Chinese Overseas

Tourism on the Rise

Globally

Chinese Outbound Tourism Demographics

Chinese Outbound Tourism Demographics

BUSINESS — The Chinese business tourist is a growing group, as many Chinese entrepreneurs are looking to

learn new skills and expand their businesses outside of China. These tourists come either as groups to a

conference, investment research trips, or as individuals with specific goals in mind. As visa restrictions ease for

this type of tourist, this means more and more are traveling in smaller groups. These smaller groups, while

allowing for more freedom of movement, also leave more opportunity for miscommunication and misadventure.

STUDENT — Traditionally overlooked as poor and uninterested, the Chinese students overseas are increasingly at

the higher end of the pay scale. The rise of the wealthy Chinese overseas student has obviously been noticed by

schools the world over, with specialized language-learning courses available at many institutions. Amongst the

“student” group is also included the executive training programs.

ADVENTURE — A new and growing sector of Chinese tourist is the young backpacker or sports adventurer.

Scuba diving, mountain climbing and hiking are all growing.

DANWEI — The word for “work unit” in Chinese organized overseas trip is a treat not just because it is traveling on

the company’s dime, but also because it guarantees easy visa access. A quick survey of recent Danwei travelers

resulted in an average of $6,000-$10,000 per trip. This is a large number considering that the average white

collar salary is around $1,000/month. But as many consider these Danwei trips to be their only opportunity to

travel overseas, they are willing to spend more.

LOCUST — And finally, the in famous group tourist, shuffling around 10 cities in 5 days, rampaging through tourist

site to tourist site, doing the requisite “selfie” in front of various monuments and then moving on. And don’t forget

about the forced shopping that is an intrinsic part of these tourism schemes. These types of tours are the main

target of the new tourism laws in China, and admittedly the tour organizers are more to blame than the tourists

themselves.

China’s Overseas Tourist Groups

37.6% say leisure is the main reason for traveling.

63.4% say selecting travel destination is based on future Investment Opportunities for their family and companies

Chinese prefer easy, luxurious and convenient traveling and business opportunities.

Chinese seek locations rich in history, nature, plentiful luxury shopping, and economic future investments.

5% equals out to over 60 million people which is the combined population of France and the UK

Chinese High Net Worth individuals will spend 19% of their total yearly salary and spend up to three weeks on vacation

Reason for Travel

5% of China’s population earns an average of 39,500 USD per year

Chinese outspend other international tourists by 21%.

Average Chinese tourists spend an average of over $1,000/day excluding travel costs.

Chinese Affluent tourists spend over

$8,000/day excluding travel costs.

Purchasing Power

Over 100 million Chinese tourists went abroad in 2014.

Average Chinese citizen spends over $6,000 on a multi-city, 2 week vacation.

Chinese Tourists spend approximately $1,000/day on luxury goods.

China will become the world's largest international tourism source market and is expected to surpass the US by 2015

China’s Overseas Tourism Expected Increase Over 200m by 2020.

Shopping and Real Estate Investments has become the driving force for Chinese tourism

According to the World Luxury Association, 75 % of Chinese tourists purchase more than 3 luxury goods items during their trip

Luxury goods are almost 60% more expensive within China

In 2014, Chinese spent over $164.8 bn overseas

Luxury Overseas Spending

First time Chinese tourists traveling outside of China emphasize on safety, popularity and organized routes.

E&Y reports 2014, more than ½ of Chinese Affluent select 4 star hotels when traveling overseas.

Chinese travelers prefer luxury travel and an extensive shopping experience or landmark sightseeing rather than destination locations

Travel Preferences

The increase in Chinese tourism will extend for years to come and certain companies/brands should be taking full advantage of this opportunity

Airlines, Hotels/Resorts, Booking Sites, Cruise Companies, Travel Agencies, Car Rental, Travel Insurance, Tourism Bureaus, Entertainment Attractions, High End Shopping Destinations etc.

There are many ways to capitalize on this great opportunity including Digital Marketing, Branding Increase, Social Media, Networking and working with channels to increase overall visibility to these Chinese travelers

For companies who want to penetrate or expand in the China tourism market, online marketing and branding is a suitable strategy. It has the following advantages:

Cost Efficient Precise Targeting Extensive Analytics/Reports Feedback from Market

The Advertiser Opportunity

The Advertiser Opportunity

Within China Overseas to Chinese Affluent

SMG/adSage is a full service Digital Marketing Agency focusing on bringing your business/brand to Chinese customers. Our service ranges from Website Localization, App Creation and Social Media Software to SEM, SEO, Mobile Display and running strong Social Media Branding Campaigns

adSage manages successful campaigns for some of the top travel related websites in China and the US. adSage have the knowledge and experience to capitalize on the surge of Chinese tourists

How We Can Help

A few of travel clients:

Thank you for your time and please call/email me with any additional questions

Stephen Chun SMG/adSage Overseas Sales Director 10500 NE 8th Street, Suite 1160, Bellevue, WA 9800 Mobile: +1 (425)628-9098 Skype: steve.chun88 QQ/WeChat: 1516425127

stephenc@adsage.com www.adsage.com

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