Friday, September 09, 2016

China's developing outbound travel

In the first quarter of 2016, more than 30 million border crossings took place. This is an increase of almost 2,5 percent in comparison with last year, which is the lowest growth since 1997. Although, many Chinese people travelled in 2015, to be specific, over 120 million people (Arlt, 2016). These outbound tourists are travelling all over the world, as well to the Netherlands. To anticipate to this, it is important to know what trends and developments are current and which are upcoming. After analysing the trends and developments, opportunities and possible threats can be described.

Trends and developments
As noted in the introduction, the outbound travel from China is over 120 million. Many forecasts were made, but could not say something valueble according the Chinese outbound tourists, until Premier Li Keqiang gave a speech during the First World Conference on Tourism for Development in Beijing in may 2016. Prognoses indicate that by 2020, both the travel times of Chinese tourists and tourism revenue will double on the current basis (XINHUANET.com, 2016).

Chinese premier Li Keqiang giving a speech during the First Wirld Conference
 on Tourism for Development in Beijing, China
In 2014, the amount of Chinese outbound travellers who stayed overnight is 249.000 Chinese persons. Compared to the year before, it shows an increase of 15 percent. The travel motive to visit the Netherlands was divided into three purposes, referred as business, leisure and other. The primary purpose to travel to the Netherlands was business; in fact 55 percent of the Chinese outbound travellers had this purpose. 44 percent of the Chinese had leisure-purposes and only 4 percent had other reasons to visit the Netherlands. More than half of these travellers have the intention to visit the Netherlands again, and an additional 23 percent will probably travel to the Netherlands in the future (NTBC, 2015).

The Chinese outbound tourists, who are visiting the Netherlands due to leisure purposes, undertook several activities. The top five activities they undertook during their stay is respectively shopping, walking, visit a museum, walk through the city and visit the Red Light District in Amsterdam. The main important activity is to have a walk through the city (NTBC, 2015).

Opportunities
Blogging is known all over the world, as well in China. One of the opportunities for the Netherlands, that emerge from the trends and developments, is the Chinese webblogs. In 2011, the Netherlands is mentioned almost half a million times in these Chinese webblogs. The popular subjects the blogs are about, are attractions such as the Red Light District, the Navy Museum, the Van Gogh Museum, the Dam Square and the National Museum. The added photographs were taken from the typical Dutch culture, for example the windmills, tulips, canals and wooden shoes (NTBC, 2015).  

The famous windmills of the Kinderdijk in the Netherlands
Another great opportunity for Europe and the Netherlands is the growing populairity of Europe. The current market is at an early stage and the outbound travel market of China is growing very rapidly, also due to the easing of visa applications (China Travel Trends, 2012). Together with the growing consumer interest in visiting less European countries during their tour, the future demand will result in longer stays at single destinations, which will double the overnight stay in the Netherlands (Saxion, n.d.).

Threats
Besides the opportunities for Europe, an unforgettable threat is the fact that Chinese tourist will choose other destinations to travel to. Forbes Media LLC (2016) mentioned that recent terror attacks and the unresolved refugee situation have resulted in many European destinations taking a hit as the Chinese visitors are being scared away from travelling to Europe. Even the quite calm Switzerland received almost 20 percent fewer Chinese visitors in the second quarter of 2016 compared to 2015. In the case of leisure travellers, the Chinese tourists seem to look for a safe destination, New Zealand for instance. This development has resulted in more Chinese tourists to Australia and New Zealand.  

Chinese tourists in front of the Opera House in Sydney, Australia
As described, the Chinese outbound is growing; the forecasts tell that in 2020 the Chinese outbound will be doubled. More than half of the Chinese leisure travellers have the intention to visit the Netherlands again, and 23 percent will probably travel to the Netherlands in the future. A big opportunity for the Netherlands are the Chinese webblogs, as the Netherlands is mentioned almost half a million times, in 2011. Together with the Netherlands, the European popularity is increasing, as the outbound is growing, as well due to the easier visa application. Unfortunately a threat for the Netherlands and the rest of Europe; the Chinese tourists seem to look for a safe situaton, due to the terrorist attacks in Europe. That is the reason for the growing Chinese outbound to New Zealand and Australia.



References
Arlt, W.E. (2016). 30.2 Milion Chinese Outbound Trips In The First Quarter of 2016. [Retrieved from http://www.forbes.com/sites/profdrwolfganggarlt/2016/05/23/30-2-million-chinese-outbound-trips-in-the-first-quarter-of-2016/#30b4478639a1 on 8th of September 2016]

China Travel Trends (2012). Essential China Travel Trends 2012. [Retrieved from http://sete.gr/_fileuploads/entries/Online%20library/GR/120423_Essential%20China%20Travel%20Trends%202012.pdf on 8th of September 2016]

Forbes Media LLC (2016). Chinese Tourists Choose New Zealand Over Europe Amidst Terror Concerns. [Retrieved from http://www.forbes.com/sites/profdrwolfganggarlt/2016/08/10/when-remoteness-becomes-an-opportunity-chinese-tourists-choose-new-zealand-over-europe/#522f90b22f30 on 8th of September 2016]

NTBC (2015). MarketScan China 2015. [Retrieved from https://leren.saxion.nl/bbcswebdav/pid-1311649-dt-content-rid-9623716_4/institution/HBS/HBS-breed/CHIN/MarketScan%20China%202015%20NBTC.pdf on 8th of September 2016]

Saxion (2016). Tourism from China: trends and developments.

XINHUANET.com (2016). Full text of Premier Li Keqiang's remarkt at First World Conference on Tourism for Development. [Retrieved from http://news.xinhuanet.com/english/2016-05/20/c_135376068.htm on 8th of September 2016]

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