INTERNATIONAL MARKET PROFILES: CHINA HOLIDAY MARKET, PRIMARY CITIES

Destination NSW has prepared a series of factsheets on six international market segments travelling to Australia and NSW for the purpose of a holiday. The fact sheets have been prepared as an industry resource, particularly for delegates attending ATE 2013, to further understand each market segment, their motivations and to provide guidance on engagement with this sector.

Today we turn our attention to the China Holiday Market from Primary Cities. The World Tourism Organisation forecasts that by 2020 one hundred million Chinese tourists will embark on an overseas trip. Indeed, as proficiency in English grows across China and as young Chinese consumers increasingly become more knowledgeable about Western culture, the allure of visiting well known Western destinations and attractions is and will be high among those able to afford it. Gaining prestige and new knowledge are important motivators for Chinese international travel.

Currently, those in what many call the ‘Primary cities’ of Beijing, Shanghai and Guangdong, are more affluent and thus have a higher level of long haul travel experience than those in other Chinese (“Secondary”) cities. However with the expansion of economic development in China, there are new and growing pockets of wealth across the country which will enable more Chinese people from Secondary cities to travel outbound in the years to come. Destination NSW’ China Tourism Strategy 2012-20 clearly identifies the staged approach being taken for the consumer marketing and trade development for the three primary city hubs of Beijing, Shanghai and Guangdong, and also the trade development for the ‘growth’ and ‘emerging’ city markets surrounding each of the three hubs.

With more than ten million residents each, there is intense competition from around the world to attract travellers from the Primary cities of Beijing, Shanghai and Guangdong. Australia is well placed to compete for this market given it was one of the first Western countries to be granted Approved Destination Status (ADS) by the Chinese government in 1999. Destination NSW in partnership with Tourism Australia will continue its integrated trade and consumer marketing approach to grow the market from these cities.

Both the Primary and Secondary Chinese holiday markets have a preference for group travel; though as the market matures travel preferences will evolve to a more ‘assisted independent travel’ style. The extent of how the tour is structured is determined largely by whether the visitors have been to the destination before. First time Primary city visitors prefer group travel with the option to have some free time away from the group. Repeat visitors from Primary cities have a fairly equal preference for free time away from their group tour while other repeat visitors prefer to travel independently either with a Chinese speaking tour guide throughout the journey or to travel independently without any organised components.

To download the fact sheet and learn more about this market segment, please visit the Destination NSW website.