Attracting the asian traveller

MARKETING FOR FUTURE BUSINESS GROWTH

ATTRACTING THE ASIAN TRAVELLER

Daniel EvansChief Executive Officer

Ormita Commerce [email protected]

www.ormita.com

© Copyright 2012 – Ormita Commerce Network Limited. All Rights Reserved


THE BIG DEAL ABOUT ASIA


The Plain Facts

China: • Is the worlds fastest growing economy• Doubles in size approximately every seven years• Will be the largest economy by 2020• Is the largest country by population• Is the worlds largest lender

India: • Is the worlds forth largest economy• Will be the third largest economy by 2020• Has maintained growth over the past 20 years • Is the second largest country by population


The Future : The Worlds Largest Economies

14.9 tr 14.7 tr 9.9 tr 4.3 tr 4.0 tr 2.2 tr

European Union

U.S.AChina

Japan India

Russia

30 tr 29.6 tr 28.1 tr 13.4 tr 6.8 tr 4.3 tr

European Union

China U.S.A

India

Russia

2010GDP PPP-adjusted

Values in Trillions of USD

Source: World Bank

2020GDP PPP-adjusted

Values in Trillions of USD

Japan


Biggest Economies in 2020

Source: World Bank


China & IndiaWorlds Fastest Growing Economies

-10

-5

0

5

10

15

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Australia

Canada

China

India

Russian Federation

United Kingdom

United States

European Union

GDP GROWTH PER YEAR

Real growth rateValues expressed as a percentage

Source: World Bank


The Largest Populations in the World

0

200

400

600

800

1000

1200

1400

1600

China

India

Euro A

rea

United

State

s

Indon

esia

Brazi

l

Pakis

tan

Bangla

desh

Niger

ia

Russia

2010 POPULATION IN

MILLIONS

Source: CIA World Fact Book


ASIAN ECONOMIES ARE THE MOST RESILIENT


South AsiaThe Most Resilient Economies

-6

-4

-2

0

2

4

6

8

10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

East Asia & Pacific

European Union

Latin America & Caribbean

Middle East & North Africa

North America

South Asia

Sub-Saharan Africa

GDP GROWTH PER YEAR

Real growth rateValues expressed as a percentage

Source: World Bank


Global Lenders Vs Global Borrowers

China

Japan

Germany

Saudi Arabia

Russia

Switzerland

Netherlands

Norway

Kuwait

Singapore

South Africa

Romania

France

Turkey

Greece

Australia

Italy

United Kingdom

Spain

United States

-1,000 -800 -600 -400 -200 0 200 400 600

1

BORROWERS

LENDERS{}

Source: World Bank


ASIA HAS MORE MONEY TO SPEND


0

50

100

150

200

250

China

Source: Cia World Fact Book

Asian Travellers Have Less Debt

GOVERNMENT DEBT AS A

PERCENTAGE OF GDP


LURING THE ASIAN TRAVELLER


Motivation & Needs Chinese & Indian Travellers

Travel Motivation• Rising Incomes• Need to travel for business• Travel (especially to Europe) as a status symbol• Curiosity

Travel Needs • Safety of a destination• Ease of getting a visa• Other factors:

– Natural Scenic Beauty– Well-known landmarks– Friendly local people


Business Travellers

Official: • Travel by people employed in government or public service

upon invitation of a related organisation in the destination country

Business: • Incentive travel, visiting exhibitions and inspections or

technical visits

Purpose of Travel• Paid by company/bureau• Predominantly company of male colleagues• Convenience and time• Concentrated shopping• Appreciate flexibility and attention to time management


Private Travellers

Group: • First time visitors and travel in groups, given

the language barriers and unfamiliarity with the destinations.

• They belong to the rising middle classes.

FITs: • Has a high income and big purchasing power• More likely to speak other languages • Are experienced travellers


Who Are The Travellers ?

• Well educated (with tertiary education)• With higher income • Top management of companies and

government bureaus• Working professionals and semi-professionals• Small groups on an incentive trip • Tech-savvy and fashionable (interested in

cutting-edge gadgets and latest fashions)• 4:2:1 (3 generations – grandparents, parents

and single child)• Young (20-39 years old)


Accommodation Preference

Source: World Travel Forum

0

5

10

15

20

25

30

35

40

45

50

5 Star Hotels &Resorts

4-Star Hotel 3-Star Hotel 2-Star Hotel Others

Chinese Indians


China: Major Travel Generating Regions

Northern China (Beijing and Northeast China) – Most of the official travel is from Beijing– Beijingers are engaged in politics and love socialising– Work comes second to friends and family

Eastern China (Shanghai and the Coastal Provinces Zhejiang and Jiangsu) – Regions with a history of overseas travel, resulting in relatives abroad – Wealthiest in terms of average income – Shanghainese are trendy and internationally oriented– Very price-driven, shrewd business people who drive hard bargains

South China (Guangdong Province and Neighbouring Provinces)– Guangdong benefits from its proximity to Hong Kong as the commercial

gateway into China– Its capital city, Guangzhou, is a major trading and commercial centre– Consumer spending is the highest among China’s provinces– People in the south prefer higher standard of services to cheap prices


When Do They Travel?

• Outbound mainly for business and official travel, hence not reliant on peak seasons

• Private travel is mainly concentrated during the public holidays and school vacations– School vacations take place around Chinese New Year (4 weeks in

Jan/Feb) and in summer (July and August)

– Preferred destinations are domestic destinations and South East Asia

– October is chosen for long haul destinations

– 5 to 15 days paid holidays are available since 2008


Travel Preferences

• Short Haul to Long Haul: Significant growing interest to ‘less discovered’ European destinations; trips to S.E. Asia, Japan, Korea and Oceania still popular

• Group Tour to Independent Travel: More Chinese travellers are able to apply for individual visas (as long as they showcase sound financial and employment status)

• Multi-Country Packages to Hybrid Tours: Travellers are interested in in-depth travel rather than multi-country packages. They are keen to return to destinations enjoyed the first time.

• The Chinese ‘top priorities’ in life are keeping fit & healthy, professional development and spending time with family & friends.

• In terms of holidays, taking domestic holidays is at least ‘quite important’ for 80% and ‘extremely important’ for 9%. Foreign holidays are regarded as at least ‘quite important’ for a smaller proportion (61%) and ‘extremely important’ for 10%.


Chinese TravellersApproved Destination Status (ADS)

• Approved Destination Status (ADS) Policy is a bilateral government agreement defining the arrangement between the Chinese Government and a foreign destination whereby Chinese tourists are permitted to undertake leisure travel in groups to that destination. Business and official travel to overseas destinations are not included.

• Was first introduced in the early nineties for destinations in Southeast Asia such as Singapore, Thailand and Malaysia.

• Countries without an ADS agreement are not allowed to receive tourism groups from China or to promote their destination in China for tourism and are restricted to business and official travel groups only.

• More than135 different countries and territories have been granted ADS. The EU Member States, Switzerland, Norway, Iceland, USA, Canada, Australia and New Zealand are some of the major countries with ADS agreement.


Travel Information Sources

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Destin

atio

n Web

sites

Trave

l Agen

cies

Adverti

sing a

t Bor

ders

/ Airp

orts

Newsp

apers

/ M

agaz

ines

Trave

l Books

Recom

mend

atio

n fro

m O

ther

s

Billboar

ds & P

rom

otional

Sig

ns

TV/Rad

io

China India

Source: World Travel Forum


THANK YOU

Attracting the asian traveller

Business

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