Welcome to this week’s China Ready Now Round-Up.
With the Australian Tourism Exchange on this week in Sydney, I thought it would be a good time to review some of the findings from the latest Tourism Australia China market profile. Here are a few headline statistics for 2016:
- Total spend by Chinese visitors in 2016 was $9.2 billion, up 11% on 2015
- Total number of Chinese visitors in 2016 was 1,199,000, up 17% on 2015
- The leisure market (people here for a holiday or visiting friends and relatives) comprised 74% of all Chinese visitors, up from 68% in 2014
- The Chinese tourist market could be worth $13 billion by 2020
- There are now 114 flights per week from China with over 1.6 million seats, up 32% year on year
Although there has been a slight slow-down in the growth of both visitor numbers and spend compared to a couple of years ago (at least in percentage terms), the situation is still very positive. Slightly less positive for Australian airlines is the fact that Chinese carriers have seen their share of passenger numbers increase from 40% in 2014 to 50% in 2016. Perhaps that is why Qantas is now trimming flights on its “kangaroo route” to increase capacity to Asia.
In other news, the Federal Budget last week came with a bit of a shock to Tourism Australia. Tourism Australia will see its funding cut by $8.5 million next financial year, which as the Transport and Tourism Forum noted, means $8.5 million less that can be spent on promoting Australia to the world. While I’m sure TA will still do a fantastic job with the resources they have, it means it is even more important that tourism businesses create their own success.
If you’re ready to start creating your own success with the growing Chinese market get in touch for a free consultation to see how we can help you.
I hope you enjoy this week’s Round-Up.
Australia and New Zealand focus:
- Qantas slims kangaroo route to serve growing Asian middle class (paywall): Qantas capacity to Asia will be 40% next year, up from 30% in 2012. The national carrier is cutting the share of capacity across the kangaroo route between Australia and London from 28% to 13% over the same time.
- Webinar: Building a brand for China: If you export your goods or services to China, or you’re struggling to replicate your domestic success on an international scale, then this webinar by BWD is for you.
- Chinese tourists the new wave surfers: Bondi-based surf school Let’s Go Surfing says that Chinese are now their largest contingent of Asian tourists taking their $99 two-hour lessons. The increase in Chinese customers reflects the rise of middle-class tourists who want ‘real Australian experiences’.
- Chinese roll on wheels to enjoy foreign trips: A recent report Chinese online travel agency Tuniu has found the top five destinations for Chinese to go on roadtrips are the US, New Zealand, Germany, Thailand and the UK. According to Tuniu “Chinese road trippers prefer to stay at nicer hotels, but not motels near the roads. More than 80 percent of the them usually stay at four-star or five-star hotels.”
- Five Facts You Didn’t Know About Chinese Tourists: 1: If Chinese outbound tourists were a country, they would rank in the top ten in terms of population, right behind Russia and ahead of Japan. You’ll have to read on to find out the rest!
- China is creating ‘a Disney World for wine: Changyu, China’s winemaking powerhouse, is building French-style chateaus and Italianate castles around the country—and an entire ‘Wine City’—to encourage the country’s passion for the grape.
- Chinese travellers welcome their independence while agents play their part: More than one in five travellers from China are confident enough to plan every aspect of their trip themselves, according to a new report. A further 24% of Chinese travellers rely mostly on themselves with some external support.