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Penetrating the Chinese Outbound Tourism Market http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 Penetrating the Chinese Outbound Tourism Market Successful Practices and Solutions http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 Copyright © 2017, World Tourism Organization (UNWTO) Cover photo: copyright © Anna Chelnokova | Dreamstime Penetrating the Chinese Outbound Tourism Market – Successful Practices and Solutions ISBN printed version: 978-92-844-1898-5 ISBN electronic version: 978-92-844-1899-2 Published by the World Tourism Organization (UNWTO). First printing: 2017 All rights reserved. The designations employed and the presentation of material in this publication do not imply the expression of any opinions whatsoever on the part of the Secretariat of the World Tourism Organization concerning the legal status of any country, territory, city or area, or of its authorities or concerning the delimitation of its frontiers or boundaries. The opinions contained in this publication are exclusive from the authors and do not necessarily reflect UNWTO’s point of view. World Tourism Organization (UNWTO) Tel.: (+34) 915 678 100 Calle Poeta Joan Maragall, 42 Fax: (+34) 915 713 733 28020 Madrid Website: www.unwto.org Spain E-mail: [email protected] Citation: World Tourism Organization (2017), Penetrating the Chinese Outbound Tourism Market – Successful Practices and Solutions, UNWTO, Madrid. All UNWTO publications are protected by copyright. Therefore, and unless otherwise specified, no part of an UNWTO publication may be reproduced, stored in a retrieval system or utilized in any form or by any means, electronic or mechanical, including photocopying, microfilm, scanning, without prior permission in writing. UNWTO encourages the dissemination of its work and is pleased to consider permissions, licensing, and translation requests related to UNWTO publications. Permission to photocopy this material in Spain must be obtained through: CEDRO, Centro Español de Derechos Reprográficos Tel.: (+34) 913 08 63 30 Calle Monte Esquinza, 14 Fax: (+34) 913 08 63 27 28010 Madrid Website: www.cedro.org http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 Spain E-mail: [email protected] For authorization of the reproduction of UNWTO works outside of Spain, please contact one of CEDRO’s partner organizations, with which bilateral agreements are in place (see: www.cedro.org/en). For all remaining countries as well as for other permissions, requests should be addressed directly to http://publications.unwto.org/en/content/rights-permissions. Table of contents Acknowledgments 7 Forewords 9 by Taleb Rifai, UNWTO Secretary-General 9 by Huayong Ge, Chairman, China UnionPay 10 Executive summary 11 Introduction 15 Chapter 1 The dynamism of the Chinese outbound tourism market 21 1.1 History of the Chinese outbound travel market 21 1.1.1 The trial stage (1983–1996) 21 1.1.2 The second stage (1997–2001) 22 1.1.3 The development stage (2002 to present) 24 1.2 The basic structure of China’s outbound tourism market 26 1.2.1 The evolution of organized outbound travel 26 1.2.2 Changes in outbound travel types 27 1.2.3 Changes in outbound tourism expenditure 28 1.3 Outbound travel destinations 29 1.3.1 Overseas tours 29 1.3.2 Hong Kong, China; Macao, China; and Taiwan Province of China 30 1.4 Chinese outbound tourism price index (OPI) 31 1.4.1 China outbound tourism price index of Asian destinations 31 1.4.2 China outbound tourism price index of European destinations 32 1.4.3 China outbound tourism price index of American destinations 33 1.4.4 China outbound tourism price index of Oceania destinations 34 1.4.5 China outbound tourism price index of Middle East and African destinations 34 Chapter 2 Newest trends of the Chinese tourism market 37 2.1 Outbound travel market trends 37 2.1.1 General market development trends 37 http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 2.1.2 Tourist product development trends 40 2.1.3 Technological development in tourism sector 41 2.1.4 Factors influencing the China outbound travel market 42 2.2 Characteristics of Chinese outbound tourists 43 2.2.1 Overview of changes and characteristics of Chinese tourists 43 2.2.2 Characteristics of Chinese millennial travellers 44 2.2.3 Characteristics of Chinese free independent travel (FIT) market 45 Chapter 3 Analysis of China’s outbound tourist-generating regions 49 3.1 Segmentation of Chinese outbound tourist-generating regions 49 3.1.1 Tier 1 tourist-generating regions 50 3.1.2 Tier 2 tourist-generating regions 52 3.1.3 Tier 3 tourist-generating regions 54 3.2 Outbound traffic organized by travel agencies 56 3.2.1 Outbound traffic of tier 1 tourist-generating regions 56 3.2.2 Outbound traffic of tier 2 tourist-generating regions 58 3.2.3 Outbound traffic of tier 3 tourist-generating regions 59 3.3 Features of tourism products in different tourist-generating regions 60 3.3.1 Tier 1 tourist-generating regions 60 3.3.2 Tier 2 tourist-generating regions 62 3.3.3 Tier 3 tourist-generating regions 63 Chapter 4 Successful practices and solutions to penetrate the Chinese outbound tourism market 65 4.1 Australia 65 4.1.1 Policies and planning 66 4.1.2 Product development 67 4.1.3 Marketing 69 4.1.4 Technological developments 72 4.1.5 Key solutions 73 4.2 Indonesia 73 4.2.1 Policies and planning 73 4.2.2 Product development 74 4.2.3 Marketing 75 4.2.4 Travel facilitation 76 4.2.5 Key solutions 77 4.3 Japan 77 4.3.1 Policies and planning 78 4.3.2 Product development 79 4.3.3 Marketing 80 4.3.4 Travel facilitation 82 4.3.5 Technological developments 83 http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 4.3.6 Key solutions 84 4.4 Republic of Korea 84 4.4.1 Policies and planning 85 4.4.2 Product development 86 4.4.3 Marketing 87 4.4.4 Travel facilitation 87 4.4.5 Technological developments 88 4.4.6 Key solutions 89 4.5 Malaysia 89 4.5.1 Policies and planning 90 4.5.2 Product development 91 4.5.3 Marketing 92 4.5.4 Key solutions 94 4.6 Maldives 95 4.6.1 Policies and planning 95 4.6.2 Product development 96 4.6.3 Marketing 97 4.6.4 Travel facilitation 99 4.6.5 Key solutions 99 4.7 Thailand 100 4.7.1 Policies and planning 100 4.7.2 Product development 101 4.7.3 Marketing 102 4.7.4 Travel facilitation 104 4.7.5 Key solutions 104 4.8 France 105 4.8.1 Policies 105 4.8.2 Product development 106 4.8.3 Marketing strategies 107 4.8.4 Travel facilitation 108 4.8.5 Key solutions 109 4.9 Switzerland 109 4.9.1 Policies and planning 110 4.9.2 Product development 111 4.9.3 Marketing 112 4.9.4 Travel facilitation 114 4.9.5 Technological development 115 4.9.6 Key solutions 115 4.10 Los Angeles (United States of America) 116 4.10.1 Product development 116 4.10.2 Marketing 118 4.10.3 Travel facilitation 121 4.10.4 Technological developments 122 4.10.5 Key solutions 122 http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 Chapter 5 Recommendations and conclusion 123 5.1 Recommendations: market solutions and approaches to attract Chinese tourists 123 5.1.1 Understand Chinese tourism market 124 5.1.2 Prepare destinations and suppliers on receiving Chinese tourists: provide Chinese friendly services 124 5.1.3 China Outbound Tourism Quality Service Certification Program (QSC Program) 125 5.1.4 Market penetration plan 125 5.1.5 Product development strategy 126 5.1.6 Cooperation with Chinese travel trade 126 5.1.7 Marketing and promotion 127 5.2 Conclusion 133 List of acronyms and abbreviations 135 References and bibliography 137 http://www.e-unwto.org/doi/book/10.18111/9789284418992 - Sunday, September 24, 2017 6:51:32 AM Israel Ministry of Tourism IP Address:147.237.70.107 T 7 Acknowledgments The present study was carried out by the World Tourism Organization (UNWTO) under the overall supervision and coordination of the Regional Programme for Asia and the Pacific in collaboration with the Programme for Statistics, Trends and Policy. UNWTO extends its deep appreciation to Ms. Xu Fan, Member of UNWTO Panel of Tourism Experts, and to Ivy Alliance Tourism Consulting for their valuable support and contribution. UNWTO also wishes to acknowledge the inputs of Mr. Omar Nawaz, Ms. Harmony Lamm, Ms. Hyeon-Jin Lee and Ms. Thanh Thao Nguyen of the Regional Programme for Asia and the Pacific, and Mr. Michel Julian, Mr. Javier Ruescas and Ms. Julia Baunemann of the Programme for Statistics, Trends and Policy for their research and editorial work.
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