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China: Sharpening Singapore's Positioning for the Chinese Market

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China: Sharpening Singapore's Positioning for the Chinese Market Sharpening Singapore’s Positioning for the Chinese Market Tourism Industry Conference 2018 Agenda 1 China Market Performance in 2017 2 China Market Focus Areas for 2018 3 Enhancing the experience of Chinese Visitors in Singapore 4 Experience Step-Up Fund (ESF) China Market Call-Out 5 Panel Discussion: Needs and Expectations of the Evolving Chinese Traveller Restricted 2 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Agenda 1 China Market Performance in 2017 2 China Market Focus Areas for 2018 3 Enhancing the experience of Chinese Visitors in Singapore 4 Experience Step-Up Fund (ESF) China Market Call-Out 5 Panel Discussion: Needs and Expectations of the Evolving Chinese Traveller Restricted 3 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission In 2017, STB Greater China intensified our efforts on target segments of Families with Young Kids and Early & Established Careers Families with Young Kids Early & Established Careers Singapore’s strong hygiene factors (convenience, safety, Ease of planning and traveling to Singapore, and wide suitable food, variety of attractions etc) and ample learning variety of events, dining and retail offerings to escape from opportunities (attractions and experiences catering to all daily stresses while indulging in finer things in life are our kids’ age group) are our strengths strengths Restricted 4 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission We launched our new brand with Stefanie Sun as our Singapore Tourism Ambassador and Nathan Hartono as our Passion Ambassador for Greater China… Online and Offline Brand Campaign Roll-out Stefanie Sun - Singapore Tourism Online TV ads, print ads, OOH (light boxes, cinema ads, office lift LCDs), WeChat Ambassador for Greater China and Moments ad and ads on trade partners’ platforms (12 strategic partners + Ctrip, Tuniu, Nathan Hartono @ Brand Launch in Tongcheng, Mafengwo, Dianping + travel agents in Tier 2 cities). Beijing on 7 Sep 2017 Restricted 5 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission …Deepened our collaboration with digital partners, and trade in Tier 2 cities 5 CITIES ROADSHOW HELD AND ONLINE TRAINING LAUNCHED STRATEGIC MOU WITH TENCENT One of the largest internet and technology Held in Fuzhou, Nanning, corporations and most valuable gaming Zhengzhou, Wuhan and and social media companies in the world Chongqing 42 Singapore companies (DMCs, Attractions, Hotels) participated, attracting 729 participants from 288 local Zhengzhou travel agencies Wuhan Many quality leads Chongqing received, with conversion Fuzhou into actual groups during CNY period Nanning A 10-module online MOU Signing between STB and Tencent training platform with >3000 registrations within 2 months of launch Restricted 6 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Encouragingly, 2017 VA and TR continues to be strong CHINESE VA AND TR EX-SEG IN SINGAPORE 3.5 4,000 $3,529 3,500 3.0 $2,981 $3,083* Largest contributor to Singapore’s VA 2.5 $2,634 $2,537 3,000 for the first time in 2017 2,500 2.0 19% of total VA in 2017 2,000 VA Millions VA 3.23 1.5 2.86 1,500 Millions (S$) TR 2.27 2.11 1.0 1,000 Largest contributor to Singapore’s TR 1.72 since 2013 0.5 500 0.0 0 S$3.1 bil 2013 2014 2015 2016 2017 China TR for 3Q 2017 +10% vs 2016 China VA China TR *YTD 3Q2017 TR Sources: STB OVS and Statistics, 2007-2017 Restricted 7 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Agenda 1 China Market Performance in 2017 2 China Market Focus Areas for 2018 3 Enhancing the experience of Chinese Visitors in Singapore 4 Experience Step-Up Fund (ESF) China Market Call-Out 5 Panel Discussion: Needs and Expectations of the Evolving Chinese Traveller Restricted 8 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission The China outbound tourism market is set to continue strong growth and socio-economic trends present opportunities for Singapore tourism… CHINA – 2017 WORLD’S TOP OUTBOUND MARKET SOCIO-ECONOMIC TRENDS Most outbound trips ever made ECONOMIC SOCIAL 131 mil Consumption upgrade, Ageing population +7% vs 2016 as working adults Limited family time across China become World’s largest tourism spenders Two-child policy financially capable US$115 bil +5% vs 2016 Singles economy PCE: US$ 878 (or S$1153) Growing Tier 2 Individualistic, “I-can” & Further potential growth in outbound travel: economies tech-savvy consumers 134 mil outbound trips Only 6% Expected in 2018 of Chinese today OPPORTUNITIES +4.5% vs 2017 own passports Growth in demand for quality group travel, including Promising trend of quality tourists from China: family travel, customized travel and semi-FIT Spend 2x more Consumption upgrade Growth in FIT travel even in Tier 2 cities than 2 nd largest 消消消费升消费升级级级 + Quality travel Growth in interest-based travel spender USA 品质游 is on the rise. Sources: Restricted • STB Statistics, 2007-2017 These slides are property of STB and shall not be reproduced or distributed without • China Tourism Academy & Ctrip, 《2017 出境游大数据报告》, Mar 2018 STB’s written permission • China National Tourism Administration, Reports on tourism statistics, 2008-2017 9 • www.mafengwo.cn/travel-news/1137975.html But global competition is intensifying rapidly as many destinations look towards China as growth market IMPROVING DIRECT CONNECTIVITY AND AT COMPETITIVE RATES RAISING STANDARDS OF CHINESE SPEAKING GUIDES Air China - Beijing to Athens SIA - Beijing to Singapore launched on 30 Sept 2017 Switzerland : Switzerland Tourism partnered with Chinese driver-guide platform HiGuides to train and certify HiGuides to escort guests along the Grand Tour of Switzerland. Launch of direct flights between Athens and Beijing and at highly competitive prices vis-à-vis to Singapore ENHANCING POST ARRIVAL VISITORS EXPERIENCE PAYMENT AND LANGUAGE FACILITATION Australia: Thailand : Wide acceptance of • First destination (Sydney) to leverage WeChat pay and Chinese language on WeChat’s Mini Programme to enabled ‘Visit Thailand’ app enhance the city’s experience • Includes navigation and content on shopping, attractions, F&B Restricted 10 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission In 2018, we will further amplify our Passion Tribes amongst our focused segments… FAMILY – Highlight edutainment EARLY & ESTABLISHED activities/attractions in tour packages and PR CAREERS – Push weekend messages to appeal to the post-80s (and getaways and leverage on events to even post-90s) mums who are usually the provide additional reasons for this decision-maker, are very well-travelled and discerning group to come to Explorer more discerning in their travel choices. Culture Shaper Singapore POST-90S GENERATION – Play up hip quotient of Singapore through events like Cocktail Week, and leverage relevant UGC platforms like video-sharing website – Tudou, video editing app – Meipai, live- streaming e.g. Qzone to reach out to this segment Foodie Collector Socialiser who make up 39% of China total outbound and is the new engine of consumption in China. MARATHONS – Ride on the “health and fitness” craze in China to jointly promote the marathons/running events in Singapore. Action Seeker Restricted 11 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Work with our strategic and digital partners to optimise our marketing efforts, outreach and visitor experience…. STRATEGIC ALLIANCE + DIGITAL PARTNERSHIPS • Joint marketing efforts to promote Singapore and drive conversion • Explore new areas of collaboration such as data sharing, mini program and reaching out to younger Chinese travellers • Co-create content to deepen visitors’ experience, including post-arrival recommendation and to jointly promote Singapore through events like food festival and Foodie and Socializer KOLs. Restricted 12 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Sharpen our positioning and products for Tier 2 and MICE markets Sharpen positioning and products for STB’s targeted Intensify client engagement and Tier 2 cities Develop Better Tools for Chinese M&I Groups Promote relevant tours and products based on visitors’ Sharpen MICE Conference profile from each city positioning and intensify direct corporate client Push for Singapore to be the engagement top-of-mind FIT destination for post-90s and post-00s; Review Inspire experiences and launch easy-to-use set Deepen engagement of menus catered to Chinese trade and media in our 16 market Tier 2 cities *MICE Conference will be held on 27-29 June 2019 in Guiyang, China Restricted 13 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Agenda 1 China Market Performance in 2017 2 China Market Focus Areas for 2018 3 Enhancing the experience of Chinese Visitors in Singapore 4 Experience Step-Up Fund (ESF) China Market Call-Out 5 Panel Discussion: Needs and Expectations of the Evolving Chinese Traveller Restricted 14 These slides are property of STB and shall not be reproduced or distributed without STB’s written permission Our industry has been proactive in developing China ready materials to engage
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