Weekly Round-Up (24 October)

Welcome to this week’s China Ready Now Round-Up.

The last week has been one to forget for James Packer. His China strategy for Crown Resorts has been thrown into chaos with the detaining of 18 employees in China, in what is believed to be part of a crackdown on foreign casinos marketing on the mainland. While details are still sketchy, it is a strong reminder to Australian businesses that doing business in China involves playing by strict rules.

Observers note that there could be implications for Packer’s Barangaroo development and competitor The Star Entertainment Group’s casinos. Both companies are focusing their targets on attracting high-rollers from overseas, particularly from China. Crown derives around 12% of group revenues from Chinese VIPs, and has noted that Chinese VIPs made up half of the company’s total high rollers.

Crown boasts that one in four Chinese tourists visit Crown’s Melbourne casino when in town, and it is undoubtedly hoping for more of the same in Sydney when it finally opens shop in 2021. But with all the media attention this past week on Crown’s latest setback, you would think the only thing Chinese come to Australia to do is gamble!

And that is far from the case! Based on research by Tourism Research Australia, visiting casinos is the 15th most popular activity for “free and independent” Chinese travellers that come to NSW. More Chinese FITs visit farms than casinos during their time in Australia!

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The lastest Crown incident highlights why Australian tourism leaders should continue to broaden how Australia is marketed to Chinese tourists, as well as the opportunities available to tour operators in a range of sectors. It is also a strong reminder for all businesses to make sure your China-strategy aligns with the Chinese government’s objectives. What does that mean exactly? To find out, get in touch with us for a free consultation.

We hope you enjoy this week’s Round-Up.

Australian focus:

International focus:

That’s all for this week’s Round-Up. For more updates during the week on Chinese tourism trends, follow us on Twitter or Facebook.

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