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China Strategic Plan Progress Report

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China Strategic Plan Progress Report China Strategic Plan 2020 Progress Report The China 2020 Strategic Plan aims Since the launch of the Plan, inbound to ensure Australian tourism remains tourism from China has gone from strength competitive in the fast growing market to strength. China is Australia’s fastest A$3.7 bn for outbound travel from China. Launched growing and most valuable inbound market. in June 2011, the Plan was developed by Chinese tourists were worth A$3.7 billion to total overnight spend Tourism Australia in collaboration with the Australian tourism industry in 2011 and up 16 per cent (YE Dec 11 compared to YE Dec 10) industry and government stakeholders. It is 542,000 visited – a 19 per cent rise on 2010. a key deliverable of the “Grow Demand from Asia” plank of the Australian Government’s China’s growing importance was at the 542,000 arrivals heart of Tourism Australia’s decision to Tourism 2020 Strategy. Under the Tourism unveil the latest phase of its There’s nothing up 19 per cent (YE Dec 11 compared to YE Dec 10) 2020 Strategy, China is projected to be like Australia global marketing campaign worth between A$7.4 billion and A$9 billion in Shanghai in June 2012, and to increase airline by the end of the decade. marketing resourcing by 41 per cent 864,000 seats in 2012/13. The plan identifies five pillars that are up 52 per cent (YE Dec 11 compared to YE Dec 10) pivotal to being competitive and winning A new Asia Marketing Fund was announced market share in China: by the Australian Government in the 1. Knowing the customer 2012/13 Budget. The fund will deliver A$7,162 2. A dedicated geographic strategy an additional A$48.5 million to Tourism average spend per trip 3. Delivering quality Australian Australia’s budget over the next four years. tourism experiences A proportion of the additional funding is 4. A healthy aviation development expected to be used to accelerate Tourism environment Australia’s development plans in China, 23 days 5. Strong partnerships between helping Australian tourism deliver on its average length of stay for leisure visitors Government and industry Tourism 2020 goals. (Sources: Australian Bureau of Statistics, International Visitor Survey) Key Achievements • There’s nothing like Australia campaign Tourism 2020 – how China is tracking tracking well in China. 90 per cent of China potential in 2020 the target audience who have seen it Total expenditure (includes pre-paid international airfares and packages) in nominal terms billions. confirm they have started researching a $10.0 trip to Australia. The latest campaign was Upper scenario A$9 billion launched globally in China in June 2012. $9.0 • China online projects launched $8.0 > A$1 million Australian Government Lower scenario injection to translate tourism A$7.4 billion information into Chinese language, $7.0 providing direct access for Australian tourism operators to $6.0 Chinese consumers Linear trend $5.0 2011 expenditure > Plans underway to build and host a A$5.0 billion A$3.7 billion Tourism Australia website hosted in China, providing Chinese customers $4.0 with tourism information in their nominal) (billions, expenditure Total own language with improved $3.0 connectivity and usability $2.0 • Launch of the “Welcome Chinese Visitors” Strategic Tourism Investment $1.0 Building the foundations Gaining momentum Looking beyond 2020 Grant providing A$600,000 of T-QUAL funding towards a national roll-out of $0.0 China readiness training 2009 2011 2014 2017 2020 • Consumer insights into the travel needs and behaviours of target customers shared with industry • Geographic expansion plan finalised, a guide for marketing activities in China At December 2011, Chinese consumers contributed A$3.7 billion in • Additional direct flights and new total overnight spend to the Australian economy. China is currently Australian destinations launched tracking above the upper scenario of the Tourism 2020 goal. • Stronger partnership between government and industry stakeholders 2020 China Strategic Plan – Progress Report | 1 Know the Customer Knowing the target customer is the foundation for all Tourism Australia marketing activity. To help Australian tourism achieve Tourism 2020, in-depth understanding of the target customer is vital y • Identify and target Chinese consumers who PrOGRESS SNAPSHOT G e are predisposed to travel to Australia and at • Identified best prospect target customers through dedicated research. All marketing r who will do and spend more when they visit T activity is focused on these customers S • Undertake research to gain insights into the • Commissioned research to improve understanding of the travel needs and Chinese target customer including: behaviours of target customers - foundation for refining marketing activity and > economic potential product development > travel motivations > preferred distribution and media channels • Shared insights on target customers with governments and industry across Australia > desired tourism products and experiences • China Online projects launched • Use and share research insights with > A$1 million project to translate tourism products and information into Simplified government and industry to drive targeted Chinese on the Australian Tourism Data Warehouse. A further A$500,000 for marketing communications and inform development of an online tool for tourism operators so that visitors can book product and experience development and pay online > Plans announced to build a Tourism Australia website in China to provide Chinese travellers with tailored in-language information Leisure target Customer in China In late 2011, Tourism Australia commissioned • Live in Primary cities of Beijing, Shanghai • Group travel is preferred when visiting a GfK Blue Moon to conduct research into the and Guangzhou and Secondary cities destination for the first time, but as Chinese long-haul travel behaviour and preferences including Chongqing, Chengdu, Hangzhou, travellers become more experienced they of leisure target customers to improve Nanjing, Shenyang, Shenzhen, Tianjin, like some flexible travel options understanding of what drives their travel Wuhan, Xiamen • Traditional travel advertising and travel decisions. Following release of the research • experienced travellers with an independent media are key influencers, with social media in March 2012, presentations and workshops travel mindset who want to explore and becoming increasingly important were held with government and industry experience local culture. stakeholders to share and discuss findings. • The internet is used to research and plan but target customers rely on travel agents The research provided insights into the needs Research Highlights: of target customers and knowledge to assist to book their travel • Australia is a ‘must visit’ holiday destination Australian industry to develop and refine its • Chinese travellers would welcome ‘China approach in China. • Australia offers what the target customer friendly’ products and services, e.g. Chinese wants – nature and laid back lifestyle with food, signage, Mandarin speaking guides Who they are: the comforts of a developed country. This • Affluent couples - men and women aged appeals to target customers in both Primary • Australia’s visa processing system is viewed 30-49 years who are amongst the and Secondary cities as comparable or better than other countries. wealthiest of China’s population “ Tourism Australia’s Know the Customer research will help us build products that will connect with this valuable market. This research provides the groundwork for future product development.” Felicia Mariani, Managing Director, ATEC 2 | 2020 China Strategic Plan – Progress Report Business events Target Customer in China Increased resourcing With the appetite for business events increasing in China, Business Tourism Australia will increase marketing spending in China by Events Australia and the Association of Australian Convention 41% in 2012/13, after doubling marketing spend in 2011/12. It is Bureaux commissioned TNS to research Australia’s business events expected that the Asia Marketing Fund will dedicate additional opportunities in China and provide insights into how to capitalise on resources to China. these opportunities. In mid-2011, Tourism Australia increased its presence in mainland Who they are: China, moving its North Asia hub from Hong Kong to Shanghai, • Corporate business events decision-makers from selected industry and putting plans in place for additional satellite offices in Beijing sectors, including direct selling, insurance, pharmaceutical, and Guangzhou. Tourism Australia has a dedicated team of 17 staff automotive, IT and electronics in Greater China. • Business event planners • Work in primary cities of Shanghai, Beijing and Guangzhou. Research highlights: • Australia is a highly aspirational business event destination, with one in five survey respondents choosing Australia as their preferred destination • Innovative team building activities in Australia’s natural landscapes should be included in communications as they provide a real point of difference for the Chinese business events customer • Value for money and safety are important factors when choosing the destination for an incentive trip. Australia needs to promote its vast range of options for incentive itineraries as well as its safety and security • Customised event experiences encourage recommendation and repeat visitation, whether this be involvement by Australian Government officials or services provided in Mandarin • Building relationships
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