Lecture #4Demand of Outbound Travel: Lecture #4 Demand of Outbound Travel Lecture Objectives: understand leisure as a concept and a life style in China examine increasing demand of China’s outbound leisure travel discuss implications such demand for Hong Kong and the international community Useful References Xiao, H. (2003). Leisure in China. In Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 263-276. New York: The Haworth Hospitality Press Wu, B. and Cai, L. (2006). Spatial modeling: Suburban leisure in Shanghai. Annals of Tourism Research 33 (1): 179-198 Zhang Qiu, H., Jenkins, C. & Qu, H. (2003). Mainland Chinese outbound travel to Hong Kong and its implications. In Lew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 277-296. New York: The Haworth Hospitality Press


Understand leisure as a concept and a life style in China: Understand leisure as a concept and a life style in China


Conceptualize Leisure: Conceptualize Leisure What is leisure? time (discretionary time) expenditure (disposable income) a state of mind: freedom of being different antithesis


Major academic enquires about leisure:: Major academic enquires about leisure: Leisure participation and social stratification Hi-income earners : legitimate forms of leisure Low-income earners : popular forms of leisure Where does tourism belong?


Today, this overall picture of the relation between social structure and the cultural composition of the leisure field has become more complex, largely due to the rise of the new middle class in size and politico-cultural significance:: Today, this overall picture of the relation between social structure and the cultural composition of the leisure field has become more complex, largely due to the rise of the new middle class in size and politico-cultural significance: Educated – college or above Professional – white collar? Middle to high range of income Diversified family backgrounds etc.


As a result……: As a result…… The leisure field has become more open with all kinds of national public cultural monopolies being side tracked by different kinds of global cultural flows and changes, of which….. ….TOURISM IS ONE


Evolution of leisure as a life style in China (1)please read your textbook (Chapter #14): Evolution of leisure as a life style in China (1) please read your textbook (Chapter #14) Leisure before 1979, give your thoughts to: How leisure in China was shaped by these factors: discretionary income discretionary time quality and availability of public leisure facilities urban & rural differences in leisure provision/participation => leisure behavior patterns


Evolution of leisure as a life style in China (2)please read your textbook (Chapter #14): Evolution of leisure as a life style in China (2) please read your textbook (Chapter #14) Leisure since 1979, give your thoughts to: How leisure life in China has been shaped by these factors: Public policy (especially the economic) improved global-local nexus in the 1990’s international relations exposure to new information and technology foreign trade increase Transformation of public policy (social) =>  Direct effect on leisure provision & management


Slide9: 1. Diversification of income & increase of disposable income State Council Pay Raise Act 2. New system of labor and employment competition and work pressure need for leisure 3. Trade union’s role in 1990s Public welfare extended to wider section of community Sources increase for leisure activities China’s outbound travel as one of the direct effects


Examine increasing demand of China’s outbound leisure travel: Examine increasing demand of China’s outbound leisure travel


Slide11: BACKGROUND China will be the 4th biggest world outbound tourist-generating country by 2020 (WTO, 1997) World’s Top 10 Tourist-Generating Countries in 2020


Slide12: Major social, economic & political factors for the demand Economic growth Increasingly open-oriented public policy Relaxation of travel rules Seven day free visa Single currency system 5 day working policy CEPA arrangement


Slide13: The engine of growth Rapid growth of the economy : GDP growth from 93-99 = 7-13% highest among major nations After WTO accession, growth momentum maintained and in fact, accelerated!!! GDP growth in 2002 = 8% 2003 = 9.3% 2004 = 9.5% Income increase lifted living standard greatly With economic expansion, came the inexorable rise of the new middle class


Slide14: The classic ripple effect: Domestic Tourism Outbound Intra-Asia Travel to HK, Thailand, Malaysia & Philippines Inter-continental travel Outbound Travel by Chinese Residents


Where they like to go?: Where they like to go? Major destinations : Hong Kong Macau Thailand Malaysia The Philippines Japan Russia USA Singapore Australasia.


VISA, can’t leave home without it!: VISA, can’t leave home without it! The ability to travel outside China depends on not only adequate income but… Official permission for both exit and entry as well


Slide17: More and more foreign countries are granting visas to Chinese tourists reflecting China’s growing economic stature and the increasing affluence of her nationals


Where are outbound travelers from?: Where are outbound travelers from? 3 top sources: Guangdong Shanghai and adjacent provinces like Zhejiang and Jiangsu Beijing and its coastal neighbouring regions


The favorite destinations:: The favorite destinations: Thailand Singapore Malaysia Main reasons Large number of ethnic Chinese Moderate level of economic development Devaluation of currencies


Group Discussion:Implications of China’s outbound travel demand for Hong Kong & the world: Group Discussion: Implications of China’s outbound travel demand for Hong Kong & the world


The implications for Hong Kong: The implications for Hong Kong China is already the largest tourism market within the Asia Pacific regions The launch of the individual travel scheme only cements further China’s position as Hong Kong’s top tourism market Reconsider Hong Kong’s focal appeal: “City of life” and Asia’s leisure capital? Asia’s World City as a strategy for global marketing?


Slide22: Will Disneyland be our savior?


Slide23: Are we developing appropriate marketing and planning strategies?


Slide25: What else？？？？ Activity-based development to sustain the tourism industry only?


Implication for the World: Implication for the World China’s large population base gives her the NUMERICAL potential to become a huge source of international outbound tourism


What should the rest of the world do?: What should the rest of the world do? The needs and preferences of Chinese travelers should be better studied and known Care should be taken to meet their needs and supply services in a way appealing to their preferences and tastes


More actions to be taken?: More actions to be taken? Market research to sort out market segments Variable factors for segmentation: Motivation Behavior Geographic origins Gender Age Education Income Development of special travel packages Identification of destinations with features appealing to Chinese tourists More provision for the use of the Chinese language as English is not widely used among Chinese people


How to cope with the tourists froma ‘false modern society’?: How to cope with the tourists from a ‘false modern society’? 法国旅游业者称中国游客最难伺候 http://www.sina.com.cn 2006年12月27日01:35 北京晨报: 两节将至又到出境游高峰，各方讲述部分国人不文明举止，法国旅游界人士说——　临近元旦和春节，国人出游的热情再次高涨，欢乐旅游的同时，游客的不文明行为也将再次增多。日前，记者采访了国内旅行社、国外旅游业工作人员以及中国留学生，发现尽管国家旅游局发布了《中国公民出国(境)旅游文明行为指南》和《中国公民国内旅游文明行为公约》，但部分中国游客在旅游时仍然“不拘小节”，令人尴尬。 http://news.sina.com.cn/c/2006-12-27/013511891746.shtml