China is becoming an increasingly important market for hoteliers and retailers – the two main groups currently benefitting from the influx of travellers
A recent survey by Visa indicated that the Chinese spend an
average of US$700 per transaction, making them the highest spending visitor group in the UAE with a total of US$225 million spent last year. Additionally, businesses such as The Dubai Mall have
partnered with leading bankcard association China UnionPay to facilitate purchases, which indicates the gravity of the Chinese market on the UAE’s retail and hospitality scene. The Chinese government’s decision in 2009 to grant the UAE
approved destination status has been credited for encouraging an influx of Chinese visitors to the emirates. Visiting dignitary for the summit, Professor Dai Bin said that even at the height of the global financial slowdown, Chinese visitors continued to travel to the UAE, demonstrating the destination’s strong appeal. The uptrend will likely remain as the UAE welcomed an estimated 140,000 Chinese travellers between January and July 2012. Mubarak Al Nuaimi of Abu Dhabi Tourism & Culture Authority
(TCA Abu Dhabi) said that the number of Chinese guests staying in Abu Dhabi hotels and hotel apartments has increased by 49 percent from 2009 to 2011, with 15,297 Chinese guests during the first six months of 2012. Both TCA Abu Dhabi and Dubai Convention Bureau have also opened offices in Beijing in order to promote the UAE’s tourism attractions. While unique attractions, world-class accommodations
and shopping prove vital in attracting Chinese visitors, i2i’s Glos explained that one of the key factors this segment also looks for is the destination’s flexibility in responding to their needs. “They are looking for destinations that are Chinese-focused – for
example, hotels that provide staff who can speak the Chinese language, as well as restaurants that offer authentic Chinese cuisine for when they have a craving for their native food. They also value the experience of shopping in stores that have Chinese attendants,” he said. Prof Bin recognised the UAE tourism bureaus’ initiative to
launch Chinese-language websites to help educate the Chinese travel market about the different destinations and what they can offer. Efforts such as making information on visa requirements, air connectivity, hotel listings, shopping and leisure attractions accessible in Mandarin prove encouraging for Chinese travellers. “Not many Chinese people can read Arabic or English, so
having information available to them in a language that they can understand will be much appreciated,” he said. Prof Bin likewise hinted at the possibility of opening a CTA representative office in the UAE.
A SLEEPING GIANT NO MORE
Home to almost 20 percent of the global population, China is a rapidly emerging market that has changed the world’s tourism landscape. The sheer number of Chinese travellers crossing international borders is hard to ignore as this phenomenon has also influenced the economic fundamentals of many destinations.
According to the United Nations World Travel Organisation (UNWTO), the Chinese outbound travel market is expected to expand to 100 million by 2020. The country is well on track to achieve this projection as, last year alone, the number of Chinese visitors who travelled abroad reached 70.25 million, a 22-percent hike from 2010. This came at a time when most advanced economies are in penny- pinching mode and ‘staycations’ have become the norm.
Economic buoyancy has undoubtedly played an important role in China’s tourism dynamics. With fiscal outlook at eight percent in 2012, Asia’s dragon economy is set to dwarf the 1.4 percent combined GDP growth rate of advanced markets, which include the US, EU, UK, Japan, and Canada.
15,297
during the first six months of 2012
Chinese guests
Analysts at market intelligence firms such as Ernst & Young and the China Market Research Group (CMRG) attribute China’s economic importance to its entrepreneurial revolution spawning a legion of new middle class. Entrepreneurship has also been vital in helping the government create jobs for the domestic population.
China’s middle class, or those with a third of their household income available for discretionary spending, has grown dramatically over the past decade. As of April this year, about 25 percent of China’s population has been identified as belonging to the middle-class segment. That translates to over 300 million people, roughly the entire population of the US.
In the coming years, their numbers are anticipated to multiply to around 700 million as the Chinese economy thrives. CMRG data indicates that annual disposable income in China has jumped by a hefty 295 percent from US$760 in 2000 to US$3,000 in 2010.
When travelling overseas, the Chinese spend to their hearts’ content, thus helping to beef up the host dest- ination’s retail and hospitality sectors. The World Travel and Tourism Council forecasts China’s outbound travel expenditure to reach over US$137 billion (CNY869.5 billion) by 2022, an almost threefold rise from the estimated US$50.41 billion spending for 2012.
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