3. China Economic Overview
2010 2011 2012 2013
Population (m) 1,341 1,347 1,354 1,361
Nominal GDP (US$ bn) 6,040 7,298 8,447 9,250
Real GDP growth (%) 10.4 9.3 7.7 7.7
GDP per head (US$ at PPP) 4,361 5,414 5,432 6,796
Household Consumption
Expenditure (%) 8.2 10.3 9.4 8.0
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Emerging market growth2013/14 average
% year
4
3
GNP Growth 2012-2013
Overview
10
g
8
7
6
5
2
1
0
9. Aspirational Long-haul Destinations for Chinese
2013 2014
63%
58%France
50%
54%
53%
50%
United States of America
Australia
42%
44%
42%
43%
37%
38%
35%
37%
32%
36%
Canada
New Zealand
Italy
United Kingdom
Germany
24%
24%
20%
22%
Brazil
Greece
Question: What country(ies) will you likely visit during your next holiday to a destination outside of
Asia? Select all that apply.
Base: China intercontinental travelers (2013 N=1,475, 2014 N=1002)
Source: Brand USA Custom Study
10. Estimated Total Long Haul Departures
United Kingdom
France
Australia
China
Canada
Germany
Japan
Russian Federation
Brazil
India
Italy
Korea, Republic Of
Spain
Switzerland
Argentina
Mexico
Sweden
Belgium
30000
25000
20000
15000
10000
5000
0
*Tourism Economics
10
11. Market Share of Long
U.S. vs. Competitors
2000-2024
Haul China Outbound Travel
30%
25%
France
United States
Russian Federation
Germany
Australia
Switzerland
Austria
Canada
United Arab Emirates
Spain
20%
15%
10%
5%
0%
11
12. USA Overseas Arrivals
6,000 United Kingdom
Japan
Brazil
China
Germany
France
Korea, Republic Of
Australia
India Italy
Colombia
Venezuela
Argentina
Spain
Netherlands
Sweden
Switzerland
Russian Federation
Chile
5,000
4,000
3,000
2,000
1,000
-
Year
Arrivals(000)
13. Chinese Visitors to the U.S.
Key Message: China has soared up the
rankings to #5 in terms of overseas
visitor number and spending in the
in 2013, and is projected to rise to
become our top overseas source
U.S.
market within 6 years.
2003
2012
2013
2014
2017
2018
Under 200,000
1.4 million
1.8 million (+22.6%) #5
#4
#3
#2
overseas
overseas
overseas
overseas
market
market
market
market
est.
est.
est.
2.18
3.66
4.31
million
million
million
(+21%)
(+18% )
(+18%)
Sources: U.S. Department of Commerce, ITA, National Travel and Tourism Office
14. Chinese Expenditure in the U.S.
Spend Per Person Per Trip: $6,000 spend per
person per trip to the U.S. makes Chinese the highest
spending visitor group per person per trip to the U.S.
Travel Spend: China’s middle and upper classes
spend 19% of their annual salaries on overseas travel
– dramatically more than any other source country
Luxury Spend: 75% of Chinese tourists purchase
more than 3 luxury items per trip
Global Force: Chinese tourists make up 25% of
global spending on luxury goods
15. China Airlift to the U.S.
China’s Gateway Cities to the U.S
Beijing
Shanghai
Guangzhou
Chengdu (June)
Wuhan (December)
Hangzhou
(April 2015)
16.
Anchorage
China Airlift to the U.S.
U.S. Gateway Cities to China
Los Angeles
San Francisco
New York
Honolulu
Seattle
Boston
Chicago
Houston
Dallas
Saipan
DetroitWashington D.C.
17. New China-U.S. Flights 2014-2015
January 2014 Beijing to Honolulu (Air China)
April 2014 Beijing to Honolulu (Hawaiian Airlines)
June 2014 Beijing to Boston (Hainan Airlines)
June 2014 Beijing to Washington (Air China)
June 2014 Shanghai to Dallas (American Airlines)
June 2014 Chengdu to San Francisco (United Airlines)
August 2014 Guangzhou to New York (China Southern)
October 2014 Shanghai to Guam (United Airlines)
December 2014 Guangzhou-Wuhan to San Francisco
(China Southern)
January 2015 Changsha to Anchorage/Los Angeles
(Charter)
April 2015 Hangzhou to Los Angeles (Hainan Airlines)
May 2015 Beijing to Dallas (American Airlines)
18. U.S. Visa Updates
Interview
2011:
Now:
Wait Times:
over 50 days
under 5 days
4-5 days France &
Australia:
Close to 90% of non-immigrant applications
from
Chinese nationals are approved
New on-line system allows Chinese applicants to:
Schedule visa interview appointments
Pay visa processing fees
Check on status of issued visas on-line rather
than person
in
Next
Goal:
the U.S.?
5-year multiple-entry visas for Chinese to
21. Key China Trends
● Rapidly Evolving Profile of Chinese Travelers
Leisure travel soaring: 63% share and rising
Package tours still key (70% share) and will dominate
for the next decade
Rapid shift from multi-destination to multi-experience
Accelerating shift from package tours to air-tel/FIT –
30% and rising thanks to visa flexibility and rapidly
growing sophistication of Chinese travellers
$1,100 spent per day when traveling
(excluding accommodation)
Implications
Beyond-the-Gateway Potential: the Chinese travel
trade are hungry for new itineraries and new tour
products
FIT/Luxury Booming: FIT/luxury travel products are
rapidly becoming established and will see the greatest
growth
over the coming decade
MICE Market: China is a huge MICE market, esp. for
mid- size and large-size incentive groups to the U.S.
22. Duration of Next Trip: 2014
1%
%
3 nights or
less
Total Likely Visit U.S. in Next Trip
10%
8%
4-‐6
nights
57%
55%
7-‐13
nights
29%
14-‐20
nights 33%
4%
4%
21+ nights
Question: How long will this holiday likely be?
Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in their
next intercontinental trip (n=539)
Source: Brand USA Custom Study
23. Months Likely to Travel
2%January 3%
4%February 5%
3% Total
Likely Visit U.S. in Next Trip
March 2%
4%April 5%
17%May 18%
15%June 17%
20%July 22%
21%August 23%
17%September 19%
29%October 29%
4%November 4%
3%December 3%
Question: In what month(s) will you likely take this holiday? Select all that apply.
Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in their
next intercontinental trip (n=539)
Source: Brand USA Custom Study
24. Booking Window for Pre-packaged Holiday/
Guided Tour Packages - 2014
1 day or less/did not reserve in
advance
2 to 6 days
1%
2%
Total
Likely Visit U.S. in Next Trip
11%
10%
27%
28%1 to 2 weeks
23%
25%
27%
3 to 4 weeks
1 to 2 months 23%
8%
8%3 to 5 months
2%
3%
0%
1%
6 to 12 months
More than 1 year
Question: How far in advance of your departure date did/will you book the travel products for this
holiday? Select one option from the drop-down box.
Base: China intercontinental travelers who booked /will likely book pre-packaged holiday or guided
tour package (N=360), China travelers who will likely visit the U.S. in their next intercontinental trip
(n=194)
Source: Brand USA Custom Study
26. Destination Selection Tools
1. Travel Agencies: travel agencies remain the dominant
destination selection tool with most Chinese travelers
still using local bricks-and-mortar travel agents and
travel agency or airline websites in making a final
destination selection
2. Online channels: including destination websites,
travel portals, social networking channels, and blogs
are soaring in importance as a destination selection
channel
Word of Mouth: ”bragging rights” are extremely
important in the China market -- being able to boast to
friends and family about having visited a given
destination and purchased given luxury goods –
increasingly on-line word of mouth is becoming key
via blogs and video sharing sites
3.
27. China Travel Trade Landscape
Total Outbound travel agencies in China: over 1,500
Top 10 travel
🔷 CITS
🔷 CYTS
🔷 CTS
🔷 TTS
🔷 U Tour
agencies:
Jinjiang Tours
Spring Intl Travel
GZL
Nanhu International
🔷
🔷
🔷
🔷
🔷
Travel
Guangdong CTS
Top MICE agencies:
🔷 CITS MICE
🔷 CTS MICE
CYTS MICE🔷
Top OTAs:
🔷 Ctrip
🔷 Qunar
Tuniu
E long
🔷
🔷
28. China Media Landscape
16 National dailies with circulations of 480,000+
Over 200Newspapers
Regional newspapers with circulations of 260,000+
50 Lifestyle, tourism and fashion magazines
Average circulation of 80,000+
CountlessMagazines
Travel Trade
Publications
11 Travel Trade magazine, circulations of 50,000+
2 Travel Trade newspaper, circulations of 150,000+
13
Major Newswires: China News Service, China News Agency, etc.
Daily Broadsheets/Newspapers: Global Times, China Daily,
Shanghai Morning Post, Southern Metropolis Daily etc.
Weekly Lifestyle Publications: Lifestyle, The Bund, The
Weekend, Let’s, Traveler Weekly, Grazia, etc.
Power Fashion Publications:
Esquire, Modern Bride etc.
Vogue, Cosmopolitan, ELLE, GQ,
Leading Consumer Travel Publications: Condé Nast Traveler,
Voyage, National Geographic Traveler, Top Travel, etc.
Video Sites: iQiyi, Phoenix, Channel Young, World Traveller etc.
Radio stations
29. dscapeChina Online and Social Media Lan
1.37 billion population
686 million internet users as of June 2014,
5% YoY growth over December 2013
1.24 billion mobile users
800 million mobile internet users as of April
2014
53% of Chinese book their hotels online or via mobile
apps
61% ask for opinions online before a purchase/
destination selection
73% go online to give their opinion on a purchase they
made
Weibo:
users
Wechat:
500+ million users with 67 million daily active
600+ million users
30. China Market Recap: Alignment of Key Factors
Size: massive market size of 1.3 billion
Potential: only 7% of this population now traveling overseas –
versus
25% for Korea
Growth: number of outbound travelers to double in next 6 years to
200 million
U.S. Market Share: only 1.5% of outbound Chinese travelers
are now traveling to the U.S.
Desire to Visit: rapid growth in aspiration to visit the U.S.
Disposable Income: Chinese incomes growing at 10-20% per year
Willingness to Spend: 19% of disposable incomes spent on
travel
RMB appreciation: making travel to the U.S. increasingly
affordable
U.S. Visa Barrier: now manageable for Chinese travel trade
Booming Airlift: new gateways and airlift to the U.S.
rapidly developing
Hungry Travel Trade: want new U.S. packages beyond the
gateways
Hungry Media: on-line and off-line media hungry to feature the U.S.
Spend: per visitor per day already leads all overseas markets
32. 2015 Brand USA China Pillars
increased investment in U.S. travel promotions
Markets throughout China
Mailman
partners
Educate Travel Trade
Nationwide
Secure the development of a wide range of new U.S.
tour product beyond the traditional U.S. gateways
Co-op with Chinese travel trade & airline partners to
secure
Extend Brand USA marketing programs into
Secondary
Target both Leisure & MICE
markets
Secure launch of new airlift/new gateways/new airline
partners
Rapidly boost earned media coverage/visibility
nationwide
Launch brand advertising
campaign
Leverage booming Online & Social Media channels
33. Brand USA China Team
Yoichi Hayase
Asia Strategy Director
Michael D. Merner
Managing-‐Director,
Asia
Mavis Zheng
Beijing Office
Director
Diana Liu
Guangzhou
Office Director
Tina Yao
Shanghai Office
Director
Jenny Guan
Travel Trade
MarkeZng
Manager
Sunday Wang
Public RelaZons
& Co-‐op
Manager
Spring Zheng
Travel Trade
MarkeZng
Director
Anita Jia
Public RelaZons
& Co-‐op
Director
34. Tapping the China Market
Send press releases, newsletters, promotions,
images & videos to Brand USA China
Translate into Chinese – at a minimum, a simple
fact sheet and a map
Host China FAM groups
Join the Brand USA Mission or have the Brand USA
China team set up a one-on-one Mission for you
Have your website translated into Chinese by
Mailman
Buy into
Buy into
and co-hosted on www.GoUSA.cn
a Brand USA China co-op
the Brand USA China Market Entry
Program for a year-round coordinated program of
PR, Travel trade, and digital programs
36. Chinese Psyche 101
Emphasis on the
Collective not individual
(harmony)
Respect for authority
Patriotism
Face (Mianzi): winning/losing/giving
Relationships (Guanxi):
keeping Guanxi
the art of building and
37. Meeting Mechanics
Seating Protocol: in China, the first person who enters the
room is the head of the group – seated directly opposite or
immediately next to will be the principal host
Handshake is soft -- sometimes bow
Have Chinese cards – don’t write on them
Surnames come first in China
Conversation Topics: avoid “western-style” jokes, politics or
religion. Good topics: Chinese food, sports, places one should
visit in China, places the counterpart has visited in the U.S.
Be ready for personal questions – how much do you earn?
Are you married?
If a Chinese person gives you a compliment, deny it
graciously -- modesty is highly valued in China
Use simple English and speak slowly and clearly
38. Meeting Mechanics
Gift-giving:
Gifts indicate that you are interested in building
a
relationship
Gifts should always be wrapped, but do not use plain
black
or white paper because these are the colors of mourning.
Beware of unlucky numbers, superstitions – consult with
us
Gifts are received but not opened unless your Chinese
host does so first
Patience: at times, Chinese can appear to be stalling before
moving to business -- they are working towards building as
great a mutual respect as possible.
39. Survival Tips
Only drink bottled water –
even
brushing teeth
Chinese point at objects with
an
open hand instead of the index
finger
Beckoning to someone is done
with
the palm facing
down -- avoid beckoning with your index finger
Learn a few words of
Chinese
Don’t try too hard to "go Chinese" – keep the
above
guidelines in mind, but just relax and be yourself!
