MarketScan China 2016 The Hague, August 2016 NBTC Holland Marketing NBTC Holland Marketing (NBTC) NBTC is responsible for branding and marketing the Netherlands nationally and internationally. Using the 'Holland' brand, NBTC puts the country on the map as an attractive destination for holidays, business meetings and conventions. We carry out marketing activities in 13 markets, under the name of NBTC Netherlands Board of Tourism & Conventions. In cooperation with public and private partners, we attract visitors who spend money in Holland. We cultivate countries and regions that supply the most visitors to the Netherlands. Based on this philosophy, NBTC is active in Europe, North America, Asia and South America (Brazil). NBTC in China is focusing mainly in the regions around Hangzhou, Chengdu, Xiamen, Beijing en Sjanghai. MarketScan China 2016 Inside knowledge of the Chinese travel market is essential in order to gain access to this market. The MarketScan China 2016 offers relevant information about this country and its travel market to organisations in the travel industry and others. In this MarketScan, you will find a brief overview of the travel market as well as an insight into trends and developments. This MarketScan was put together by NBTC Research in cooperation with NBTC China. 2 Contents MarketScan • China in a nutshell • Chinese travel market • Outbound travel market • Internet and travel • Incoming tourism to Holland • Holland as a vacation spot • Image of the Dutch people • Trends and developments • Destination Holland: SWOT • Holland Marketing in China • References • Contact 3 6 7 11 13 18 19 20 21 22 23 24 China in a nutshell (1) Population (2005 – 2014) x million 1400 Population The total population of China consists of around 1.37 billion (est. july 2015). Around 31% of the population is aged 24 and under, 48% is aged 25-54 and 21% is aged 55 years and over. China has a multicultural diversity with major religions such as Buddhism (18%) and Christianity (5%). 1380 (Source: National Bureau of Statistics China 2016, The World Factbook 2016) 1280 Economy China is a major player in the world economy. In 2015 the Chinese economy grew with almost 7%, which is a lot higher than the world average (1.9% in 2015). China takes the second position of countries with the highest GDP, after USA. In 2016 and 2017 the Chinese economy is expected to grow with respectively 6.5% and 6.2%. Still higher in comparison to the world economic growth, but lower growth rates compared to the previous years in China. Whether China’s economy will keep on developing successful depends on the implementation of necessary policies and reforms. In November 2015, the Chinese government announced a 15-years plan. They widening the credit possibilities for examples, which seems to have a positive influence on the Chinese economy. (Source: IMF 2016) 1360 1340 1320 1,308 1,315 1,321 1,341 1,347 1,361 1,368 1300 1260 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: National bureau of statistics China 2016 Economic growth based on GDP, growth change in % from the previous period China 2013 2014 2015 2016 2017 7.7 7.3 6.9 6.5 6.2 Source: IMF 2016 Exchange rate euro- Yuan (2013-2016) € 1 = 7.38 CNY (8 august 2016) Exchange rate In 2014 the exchange rate of the Chinese Yuan decreased from almost 8.5 CNY to 6.6 CNY in 2015. In this period Europe became less expensive for the Chinese. From 2015 onwards, the exchange rate increased to almost 7.4 in 2016. This makes Europe a little bit more expensive to travel to. (Source: currency-converter.net) Source: Currency-converter.net 3 1,328 1,335 1,354 China in a nutshell (2) Unemployment According to the Chinese government, the unemployment rate of China is 4%. Quite stable over the last couple of years. A lot of economics think that the real unemployment is more than twice as high in reality, especially because of the economic developments in the past. The difference might have to do with the registration procedure. (Source: National Bureau of Statistics China 2016, NBER 2016) Chinese areas The Chinese areas (cities) can be categorized into the following four tiers by level of economic development. - Tier 1 areas (cities) - Population >30 million per area, with large middle class representation, income levels high above national average. Beijing, Baohai Sea area Shanghai, Yangzi River delta area Guangzhou, Pearl River delta area - Tier 2 areas (cities) - Population >5 million per city 31 Capital cities of all divisions of Administrative Areas, such as Hangzhou (Zhejiang province) and Chengdu (Sichuan province) and Wuhan (Hubei province) - Tier 3 areas (cities) - Population 2-5 million per city Over 50 important cities within the provinces, such as Ningbo and Wenzhou (Zhejiang province) - Tier 4 areas (cities) – Population < 1 million per city Please note that there is no official definition of the four Tier areas. 4 China in a nutshell (3) Chinese trade The business behavior of the Chinese trade is very different from their counterparts in Western Europe and therefore the Chinese trade needs a different approach. Very important concepts in the Chinese culture: 1. Guanxi, relationships between people. When doing business with the Chinese, relationships come first. Getting to know the person means to establish mutual confidence and trust. This process often takes some time, therefore patience is needed. Business can move with the move of a person. When a key person moves to a different company, the business often follows him or her as Guanxi will not end immediately. Face to face talk is recommended, for long term relationship building. 2. MianZi, face. Losing face, saving face and giving face is very important and should be taken into consideration at all times. 3. Keqi, considerate, polite and well mannered. Proper etiquette is very important, as are humbleness and modesty. • Try to use an established relationship or intermediary known by both sides, to make the first contact. • Showing interest in working together rather than only selling a product. • Inviting your business partner for dinner is a good way to establish a close relationship. • Taking a business gift is a good idea, especially with a first meeting and on festive occasions (a lot of Lunar calendar festivals are also used as moments for developing and building relationships). 5 • Political subjects and subjects as Tibet or civil rights are not much appreciated when talking to government people and state owned companies. In other business relations it is also advised to avoid these subjects. Chinese travel market Chinese travel market China is one of the fastest growing outbound travel markets in the world. In 2015, the number of outbound trips (120 million) increased with 12% compared to 2014. The China national tourism administration forecast 200 million trips in 2020. (Source: CNTA 2016) The Chinese traveler is relatively inexperienced. Air travel and travelling overseas is a new experience for many Chinese travelers. (Source: Phocuswright 2016) In 2015, Chinese made approximately 4 million trips in their own country. The number of domestic trips ahs increased compared to 2014, when approximately 3.6 billion trips were undertaken. (Source: CNTA 2016) The Chinese economy is growing rapidly. A lot of this growth has been realized by exports and investments. The government is seeking ways to create sustainable economic growth for the future. Domestic tourism is one of the opportunities for the country. The Chinese government wrote a plan which aims to double domestic spending on tourism by 2020, by giving the sector (financial) support. (Source: www.gov.cn, 2014) 6 Collective holidays There are two ‘Golden Weeks’ which offer the Chinese opportunities for travel: Spring Festival (Chinese New Year, late January or February, according to the lunar calendar) National Day (first week in October) Chinese travel peak seasons The Golden Weeks: around Spring Festival many families come together for a reunion, friends and couples more often travel during the first week in October. The summer holiday: the holiday period around the school holidays, a preferred travel period for families with children. The so called ‘Silver hair generation’ travels all year round, but mainly in spring, summer and autumn. Chinese outbound trips keeps growing The number of outbound trips continues to grow in 2015. Compared to 2014, the number of outbound trips increased with 12% in 2015. Again a record in number of outbound travels. Economic growth and the increasing openness of China to other countries contribute a lot to this growth. (Source: CNTA 2016) Hong Kong and Macau most popular destinations Hong Kong and Macao are especially among Chinese who travel for the first time abroad. These destinations rank high due to proximity, affordability and lack of language barriers. (Source: CNTA 2016) Travel motivators for independent travelers Two thirds of the 120 million outbound trips in 2015 (80 million trips), were made by independent travelers. (Source: CNTA, 2016) For around 54% of the independent travelers, natural and/or cultural attractions are important motivators to go on a trip. Desire to get away (53%) and learn about life in other parts of the world (42%) are also important factors. Shopping is the fourth important motivation for 40% of the travelers. (Source: PhoCusWright, 2016) 7 x million Outbound travel market (1) 160 140 120 100 80 60 40 20 0 Development outbound travel (2008 – 2015) 46 48 2008 2009 56 2010 (Source: CNTA, 2016) 70 2011 83 2012 98 2013 (+12%) 107 2014 120 2015 Outbound travel market (2) France, Italy, Germany and the UK are the most desired destinations within Europe The main competitors for Europe outside of Asia are the United States of America (takes in place 6) and Australia (15th most popular outbound destination). Russia, the United Kingdom, Italy, France and Germany are the European counties that are all in the top 25 of the most visited outbound destinations. (Source: China National Tourism Administration, 2014) France (16%), Germany (8%), Italy (6%) and the United Kingdom (6%) are the most popular European destinations when it comes to planning a trip in 2016. (Source: Global, Globe Shopper Report: China Edition, April 2016) Spending on travel China is the world leading country with the highest spending on tourism. In 2015, Chinese spend more than 292 billion dollar on tourism. USA and Germany take in the second and third position with a spending of respectively 113 and 78 billion dollars. Chinese package travelers spend on average more on their trips than individual travelers. The average spending on trips (according to survey Phocuswright) was $ 2.808 per trip. Travelers from bigger cities and with a higher income spend more on travel. Travelers to Europe spend more in comparison to other outbound destinations (for example USA). (Source: Phocuswright, 2016) China biggest globe shopper nation worldwide 33% of the amount spent by globe shopper nations is spent by Chinese. Services which most Chinese are looking for when shopping abroad are tax free shopping and the ability to pay with China Union Pay or the Yuan. According to the survey of Phocuswright, 22% of the total amount spend on holidays abroad is due to shopping. (Source: Global Blue Analytics 2016, Phocuswright 2016) 8 Top five services that retailers should offer to attract Chinese Globe Shoppers 1. Tax Free Shopping (65%) 2. Ability to pay with China Union Pay (55%) 3. Ability to pay in my home currency (46%) 4. Staff who speak my language (39%) 5. Wi-Fi in-store (26%) Outbound travel market (3) Outbound travel differs per city type Tier 1 cities lead the development of outbound travel. Inhabitants from these cities first started travelling abroad and will continue to set the trend on this topic. Although tier 2, 3 and 4 cities are growing extremely fast due to urbanization, the inhabitant still travel through the tier 1 cities, as tier 1 cities are the main hubs for international air connections. Furthermore, the larger tour operators with a regional, but also (inter)national distribution network are located in the tier 1 cities. Especially in Beijing. Outbound tourism from tier 2 cities is being stimulated by growing direct airline connections, which are expending from tier 1 to tier 2 cities. The main source of the forecast growth in travel demand will be the young, affluent middle class that is. This group is more ambitious than their parents are and pamper themselves more. They want to pursue their passions and go after meaningful, adventurous and exciting experiences. They are highly involved in sharing experiences on social media platform.₄ Besides that, the older ‘working-age empty-nesters’ is an interesting segment for outbound travel. Their children have left home and are economically independent. Price-conscious regarding transport, food and beverage, value for money¹ Predominantly through the 3 major cities, but second-tier cities are coming up¹ Big spenders on shopping¹ ¹ ² ³ ₄ 9 Source: Source: Source: Source: Mostly middle to high income and high education² Young: 72% are aged 25-44 years² Only 25% travels alone, others mainly in family groups or with friends² Safety is always a significant concern for Chinese travellers³ UNWTO & ETC, 2012, The Chinese outbound travel market Phocuswright: China unbounded 2016 CLSA, Chinese outbound tourism remains on track to reach 200 million by 2020, 19 January 2016 GFK, January 2016 The experienced travelers, more-over coming from the Tier 1 cities, go increasingly to new destinations and look more often for experience and lifestyle confirmation and new kicks instead of sightseeing. (Source: China Outbound Tourism Research Insitute, 2015) The independent travelers are almost always the more experienced travelers. First time travelers are both young and old, but almost always travel in a group. Older travelers often use package tours. (Source: Skift, 2014) Outbound travel market (4) People can travel in groups or as individuals to Holland for leisure purposes. Both have different visa procedures: If they travel in groups, they can join an ADS group. In that case the tour operator will arrange visa application for the ADS visa while the traveler prepares the necessary documents. Random interview will take place. However, as of the introduction of the biometric information collection, everybody needs to submit their fingerprints at the destination country’s consulate or visa centre. If they travel as an individual traveller they need to apply for a visa by presenting themselves at the Embassy/ Consulate for an interview. For people living in cities where there are no visa facilities, this is often very time and money consuming. More information (in Dutch) on the subject VISA can be found here. Latest developments A biometric information collection was introduced in 2015. Schengen visa applicants need to submit fingerprints at the destination country’s consulates or visa centres instead of arranging it via e-mail or through travel agents. This meant that people could only apply for a visa for Holland in Chongqing, Guangzhou, Peking and Shanghai. For people living in the city where there is no visa service, this means additional costs and time. However, new arrangements with the European Union enable countries to add new visa centres throughout China. In additions to the current four locations, Holland will open 11 more visa centres this year. All in areas where many Dutch companies are active, starting with Chengdu, Shenzhen, Hangzhou and Fuzhou before the summer. Later this year other cities will follow: Nanjing, Jinan, Shenyang, Changsha, Kunming, Wuhan and Xian. By the end of 2016, there will be total 15 VISA application centers. Approved Destination Status (ADS) regulations With ADS, destinations may receive Chinese travelers as part of a leisure group (not business). Travel and visa must be organized through CNTA approved travel agents. The ADS agreement with the EU, and thus with Holland, came into effect in September 2004. There are now about 140 countries with ADS, although only around 86 have actually started operating group tours under ADS rules, with Holland being one of them. Schengen countries (dark blue) 10 Internet and travel (1) Internet usage: growing fast About 680 million people in China were using the internet in January 2016. This accounts for half of the total population. The number of internet users grew with 8% compared to 2015. Although the penetration level is small compared to many other countries in the world, China has by far the largest internet population in numbers. (Sources: wearesocial.com 2016, CNNIC 2016) Mobile internet usage growing rapidly as well The number of active mobile internet users in China reached the 620 million in December 2015. This is about 45% of the total population. The percentage of internetusers that use mobile internet increased from 86% to 90% in 2015. Approximately 72% of the Internet users is living in urban areas. Internet usage is highest in economically more developed coastal areas; Beijing (77%), Shanghai (73%) and Guangdong (72%) are leading the top. (Sources: China Internet Network Information Center (CNNIC), 2016) Social media popular There are almost 653 million social media users in China. Almost 577 million are actively using social media on their mobile. This number increased with almost 14% in comparison to 2014. China controls the information on Internet (censorship) by blocking information/websites from outside China and censoring information within. Facebook and Twitter are banned in China but Chinese alternatives for these social media giants are extremely popular. The most popular social network sites are WeChat (Weixin), QZone and Sina Weibo. (Sources: wearesocial.com, 2016) Social media in China is developing in the direction of own culture and customer demand. Many functionalities from foreign social media have been quickly developed for Chinese social media and are getting popular within the country. One of the most important features of Chinese social media is the ability to intergrade several popular functions together and interaction between apps. (Netherlands Board of Tourism and Conventions China, 2016) 11 Chinese Internet users by age group (2015) <19 years 24% 20-29 years 30% 30-39 years 40-49 years 50+ years 24% 13% 9% (Source: China Internet Network Information Center, 2016) Internet and travel (2) Fastest growing ecommerce The ecommerce in China counts for $630 billion in 2015. This is about 13% of total retail. China is the fasted growing ecommerce country. Also the expenditure on digital travel is growing. The digital travel sales in 2015 increased with 28% to $66 billion dollar. Digital travel sales are set to rise to $131 billion in 2019. (Sources: eMarketer 2015, McKinsey 2016) Online travel market The most used information sources for independent travelers when selecting their destination are Internet websites via computer (76%), websites or applications via smartphone (50%) and personal recommendations from friends/family (50%). Chinese who shop online for travel purposes mostly use OTA’s (66%). Also general search engines are widely used (43%). Ctrip is leading in domestic tourism and close by markets. Tuniu.com, Tongcheng.com, Lvmama.com, Qunar.com are very strong rivals of Ctrip. For trips to Europe, there is no dominant OTA. In the recent two years, AliTrip has grown very quickly as an ecommerce platform in terms of transaction volume. On this platform, tour operators/agents can close sales transactions. Top 5 type of websites used for shopping travel products Top 5 media used for destination search by independent travelers 1. Online travel booking websites/apps (66%) 1. Internet websites via computer (76%) 2. General search engines (43%) 2. Websites or applications via smartphone (50%) 3. Online mall (37%) 3. Personal recommendations from friends/family (50%) 4. Travel guide websites/apps (32%) 4. Personal advice from friends/family (35%) 5. Social networking websites/apps (30%) 5. Printed travel guidebooks (22%) (Sources: Phocuswright, 2016) 12 Incoming tourism to Holland (1) Travel motive The main purpose for a trip to Holland is for business travel (55%). Of all Chinese that visited Holland in 2015, 41% had a holiday motive. Four percent had another reason. Chinese travelers to Holland In 2015 there were 330,000 Chinese overnight visitors in Holland. This is an increase of 32% compared to the year before. (Source: CBS, 2016) Travel motive Development of inbound tourism from China (incl. Hong Kong) Other 4% (x 1,000) 600 540 Leisure 41% 500 404 400 354 330 314 300 261 249 212 200 123 210 209 130 147 126 196 217 249 157 100 (Source: NBTC Statistics Incoming Tourism, 2014) 0 2007 2008 2009 2010 guests (Source: CBS, 2016) * Change in research design 13 Business 55% 2011 2012* 2013 nights 2014 2015 Incoming tourism to Holland (2) Spending Chinese visitors in Holland (2015) Per person per day: € 328.(Average all incoming tourists: € 213.-) Per person per stay: € 1,256.(Average all incoming tourists: € 724,-) Total spending Chinese residents: 414 million (Source: NBTC Statistics Incoming Tourism, 2014) Length of stay On average, Chinese visitors stay 5.1 nights in Holland. (Source: NBTC Statistics Incoming Tourism, 2014) Spread visits Chinese visit Holland moreover during spring (April-June) and summer (July-September). Amsterdam main destination During their stay in Holland, many Chinese stay in Amsterdam, 139,000 in 2015. This is 42% of all Chinese visitors. 22% 15% (Source: CBS, 2015) jan-mrt 32% 32% Chinese overnight guests in Dutch cities (2015) apr-jun jul-sep okt-dec (Source: CBS, 2015) Amsterdam 139,000 guests Utrecht The Hague 6,000 guests 9,000 guests 15,000 guests Rotterdam 4 star hotels most popular The majority of Chinese travelers stayed in a hotel during their Holland trip, in total 98% in 2015. 3 and 4 star hotels hosted most Chinese travelers (respectively 24% and 55% of all Chinese travelers in Holland). (Source: CBS, 2015) Maastricht 2,000 guests 14 Incoming tourism to Holland (3) Flight capacity from China to Holland increased The flight capacity with China is increased with 10% compared to 2014 The number of seats was approx. 620,000 on 2,155 flights in 2015. 65 direct flights per week from China to Amsterdam Many daily flights are being operated. KLM, China Southern Airlines, China Eastern Airlines, Cathay Pacific Airways and Xiamen Airlines are the airlines that connect China with the Netherlands. Seats (x 1,000) 1000 Departures 2.449 2.237 2.175 1.933 2.090 800 608 631 651 588 600 560 1.500 1.000 200 500 0 0 2012 2013 2014 Beijing: 14 Chengdu: 4 Shanghai: 17 Hangzhou: 3 Xiamen: 6 Guangzhou: 7 15 620 400 Note: The figures provide insight in the capacity of seats and flights, not in the occupation. Numbers include stopping flights. (Source: Amsterdam Airport Schiphol, flight schedule August 2016) 2.500 2.000 2010 2011 (Source: RDC Apex, 2016) Amsterdam Schiphol 2.155 Hong Kong: 14 2015 Incoming tourism to Holland (5) Shopping most popular activity Of all Chinese visitors, 62% went shopping during their stay in Holland. This activity was for 11% of all visitors their most important activity during the Holland visit. 57% of the Chinese visitors noted walking as an activity and this was for 12% the main acitivity. Also walking through a town/city is a popular activity: done by 43% and the number one main activity with 14%. Other activities are visiting a museum (48%) and a visit to the Red Light District in Amsterdam (42%), although these activities are seldom the most important activity during the Holland trip. Top 5 undertaken activities of Chinese in Holland 2014 Top 5 most important activity of Chinese in Holland 2014 1. (Fun)shopping (62%) 1. Walk through a town/city (14%) 2 Walking (57%) 2. Walking (12%) 3. Visit museum (48%) 3. (Fun)shopping (11%) 4. Walk through a town/city (43%) 4. Visit bar/café (8%) 5. Visit the Red Light District (de Wallen) in Amsterdam (42%) 5. Visit notable places/places of interest (7%) (Source: NBTC Statistics Incoming Tourism, 2014) Intention to visit Holland again probably not; 6% maybe; 16% Over three quarters has the intention to visit Holland again in the future Over half (55%) of the Chinese visitors to Holland stated that they have the intention to return for another visit in the future. In addition to that said 23% that they probably will come back to Holland. 16% answered that they maybe will visit Holland again and 6% will probably not return. (Source: NBTC Statistics Incoming Tourism, 2014) definitely; 55% probably; 23% (Source: NBTC Statistics Incoming Tourism, 2014) 16 Incoming tourism to Holland (4) Future perspective Destination Holland 2025 Following an earlier future perspective in 2008, NBTC Holland Marketing has published an updated outlook for the future for the destination Holland. Stakeholders from within and outside the industry have contributed even more to this update than to the previous edition, through round-table discussions, via the Internet and social media. The Future Perspective Destination Holland 2025, available as a digital magazine on www.nbtc.nl/2025 (in Dutch), indicates the market perspective with respect to international visitors and their spend towards 2025. Over 16.6 million international visitors in 2020, of which approx. 495,000 from China Development incoming tourism from China With the exception of a few slumps, the number of inbound tourists to Holland continued to increase over the last decades. In 2015 over 15 million tourists from abroad visited our country for a holiday or for business. Inbound tourism will continue to grow in the coming years, with an expected average growth of 2% annually until 2018. After 2018 this growth will level off to an average annual growth of 1%. The growth percentages are much higher for China: 15% in the first period (2012-2018) and 9% in the second period (2018-2025). Resulting in 495,000 inbound visitors from China in 2020. For more information on the future of this market, please check out the digital magazine on our website and the report Tourism in perspective available on nbtc.nl. (Source: NBTC, 2016) 17 Source: CBS, forecast NBTC Holland as a vacation spot Many Chinese associate Holland with the icons which the country is famous for Chinese are quite positive in general. Both visitors and non-visitors associate Holland strongly with mainly tulips, windmills and clogs. Relatively few non-visitors associate Holland with good price/quality ratio in hospitality and lots of (window) shopping possibilities. Visitors are the least positive about the costs; many of them consider Holland expensive and the score on ‘good price/quality ratio in hospitality’ is relatively low. short breaks lots of (window) 100% shopping possibilities 90% offers a lot to be active\sporty 80% offers a lot in terms of nature (reserves) high quality culinary range good price/quality ratio in hospitality hospitable country family-friendly 70% 60% expensive 50% 40% well accessible 30% 20% China visitors 10% China non-visitors surprising destination 0% mainly tulips, windmills and clogs easy going many things in close proximity offers a lot in terms of architecture and design offers a lot in terms of art and culture (Source: NBTC Holland image study, 2012) 18 good service good quality variety, diversity more to offer than A'dam For more information on this image study, visit www.nbtc.nl for the summary and infographic Image of the Dutch people Tolerant and friendly Again, this figure shows that the Chinese people are positive about the Dutch population in general. The Dutch are described as a tolerant, sporty, friendly and welcoming people. What is interesting to see, is that the Chinese experience people from Holland not completely reliable. sporty reliable 90% 80% enterprising 70% pragmatic/result-oriented 60% innovative 50% China visitors 40% China non-visitors 30% internationally-oriented open 20% 10% 0% businesslike tolerant arrogant ingenious/inventive hospitable/welcoming (Source: NBTC Holland image study, 2012) 19 helpful friendly For more information on this image study, visit www.nbtc.nl for the summary and infographic. Trends and developments Travellers' needs will change when the market becomes more mature: Guided tours remain popular, although group sizes are getting smaller more and more Chinese prefer individual travel Growing demand for fully independent tours (FIT) and Semi-independent Travel (flight ticket and accommodation are booked through travel agencies while the destination is explored on their own) The traveling population is getting younger. This results in a growing demand for group and FIT travel. Shopping is popular among the young generation. Same length of travel but visiting less countries (more in-depth tours) Special interest groups With holiday travelling accessible to larger groups of people, price consciousness will grow Chinese people are looking for more adventurous, unique and exotic destinations, due to the influence of social media (such as WeChat) Tourism Marketing Agency in China sees the Chinese travelers concern more and more about safety Changing focus travel trade The focus of travel trade changes from product driven to demand driven. More diversity of products are seen. Group tours are more popular among tier 2-4 cities and areas, low budget visitors and relatively older generations. The young generation prefers to seek for fully independent tours (FIT). Online travel agents/tour operators as well as online platforms are growing quite fast and are taking shares from offline operators. Theme tours Large tour operators are putting more effort in developing tours in which the Chinese traveller only visits 2 or 3 countries at once. Furthermore, they are developing theme tours, such as summer camp tours for children, musical tours, art tours and shopping tours. Chinese travelers choosing this type of tours, expect to be closer to the local history, culture and customs. (China Outbound Tourism Yearbook 2012, Ivy Alliance Tourism Consulting & China Association of Travel Services) Other trade developments Tour operators acquisitions is very popular, several giant companies are growing. Online bookings are getting more and more integrated with content providers. More and more tour operators are going online and on social media. More and more travel agencies are specializing and focusing on a specific area of business. The business travel segment is being discovered by larger travel agencies, many of them are setting up MICE companies, ventures. Tour operators developing new products prefer joint promotions with tourism organizations (such as NBTC) to get strong support and back up. 20 Destination Holland: SWOT Strenghts 21 Weaknesses • Positive image of Holland and the Dutch population • Safe and relatively clean • Dutch icons (tulips, etc.) are well known • Dutch flower season is unique • European/Dutch culture and history • Easily accessible, many direct flights (Schiphol), starting point for Europe • Compact: short distances between cities/touristic sites, short travel time • Biometric information collection (new system for VISA application) • High hotel rate • Shopping possibilities in Holland compared to competitors • Lack of knowledge of Chinese language and culture (tour guides) and their needs/demands • Low price/quality service in hospitality (image) Opportunities Threats • Popularity of Europe still growing, market at an early stage, influencing consumers easier than in mature market • Growing consumer interest in visiting less countries during their European tour • Future demand for longer stays in single destinations • Low competition in Tulip season • Outbound travel market of China is growing rapidly • Popularity of social media offers extensive communication platform. • Competition of other continents (low cost market in Asia is booming) • Limited investments by Dutch travel trade in China; may result in low interest to promote Holland for local trade, knowledge level of Holland will be low • Terrorist attacks in Europe Holland Marketing in China Dutch masters Reasons to travel: Holland Passions DISTRICTS • City • Traditional Dutch Amsterdam STORYLINES __Dutch food & cuisine __Van Gogh __Flowers __Water Dutch heritage Flowers Water Cycling EVENTS & MEETINGS * Business meetings * 2018 Leeuwarden Cultural Capital 22 New Dutch References Amsterdam Schiphol Airport, 2016 (www.schiphol.nl) CBS, 2015. Statline (www.cbs.nl) CIA World Factbook, 2016 (www.cia.gov) China Internet Network Information Center, 2015. Statistical Report on Internet Development in China China Outbound Tourism Research Insitute, 2015 (http://www.china-outbound.com) CNTA 2016 (www.cnta.gov.cn) CLSA, Chinese outbound tourism remains on track to reach 200 million by 2020, 19 January 2016 Currency-converter.net eMarketer, 2015. Digital travel sales are booming in China and across Asia-Pacific. UNWTO & ETC, 2012, The Chinese outbound travel market GFK, Chinese tourists spend 229 billion USD in 2015, January 2016 Global Blue Analytics, 2016 Global, Globe Shopper Report: China Edition, April 2016 IMF, 2016 McKinsey, Consumer China report 2016. National Bureau of Statistics China 2016 (http://www.stats.gov.cn/english/) National Bureau of economic research (NBER) 2016. NBTC Holland image study 2012 NBTC Statistics Incoming Tourism (SIT) 2014 PhoCusWright, April 2016. China Unbouded: the rapid Rise of China’s Outbound millions RDC Apex (www.rdcapex.com) Tourism Marketing Agency in China, 2016 UNWTO, 2016. World’s top tourism spenders Wearesocial 2016 (www.wearesocial.com) 23 Contact Added value NBTC NBTC can offer your organisation tailor-made advice, for instance: - Local network: trade and press - Local market opportunities, cultural expertise - Advice on marketing, communication - Co-marketing opportunity Contact NBTC For further details on the Chinese market and Holland-marketing activities in China, please contact: Netherlands Board of Tourism and Conventions Rm 1603, Building 3, China Overseas Plaza No.8 Guanghua Dongli, Chaoyang District Beijing 100020, China T: 0086 10 59772565 E: [email protected] 24 Contact at NBTC China Mr. Eddie Yang Country manager China T: +86 10 597 72 565 E: [email protected]
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