive and familiar, others will seek new destinations. “The game is no
longer to go where everybody goes, but to discover and find new places that not
so many Chinese have visited before,” says Arlt.
Let go of
mass tourism
Directly
related to increasing market segmentation will be a diminished role for mass
tourism. It won’t disappear entirely, but big group sightseeing tours will
probably appeal only to Chinese travellers from smaller cities who’ve never
travelled, says Arlt.
Residents
from China’s largest cities won’t be impressed with the big tour approach; they
will laugh at you, Arlt says. “They’ve had three years’ time to dream about
places and read up and talk to people — and look on Mafengwo or Qyer [two
Chinese travel-planning sites] for ideas of where to go.”
This is
really a chance to make a new first impression. Those first travellers’
experiences may have more influence on the travellers that come after them. So
it’s an important moment.
Sienna
Parulis-Cook Dragon Trail International
The Chinese
social media platform Xiaohongshu (aka Little Red Book) has increasingly become
tied up with tourism trends for the younger market. Red Book has 200-million
active users with disposable income, mostly women 18 to 35 years old. “It’s
aspirational — a little bit like Instagram, but luxury,” says Parulis-Cook.
Live
streaming, while not new in China, has also emerged as a trend in tourism marketing,
she says, so showing what life is like in prospective places will prove useful.
Nearly two-thirds of Chinese travellers surveyed by Dragon Trail said their top
two reasons to travel abroad are to experience local food and local life.
For less-travelled
destinations, this presents an opportunity. For example, Papua New Guinea is
working with Cotri to attract Chinese travellers interested in niche local
experiences. Arlt says his firm is also in talks with Canada to create a First
Nations programme targeting the Chinese market. “All this is moving towards
special-interest tourism — smaller groups with a higher spending,” he says.
Communicate
on safety
After
pricing, destination safety ranks as second in importance for Chinese
travellers (63%), according to Dragon Trail. That’s not surprising, given the
horrific wave of anti-Asian hate attacks globally, including in the US, Canada,
Italy, Brazil and New Zealand, since the pandemic.
The safety
factor will be critical for the first wave of Chinese independent travellers
before mass tours resume; the latter at least offer the ability to feel more
secure in a crowd.
More than
two-thirds of Chinese travellers ranked the US in December as the destination
they consider least safe to visit, according to Dragon Trail. Other
bottom-rankers in the survey: Israel, Peru, Chile, the UK and Spain.
“Chinese
people are very sensitive if they are welcomed or not, because they see
themselves not as Mr Lee or Mrs Wong but as Chinese — and what you do to them,
you do to the Chinese,” says Arlt.
Even a
slight perception that Chinese travellers could be subjected to racial abuse in
a place and treated badly because they are Chinese, Arlt says, will have
consequences. Chinese visits to the US fell nearly 11% from 2017 to 2019 during
the Trump administration, which was hostile to China.
Tourism
boards know to lay out the welcome carpet, and hotel managers will have to be
conscious about training frontline workers to receive Chinese travellers after
such a long pause. But the average resident’s attitude towards Chinese people
will be more critical now, Arlt says. Tourism boards will have to do more
marketing and education to improve general host perceptions, in addition to
communicating that they are happy to have Chinese visitors back and to factor in
ways to prevent incidents.
“This is
really a chance to make a new first impression,” says Parulis-Cook. “Those
first travellers’ experiences may have more influence on the travellers that
come after them. So it’s an important moment.”
Offer
Value-Packed Experiences
Before the
pandemic, bragging about big spending was considered impressive, Arlt says, but
what’s deemed impressive now is spending on experiences and learning by having
done something, not merely flashing wealth. Value for money has become important
to Chinese travellers, especially considering the increased costs of travel and
the absence of discount tour packages.
Previously
popular destinations such as Los Angeles are receiving a much greater
percentage of families travelling with multiple children, as well as a shift in
demand from millennials and members of Gen-Z, such as groups of friends
planning independent travel. “What they’re looking for is the authentic LA,”
says Adam Burke, CEO at Los Angeles Tourism & Convention Board, who adds that
they look at what a local would do and seek to explore LA’s neighbourhoods in
much more detail.
Travellers
from China have also shown a greater willingness to pay more for greener
choices than their European and American counterparts. Among Chinese travellers,
88% say they care about their impact on destinations and communities when
travelling, according to Dragon Trail’s survey. For most Chinese travellers,
the survey further reveals, sustainability could mean choosing a hotel with
such environmentally friendly practices in place.
Reduce
Visitor Visa Hurdles
Covid-19
testing is no issue for the Chinese, who are used to it. But simplifying the
visa process — providing an e-visa, a visa on arrival or requiring none at all
— would attract more Chinese travellers. Convenience ranked as the
third-most-important factor in the Dragon Trail survey.
That makes
destinations such as the United Arab Emirates, Jordan, Qatar, Turkey and
Ecuador, among other places, well positioned to receive Chinese visitors in
2023. South Korea and Japan, destinations popular among Chinese travellers, are
in a pickle for having imposed severe entry restrictions on Chinese travellers;
China has retaliated with visitor visa bans.
“The visa
wait times are going to be the single greatest impediment to the recovery of
Chinese visitation to the US,” says Burke, who also sits on the US Travel
Association’s board and was just named to the department of commerce’s US
travel and tourism advisory board.
Despite the
view that the US is least safe, America’s brand remains strong among Chinese
travellers. Searches from China about visiting the US were among the highest in
January, according to online travel agency Trip.com, though the average wait
time for a visa is about 400 days for non-waiver countries, Burke says.
Still, as
long as immigration and other entry impediments remain, Chinese travellers may
choose to steer clear of those destinations. “One thing is the convenience,”
says Parulis- Cook, “and one thing is the feeling of friendliness and welcome.”