How to Capture the Growing Chinese Tourism Market

Chinese passport

The Chinese tourism market has become the most important demographic for a lot of operators in the travel industry.

In the year ending June 2018, 12 percent of international visitors arriving in New Zealand were from China, a 13 percent growth over the previous year.

More Chinese are going to have passports than ever before as well. As of now, only about 6 percent of the Chinese population own passports.

However, the State Immigration Administration has made it significantly easier to get passports, and now projections show the number of Chinese passport holders is likely to double to 240 million by 2020.

It’s not just an influx of Chinese visitors, they’re also spending more than ever before. In the last year, Chinese travellers increased their spending by 40 percent, with those born after 1990 increasing their travel spend by 80 percent.

“Chinese travellers spend double the international average, so their impact in local economies can be huge,” said Taleb Rifai, secretary general, World Tourism Organisation.

So, what can hotels do make the most of this growing market?

The most obvious problem Australasian hoteliers will run into with Chinese guests is the language barrier. Of the 1.3 billion people in China, only 10 million speak English. In New Zealand, just 1.3 percent of the population speak Mandarin, although that is increasing - the latest census data showed a 26.3 percent increase in Mandarin speakers in New Zealand.

Hotels have it in their best interests to break down that language barrier. IHG and Oxford Economic’s The Future of Chinese Travel report said package trips were particularly appealing to Chinese travellers as they appreciate the comfort of a guide who speaks a familiar language. It’s not a new idea but hotels who want to look after this growing market should ensure that they always have staff on hand who speak Mandarin.

Cordis, Auckland takes this very seriously, as its team can speak over 15 different major languages (not including English) fluently.

“This is intentional so that we are well-equipped to welcome guests from all over the world, especially if they are not native English speakers,” said Franz Mascarenhas, managing director, Cordis Auckland.

“We pride ourselves in being approachable when delivering our warm and unique brand of Kiwi service, and ensuring that each interaction is ultimately memorable, sincere, and allows us to connect from the heart.”

Some hotels have taken the initiative, offering little luxuries like in-room teapots and special food items like dim sum, congee and noodles, as well as giving guests mobile payment solutions like WeChat Pay and Alipay.

It’s also important to keep in mind that Chinese tourists do not use the same online travel agencies like the West. The biggest OTA’s in China are Ctrip and Qunar who together control about 80 percent of the OTA market.

Small initiatives like this have been proven to increase occupancy and keep hotels ahead of the curve.

A good example of this is the Langham Hospitality Group hotels who have introduced the ‘Ying’ programme, an initiative designed specifically for the needs of Chinese guests. In this, contracts can be presented in simplified Chinese, guests can pay in WeChat Pay, Alipay, Union Pay. Mandarin speaking employees assist with translations and organise transport. In the rooms, Chinese tea, a selection of Chinese television channels and newspaper titles.

The Future of Chinese Travel report said major cities are the primary destinations for Chinese outbound travellers, 85 percent of which travel to major cities around the world. On top of that, destinations with easier access and simple visa policies attract Chinese visitors, so much so that improving access to travel for the Chinese is projected to yield a 20 percent growth in arrivals.

It makes sense then that hotels in Auckland, Sydney and other major cities pay close attention to this market, being the biggest cities travellers visit in countries which are both easily accessible to tourists.