China Market Webinar

Te Puia, Rotorua
China Market Webinar
Chinese FIT expectations when visiting New Zealand
Tourism New Zealand Insights Team
Bryce Kelliher
Lucy Alborn
Senior Tourism Data Insights Analyst
Senior Consumer Insights Ana
bryce.kelliher@tnz.govt.nz ucy.alborn@tnz.govt.nz
Background & Purpose
•
•
•
The following insights have been
sourced from a range of industry
research projects and tourism
data
Purpose is to provide the New
Zealand tourism industry with an
overview of the latest research
findings to help improve knowledge
what Chinese FIT visitors are
wanting when they visit New
Zealand on holiday, and how best
to meet their needs and to
improve our offer
The intent is to help our domestic
operators make the most of the
increasing numbers of Chinese visitor
arrivals, and in particular FIT visitors
Strong arrival growth with more to come
China Arrivals Total and Holiday, and Forecasts
TOTAL
571
500
Arrivals
400
265
300
305
200
195
100
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
forecasts
116% total arrivals growth forecast from 2014 to 2021, 11.6%
growth of any other major market
Contributing one third of total arrivals growth from 2014 2021
2015 arrivals = 302k – on track to exceed 305k in 2015
China is the market that will provide the best growth opportunity over the
next several years –be ready to capitalise
Source: Statistics New Zealand International and Migration March 2015; MBIE 2015-2021 Tourism Forecasts
Middle Class Growth
Share of Urban Households %
3
9
14
Income Definitions
54
54
Income
Renminbi
Affluent
Upper Middle Class
Affluent
> 229,000
Mass Middle Class
22
Poor
29
16
2012
Upper Middle
Class
Mass Middle
Class
106,000 – 229,000
– 106,000
2022
Underpinning arrival growth is a growing middle class with a desire to travel
A growing middle class has already emerged, what we will see is a shift to
majority of urban China households moving into an Upper Middle Class
underpinning future consumption including travel
Source: McKinsey; Mapping Chinas Middle Class June 2013 Dominic Barton, Yougang Chen, Amy Jin
China delivering volume and value
China Visitor Expenditure
YEDec 2013
China Visitor Average
Expenditure
YEDec 2014
YEDec 2013
1200
YEDec 2014
1037
5000
1000
4178
4092
772
694
505
4000
400
2000
200
1000
Total Visitor
3178
3060
3000
Holiday Visitor
Total Visitor
Holiday Visitor
Electronic Card Spend Index
Rolling 12 Month Average – Indexed
to 2008
400
350
300
250
200
150
100
50
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Dec-08
Mar-09
334
Source: MBIE International Visitor Survey Dec 2014, Regional Tourism Indicators April 2015
China holiday visitor expenditure
up 52%
RTI Growth up 49% YoY for YE
April 2015
Group vs FIT
China Travel Style – YE Mar 14
2%
4%
Tour Group (ADS)
5%
China Travel Style – YE Mar 15
4% 2% 4%
Tour Group (ADS)
Delegations)
Group (Other)
Delegations)
Group (Other)
13%
Independent Holiday
51%
20%
Business &
Conference
Education
13%
47%
Business &
Conference
Education
27%
Other
Other
2%
3%
Independent
Holiday
1%
2%
Independent Holiday / FIT steadily growing as a proportion of total
arrivals
Source: Statistics New Zealand International and Migration March 2015, Immigration NZ, Tourism New Zealand China Development Unit
Increase in longer stay holidays
Holiday Arrivals (000) Changing Length of
Stay – YE March
1 Day - 4 Days
5 Days - 7 Days
8 Days - 11 Days
12 Days - 14 Days
15 Days - 28 Days
Over 4 Weeks - 12 Months
20
17
33
34
3
13
110
1Day-4 Days
5Days-7 Days
8 Days-11Days
12 Days-14 Days
15Days-28 Days
4 W eeks-12 M onths
Mix of Holidays
2008 2012
2015
81%
72%
50%
10%
12%
16%
4%
8%
15%
1%
3%
8%
2%
4%
9%
2%
2%
3%
64
2008
•
•
•
•
2012
2015
Half (110k) of holiday arrivals still stay for only 1 4 days, although this is
changing
1 4 day holiday grew 8% in the past year, 5 7 day arrivals grew 31%, 8
11 days grew 50%
82% of those who stay 1 4 days arrive via Australia vs. 17% arrive
direct from China / Hong Kong
Average LOS via AU is 4.5 days, Average LOS via CN/HK = 12.5 days
Source:
Zealand International
and Migration
March 2015
• Statistics
MoreNew
arrivals,
staying
longer,
seeing
more of the country, doing more
With longer stays expect greater regional
spread
Regions visited China Holiday Visitor by LOS
LOS 1-4
LOS 5+
Auckland
64.2%
22.1%
Bay of Plenty
Canterbury
32.8%
West Coast
Wellington
Southland
Waikato
Northland
Manawatu-…
Marlborough
Hawke's Bay
Tasman
Nelson
Taranaki
Gisborne
61.4%
18.6%
Otago
47.8%
47.1%
22.5%
2.8%
21.5%
5.6%
4.0%
20.3%
13.5%
5.2%
3.7%
5.8%
1.4%
5.3%
1.7%
5.1%
1.2%
4.6%
0.3%
2.5%
0.2%
2.1%
0.2%
0.1%
Those who stay 5+ days are more likely to venture past the
traditional destinations
With arrival growth and a greater mix of longer stay, FIT travellers;
regions should expect to see more Chinese visitors in the regions,
perhaps with growth exceeding the total arrival growth rate
Source: MBIE International Visitor Survey December 2014
Potential Regional Reach
Year
Total China Holiday Arrivals
% 5+ stay Days
Region X Share of 1 4 Days
Region X Share of 5+ Days
Region X Share of 1 4 Days
Region X Share of 5+ Days
Total Region X
Additional Holiday Arrivals
Holiday Arrival Growth vs. 2014
2014
195,000
50%
2021 f
420,000
50%
2021 f
420,000
55%
2021 f
420,000
2.00%
2.00%
2.00%
2.00%
4,200
12,600
4,620
13,860
5,040
15,120
16,800
18,480
20,160
10,680
137%
12,360
158%
1,950
5,850
115%
Potential holiday arrivals based on three scenarios – significant
increase regardless of scenario
If % who stay 5+ days increases only marginally will increase visitors for
smaller regions significantly
New Zealand # 1 for Satisfaction
China Outbound Visitor
Satisfaction
72%
New Zealand
Italy
74%
82%
80.4%
Singapore
France
Japan
Spain
Thailand
Russia
Indonesia
Australia
Malaysia
Germany
Canada
South Korea
South Africa
Brazil
Phillipines
Argentina
Mongolia
India
Vietnam
Cambodia
Compared to other outbound markets New Zealand delivers a high
satisfaction rating among Chinese
Source: China Tourism Academy – Tourist
China Holiday Likelihood to Recommend
Canada
UK 82
France 86
Germany
China 69
Korea 75
Strongest NPS
scores in
Western
Markets with
Australia, USA,
UK, and
France all with
NPS scores of 80+
Japan
58
USA 85
Source: Visitor Experience Monitor – YE Dec 2014
Singapore
65
SEA Pen
65
Australia
81
Lake Gunn, Fiordland
Chinese Visitor - Webinar
Chinese FIT expectations when visiting New Zealand
Active Considerers – our global target
audience
FITs dominate the China AC market,
particularly among younger age groups
China Active Considers market segmented by
age group and travel style (%)
‘Group’
Intend to travel
as part of an
organised group
7%
6%
7%
5%
9%
7%
‘FIT’
Intend to visit as
FIT
18%
15%
8%
7%
8%
2%
18-29 years
24%
30-34 years
20%
35-39 years
15%
40-44 years
12%
45-54 years
19%
55-69 years
10%
FIT 30-49
Source: AC Monitor Q2FY15 Quarterly Presentation
AC Monitor – preference trends
Total ACs
Independent Professionals
Linear (Total ACs)
90%
88%
83% 84%
83% 82%
75%
Q2 FY15
77%
Q2 FY14
Q1
Q4
75%
82%
80%
Q1
79%
74% 74%
87% 86%
84%
Q4
79% 78%
75%
74% 74%
83%
81%
Q3
75% 74%
78%
77%77%
Q2 FY13
Q3
Q2 FY12
73%
78%
Q1
76% 77%
Q4
77%
86%
Q3
85%
Source: AC Monitor Q2FY15 Quarterly Presentation
Independent Professionals (FIT)
Travel as a couple taking a break from busy lives
Motel / hotel accommodation
Rental cars
Travel for adventure, relaxation and luxury
Aged 30 49
Chinese FIT’s view of New Zealand
FIT’s understand what
New Zealand offers as a
destination:
• Pure & clean
• Nature – various
landscapes
• Peaceful – good place
away
“to’get
the
last clean
•place
Pleasant
weather
in the
world” –
opposite season
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15
Chinese FIT – travel is fundamentally
important
Take me away
Polluted air, sky & food
from…
Intense urban living
Man made environment
Place
Nature: dramatic,
unspoilt & protected
Natural intensity of clean air
& blue, blue sky
Clean & safe
Immerse me in…
People
Crowed, hectic
Competitive
Lack of trust
Open spaces, few people
Welcoming , open &
contrasting lifestyles, & culture
Trusted
Lake Matheson, West Coa
Lake Alexandrina, Canterbury
Pressured, stressed
Lack of trust
Repetitive & bored
Experience
Relaxed, easy going
Calm & safe
Stimulating & reviving
Our offer of 100% Pure New Zealand absolutely hits the mark
Source: Project Kiwi – China qualitative research Nov-DecFY15
Chinese FIT at a glance
Experienced TravellersHigh Expectations
• International
travel is nothing
new. Long haul
travel is routine –
at least once a
year
• They have been
to other Asian
countries (often)
and Europe, USA,
they seek new
exciting places
• They still like a
deal
Comfort & Freed
• The “freshness”
• They expect
travel itself is
comfort, they
decreasing – they
have little
long for some spark of
willingness to
excitement every
endure any
“hardship”
time they travel
• Not satisfied with
• Willing to pay for
common sights &
better, they do
experiences, they
not want to arrive
are looking for surprises
exhausted or
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15
• Unique
packed in an
experiences/scenery
itinerary they
• Culture/food that
prefer to self drive
represents local life
• Want freedom to
explore
Planning and relationships
They seek:
Therefore:
• They will take time to see and experience
a region well
• Provide a cohesive regional offer making
the region a destination to spend time in
• They will return to do more, or to build on
an experience
• Top 10 highlights, or must dos, make it
easy for visitors to navigate
• They do not want to be rushed, feel
pressured to do it all in a day
• Provide itineraries that allow time to enjoy
the sights, smells and interactions with
people, wildlife and culture. Increasingly
our Chinese visitors want immersive
experiences
• They seek time to sit & watch, to “live like
the locals”
“
’m there, I feel REAL –• They do not want everything planned,
and I can bring it back to make finding and booking activities easy
China with me”
to do at hotels/online/phone
• Connect with them after the experience,
build
theKiwirelationship
- they
may
come &
Source:
Project
– China FIT qualitative
research
Nov-DecFY15,
AIAL/MBIE
backChina Market Development qualitative research Sept FY15
Immersive experiences
They seek:
Therefore:
• Simple and easy ways to experience
our place, no stress
• Taking people to the experience is
highly attractive, bus, train,
helicopter, boat – they will pay
• They want to be there and see it but
not necessarily do it
• Experiences are ALL about social
currency
• Serendipity – stumbling across the
unexpected
“I want to sit in
a boat and
atch the
crayfish
being caught,
not catch
them myself”
• They don’t necessarily want to do the
work – look at the mountains, not
climb them
• The photo is a massive marketing
opportunity, brand it, its all about
sharing now, and later
• Give them memorable surprises – it
makes the experience exciting,
unique and worth sharing through
stories
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15, &
AIAL/MBIE China Market Development qualitative research Sept FY15
Food – Xin Xian = New Fresh
They seek:
• Preparing very good quality
ingredients without adding great
flavours is a waste
Therefore:
• Emphasise options for food at the
source, the back story is important –
provides a multi sensory experience
• Self cooking – allow them to
participate, share the moment with a
BBQ (have Chinese
foods/seasonings/sausages available
• The idea of “new fresh,” or xin xian –
–its about the choice)
see it in its natural state, get it, eat it
• Restaurants that allow the fish that
was caught to be prepared, cooked
and enjoyed
“What a waste to just
• New Zealand is not seen to have a
distinctive cuisine – seafood at
source is the closest
panfry
•
ish with a bit of lemon
queezed – it is such a
waste
and not very enjoyable”
Cater for their tastes buds
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15, &
AIAL/MBIE China Market Development qualitative research Sept FY15
Catching the whole experience
“The story”
“Catch it”
“Eat it”
Food – the importance of breakfast
They seek:
• While they will try our food, they do want
access to Asian food
• Sushi over sandwiches
• Hot noodles and rice for lunch forms a staple
meal
• Hot breakfast please – preferably with congee.
It’s really important, and they will seek it out
• The importance of snacks – Chinese have an
expectation that snacks are available
everywhere, local and Asian. It’s also an easy
way to try our food, and take home as gifts
• Warm water, never cold
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15, &
AIAL/MBIE China Market Development qualitative research Sept FY15
Sources of information
least influential
most influential
Implication: Use online forums and WOM to get our message out –
much more credible in China
ONLINE
TRAVELLER
FORUM/BLOG
• Most popular source
• Traveller perspective is
highly relevant & credible
• www.mafengwo
• www.tuniu
• www.lvmama.com
• www.yahoo.com
• www.baidu.com
TV
www.qunar.com
www.traveltogo.com
www.booking.com
www.agoda.com
WOM/FRIENDS
EXPERIENCE
SHARING
• Pictures from friends
Wechat & Weibo
• Recommendation from
those who have returned
from trip
MAGAZINES
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15
Social Media – people go where others
post
What you need to know:
http://www.mafengwo.cn/i/3019992.html
• Chinese are avid social networkers
• Chinese FIT are really avid social
networkers
• Chinese FIT while on holiday are
extreme social networkers
• For many smaller New Zealand
operators this is the single most
useful tool for attracting Chinese
visitors to you
• If you are not getting your operation
uploaded then find a way to do this
People go where others post, it’s that
simple
Source: Project Kiwi – China FIT qualitative research Nov-DecFY15, &
AIAL/MBIE China Market Development qualitative research Sept FY15
Case Study - Skydive Wanaka
•
•
•
In 2008 the Hall family owners of Skydive
Wanaka recognised the potential
opportunity in Chinese outbound
travellers & formed a relationship
with Hunter & Winnie, Hunter is a Kiwi guy
and Winnie Chinese. Through Winnie,
they started promoting Skydive
Wanaka using Weibo. Posted one
picture a day, and an offer a
…this started to build a
social presence in China
August 2013 the business was bought
by the Ferguson family who have not
only continued to focus on Chinese
but have in fact increased
their investment to attract even
more Chinese visitors to their
business, building on the initial
success of the Halls.
Great results with high brand
awareness Chinese people coming
Case Study - Skydive Wanaka
How did Skydive Wanaka achieve further growth ?
• Identified the opportunity with the growth in
Chinese arrivals and the need to invest in
trade relationships
• Invested further in having Chinese advice &
resource using Kate Deng. Kate use to
NZ tourism industry, now has her own business in
China
• Kate manages the social media for Skydive
Wanaka Weibo Wechat
• Developed a Chinese page on their
website
• Now Skydive Wanaka are investing in a
Chinese staff member and Chinese visitors
make up 35 40% of sales
Lisa’s (Sales Manager at Skydive Wanaka)
advice to others:
• Have a plan and stick to it
• Be focussed, if you are going to attract
Thankyou to Lisa Chambers,
theyour
teambusiness
at Skydive Wanaka
sharing their
Chinese
visitorsand
to
you for
need
tostory
invest, start small, be consistent… it will pay
•
Network and form relationships with bigger
operators that are doing the job well, learn
and get ideas on how
…
Links to Useful Information
China Toolkit
http://www.chinatoolkit.co.nz/
TIA Cultural Briefs
http://www.tianz.org.nz/main/cultural-briefs/
China Skinny
http://chinaskinny.com/newsletter - sign up to the newsletter
Te Puia, Rotorua
Thank you