News: Get a slice of Chinese tourism cake

(TTG 25/03/2006) Port of Spain - Tourism representatives from almost 40 countries around the world, including a few Caribbean countries, will be in Beijing, the capital of the Peoples Republic of China, from April 3 to 5.

They will be attending the Beijing International Travel and Tourism Market to seek a slice of what is predicted to become the fourth most important outbound travel market.

The accounting firm of PricewaterhouseCoopers (PwC) in a recent report says the Chinese economy will double in size between last year and 2050, outstripping all developed nations.

PwC is basing its analysis on forecasts for economic growth on the basis of purchasing power parity (PPP)—a figure which defines the size of an economy by adjusting for local costs.

On this basis, PwC says that while China’s economy is currently 18 per cent the size of the USA’s in dollar terms, it is 76 per cent as big on a PPP basis.

By 2020, China will have a middle class of 200 million versus 186 million in the US.

Several Caribbean countries have a head start over other countries. Antigua and Barbuda, the Bahamas, Barbados, Dominica, Jamaica, and St Lucia have already been given “approved travel destination” status by the Chinese government.

But they are competing with over 100 other countries that have signed approved destination status (ADS) with China, 76 of which can already receive tourist groups. Among the destinations investing heavily in the Chinese marketplace are: Australia, Thailand, Korea, Japan, Singapore, France, Italy, Germany and Switzerland.

Last year, when the Beijing Market was held for the first time, 120 exhibitors from 31 countries attended. European tour operators and hotel groups flocked to the Chinese capital to try to establish partnerships with Chinese outbound tour operators.

Tourism markets in Europe and North America are usually like a cattle show with little serious business being done in relation to the money spent by exhibitors. Tens of thousands of people pass through simply to pick up costly brochures.

But some 80 per cent of the European tour operators and hoteliers who attended the Beijing Market in 2005 reported that the quality of the visitors “met or surpassed their expectations.”

The Europeans have booked even more space at this year’s Beijing Market and new countries such as Poland have entered the race to attract the Chinese tourist. Britain, France and Germany are already forceful players.

Canada, too, is becoming aggressive in the Chinese market.

Ottawa Tourism has launched an official Chinese Web site that is tailored to the travelling needs of Chinese visitors.

The site contains information on Ottawa’s major seasonal attractions to coincide with the Chinese tourists’ travel pattern of three “golden weeks” in February, May and October.

The CEO of Ottawa Tourism declares: “As China’s economy continues to grow, its outbound tourism will also continue to increase. China is now one of the most important markets in Asia for Canada, just behind Japan and Korea.”

According to the Canadian Tourism Commission, 117,490 tourists from China visited Canada in 2005. The commission estimates that when approved destination status with China is fully implemented the increase will be around 25 per cent a year.

Airports are not to be outdone in the quest for Chinese business.

For example, with Heathrow, London’s biggest airport, providing only limited capacity to Chinese carriers, the managing director of Stansted Airport outside of London, has been talking to the Chinese about providing facilities.

Presently, two Chinese airlines operate services to Heathrow—Air China and China Eastern—and Stansted is keen to fill the void by promoting itself to the Chinese as a hub for access to a large number of European destinations.

In January this year China opened its first air route to South America, from Beijing to Sao Paulo in Brazil.

So much work will have to be done if the Caribbean is to compete effectively with other countries and regions that are actively pursuing the Chinese market.

Cuba has started the ball rolling with the announcement that it will open a representative office in Beijing to provide better services to Chinese travellers.

Caribbean hotels and tourist offices also require a strong and vibrant presence in Beijing. It would be both cost effective and beneficial if the Caribbean Hotels Association and the Caribbean Tourism Organisation were to open a joint office in Beijing to promote the Caribbean.

But beyond promotion the Caribbean will need airlift from China to the region. There is need, therefore, for strategic alliances to be established now between hotels in the region, tour operators in China and airlines that can pick-up Chinese tourists in the United Kingdom and Canada to bring them on to the Caribbean.

It may very well be that if the Caribbean can generate enough demand amongst the Chinese, the flights from Beijing to Sao Paulo in Brazil can move on to Caribbean destinations as well.

The Chinese tourists—like the Japanese and other Asian travellers—are more interested in culture, ecology, history and scenery than they are in simply sitting on beaches. In this connection countries, such as Guyana with its vast interior and wild life, have an equal chance to share in the Chinese cake.

The Beijing Tourism Market presents a real opportunity for Caribbean hotels, airports and ground tour operators to set-up deals with Chinese tour groups and travel agents.

If they can get the commitment for sufficient numbers, they will be able to interest the airlines in bringing the Chinese tourists from Europe, North America and Brazil into the region.

The Caribbean should be at the Beijing Market in full force.