COTTM Presentation 2011

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China Outbound Tourism Research Institute

Berenice Aceves, MBACOTRI China Outbound Tourism Research Institute,

Heide / Beijing

China Outbound Tourism 2011:

Arrival of the New Chinese Tourist

Exhibitors Workshop April 12, 2011

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Agenda Exhibitors Introduction Workshop

10:00 Introduction by Prof. Dr. Gu Huimin, Beijing International Studies University (BISU).

10:10 Keynote speaker 1: Berenice Aceves, General Manager COTRI China Outbound TourismResearch Institute (15 min) Topic: Chinese outbound tourism development, segments, future trends

10:25 Questions and Experiences from participants including brief introduction of participants

10:55 Keynote speaker 2: Prof. Dr. Wolfgang Georg Arlt, Director COTRI China OutboundTourism Research InstituteTopic: Practical advice on how to do business with Chinese

11:10 Q&A / Experiences from participants

11:30 Panel: 5 tips from the Chair and Speakers on how to work successfully at COTTM 2011

11:45 Q&A / Experiences from participants


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• COTRI China Outbound Tourism Research Institute is the worldwide leading independent research institute for

analysis, consulting and quality assessment relating to the

Chinese Outbound Tourism market.

• Headquarter in Heide/Germany, China office in Beijing.

Director: Prof. Dr. Wolfgang Georg Arlt

General Manager: Berenice Aceves

China Representative: Yao Wen


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Global Tourism 2010:

6.7% increase of international tourism arrivals


Asia –Pacific region

20% increase year

by year

Forecast for global

tourism:

From 930 million to

1.6 billion travels

by 2020

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China´s Major Targets of the

12th Five-Year Planfor 2011-2015

Annual average GDP growth: 7%

GDP in 2015 (based on 2010 prices): 55 trillion Yuan (US$ 8.37 trillion)

Proportion of service industry's output in GDP: up by 4 percentage points

Release of major pollutants: down by 8%-10%

Jobs created: 45 million

Average growth of residents´ income: more than 7%

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2010: 57.4 million outbound trips

China is the No. 1 source market in Asia even without taking into account trips to Hong Kong / Macao

For the second time in China: Outbound tourism spending higher than inbound tourism income

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2000: Global market share 1.5%

2010: Global market share 5.8%

2000: One out of 67 international travellers originates in Mainland China

2010: One out of 16 international travellers originates in Mainland China

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Share of Chinese outbound travels during three quinquenniums 1995-2009 (Source: CNTA / COTRI, no reliable data available before 1995)

More than 60% of all travels happening in last quinquennium 2005-2009

1995-199912%

2000-200427%

2005-200961%

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Chinese outbound travels projection for current quinquennium 2010-2014

a) projected increase according to State Council planning

b) projected increase if growth rate equals 2000-04/2005-09

1995-1999

2000-2004

2005-2009

2010-2014a

2010-2014b

Outbound Travels 40,6 88,3 199,8 309,9 451,5

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

500,0

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Market SegmentsSegmentation of market in

- low price/bad quality mass market For the “Europe-from-the-Coach-Window” mass market there is still a queue of

at least 100 million Chinese waiting for their turn to get their photo in front

of the Eiffel tower.

and - “FIT” / “Semi-FIT”, ”MICE” high-end market"We didn't want to go on a group tour since these can be very rushed, taking in too

many countries over a short period of time. We think we handle independent travel

quite well since we were all in Singapore last Spring Festival when we also went to

Thailand. We think we will be able to get around Italy by ourselves.”

(China Daily 28- 01-2011)

January 2011: 456 million Internet users

32% Internet penetration rate.

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Good news – not only because of quantitative growth but also because of qualitative developments:

1.Political support for outbound tourism

2.Greater interest in in-depth travels

3.Easy access to passports and hard currency


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1. Political support for outbound tourism by Chinese Central Government:

• On November 25th 2009, a State Council executive meeting chaired by Chinese Premier Wen Jiabao adopted the “Statement on Accelerating the Tourism Industry Development” which declared a planned annual increase of 9% for outbound tourism.

• In the 12th Five-Year Plan for the first time the development of outbound tourism is actively promoted instead of being hindered by the Chinese government.


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2. Greater interest in in-depth travels:

“… one of the remarkable characteristics of China tourism in 2010 was the detailed market segmentation. When the normal tourism market was still the main component of tourism section, special interest groups were forming as well. Some special attractive long-distance and niche market focused tourism products which were offered by tour operators both inside and outside China turned out to be very successful.”

Prof. Zhang Guangrui

Development of China's Outbound Tourism 2010

in: Green Book of China's Tourism 2011

Niche market and special interest products offer opportunities to attract Chinese visitors

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3. Less bureaucratic problems from the Chinese side:

• 140 ADS agreements with all important destinations signed

• Access to passports and hard currency relatively easy

• Individual tourist visa agreements with Asian and some European countries

• More choice of destinations and tours than ever


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But complaints about many destinations:

• Visa problems still existing

• (Perceived) Safety problems given extensive mediaattention in China

• Quality level often not according to Chineseexpectations

• Not enough visible dedication to Chinese market


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Chinese Outbound Massand New Tourists will continue to travel all over the world in growing numbers, but with specific demands and growing expectations.

Are you ready?

www.patastore.com

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Thanks

We are here to answer all your questions:

- Now

- COTTM 2011 COTRI Stand 2000

- www.china-outbound.com and - www.chinatraveltrends.com

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COTRI Events during COTTM 2011

1) CTW Award 2011 CeremonyThursday April 14, 10.00 to 12.00 h

COTTM 2011 TheatreLanguage: English

2) Book PresentationGreen Book of China’s Tourism 2011

China’s Tourism Development Analysis and ForecastThursday April 14, 13.30 to 14.15 h

COTTM 2011 TheatreLanguage: English and Chinese

3) Exhibitors Debrief WorkshopFriday April 15, 10.00 to 12.00 h

COTTM 2011 VIP Room

Language: English

COTTM Presentation 2011

Documents

Transcript of COTTM Presentation 2011