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January 28, 2007: Professor Pu and his family with the Petronas Twin Tower as backdrop.
by Pu Yongchuan
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Spring Festival drawing near, Pro-fessor Pu and his wife, both newly retired and full-up with free time, decide to let their now grown kids do their own thing while they head out for the holiday. After considering their options, the couple settle on Southeast Asia, in recent years an increasingly popular destination for Chinese leisure travelers. “We were impressed by the fact that so many tourists from all parts of the world visit China, so we decided it was about time we were the ‘foreigners,’” says Pu.
Let’s Fly
Still a month to go before Spring Festi-val, Prof. Pu was surprised to learn that most flights bound for popular Southeast Asia destinations were already booked. Finally the couple signed on to a tour group with a small travel agency. “I never expected that arranging travel would be such a challenge,” he said.
“Outbound travel packages started strong this year, and the Southeast Asia routes were particularly sought-after,” said Li Yan, director of the Tourism Department of China Youth Travel Service (CYTS). This year the official start of Spring Festival fell on February 18, and as early as mid-January nearly all CYTS long-distance outbound packages were booked. Many other major travel agencies were not far behind in selling out.
Of the Spring Festival outbound tours provided by travel agencies, Southeast Asia destinations account for nearly half. In Chengdu, capital of SichuanProvince, to satisfy the strong demand of travel agencies, during Spring Festival Air China Southwest Airlines offered chartered flights only to popular Southeast Asian destinations. Those included four flights to Bangkok, five flights to Phuket, two flights to Kuala Lumpur, and two flights to Penang.
A survey of Chinese outbound tourists revealed that the popularity of Southeast Asia hotspots is predictably due primarily to mild winter temperatures, relatively short travel time, attractive landscapes, diverse cultures and inexpensive prices. After a downturn following the 2004 tsunami, the tourist industry in Southeast Asia is well into a rebound. According to a forecast offered by Dr. Chen Guangyan, senior economist of China Representative Office of World Bank, by 2010 the number of Chinese tourists visiting Singapore and Thailand each year will approach 2.9 million and 3 million, respec-tively, and the number visiting Malaysia will top 4.5 million.
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Chinese tourists on a flight bound to Phuket from Bangkok. CFP
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RMB Has Got to Be
“Recently, as the exchange rate of the RMB to the US dollar topped 7.7, it seems that our wallets are a bit fatter and go further when shopping in foreign countries, and this is another reason we will travel beyond China,” says Pu. Largely due to the appreciation of the RMB, the number of outbound Chinese travelers soared last Spring Festival. The Guangdong CITS (China International Travel Service) reveals that during Spring Festival 2006, the number of travelers signing up with the company for tours to Hong Kong and Macao increased by 60 percent, and the number of foreign-bound travelers increased by 30 percent.
For outbound travelers, the appreciation of the RMB means less expense getting to and staying at destinations, and more yield for the yuan when shopping. Compared to the recent past, today it is more cost-effective for consumers to shop in Southeast Asia. For instance, on average a foreign outlay equaling $10,000 will cost 4,000 yuan less than prior to July 2005.
Today Chinese visiting Southeast Asia can freely convert their RMB to local currency, or swipe their bank card through China Union Pay (CUP) to purchase goods and services. By going the card route, tourists are freed from the hassle and risk of carrying large sums of cash, and the expense is actually less than if they pay in cash. In Singapore, for example, at the time of this writing the exchange rate for an RMB cash payment was 1:5.18, while that for a bank card payment was 1:5.024.
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January 19, 2007: Prospective tourists for Spring Festival outbound tours crowd the passport window of the Administrative Service Center of Hefei, capital of Anhui Province. IC
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Multicultural Marketing
Southeast Asian countries have long been favored by the Chinese as travel desti-nations. According to the National Bureau of Statistics, 60 percent of outbound Chinese tourists chose Southeast Asian countries.
In welcoming increasing numbers of Chinese travelers, most Southeast Asian nations have implemented specialized promotional plans. Joseph Ace Durano, secretary of the Philippine Department of Tourism, said that at the end of 2004 the Philippine Department of Tourism designated China as a prime target for marketing efforts, refocused its development strategy, and carried out a series of promotional campaigns to attract Chinese tourists. Travel agencies in the Philippines have formulated distinctive itineraries to cater to Chinese tourists, and as part of the larger effort a Chinese language program was launched to train up workers at tourist sites, hotels, and restaurants. Durano is optimistic in his forecast for expanding the Chinese segment. He says that in 2008 the Philippines can expect about 500,000 Chinese tourists, and following Thailand and Malay-sia, the nation views China as its largest prospective market.
At the beginning of this year, the Malaysian government launched “Visit Malaysia Year 2007.” Early in May 2006 Malaysia’s Deputy Tourism Minister Datuk Donald Lim Siang Chai headed up a delegation to China to promote “Visit Malaysia Year 2007.” To bolster operations in advance, all major airports in Malaysia added public address announcements in Chinese, nearly 100 Chinese-speaking immigration officers have been especially engaged to assist Chinese tourists, more non-stop flights and chartered flights within the country will be offered and, most significantly, the Malaysian government extended the term for Chinese tourist visas from 14 to 30 days in 2007. Malaysia’s Ministry of Tourism formally began an online visa application service, which facilitates formalities and warrants processing within two business days. Those who meet certain requirements are allowed to apply for multiple entries within a six-month period.
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Malaysian dancers perform during a tourism promotional event at Huaihailu Commercial Street, Shanghai. CFP |
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Chinese tourists catch a ride with Thai elephants in Nong Nooch Tropical Garden, near Pattaya, south of Bangkok. IC |
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