Presentation during China Time Hamburg 2014. 8 things to know about young Chinese tourists

1. The increasing
power of the young
Chinese tourists
Berenice Pendzialek and Hochschule Fresenius für
Management, Wirtschaft & Medien GmbH
China Time Hamburg, 20.11.2014

2. Berenice Pendzialek
Bachelor in International Relations
Master in Business Administration (UNAM)
Economic Analyst in The Economic and Commercial Section of
the Embassy of the People’s Republic of China in Mexico
2009-2012 General Manager of the COTRI Chinese Outbound
Tourism Research Institute
Doctoral studies in the Catholic University of Eichstätt-
Ingolstadt (KU-Dept. of Tourism Geography). Dissertation:
“Performing tourism: Chinese outbound organized mass tourists
on their travels through German tourism stages”
Since 2013, Chinese Outbound Tourism Specialist & Senior
Research (COTRI)
@BerenicePAceves
WeChat: BerenicePendzialek
berenice.pendzialek.org chineseoutboundinsider.com

3. 8 things to know
about young
Chinese tourists

4. 1) They represented around 70% from 2013
border-crossings
Chinese outbound tourism in million border-crossings and the compound annual
growth rate (CAGR) from 2000 – 2013 (Pendzialek, 2014 adapted from CNTA and CTA)
COTRI Forecast for 2014
112.0
54.0
Jan-Jun
2014

5. Word of Caution:
1) Majority of travels occurred in Asian destinations
Hong Kong
Macau
Taiwan
Japan
South Korea
Mongolia
Philippines
Thailand
USA
Canada
Germany
France
Italy
UK
Switzerland
Australia
New Zealand
Mauritius
Seychelles
Worldwide Destinations for Chinese, % Share, 2012
(Source: IPK International, 2012)

6. 2) Statistic Discrepancies
2013
97.3 million border-crossings
China National Tourism Administration (CNTA)
58.9 million COT arrivals worldwide
European Travel Commission (ETC)
via Oxford´s Tourism Economics

7. 97 Bio.
Euro-
2013
80 Bio.
Euro-
2012
2) First place as global tourism spenders

8. Expenditure in Germany: above the
world average
Expenditure of Chinese Tourists by Trip and Night in Euros 2010-2012
Region/country 2010 2011 2012
per trip per night per trip per night per trip per night
Worldwide 2,302 344 1,813 288 1,690 295
Europe 3,307 398 2,536 325 2,418 373
Germany 3,447 320 2,329 311 2,996 458
Business 3,788 541 2,312 379 3,308 570
VFR / others 3,500 177 2,440 134 2,240 236
Leisure 3,200 266 2,355 251 2,728 379
Adapted from: GNTB (2011, 2013)
Young Chinese:
• Saving is not all
• Confident
• Independence by shopping

9. Tax-Free Shopping in Germany
What items?
Tax-Free Transaction Germany:
2012: 628 EUR
2013: 580 EUR
Up to Q3 2014 : 546 Euros
(Source: Global Blue, 2012-2014)

10. 3) They are part of Germany´s
main Asian tourism source market
2012: 1.6 Million overnight stays
2020: 2 Million (DZT)
2001: DZT Office in Beijing
2002: ADS Status to Germany
After 2003: Euphoria and disappointment phase
2014: Optimism about the future development
Chinese tourists’ arrivals to hotels and similar accommodations in
Germany, in million, and CAGR from 2001 – 2012
Note: This figures include Mainland and Hong Kong Chinese
(Berenice Pendzialek, 2014 adapted from GNTB 2010-2013)

11. Top 8 German Cities for Chinese
Munich, 11.7%1
Frankfurt,
11.5%
2
Berlin, 9.8%
3
Cologne, 3.8% 4
Hamburg, 3.3%
5
Düsseldorf, 2.9% 6
Füssen, 1.9%
8
Stuttgart, 2.9% 7
Chinese overnight stays, distributed in main cities by % of total, 2012.
(Pendzialek, 2014 adapted from GNTB, 2013)
Chinese Overnight Stays
2012: 51,099
2013: 54,400
“Hamburg Summit: China meets
Europe“ October 2014

12. Source cities - regions Shanghai, Beijing, Guangzhou
Travel purpose & average
length of stay
Holidays (52%) 7 Nights,
Business (48%) 6 Nights
VFR – others (1%) 10 Nights
Most important type of holiday Touring trips and city holidays
Seasons May – August (47%)
January – April (44%) Golden Week 1
Sep – Dec (20%) Golden Week 2
Profile Male, average age 36 years,
White-Collar, well-educated, high-earning
Source: Pendzialek, 2014 adapted from DZT)
2013

13. 4) Many start their travel careers by being part
of an organized group
• 70% of the market
• First-timers, not much
experience
• Focus on service
• ADS Visa
• Motto
“The more the merrier”
• Activities:
Entertainment, nature
and shopping
• Subgroups:
 Young Chinese
 Families
 Business People
 Family and Friends
Visitors

14. Chinese Trail around Europe
欧洲10国12日全景游 A线
BIG EUROPE TOUR A
1
出发点DEUTSCHLAND
特里尔TRIER
卢森堡LUXEMBURG
2
卢森堡LUXEMBURG -
巴黎PARIS
3
巴黎PARIS
4
巴黎PARIS
布鲁塞尔BRÜSSEL
阿姆斯特丹AMSTERDAM
5
阿姆斯特丹AMSTERDAM
科隆KÖLN
法兰克福FRANKFURT
6
法兰克福FRANKFURT
茵斯布鲁克INNSBRUCK
7
茵斯布鲁克INNSBRUCK
威尼斯VENEDIG
8
威尼斯VENEDIG
佛罗伦萨FLORENZ
罗马ROM
9
罗马ROM
梵蒂冈VATIKAN
10
罗马ROM
比萨PISA
米兰MAILAND
11
米兰MAILAND
苏黎世ZÜRICH
12
苏黎世ZÜRICK
德国DEUTSCHLAND
Source: pandareisen.de

15. (Source: UNWTO, 2013
Photos: Pendzialek, 2014)
Wenyi Youth
Bohemian and dreamy
behaviour
Experienced-centred
Curiosity
Planning is fun
Hedonists
Pleasure, Shopping
Connoisseurs
Aesthetics and Knowledge
5) Increasingly moving from mass to individual:
Self-organised travellers
Second Wave
of COT:
Post-80s
Generation,
experienced,
search for culture
and understanding
of a destination

16. Motivations for Travel
1) Social Capital & Personal Prestige
2) Education & Knowledge
3) Scape from the everyday life
4) Soft Power
5) Business Opportunities

17. 6) Internet is present at every point of their
journey
83% went online using
a mobile device
632 million internet
users by June 2014
(Source: DJ, 2014)
95% Chinese netizens
trust a brand they have
seen before on social
media channels

18. Strong digital influence before travelling

19. http://www.visitcopenhagen.cn/
Important to be present across multiple channels

20. Complicated visa application
No contact with local people
No free internet connection
7) They are quite happy with Europe´s clean
sky, but still more can be improved
(Source: Pendzialek, 2014 & ETC, 2014)

21. ETC, 2014
8) They expect tourism offers, which keep the
balance between treating them as international
citizens and showing respect to Chinese culture

22. Chinese language information
(Source: Chinavia, 2014,
© Ratermann, 2014)
• Signs, collateral materials, websites…
• Chinese speaker staff member
Frankfurt „Personal Shopper“
• Phrasebooks
• Welcome letters

23. Chinese payment methods
Foto: DJ, 2014
QR Code Mania
Maybe in some near future in Europe too
80% of Chinese outbound tourists paid
via China UnionPay Network in 2013

24. Future Perspectives

25. - Attraction of other than just first-time travellers
- Visa application process
- Lower economic growth, but no direct effect on COT so far
- Anti-corruption campaigns do not target COT
- Further Segmentation
Groups: Smaller groups, Away from the poor quality image,
from many countries to a few, or sometimes even one
Self-organised: Further expanding their travel careers and
looking for differentiation
- Increasing interest on:
Cruise Tourism / Island Tourism/ Weddings & Honeymoons
Health Tourism / Space Tourism
Perspectives 2015

26. Thanks for your attention!
Questions?