The document discusses Chinese outbound tourism, providing information on current demand, the evolution of Chinese tourism, and opportunities for Spain. Some key points: - China is now the number 1 source market for outbound tourism in Asia, spending over $48 billion in 2010. - Chinese outbound trips and spending have grown significantly since 2000 and are expected to continue rising quickly. - Chinese tourists are becoming more sophisticated and are traveling for prestige, soft power projection, and to learn wealthy behaviors. - Spain has opportunities but must understand Chinese tourists have a decade of experience and are segmented between mass and upper-end markets. Customization and Chinese-language services are important.

1. Prof. Dr. Wolfgang Georg Arlt COTRI China Outbound Tourism Research Institute, Heide / Beijing El turismo chino: deseos, evolución y potencialidades Chinese Outbound Tourism - demand, evolution and potentials of a growing market in a Post-Western world Sevilla June 3, 2011

6. 2010: 48 billion US$

7. 2010: 57 Millions Outbound trips China again No. 1 source market in Asia even if not counting trips to Hong Kong / Macao Outbound expenditure higher than income from Inbound-Tourism

8. 2000: Global market share 1.5% 2010: Global market share 5.8% (est.) 2000: One out of 67 international travelers from China 2010: One out of 17 international travelers from China

9. Share of Chinese outbound travels during three quinquenniums 1995-2009 (Source: CNTA / COTRI, no reliable data available before 1995) More than 60% of all trips with the five years 2005-2009 Most Chinese are still first-time international traveller

10. CNTA China National Tourism Administration Prediction for 2015 (Source: CNTA May 2010) : 100 million Chinese Outbound travelers spending 100 billion US$ outside Mainland China  Global Tourism Outbound Source Market No. 1 in 201x :

12. Chinese outbound travelers will continue to populate the main tourism destinations but they have increasingly higher expectations of being treated according to their preferences . www.patastore.com

14. “ All the ripping down of the old and throwing up of the new across China today cannot be explained as a matter of economic necessity alone. It is too frantic to be considered so simply. The visible Chinese project is, among much else, a signifier of an almost compulsive psychological urge to self-reinvent – to make ‘being Chinese’ mean something new.” (Patrick Smith: Somebody Else’s Century, 2010:23)

16. Some commentators compare China today with Japan 1989, some with Japan 1937. Patrick Smith likens China today – mentally, not economically – to Meiji Japan in the 1880s, trying to modernize while inventing a fake past as an identity anchor. What does that mean for tourism? 8 m high Confucius statue in front of Chinese Museum of History, Tiananmen Square, Beijing, unveiled in January 2011, removed again in April 2011

23. The Chinese tourism market is segmenting: Mass market: Still “Race to the bottom” Low price – bad quality package tours Upper end: “New tourists” Sophisticated customers looking for sophisticated offers – but still being Chinese travelers.

24. Every country, destination and tourism service provider has to work it’s way through the “Acculturation Curve” (after Hofstede 1994) Euphoria Ignorance Adaptation Despair Most major European players have arrived at the “Adaptation” end in Chinese inbound tourism. Spain as a late starter is getting closer to the “Euphoria” point.

25. The late start provides a chance for Spain to avoid the mistakes suffered by early movers in the field. However, to be able to learn it is necessary to understand that not the Chinese outbound tourism has just now started, but that it has only now got into the focus of many stakeholders in Spain. The Chinese outbound travelers are already since a decade in the middle of a process of learning, sophistication and segmentation.

28. It is necessary to provide adequate training for service providers and to use adequate communication channels: The message Chinese guests are is much more convincing when spoken in Chinese by the receptionist, museum guide etc. and the products are customized according to the Chinese criteria of quality.

29. Spain is such a wonderful country not only for Europeans – let us share it with the rest of the world, including China!

30. Thank you for your attention! Contact: arlt@china-outbound.com www.china-outbound.com www.chinatraveltrends.com