At Me Chin Att Bundle

8/8/2019 At Me Chin Att Bundle

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2/91

Barbara Bryant

30 vet Asia/Pacific

Co-Founder boutique rep firm ofBryant & Tripptree

Firm appointed, PATARegional Director

Former Director HongKong Tourism-LA

Establish HK Film Dpt

VP Sales/MarketingMandarin OrientalHotels


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Slide: 3

ATME EXECUTIVE CHINA THINK TANK

Barbara Bryant, PATA North America Regional

Director

February 12-13, 2009


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Ron ErdmannDeputy DirectorOffice of Travel & Tourism Industries


5/91

Ron Erdmann

Admin international travelresearch

Consults with clients onuse and application ofinformation

Role is to create andimprove uponinternational marketing

intelligence

Prior nearly decade withU. S. Travel & Tourism

Admin until closed

Experienced indeveloping andpromoting rural tourism


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6Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce (February 2009)

China Research

Presented by:

Ron Erdmann

Office of Travel and Tourism Industries

International Trade Administration

U.S. Department of Commerce

February 2009

Presented to:

ATME:Think Tank


7/91


OTTI Resources on China

Visitor volume to U.S. from China (monthly from I-94 form) U.S. resident travel to China (non-stop) (monthly) Other Data collected on DHS I-94 form (monthlyport, visa type, age of travelers,

address in U.S., etc.)

Visitor volume forecast (semi-annual)

Visitor spending (annual) Visitor profile (annual) U.S. resident travel to China (annual) Chinese visitation to all countries (annual)

China Outbound Study (one-time special study) China Travel Trade Barometer (quarterly planned)


8/91


The China Outbound Travel Market


9/91


China Outbound Travel

25,

0.9

40,891.4

5,64

.2

11,174.0

,151.4

4,808.4

1,216.2

1,8

4.7

0

10,000

20,000

30,000

40,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007p 2008f 2009f 2010f 2011f

0

2,000

4,000

6,000

8,000

10,000Total Outbound Travel

Total Long-haul Travel

Data from China National Tourism Office and Global Insight Global Travel Navigator May 2008


10/91


China Outbound Trends(total outbound travelers)

Destination 2001 2002 2003 2004 2005 2006 2007f 2008f 2009f 2010f 2011f 06/01 11/06 11/01

GRAND TOTAL 11,170 15,097 15,711 21,536 22,753 25,120 28,299 31,585 34,775 38,183 41,789 13,949 16,670 30,619

Asia 9,34

2,

95

3,52

,9

4

9,920 22,0

24,9

2

,929 30,

4 33,

3

,0

9

2,

20

4,953 2

,

3

Europe ,39

,9

3 ,

3 2,

4 2,2

0 2,3

2,5

2,

50 3, 0

3,395 3,

9

9 ,330 2,3 9

North America 3

9 322 234 304 3

4

5 50

5

25

90

45

4

2

0 42

Middle East 35 4

54

3 92

2

40

5

3

93

2

5

Latin America 32 33 32 4

43 44 49 54 59

4

0

2 25 3

Africa 33 33 33 33 33 33 33 33 33 33 33 0 0 0

Caribbean

9

0

2

3 0 5

Hong Kong 4,449

,

25

,4

,

2,

30

3,

5,

39

,544

9,3

2

,324 23,349 9,3

3 9,5

,900

Macao

,309

,

2

,43

2,

9

2,3

0 2,

2

2,9

3,350 3,

0

4,0

4,45

,3

9

,

3

3,

49

Singapore 4

0

5

0

0

5

,03

,

9

,322

,449

,5

5

,

2

5

90

,2

Thailand

0

9

0

9

2 9

4 993

,

04

,222

,3

,524

3

0

23

Korea, Republic 4

2 539 5

3

2

0

9

,0

9

,

3

,202

,29

,402 4

5 505 920

Japan 39

452 449

53

2 90

99

,0

9

,

,295 42

4

4 904

Vietnam 625 660 693

53

9

3 9

2 ,0

,

3 ,295 66 504 670

Italy 394 53

4

0 72

725 75

5

97 977

,063

,

57 365 399 763

Russia 461 725 680 661 691 722 791 871 953 1,050 1,164 261 442 703

Malaysia 453 558 351 550 352 439 504 560 614 671 732 -14 292 279

Germany 237 270 268 293 313 327 358 395 430 468 509 90 181 272

United States 232 226 157 203 270 320 353 394 433 479 516 88 195 283

Australia 158 190 176 251 285 309 344 376 407 441 478 150 170 320

Canada 87 96 76 102 117 145 155 174 192 210 229 58 84 142

Sw itzerland 49 69 63 100 137 144 154 170 185 201 219 94 75 170

Indonesia 32 37 41 51 112 117 134 149 164 179 195 85 78 163

Belgium 62 113 107 114 109 114 122 134 146 159 173 52 60 111

Netherlands 81 82 78 82 97 113 121 134 146 158 172 32 59 92

United Kingdom 58 64 68 95 92 99 109 120 131 142 155 41 56 97

Data from China National Tourism Office and Global Insight Global Travel Navigator May 2008


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U.S. Market Share of Long-haul Travel

U.S. Market Share o Long hau Travel

17%16%

13%14%

13%

9%7% 8%

9% 10%12% 12% 12% 12% 12%

12%12%12%12%12%12%13%12%14%

16%16%18%18%

21%22%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007p 2008f 2009f 2010f 2011f

U.S. % share of long haul Long haul % share ofoutbound


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What is Known about China Outbound Travel?Total Outbound

25 million in 2006

Only 12% to long-haul destinations; 70% to Hong Kong/Macau/Singapore. Strong growth across most top 20 destinations, especially Hong Kong,

Macau, Korea, Italy, Australia.

Tripling of travelers to Hong Kong from 2001-2006 (4.5M to 14M) Top long-haul destinations in 2006: Italy (807K), Russia (720K), Germany

(442K), US (321K), & Australia (309K). Total travel to all long-haul destinations was 3.2 million in 2006, forecastto grow to 4.8 million by 2011.

Sources: Global Insights Inc. Global Travel Navigator; OTTI, UNWTO


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Chinese Visitors to the U.S.

000s of visitors

16th


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China Spending in the U.S.

$ $ $ 2

$90

$1,2 $1,291

$9

$1, 2$1, 2

$1,1

$

$1,11

$1,

$2,0 1

$2, 99

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Millions of Dollars10th


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What is Known about China Outbound Travelto the U.S.?

Outbound to the U.S.: 397,000 visitors to the U.S. in 2007near doubling in six years.

Flat visitor volume from 1993 to 2003. 25% growth through November 2008, but slowing considerably.

U.S. share of Chinese outbound travel has declined for tworeasons:

Long-haul travel has declined as a share of total outbound U.S. share of long-haul had declined until four years ago. Share of long-haul

has increased.

Sources: Office of Travel & Tourism Industries (OTTI) & Global Insights Inc. Global Travel Navigator


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Trip Characteristics: Port of Entry: San Francisco (21%), Chicago (17%), LA (17%), NYC (10%).

Destinations: concentrated in a few states (CA-57%, NY-32%, followed by: NV,DC, IL)

Main Purpose of Trip: Business -51%; Visiting Friends & Relatives (VFR) - 23%;Convention - 11%; & Leisure/vacation 9%.

Accommodations: 83% stay in hotels.

Stay length: mean average of 28 nights, but is influenced by a few staying fora very long period of time. Median is 11 nights.

Activities: Chinese are less active travelers than average travelers. OTTI tracks 25 Activities

Top activities 2007: Shopping (88%), Dining in Restaurants (80%), Sightseeing in Cities (51%), VisitHistorical Places (47%), Visit National Parks (29%), Visit Amusement/theme parks (28%) ..

Source: OTTI , Survey of International Air Travelers, 2007.


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Trip Characteristics (continued): Gender: 70% male. Female proportion is increasing.

Age: Males41 mean / 39 median; Females36 mean / 35 median. Income: lower than most origin countries.

$63,900 (mean)

$36,700 (median)

Spending: highest spending per traveler of any country ($5,200 at destinations,

i.e., excluding airfares). High spending relative to income may reflect savingfor dream vacation and souvenir purchases made on behalf offriends/relatives.

Looking ahead:

Trip characteristics will likely change if group leisure increases.

Source: OTTI , Survey of International Air Travelers, 2007.


18/91


U.S. China MOU on Group Leisure Travel

Under to U.S. law Chinese can visit so long as they receive avisa.

Under Chinese law, Chinese travel agencies can only sellpackaged leisure tours to Chinese to countries with whomthey have a bilateral agreement or ADS

In December 2007 U.S. China Tourism MOU Signed

MOU implemented in 2 phases Phase 1: July 2008 covers 9 provinces (over 70 % of the market)

Phase 2: U.S. is ready to implement when China agrees


19/91


U.S. China MOU on Group Leisure TravelKey Provisions

China National Tourism Administration (CNTA) authorizedtravel agencies may work with tour operators who are

vetted by associations with programs approved by CNTA

U.S. travel destinations able to market their brand inChina

To date NTA is the only U.S. association with a program

In China the Government sets and monitors standards

In the US the industry sets and monitors standards.


20/91


Supply Side Considerations

Liberalized restricted agreement (no open skies)

Non-stop current cap of 10 flights/day per side U.S. at cap (based on January non-stop OAG schedule.

China at half the cap level.

Thus, based on current caps, short-term growth in non-stop flights must

come from Chinese carriers. Long-term growth must come fromupward-adjusted caps.

57% of all traffic between China and U.S. (inbound+outbound) is non-stop. Non-stop is growing as a share of all traffic.


21/91


Whos Flying Whom?

Traffic Mix: US Flag = 58%, & Foreign Flag = 42% of total air traffic

62% U.S. Citizens vs. 38% Non-Citizens

Chinese to the U.S.: 40% fly foreign flag carriers

60% of U.S. carriers

Americans to China: 57% fly U.S. carriers

43% of foreign flag carriers


22/91


China Outbound Travel Study

Purpose: to develop a fuller understanding of the China outbound travelmarket in support of increasing tourism exports to the U.S.

Collaboration among: Alfred P. Sloan Foundation, Travel & Tourism Industry Center, University South Carolina U.S. Department of Commerce, Office of Travel & Tourism Industries (OTT) U.S. Travel Association Over 20 U.S. destination and travel-industry partners

Multi-phase comprehensive project: Qualitative and quantitative components Methods: Telephone / focus-group / in-depth interviews Surveys of long-haul travelers, U.S. visitors, Chinese government officials, Chinese travel

trade Focuses on Chinese long-haul travelers outside of Asia


23/91


phone interviewsin China(n=1600)

in-person customerinterviews in the U.S.

(n=400)Phase 3

11 customer focusgroups in 11 Chinesecities (n=8/session)

governmentofficial interviews

(n=20)

travel tradeinterviews

(n=30)

telephone surveyin 11 Chinese cities

(n= 7,000)Phase 1

China Outbound Travel Study Phases and Elements

Phase 2

Secondary Source Review(Demographics,

Economics, Politics)


24/91


Phase ITelephone SurveyMethodology

Purpose: gain better understanding of Chinese long-haul travelmarket

Potential of U.S. destinations and businesses Chinese views of the U.S.

Focus: on Chinese who Have traveled outside of China

Are at least somewhat likely to travel outside of China

Are at least somewhat likely to/interested in visiting the United States

Method: Telephone interview

7000 randomly selected Chinese adults, ages 18 and older from 11 urban areas

3 tier 1 cities; 8 tier 2 cities accounting for virtually all outbound travel


25/91


Cities Surveyed3 Tier 1; 8 Tier II


26/91


Outbound Travel

Low outbound travel incidence 8% 1+ leisure trips outside mainland China past 3 years

10% 1+ leisure trips outside Asia past 3 years

21% are at least somewhat likely to travel outside of Asia in the next two years

Most travel to nearby Asian countries U.S. top non-Asian country (9%)

Most visitations connected to Landmark/Sightseeing cities and cities with China towns


27/91


Possible future travel

21% of Chinese at least somewhat likely to travel outside of China innext two years Most likely destinations are Asian

France ranked third (12%)

America ranked sixth (10%)

35% are at least somewhat Interested in traveling to America A significant amount would like to but are unlikely to travel to America

When asked to pick one dream destination America was number one Only two Asian countries made top ten

Difference between desire and perception of possible or likely


28/91


Chinese attitudes

America is Dominant; Exciting; Successful

America isnt Friendly; Safe; Familiar

Want to come to America to Learning and Discovery

Experiencing a different culture

Seeing something new and different

Interests Seeing and experiencing something new and different important to Chinese tourist Sightseeing cities, landmarks, and tourist attractions scored high

Rest and relaxation--scored moderately high.

Interest in traditional vacations to resorts & beaches was low. Chinese tourist has adifferent ideas on rest & relaxation or how to facilitate it


29/91


Dream DestinationsThe United States is the most frequently cited dream destinationfor Chinese citizens, followed by France.

(n=7,000)

United States 13%

France 10%

Australia 7%

Japan %

United Kingdom %

Canada %

Singapore %

The statue of Liberty is so famous

as a national symbol I would be

eager to see it. The USAs

advanced economy is anotherattraction for me, as I want to

experience this in-person.

Traveler, Xian

Hollywood in LA and Disneyland

such modern developments attract

me to the U.S. very much.

Traveler, Wuhan

Europe has a deep cultural

background and is full of historical

attractions. In addition, each

historical attraction has its own

style and this enables eachdifferent country in Europe to

present a different culture.

Traveler, Chongqing

You can go to see the glaciers

and national parks in Canada

such natural sceneries are the

most famous attractions ofCanada.

Traveler, Wuhan


30/91


Activity Importance vs.U.S. Perception

35

34

34

32

27

28

28

28

31

31

31

37

38

44

Chinese communities

ma

towns/Countr side

Art a eries/ useums

Nationa parks

Cit sightseeing

Beach/Waterfront

Historic/Heritage sites

Extreme y Important (5)

U ffers a ot (5)

The performance by the native

Hawaiians was fantastic it

gave history and drama to us

tourists.

Traveler, Guangzhou

The buildings architecture in

NewY

ork was unique everybuilding had its own design andstructure.

Traveler, Wuhan

The most impressive sight I

saw is the Grand Canyon it is

really a miracle.

Traveler, Shenzhen


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Phase II Focus GroupsMethodology

Purpose: Qualitative assessment of views of the U.S. as a country and leisure destination

competing destinations destination choice process

marketing insights for U.S. business and destinations to promote travel exports

Method: 8 participants per group

4 previous leisure travelers to the U.S. (or business trip with leisure component) inpast 3 years

4 previous leisure travelers to other long-haul destinations (or business trip withleisure component) in past 3 years

One focus group in each of same 11 tier 1 and tier 2 cities from Phase I phone survey


32/91


CommonT

hemes

Desire and affinity to experience the outdoors and natural wonders

Taking lots of pictures/ having ample time at sightseeing locations to takelots of pictures

Fear of violence in America/ wide spread gun owner ship

The need to have mandarin translations/ uncomfortable with not knowingwhat is said or is going on

The feeling that Americans are nice but do not respect them or believethey have money to spend and make our hospitality worth while

Mandarin Hotline to contact incase of emergency


33/91


China Study PhaseIII

Traveler Segments

USA FocusHave visited the U.S. - 400 in person Interviews

China Traveler MarketPhone Interviews with 1,600 Identified Chinese Travelers

Outside AsiaHave traveled outside of Asia, but have not visited the U.S.

Within AsiaHave not traveled outside of Asia, but plan to (but not U.S.)

PotentialHave not traveled outside of Asia, but plan to (including the U.S.)


34/91


China Study PhaseIII

Focus of Questions

Images of the U.S. as a Leisure Travel Destination

Atmosphere or Mood of US Expected to Experience Distinctive Tourist Cities & States in U.S.

Distinctive Tourist Attractions in the U.S.

Activity Participation & Comparison of US to others

Factors when deciding on a leisure destination, withcomparisons of the US to other destinations

Use of Media & MORE.


35/91


Some Additional Sources ofInformation on China

USTravel China Study Phases I III, see US Travel Website

U.S. Department of Commerce

Office of Travel & Tourism Industries www.tinet.ita.doc.gov Monthly Arrival Figures

Monthly Air Traffic Data to and from China

Annual Survey of Chinese Travelers to US & U.S. to China

Inbound Forecasts (2 per year) & Annual Spending Estimates U.S. Commercial Service Offices in China

See Website - http://trade.gov/cs/

Also Offering China Webinar February 18th - See OTTI TInews


36/91

Heather HardwickVice PresidentMenlo Consulting


37/91

Heather Hardwick

Specialty is marketinganalysis, strategicplanning, branding andproduct development

Strong expertise ineducational travel,adventure travel, grouptravel and cruising

Frequent speaker


38/91

MENLO CONSULTING GROUP, INC.

xamining the Outboundravel Market from China

Heather Hardwick

Vice President

Menlo Consulting Group

February 12, 2009


39/91

MENLO ONSULTINGGROUP, INC.

China Market Overview

Most populous country in theworld

Worlds fourth largest economy

Worlds third largest country byarea

Key cities and gateways includeBeijing (1 M), Shanghai (17. M)and Guangzhou (10M)

Worlds #1 Internet users andmobile communications users


40/91


Most populous nation and growing

1,

1, 7

1,134

981

1,

1, 3

900

1,000

1,100

1, 00

1,300

1,400

1980 1990 1995 2000 2006 2010p

Per

(ill

i

)

Source: World Bank World Development Indicators; Chinese State Population and Family Planning Commission

Populationof China


41/91


Chinas Growing Middle Class

0

25

50

5

100

125

150

2005 200 2009 2011 2015

H

se

s

s)

Source: McKinsey Quarterly

Upper e C ass

HHI ~USD 5K-12.5K)

L wer e C ass

HHI ~USD 3K-5K)

N mber f C ese H se s e C ass


42/91


GDP is expected to continue to grow,

albeit at a somewhat slower rate

8.6%8.5%

8.2%7.2%

6.0%

10.4%10.1%

11.1% 11.4%

9.1%

0%

2%

4%

6%

8%

10%

12%

2004 2005 2006 2007 2008p 2009p 2010p 2011p 2012p 2013pY

ear

verYearGrw

thRates(%)

Sources: China National Bureau of Statistics; The Economist

Actual and Projected China GDP Growth Rates


43/91


Chinese outbound travel is booming

8. 9.210.

12.1

16.620.2

28.9

31.03 .

1.0

0

10

20

30

40

1998 1999 2000 2001 2002 2003 2004 2005 2006 200

Pes

s(milli

s)

Source: CNTA, compiled by Pacific Asia Travel Association (PATA)

Outb u dt avel f mChi aa dH gK g


44/91


Double digit growth has become the norm

12.3%

18.6%

11.3%

36. %

15.9%21.7%

42. %

7.5%

0%

10%

20%

30%

40%

50%

2001 2002 2003 2004 2005 2006 2007 2008

earo

erYear%

Change

Sources: CNTA, PATA

Growthratesinoutboundtra elfrom ChinaandHongKong


45/91


Chinas growing travel spending

21.

24.3

29.

19.1

13.913.115.4 15.2

0

10

20

30

2000 2001 2002 2003 2004 2005 2006 2007

U

D(B

ons)

Internat ona Tour smExpend tures

Sources: UNWTO, China State Foreign Exchange Administration


46/91


Most outbound travel is within Asia

Source: relevant NTOs, compiled by Pacific Asia Travel Association (PATA)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2004 2006 2007

ra

elers

S ngapore

V e naT a land

Korea

Japan

Malays a

Aus ral a

USA

Top As a Pac f c des na ons for ra elers fro C na


47/91


Chinese travel to North America is

taking off

0

100,000

200,000

300,000

400,000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Tr

l

r

Arri l to North Am ric from Chin PRC

Source: Pacific Asia Travel Association (PATA)

C n d

USA


48/91


California has seen substantial

growth from China in recent years

S I T , O T T I .

Number of Visitors from China to CA, 1998-2007

(in 000s)

134149

120146

197

227

109

158

71101

0

100

200

300

400

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


49/91

MENLOCONSULTINGGROUP, INC.

California is making a move in the

market

California opened an office in China in January 2009

All (100%) Chinese view a Chinese Web site as the mostimportant way for them to learn about California.

Only 1% Chinese consumers and a handful of tour

operators and media reps have been to California.Almost all Chinese know ofLos Angeles and San Francisco.They also have special ties to China as sister cities toGuangzhou and Shanghai. One-third recognize San Diego.

Motivations for visiting California include nature/parks,theme parks, and sunshine

Source: California Travel and Tourism Commission (CTTC)


50/91


What drives Chinese tourists to

California?

Events/Activities Consumer Media Tour Operator

Theme Parks 2 1 1

National Parks & World Heritage 1 2 2

Shopping 3 3

Entertainment & Nightlife 6

Art & Culture 2

Wine & Food 6 3

Source: California Travel and Tourism Commission (CTTC)


51/91

MENLOCONSULTINGGROUP, INC.

Outlook for China

Continuing, albeit slowed, economic growth

Growth in outbound travel is expected to continue

Increasing linkages to international destinations and

organizations

Competition for the Chinese traveler intensifying

With the MOU, and increased marketing in China,the USA stands to benefit from strong inbound traffic


52/91


mmCCGGMENLO CONSULTING GROUP

PALO ALTO, CALIFORNIAwww.menloconsulting.com


53/91

Frank HaasAssistant DeanUniversity ofHawaii

School of Travel IndustryManagement


54/91

Frank Haas

Teaches courses inmarketing and ExecutiveDevelopment in TourismProgram

Undertaken planningprojects for tourism,government and non-profit corporations

Formerly VP MarketingHawaii Tourist Authority

0 million dollar budget


55/91

The Chinese Travel Market:

Open CarefullyFrank Haas

University of Hawaii at Mnoa

School of Travel Industry Management


56/91

In China Everything is possible

Nothing is easy


57/91

In China

Negotiation starts

After the contract issigned


58/91

Bottom Line

Huge potential but developing

the potential will take work


59/91

Responsible Development

Hysteria or irrational exuberance

100 million outbound tourists by 2020

2 million outbound overnight trips in 2006 3 0%

increase since 1997 Reality

A significant and growing market, but

16.3 million of the 2 .3M travelled to Hong Kong or

Macau (6 %) 392.6 U.S. arrivals in 2007 projected to 78. in

2011 (rank = 20)


60/91

Good News: Time for Orderly

Development


61/91

Motivation for Hong Kong andMacau Travel


62/91

What We Can Learn from theDevelopment of the Japan

Market in Hawaii


63/91

To cover

Be prepared for culture shock

Learn from experience

The China market weve seen recentlyprobably isnt the market post MOA

Relationships matter

What weve seen with our 6,000 Chinesevisitors


64/91

Historical Trends (arrivals)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

Th

ousands

Total Domestic International


65/91

International Arrivals Percent

0

5

10

15

2025

30

35

40

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987


66/91

International Arrivals Percent

0

5

10

15

2025

30

35

40

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

Early 70s Hawaii

Gets Serious


67/91

Chinese Arrivals in Hawaii

0

10,000

20,000

30,000

40,000

50,000

60,000

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008


68/91

Chinese Arrivals % of Total

0.00.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007


69/91

Opening a huge new marketmeans dealing with first time

travelers and first timeencounters with Western culture


70/91

Culture Shock

P bl D i i W F d


71/91

Problem: Destination Was Focusedon Domestic Visitors

Limited staff possessing multiple languageskills Japanese visitors were dependent on

Japanese speaking guides Confusion in accommodations

Hotel amenities werent culturallyappropriate; fixtures were foreign

Lack of appropriate experiences especially food


72/91

Language Limitations

Visitors were dependent on their guides

Guides were often driven by commission

Result: visitors didnt always get an idealexperience and satisfaction suffered

Guided tours caused large groups to visitattractions, restaurants, etc. en masse,overwhelming capacity


73/91

Confusion in Accommodations

As the Japan market developed, first timevisitors encountered strange/unexpectedfeatures and fixtures

How to work the plumbing?? Electricalappliances?? Call the front desk and no onespeaks Japanese

No green tea/teapots in the room No drains in the bathroom floor


74/91

Lack of Appropriate Experiences

Japanese were consumers of masstourism as westerners were becomingmore independent

Japanese wanted quality Japanese food breakfast, lunch and dinner

No tipping


75/91

Cultural Differences

Visitors carried large amounts of cash vulnerable to robberies and pursesnatchings

Prevalence of smoking

Golf


76/91

The Retail Experience

What we were selling

What they wanted to buy


77/91

Solutions Came with Critical

Mass


78/91

The French Festival


79/91


80/91

Chinese visitors so far havenot mimicked the early Japan

visitor


81/91

Because of lack of ApprovedDestination Status and entry

restrictions

Chinese visitors to datehave been senior

government and businessofficials

Visitor Spending


82/91

Visitor SpendingUS Per Person Per Day

US West 1 .90

US East 192.80

Japan 268.80

China 377.20


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Some Emerging Issues(2003 Hawaii Post Arrival Survey)

Chinese food (especially good Chinesefood) is a driver of satisfaction

Language barriers were linked to

perceived cultural discrimination Negatives

Service quality (knowledgeable in Chineseservice expectations)

Time constraints (guides pushing too manyactivities)


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If Chinese tourism booms there will be a change in

character as class goes to mass


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What We Think Well See

Shopping will include authentic luxury items and

Gifts and souvenirs for family and friends at

home and Vitamins, supplements and other safe products

Chinatowns and China connections are a draw

Need for acceptance of Chinese credit (ChinaUnion Pay)


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More Chinese speaking staff throughtraining or new hires HTA contract with the Community College

system Developing retail, food and beverage and

hotel amenities that appeal to the Chinese

Learn to manage diverse cultures in thevisitor mix

Political events pose a risk


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Over time, well see the market evolvefrom GIT PITFIT The market to Hawaii is about 30% FIT at the

moment, but that will change with volume Satisfaction may be sub-par until language

and product are aligned feeling ofcultural discrimination

Prepare for cultural differences i.e.tipping, smoking, group mentality


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Relationships Count

Titles and Official Status

Matter


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Understand that we havecompetition regional Asian

travel


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Mahalo Arigato Xie Xie


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Documents

At Me Chin Att Bundle