Source market insight: More
niche packages needed for Chinese travellers
18 Apr 2022 – Tourism Update
Members
of the African Travel & Tourism Association (ATTA) are being called on to
develop more niche holiday packages and to help raise awareness about Africa’s
diverse product line-up in preparation for China’s big international travel
restart.
According
to the Chinese Tourism Academy, 800 000 Chinese tourists visited Africa in
2018, while specialists in FIT and small group travel based in China have
reported a significant increase in demand in the past five years. But borders
have been shut due to COVID-19 restrictions since early 2020, stalling
progress.
In a
recent ATTA webinar, panellists described “two decades of high-speed growth”
during a special sales webinar, which it hosted last week to help identify
opportunities and challenges when borders reopen.
Although
the Chinese were travelling in much greater numbers before the pandemic, ATTA’s
market specialists said that low awareness and a narrow understanding of Africa
as a destination (noting that most travellers only know about the continent’s
wildlife migrations) were two of the main challenges.
The panel
also hopes to see more direct flight routes
between China and Africa when borders reopen.
Customer behaviour
China is
regarded as one of the most valuable markets in the world in terms of traveller
numbers and spending. According to figures presented by China World Travel,
Chinese travel spend was more than US$254bn in 2019.
China
World Travel MD, Lin Yu, said Africa attracted mostly high-nett-worth
travellers, with demand for many different destinations pre-COVID-19, including
Kenya and Tanzania (two of the most popular destinations), South Africa,
Namibia, as well as Mozambique, Ethiopia, Rwanda and Uganda.
According
to Yu, Chinese nationals can now visit nearly 30 African countries without
needing to apply for a visa before travel, which she applauded for making
travel “much more convenient”.
Travel
World China also offers marketing guidance and support for travel businesses
and market representation in China, and Yu sketched a comprehensive customer
profile for Atta’s members. She said:
- Customers value their safety
and “friendly locals”;
- 95% of customers book stays
of seven days or more;
- Chinese travellers mostly
travel in groups (small and large); and
- 64% of travellers who
visited Africa before COVID-19 were female.
- Based on Ctrip’s booking
data (Ctrip is China’s top OTA) there was a 70% year-on-year increase in
Africa-related bookings in the first seven months of 2018; and
- Africa saw the biggest
increase in interest (up 15%) from Ctrip customers between 2017 and 2018.
- Chinese travellers tend to
travel over peak national holidays, such as the annual Golden Week at the
beginning of October and the Lunar New Year, typically late January or
early February. Yu said this made the market “predictable”.
- Before the pandemic, 59% of
travellers had visited Africa on a packaged tour; and 41% of arrivals in
Africa chose to travel as FITs. Almost 30% of visitors travel as a couple
– many on honeymoon – and 28% travel with family. Solo travel is still
fairly limited.
- Younger Chinese travellers
are used to mobile payment gateways; and
- The number of direct flights
between China and Africa is limited and there are not many frequencies on
international routes at the moment.
- Price was a destination
choice factor for 34% of travellers, according to the China Outbound
Tourism Institute. Beautiful and unique scenery was a factor for 56% of
travellers mentioned in the same research.
Because
of COVID-19, Yu said travellers were generally more cautious. The panel
expected that this would still be an issue for future Chinese travellers.
Meanwhile,
the High-End China Tourism Alliance, which represents 300 members, has pledged
to grow awareness about Africa’s diverse product range in emerging markets and
smaller cities. Founder and President, Wang Zhenhai, said he hoped to
see more Chinese travellers “fall in love” with the continent.
According
to Zhenhai, the majority of Chinese international travellers who visit Africa
tend to come mostly from larger cities such as Shanghai and Beijing.
Yu
reiterated that Chinese visitors are likely to be “very experienced and
well-off travellers”.
She said:
“They see Africa as a last-frontier destination… they treat travel like a
social currency and are eager to explore a part of the world that their friends
have not been to.”
What motivates a trip to Africa?
According
to the experts, Chinese travellers’ top interests when they visit Africa
include wildlife, hiking and trekking, and ancient and archaeological sites.
Wine tasting and casinos are some of South Africa’s top attractions.
A
representative for Travel World China added: “All of this gives us an idea of
the opportunities for the African travel trade. Ultimately, we know that these
travellers are high-nett-worth individuals. They have already travelled but see
Africa as a last-frontier destination. If you can [market and package for]
these high-nett-worth markets, the potential is huge.”
Zhenhai
ended with a warning that many customers still have questions about cultural
differences when they visit Africa. Zhenhai believed this could also be
overcome with product training. “Africa really is very beautiful [but] a lot of
people are very afraid of your food! They don’t know that the food in the lodge
is fantastic, that you have many brilliant airlines and so nice people (sic).
We need more marketing material to increase visibility and [differentiate]
product, as well as more presentations [hosted] together in different cities,”
he said.
Yu also
addressed misconceptions about Africa, noting: “There is still a lot of work to
be done to educate the market about what Africa is actually like. They
(visitors) have had no experience and little exposure about the market, [which]
would point to more promotion and awareness [necessary] for the destinations to
grow.”
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