The increasingly heated tourism market in China is not only creating enticing
business opportunities for tourism-related entities, but also leaves questions
about how to leverage resources to better serve more discerning travelers.
Travel, in China, is neither the fashion nor the luxury it was 10 or 20
years ago. It has become a part of life.
The urban population, at
whatever age, involved in whatever job, is passionate about traveling. It is not
only about time, it is not only about money - it is about enjoying life.
In recent years, tourism in China has become another eye-catching sector
in the nation's economy, also creating more jobs, with an annual growth rate in
revenues of 7 percent.
In 2006 alone, China had 129 million outbound
travelers and 1.3 billion inbound tourists that generated revenues of around
893.5 billion yuan and provided 10 million jobs.
In the next decade, the
industry's annual growth rate is expected to reach 10.4 percent. Revenues from
individual tourism is projected to enjoy an annual growth rate of 9.8 percent,
with group tourism projected to grow 10.9 percent.
In 2010, the sector
will make an even larger contribution to the nation's economy, making up 8
percent of its gross domestic product, compared to the current 5.44 percent. In
2020, China is expected to become the world's largest tourism destination and
the fourth-largest source of travelers.
However, the seemingly enticing
market will not necessarily translate into fat business figures for industry
players if they cannot appropriately seize the opportunities.
Why?
Higher requirements for the quality of products and services from Chinese
travelers is making it more difficult for the sector - including hotels, travel
agencies and scenic destination operators - to make the clients happy.
As a way to relax or reward themselves after a period of hard work,
Chinese are more frequently spending holidays or weekends at resorts or scenic
spots. They have become smarter in telling good from bad and more reasoned in
their choices.
They do not like to pay a cent for cheap, but badly
designed routes or dirty and unsafe scenic spots, yet are generous in paying for
expensive but reputable products and services.
Their buying habits have
moved far beyond hurriedly glancing at venues and then swarming to stalls to
purchase gifts to bring back home. They care whether they are psychologically
moved and pleased in relaxation.
But what about the current situation
and performance of China's tourism-related players? Absolutely far from perfect.
There are few domestic hotel chains whose operations meet international
hospitality standards, let alone compete with the international hotel chains
like Marriott, Hilton and Hyatt.
And most local scenic spot operators
prefer to reap benefits from increasing the ticket fees rather than on
reasonable management.
Tour operators' performance is the worst part of
the sector. There are hundreds of players in China, but their operations are
disordered and they are not competing at an international level.
They
will be destroying their reputation and be phased out of the game amid fierce
competition from their foreign peers if they do not make timely and appropriate
moves to make themselves a more attractive choice for consumers.
The
best way out is quite simple: branding - building up a trusted tourism brand
through offering consumers sustained and memorable traveling experiences,
creating some intangible bond and emotional attachment with consumers.
There are ways to make it happen.
An identified position in the
targeted market and a clear idea about what services and products to offer is
the most important factor.
They have to be sure of what specific niche
market they would like to serve, and focus on designing good products and
services to satisfy the specific group.
But good partnerships carry also
weight as a way to build brand reputation, as the travel experience concerns the
performance of not only hotels, but also tour operators, restaurants and others.
They have to carefully select partners to make sure that other providers
never tarnish the reputation they have taken great efforts to build. On the
other hand, the joint impact, if it were positive, would be larger than that of
the individual.
And local governments are also playing a role that
cannot be ignored in helping the tourism players do a better job.
International practises have repeatedly shown the importance of
governments. The developed markets always have a strong tourism team whose
purpose is to boost the local tourism sector through preferential policies,
fundraising and various promotional campaigns.
In China, local
governments could also provide help to tourism players - while scaling down or
removing ticket fees would be much worth practising.
(China Daily 07/18/2007 page 15)
Questions:
1. What are the predictions for China's tourism in 2020?
2. How have Chinese tourists buying habits changed?
3. What is the best way for domestic tour agencies to compete with their
foreign peers?
Answers:
1. China is
expected to become the world's largest tourism destination and the
fourth-largest source of travelers.
2. They have moved far beyond hurriedly glancing at venues and then swarming
to stalls to purchase gifts to bring back home. They care whether they are
psychologically moved and pleased in relaxation.
3. Branding - building up a trusted tourism brand through offering consumers
sustained and memorable traveling experiences, creating some intangible bond and
emotional attachment with consumers.
(英语点津 Linda 编辑)
About the broadcaster:
Suzann Riddle is a senior double majoring in Health Care
Management and Economics at Appalachian State University in Boone, NC. She finds
herself at China Daily Website after visiting many areas of China as a Holland
Fellow, Appalachian's international exchange program with Fudan University.