Director Asia at Vinci Airports

1. 1
Mr. Emmanuel Menanteau
Director Asia at Vinci Airports

2. CHINA,
THE RED
DRAGON
Risk & opportunities for Asia

3. 1
A GLOBAL TOURISM STORY

4. 4
150 million outbound trips in 2018 | CAGR 2008-18: +14.0%
Major Destinations with China As First or Second Source Market in 2018
The Largest Tourism Market
Source: COTRI Spring 2019 Report
Destination Rank in 2018 Destination Rank in 2018
Antartic 2 New Zealand 2
Australia 1 Philippines 2
Cambodia 1 Singapore 1
Canada 2 S. Korea 1
Hong Kong SAR 1 Sri Lanka 2
Indonesia 2 Taiwan 1
Japan 1 Thailand 1
Macau 1 Vietnam 1
Maldives 1 N. Korea 1
Nepal 2 Russia 1

5. 5
Has an ever growing travel lust
China’s outbound tourists nearly tripled in last 10 years.
On average visited 2.1 countries per person in 2017, expected to grow to 2.7 in 2018
200 million outbound trips forecasted by 2020
Top 10 Destinations 2018
The Chinese Traveler . . .
Sources: CNTA, Nielson, 2017 Outbound Chinese Tourism & Consumption Trends; COTRI Spring 2019 Report
Rank Country No. of Chinese Arrivals
(in Mpax)
1 Hong Kong SAR 51.0
2 Macau 25.3
3 Thailand 10.5
4 Japan 8.4
5 Vietnam 5.0
6 S. Korea 4.8
7 Singapore 3.4
8 Malaysia 2.9
9 USA 2.8
10 Taiwan 2.7
. . . 14 Cambodia 2.1 … Cambodia was unplaced in Top 15 in 2017; a sign of the rapid Chinese growth in the country

6. 6
Is an experience-seeker
Prioritizes the overall experience of the journey over the cost of trip
Craves more sophisticated experience beyond shopping
The Chinese Traveler . . .
The Chinese traveler
Beauty & uniqueness of tourist attractions 56%
Safety 47%
Ease of visa procedures 45%
Friendliness of locals to tourists 35%
Affordability 34%
Top 5 factors to consider when choosing an overseas destination
The Non-Chinese traveler
Beauty & uniqueness of tourist attractions 57%
Affordability 50%
Safety 45%
Vacation time constraints 36%
Alignment with my schedule 31%
Top 5 reasons to travel
Leisure
78%
Enjoying
food
55%
Shopping
47%
Romantic
getaway
30%
Adventure
12%
Source: CNTA, Nielson, 2017 Outbound Chinese Tourism & Consumption Trends

7. 7
Is increasingly confident and self-reliant
Women travelers (59%) now outnumber male travelers (42%), reversing the trend in only 2 years.
Free-and-independent tours are growing in popularity, especially among the young
The Chinese Traveler . . .
Source: McKinsey, Chinese Tourists: Dispelling the myths

8. 8
Is affluent
An average overseas travel annual budget in 2017: USD 5,565... vs GDP per capita of USD 8,762
Average on-location spend: USD3,064, varying widely across regional vs longhaul destinations
... In other words, Chinese travel into Cambodia was approximately a 2BUSD economy in 20171
The Chinese Traveler . . .
1. Assumptions:
a. Chinese arrivals in Cambodia (2017): 1.21M, according to MOT
b. On-location spend in Cambodia is 80% that of Thailand.

9. 9
Is a digital native
97% of Chinese travellers will use their smart devices overseas
65% will make mobile payments while overseas, compared to 11% of non-Chinese travelers
Mobile penetration is on a firm upward trend.
The Chinese Traveler . . .
1. Leisure and unmanaged business travel players only, excluding corporate travel players. Source: McKinsey, Chinese Tourists: Dispelling the myths

10. 2 CAMBODIA
THE ENGINE OF GROWTH IN A
DEVELOPING MARKET

11. 11
Chinese Arrivals vs. Total Arrivals – Cambodia Airports 2016-2018
Exponential Growth in Chinese Travelers
1. Leisure and unmanaged business travel players only, excluding corporate travel players. Source: McKinsey, Chinese Tourists: Dispelling the myths
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000
2016
2017
2018 41%
27%
25%
YTD 2019
—
862,397 pax.
46% of TOTAL PAX.
41% 62%OF TOTAL PAX.
IN 2018
AAGR
2016-2018
99
Cambodia-
China city-
pairs in 2018 Vs 26 city-pairs in 2016…
67%of Total DF
Revenue

12. 3 JAPAN
STILL A DOMINANT PLAYER IN A
DIVERSIFIED MARKET

13. 13
Kansai welcomes the biggest Chinese flow in Japan, growing fastest among main airports in Japan
Kansai as gateway to Japan for Chinese Tourists
KIX
33%
NRT
26%
HND
17%
NGO
9%
FUK
3%
OKA
4%
CTS
4%
Others
4%
Share of Chinese visitors to Japan (2018) Changes of Chinese visitors (2018 vs 2017)
0 100 200 300 400 500
KIX
NRT
HND
NGO
FUK
OKA
CTS
Others
2017 2018
+27%
+20%
+22%
+8%
KIX
+22%
+3%
+29%
+7%
Pax
+54%
Seat
+26%
2018 VS 2015
Capacity increases continues to be absorbed by market demand

14. 14
・KMG
・URC
・INC
・YAT
・HKA
Kansai-China connectivity
33 Chinese destinations from KIX, 453 flights/week, largest Chinese network in Japan
・TYN

15. 15
The Chinese customer: Share of spend vs Share of traffic
18%
16%
18%
21%
58% 57%
65%
73%
FY2015 FY2016 FY2017 FY2018
Evolution of China share of traffic Evolution of China share of spend in duty free
6.59
6.17
8.66
9.30
1.00 0.90 0.99 0.98
FY2015 FY2016 FY2017 FY2018
Spend per Pax
Duty Free - Index 100 for "others FY2015"
Chinese Others
Dominance of the Chinese spend continues to grow

16. 4 THE CHINESE
GROWTH STORY:
OPPORTUNITIES &
RISKS

17. 17
Chinese Passports 2019
Rising middle class
54% of household to advance to upper middle class by 20221
The Chinese boom: Tip of the iceberg
120M
citizens with
passport in 2018
240M
in 2020
of the Chinese population
holds passport
Source: Jingtravel.com
9%
China is flexing its muscle to benefit
visa exemption, visa on arrival or e-visa
74 countries visa free, more to follow…
Source: Henley Passport Index
VISA-FREE ACCESS
74
Destinations
67th in 2019
GLOBAL RANK
World Aviation Market Share
China to overtake US as world’s largest aviation market by 20243
1,300 million passengers (International & domestic) forecasted by 20354
LCC Penetration in China
Still relatively low at 9% today2 vs 41% in S. Korea, for e.g. More market stimulation is to be expected.
Sources: 1. McKinsey & Company | 2. OAG | 3. IATA

18. 18
30% drop in Chinese tourists
in the months following the
attacks
Source: France 24
2015: Chinese tourists
decrease after Paris
terrorist attacks
The Chinese boom: As volatile as it is swift
Chinese tourists are sensitive to world events and political issues with other countries
More than 60% drop in
Chinese tourists
(Mar-Oct 2017 vs. Mar-Oct 2016)
Source: qz.com
2017: China boycotts
South Korea Tourism
Industry
Thai Ministry of Tourism and
Sports revised its forecast
for the number of Chinese
arrivals by nearly 670,000
Source: South China Morning Post
2018: 47 Chinese die
in a boat accident in
Phuket
Quick apology was done by
the Thai PM as the incident
could provoke a slowdown in
visitors from China
Source: Nikkei Asian Review
2018: Chinese visitor
slapped by airport guard

19. 19
ARRIVAL NATIONALITIES 2018
Sihanoukville
An enclave of predominantly Chinese investment today
210,000 Chinese nationals
are living in Cambodia in 2018
1/3 of the Chinese nationals living in
Cambodia stay in Preah Sihanouk Province
according to gov’t
Source: The Asean Post
Casinos Hotels and resortsCondos
Hotels, Casinos, Restaurants are developed at a fast pace to cater
to the continuously growing number of Chinese visitors
CHINESE TOURISTS INCREASING BY 72%
(Q32017/Q32018)
87%of Total arrival
passengers