Outbound Chinese Tourists on the Rise

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  ABOUT 1.35 million Chinese people visited Indonesia in 2015, according to Igde Pitana, Indonesia’s Deputy Minister of Tourism. Indonesia hopes this figure will rise to two million in 2016. Tourist administrations, embassies, and consulates all over the world are targeting Chinese tourists as the next big holidaymaker market, holding travel promotions in China’s major cities to entice them. In December last year, travel editor Wen Zheng from Beijing participated in one such promotion by Indonesia’s Ministry of Tourism. The growing number of Chinese tourists is expected to promote local hospitality industry, transportation, and shopping consumption and so considerably boost local economy.
   Largest Source of Outbound Tourism
  Along with China’s economic growth and increasing incomes are the greater numbers of Chinese overseas tourists. According to the China National Tourism Academy, about 107 million mainland visitors traveled abroad in 2014. The figure exceeded 120 million in 2015, ranking first worldwide for three successive years.


  South Korea remains a top choice for Chinese overseas holidaymakers. As early as 2013, China surpassed Japan to become South Korea’s largest tourist source. More than six million Chinese traveled to ROK in 2014, accounting for 43 percent of ROK’s foreign visitors that year. Influenced by the MERS outbreak, the number of Chinese visitors to ROK dropped briefly in 2015. But as soon as the epidemic situation was under control, Chinese tourists came back, attracted by its favorable visa policies and shopping opportunities.
  According to the Japan Tourism Agency, over five million Chinese visited Japan in 2015, twice as many as in 2014. In other words, one in every four foreign travelers was Chinese.
  Russia is another favorite destination for Chinese tourists. Statistics reveal that more than 1.1 million Chinese traveled to Russia in 2014, surpassing Germany to rank first. The number in 2015 was about 1.3 million.
  According to the British Home Office, up to September 2015, Chinese tourists comprised 17.23 percent of travelers to the U.K., with China surpassing India and the U.S. to become the U.K.’s largest tourist source country.
  China is now Australia’s second largest tourist source country, and the sixth largest in the U.S. In addition, Turkey, Eastern Europe, Africa, and South America have become new hotspots for Chinese outbound tourists.   However, considering China’s huge population, less than six percent of Chinese people have passports. The market for outbound tourism is still at its initial development stage in accordance with China’s current national condition. According to the 2015 China Outbound Tourism Development Annual Report, the regional difference in tourism sources is tremendous in China; most travelers come from the economically developed eastern regions. Urban agglomerations such as Beijing, Shanghai, and Guangzhou are the leading market of China’s outbound travel. Overseas travel has not become a mass consumption behavior nationwide, and short haul is still the main choice. But with the nation’s economic growth, there is huge potential for development of China’s outbound tourism.
   Lower Cost


  Zhuang Tao and her family live in Beijing. The family of three planned to travel to Thailand on Spring Festival. It would cost RMB 8,370 for the couple and their seven-year-old son, which is equivalent to one month’s family income. “In the past, we would go back to our hometown during the Spring Festival. But it’s so difficult to buy railway tickets, and air tickets are too expensive now, so going home is not a cheap option anymore,” said Zhuang. “This year we want to travel abroad. We got a good price because we were able to book the holiday two months in advance.”
  In recent years, thanks to the growing number of flights and falling price of oil internationally, the cost of many tourist routes has come down. For example, the starting price for an air ticket plus hotel package to Southeast Asia is around RMB 2,000. The evolution of online booking offers the function of price ratio, helping customers to easily find the most economical and practical holiday options. Besides, a stronger RMB directly reduces the cost of outbound tourism, a major reason why Japan, South Korea, and Russia have become tourist attractions for Chinese people.
  Take Thailand’s Phuket Island as an example. In July 2010 China’s Hainan Airlines opened its first direct route from Beijing to the island, with three flights a week. Now, each day there are several flights for travelers to choose from, greatly reducing their time cost.“It is our first outbound trip, so we chose a package tour. Next time, we’d like to organize our own trip, as long as we can work out an itinerary through the Internet,” said Zhuang.
   More Convenient   Liang Hong did not make a vacation plan for the “New Year’s Day” holiday.“I was quite busy last December and almost forget that we had time off coming up. Then my friend and I decided at the last minute to go to Jeju Island, South Korea,” said Liang. “The island is visa-free, we just bought air tickets and brought our passports. Since it was not peak tourist season, the accommodation was relatively inexpensive.”
  Among the 172 countries and regions that have established diplomatic relations with China, 117 have launched the business of Approved Destination Status. Although China ranks low on the Henley Visa Restrictions Index, at present a total of 52 countries and regions have implemented visa-free policies for Chinese tourists.
  In addition, influenced by China’s tremendous tourist consumption market, many countries like the U.S., the U.K., and Japan have adopted more liberal entry requirements for China.
  Single mother Wu Yiyi runs a small commercial company. Her son now works in Denver. In April 2015, her son got married in the U.S. “I heard that it could be hard for people like me to get a U.S. visa. But I just applied and was approved,” said Wu. “Filling in the application form, paying, and making an appointment for the visa interview can all be done online. With the 10-year tourist visa, it will be easier for me to go to America in the future.”
  Following the U.S., Canada also extended its visa expiration period to 10 years, Japan five years, and the U.K. two years.
   Higher Satisfaction
  Liang Hong’s three-day visit to Jeju was wonderful. “The hotel receptionists, shop assistants, taxi drivers, and waiters could all speak some Chinese, which was great for our daily communication. More importantly, in many shops if I paid by UnionPay card, I could enjoy a discount of 10 percent,” said Liang. One day Liang and her friend took a cab to a scenic spot, but on the way changed their minds and decided to go to another place. However, the taxi driver could not speak Chinese, and they did not speak Korean. Then the driver called a hotline that offered a Chinese translation service. The problem was solved at once. “I feel that many services in South Korea are tailored for Chinese tourists, such as Chinese announcements in the airport, Chinese introductions at many scenic spots, and Chinese menus in local restaurants.” These considerate details made Liang feel welcome.
  Besides the Chinese-speaking salespeople at shopping malls, what most impressed Wu Yiyi about her trip to America were the facilities at her hotel.“They even provided cookers for Chinese guests to cook congee or noodles.”


   More Rational Visitors
  Although they consider duty-free stores and outlets a bonus when traveling abroad, Liang Hong and Wu Yiyi try to curb their overseas consumption.
  “Designer bags and clothes are not on my shopping list. I bought some makeup from duty-free shops because they were cheaper than in China. I also bought teacups featuring Korean motifs to give as presents,” said Liang. As a fan of Korean films and TV programs, Liang is interested in Korean culture, particularly Korean cuisine. “Although there are many Korean restaurants in Beijing, one must go to Korea to sample authentic Korean food and experience the life of local people,” said Liang.
  “The biggest gain from my trip to the States was visiting Yellowstone National Park,” said Wu Yiyi. Before her journey, she planned an itinerary with the help of some online forums. She first attended her son’s wedding in Denver, then drove to Yellowstone and eastern U.S. before flying back to China. “I did not visit landmarks such as the Statue of Liberty and Hollywood this time. I wanted to save them for my next trip.”
  Data from China UnionPay show that outbound tourists from the Chinese mainland now spend more on everyday activities when on holiday. According to Dong Li, UnionPay’s Chief Branding Officer, based on historical data, Chinese tourists used to spend more on shopping for commodities. Now, they want to experience the real life of local people at their holiday destination, and spend more at local restaurants and cafes. Their sphere of consumption has broadened.
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