Food  and  wine  tourism:  Challenges,  issues  and  

opportuni6es  TRC  Symposium,  Cur/n  University,  Margaret  River  

C.  Michael  Hall  Department  of  Management,  Marke/ng  and  Entrepreneurship,  University  of  

Canterbury,  New  Zealand;  Department  of  Geography,  University  of  Oulu,  Finland;  School  of  Business  &  Economics,  Linneaus  University,  Kalmar,  Sweden;  School  of  

Tourism  and  Hospitality,  University  of  Johannesburg,  South  Africa.  michael.hall@canterbury.ac.nz  

hRp://canterbury-­‐nz.academia.edu/CMichaelHall    

‘To  the  people,  food  is  heaven’  (Hanshu,  chapter  43,  compiled  up  to  about  115  by  Ban  Biao,  Ban  Gu,  

and  Ban  Zhao)  

•  ‘A  serious  history  of  food  culture  should  offer  more  than  a  chronicle  of  epicurean  indulgence  and  should  go  beyond  examining  the  social  framework  of  nutri/on’  (Höllmann  2010)  

•  A  serious  account  of  Chinese  food  and  wine  tourism  should  also  offer  more  than  a  chronicle  of  epicurean  indulgence  and  go  beyond  promo/onal  images  and  story  telling  to  examine  the  advantages  and  disadvantages  of  the  Chinese  market  to  stakeholders  in  food  and  wine  tourism.  

 

•  The  advantages  and  disadvantages  of  food  and  wine  tourism  

•  Contextualising  Chinese  food  and  wine  culture  and  consump/on  

•  Chinese  tourism  •  Adding  value  for  whom?    •  Conclusions  

Advantages  and  disadvantages  of  wine  and  food  tourism  

•  Posi/on  in  the  food,  wine  and  tourism  system  is  cri/cal  to  how  you  see  the  value  of  wine  and  food  related  tourism  –  as  well  as  your  capacity  to  benefit  from  it.  What  business  are  you  actually  in?  

•  Issue  of  how  integrated  are  the  food,  wine,  hospitality  and  tourism  systems  –  especially  at  the  local  level,  where  most  benefits  may  accrue  

•  How  is  success  measured?  Are  both  costs  and  benefits  being  measured?  And  at  what  scale?  

Local  food  chains  in  the  context  of  food,  tourism  and  regional  development  

©  Hall,  C.M.  &  Gössling,  S.  2016,  ‘From  food  tourism  and  regional  development  to  food,  tourism  and  regional  development:  Themes  and  issues  in  contemporary  foodscapes’,  pp.3-­‐57  in  C.M.  Hall  and  S.  Gössling  (eds).  Food  Tourism  and  Regional  Development,  Abingdon:  Routledge.    

The  Advantages  of  Food  and  Wine  Tourism  for  Producers  (Depending  on  Market)  

•  Consumer  exposure  to  product  increased  •  Brand  awareness  and  loyalty  developed  •  Customer  rela/onships  created  –  see  ‘behind  the  scenes’.  Posi/ve  customer  rela/ons  may  lead  to  both  direct  sales  and  indirect  sales  through  ‘word  of  mouth’  

•  Increased  sales  margins  –  direct  sale  (where  the  absence  of  distributor  costs  are  not  carried  over  en/rely  to  the  consumer)  

•  New  market/diversify  sales  base  •  Addi/onal  sales  outlet(s)  –  especially  for  smaller  producers  who  cannot  guarantee  volume  or  constancy  of  supply    

•  Product  and  customer  marke/ng  intelligence  •  Educa/onal  opportuni/es  –  developing  the  market  

Disadvantages  in  Rela6on  to  ROI  •  Increased  costs  and  management  /me  •  Capital  required  •  Inability  to  significantly  increase  sales  or  sell  at  an  appropriate  price,  i.e.  Because  of  loca/on,  accessibility  and  expecta/ons  arising  from  other  cellar  door  experiences  in  region  

•  Opportunity  costs  •  Dealing  with  the  right  market?    •  Seasonality  issues  •  Biosecurity  risks    Source:  Hall  et  al.  2000;  Hall  1996,  2012  

Advantages  and  Disadvantages  for  Local  Tourism  Businesses  

•  Spillover  effects    –  customers  as  well  as  knowledge    –  very  significant  for  restaurants,  cafés,  lodging,  arts  and  crans  

•  ARrac/on/Ac/vity/Stop  within  an  area/i/nerary  (for  tour  groups  also  a  poten/al  toilet  stop)  

•  Poten/al  to  extend  length  of  stay/stop  as  well  as  return  visit  •  Genera/on  of  des/na/on  awareness  and  des/na/on  recall  •  Seasonality  issues  •  Possible  disadvantage  in  some  cases  because  of  market  mix    

Market  boLom  line  •  While  everyone  must  eat  and  drink  not  everyone  is  a  food  or  

wine  tourist  •  The  commi9ed  gastronomic  tourist  is  a  very  small  market  

segment  (no  maRer  what  country  they  are  from)  •  Time  and  economic  budget  issues  –  cri<cal  in  terms  of  

accessibility  and  rural  loca<on  (independent  vs  package)  •  There  are  a  larger  number  of  visitors  interested  in  trying  new  

foods  and  wines  •  But  because  everyone  must  eat  this  raise  significant  issues  as  

to  what  is  provided  and  available  (and  from  a  regional  economic  development  perspec/ve  to  what  extent  is  the  selling  of  food  to  tourists  linked  to  local  food  suppliers?)    

•  Even  if  tourists  will  only  eat  the  familiar  it  s/ll  creates  opportunity  for  local  food  linkages  and  connec/ons.  And  this  is  one  of  the  most  impor/ng  things  to  understand  with  respect  to  wine,  food  and  tourism  linkages  from  a  regional  perspec/ve.  

Contribu6on  to  a  region/des6na6on  ü Associa/on  with  a  quality  product  can  build  inferred  brand  

ü Can  help  differen/ate  local  products  ü An  aRrac/on  that  may  help  extend  length  of  stay  and  increase  visitor  expenditure  on  local  product;  and  contribute  to  exports  

-­‐  Regional  brand  values  of  food  (including  wine,  spirits)  can  be  very  good  for  des/na/on  and  regional  promo/on  (BUT  you  need  to  be  sure  of  how  it  fits  with  overall  economic  strategy)  AND  you  need  to  make  sure  that  the  pieces  of  the  brand  fit  together  

-­‐  A  possible/some/me  nega/ve  is  that  focusing  on  food  and  tourism  connec/ons  may  mean  other  opportuni/es  are  not  explored  or  the  market’s  percep/on  of  a  region  is  not  properly  understood.  

Brand  architecture  of  wine  place  brands  

The  difficult  issue  of  inferred  brands  

©  Hall,  C.M.  &  Baird,  T.  2014,  Brand  New  Zealand  wine:  Architecture,  posi/oning  and  vulnerability  in  the  global  marketplace,  pp.  105-­‐119  in  Social,  Cultural  and  Economic  Impacts  of  Wine  in  New  Zealand,  ed.  P.  Howland.  Routledge,  London.    

©  Hall,  C.M.  &  Baird,  T.  2014,  Brand  New  Zealand  wine:  Architecture,  posi/oning  and  vulnerability  in  the  global  marketplace,  pp.  105-­‐119  in  Social,  Cultural  and  Economic  Impacts  of  Wine  in  New  Zealand,  ed.  P.  Howland.  Routledge,  London.    

Contextualising  Chinese  food  and  wine  culture  and  consump6on  I  

•  The  problem  of  generalisa/on  (and  geographic  market  segmenta/on)  

•  The  Land  of  the  Five  Flavours:  For  around  the  past  2,000  years  the  five  flavours  (sour,  biRer,  sweet,  pungent  and  salty)  have  been  regarded  as  a  general  framework  for  Chinese  cuisine  (wood,  fire,  earth,  metal,  water)  

•  Or  Eight?:  Sichuan,  Hunan,  Guangdong,  Shandong,  Jiangsu,  Anhui,  Fujian,  and  Zhejiang  

•  Shanghai  (east  –  sour),  Canton  (south  –  sweet),  Sichuan  (west  –  spicy),  and  Beijing  (north  –  salty)  

Contextualising  Chinese  food  and  wine  culture  and  consump6on  II  

•  Alcohol  has  a  long  (and  glorious)  history  in  Chinese  cuisine  and  culture  –  but  not  wine  

•  Associated  with  the  elite  •  Probably  first  recorded  in  the  Middle  Kingdom  in  223  during  the  Wei  Dynasty  (edict  from  Emperor  Wen  extolling  its  virtues),  although  men/on  from  126BC  when  General  Zhang  Qian  returned  from  a  diploma/c  mission  

•  Tang  Dynasty  •  Modern  China  –  early-­‐mid  19th  century  on  

Contextualising  Chinese  food  and  wine  culture  and  consump6on  III  

•  The  social  context  of  alcohol  consump/on  is  extremely  important  –  Tradi/onal  fes/vals  and  holidays  – Happiness  drink  at  weddings  the  sadness  drink  at  funerals  –  The  forging  of  social  and  business  bonds  (drinking  games)  – A  shared  meal  is  “the  visible  manifesta/on  of  the  harmony  which  should  exist  between  family  and  friends”  

•  Gin  giving  •  Con/nuity  and  change  in  Chinese  food  culture  

Contextualising  Chinese  food  and  wine  culture  and  consump6on  IV  

•  Interna/onalisa/on  and  globalisa/on  •  Trade    •  Growth  of  the  Chinese  diaspora    •  From  China  to  Chinatown  (and  back)  •  Internal  migra/on  •  Student  mobility  •  Cosmopolitanism  •  The  accrual  of  cultural  capital  and  the  gaining  of  cultural  dis/nc/on:    –  ‘the  capacity  to  behave  properly  and  knowledgeably  in  public,  to  exercise  discrimina/ng  taste  when  selec/ng  places  to  go  out  and  eat,  and  to  facilitate  conversa/on  about  and  evalua/on  of  culinary  maRers’  

Contemporary  Chinese  wine  market  •  China  becomes  biggest  market  for  red  wine,  with  1.86bn  boRles  sold  in  2013    

•  More  a  maRer  of  cultural  sensibili/es  than  taste/quality    –  The  colour  red  is  considered  lucky  in  China  and  is  also  affiliated  with  the  Communist  government,  while  white  is  associated  with  death  and  is  predominantly  seen  at  funerals.  

•  Rela/vely  low  value  •  Low  wine  involvement  •  Growth  in  pres/ge  purchases  as  well  •  Increased  trade  access  for  Australian  wine  

Chinese  Tourism  •  HSBC  (2014)  research  of  affluent  Chinese  has  found  Australia  to  be  their  third  most  likely  travel  des/na/on,  behind  only  France  and  the  USA  

•  Greater  diversity  in  market  over  /me  •  However…  everybody  wants  in!    – Similar  approaches  both  within  Australia  and  interna/onally  

– Food  and  wine  a  common  element  in  posi/oning  for  the  Chinese  market  

 

Chinese  Visitors  &  Canadian  Ice  Wine  •  Chinese  tourists  prefer  high  end  wine  products:  It  is  the  #1  export  des/na/on  of  Canadian  Icewine,  valued  at  $6.7M  in  2014  

•  According  to  the  Canadian  Tourism  Commission  (2015),  Icewine  is  one  of  the  top  3  gins  that  Chinese  visitors  bring  home  from  Canada  

CHINESE  VISITORS  TO  INNISKILLIN,  ONTARIO  •  10%  of  all  winery  visitors  are  from  mainland  China  •  90%  purchase  Icewine  following  a  winery  tour  •  Average  winery  purchase  is  $500  per  group  of  2-­‐10  people  •  Most  likely  to  make  purchases  in  the  $1  000  -­‐  $3  000  range,  than  any  other  visitor  segments  

Adding  Value  for  Who?  •  Consumer  exposure  to  product  increased?  Yes  •  Brand  awareness  and  loyalty  developed  Which  brand?  Loyalty  unknown  

•  Customer  rela/onships  created  Are  the  structures  in  place  to  create  long-­‐term  customer  rela/onships?  Probably  not?  

•  Increased  sales  margins  direct  sales  are  occurring  •  New  market/diversify  sales  base  Only  for  some  wineries  •  Addi/onal  sales  outlet(s)  –  especially  for  smaller  producers  who  cannot  guarantee  volume  or  constancy  of  supply.  Chinese  market  probably  not  suitable  

•  Product  and  customer  marke/ng  intelligence  Poor  intelligence  gathering  

•  Educa/onal  opportuni/es  Yes,  but  can  interest  be  converted?  

Is  Chinese  Wine  Tourism  Fad  or  Fashion?  •  Fads:  refer  to  sudden  changes  that  onen  spread  quickly  and  fade  away  rapidly;  appear  to  be  random  and  impossible  to  predict;  fads  are  not  a  mark  of  cultural  capital  –  Is  it  just  a  marke/ng/research  fad?  

•  fashion  and  innova/on  –  Both  fashions  and  innova/ons  refer  to  change,  and  they  replace  or  complement  something  that  already  exists  with  something  new.  However,  compared  with  fashion,  innova/on  alters  social  prac/ces  in  a  deeper  way  and  has  longer-­‐las/ng  effects.  

–  change  in  fashion  does  not  necessarily  imply  improvement,  whereas  it  does  for  innova/on.  

Conclusions  •  Becoming  a  social  prac/ce  takes  /me  and  a  range  of  ins/tu/ons  and  systems  need  to  be  in  place  

•  To  what  extent  is  awareness  of  Chinese  wine  tourism  a  func/on  of  the  tour  market/ADS?  

•  Unless  you  have  dense  networks  of  actors  at  the  local  and  regional  level  you  are  not  maximising  the  benefits  of  wine  and  food  tourism.    

•  These  dense  networks  must  also  be  extended  transna/onally  in  order  to  gain  the  benefits  of  interna/onal  tourism  visita/on  –  do  you  sell  your  wine  in  the  countries  where  the  tourist  comes  from?    

•  Can  you  put  to  much  emphasis  on  high  status  wine  at  the  expense  of  other  dimensions  of  the  des/na/on/regional  offer?  

Conclusions  •  There  are  major  research  issues  to  be  dealt  with  •  Most  research  does  not  deal  with  regionalism  in  Chinese  food  culture  

•  Inadequate  research  undertaken  with  respect  to  social  context  of  wine  consump/on  and  purchase  

•  More  research  required  in  terms  of  lifestyle  and  social  prac/ces  

•  Time  budget/accessibility  issues  •  With  respect  to  knowledge  transfer  there  is  a  real  need  to  bear  in  mind  the  big  picture