Developing Australia’s Food and Wine (F&W) tourism resources

towards the Chinese visitor market

A/Prof. Sam Huang Centre for Tourism and Leisure Management

University of South Australia Business School

•  A market overview of Chinese outbound tourism (COT)

•  Conceptualising food in tourism toward Chinese tourists

•  Destination & marketing strategies

Presentation Outline

•  Started in 1983 when the Guangdong Provincial Travel Corporation began organising tours for Guangdong residents to visit relatives in HK and Macao.

•  In 1990, Chinese government sanctioned VFR tours to Singapore, Malaysia and Thailand. (Relatives in destination had to pay a fee and as guarantor)

•  In 1997, first ministerial regulations on Chinese citizens self-financed outbound tours jointly promulgated by China National Tourism Administration (CNTA) and the Ministry of Public Security; it was revised and became a State Council legislation in 2002

•  In 1999, Australia, together with New Zealand, became the first among Western countries granted Approved Destination Status (ADS)

A brief review of China Outbound Tourism

•  Happening in the great context of China’s opening-up and reform

•  Heavily regulated but government gradually lessening control

•  Powered by the Chinese economy and the emerging Chinese middle class

•  Dynamic, fast-changing market, as driven by the fast changing Chinese (consumer) society

Characteristics of China Outbound Tourism Development

Market Overview

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201528852.9 31000 34000 40954 45844 47656 57390 70250 83180 98000 109000 120000

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Recent figures

(2014-15)

• In 2014, China’s outbound tourism recorded 109 million trips, comparing to 98.19 million in 2013

• In 2012, Chinese outbound tourists spent a record of US$102 billion, up 37% from 2011, making China the top spending country on the UNWOT list: China keeps to be the biggest international tourism spender since then.

• WTO forecasts for 100 million in 2020 (1999) and then 100 million in 2015 (2001) seemed to be too conservative!!

Recent figures

(2014-15)

• In 2015, China enabled 120 million outbound trips, 12 percent up compared to the previous year

• In 2015, domestic tourism reached 4 billion person times; tourism contributed to 10.1% of China’s GDP and 10.2% of tourism employment. China is creating the world’s largest tourism economy!

China Outbound Tourism To Australia

•  China is Australia’s most valuable inbound tourism market, as perceived by Tourism Australia

•  In 2014, there were 840,000 visitor arrivals from China to Australia, spending $5.7 bn (Source: Tourism Australia)

•  In 2015, Australia received 1 million visitor arrivals from China (12 months ending November 30), with an expenditure of $7.7 billion. (cf. China 2020 strategy: 860,000; $7-9 billion)

China Outbound Tourism to Australia

Source: Tourism Australia, 2015

China Outbound Tourism to Australia

Source: Tourism Australia, 2015

China Outbound Tourism To WA& SA

•  Latest figures show 42,900 Chinese visitors to WA (year ending Sep-15) in 2015; China is second largest market to WA in terms of tourism spending (after UK)

•  China is SA’s promising growing market; 31,000 visitors and A$143 million (inc. Education) in 2014 (SATC)

China Outbound Tourism to Australia

•  Australia’s market share of total outbound tourism market from China has decreased from 1 per cent in 2002 to 0.7 per cent in 2012 (0.77% in 2014)

•  In 2014, Australia was among the top 10 foreign country destination to Chinese outbound tourists (Korea, Thailand, Japan, USA, Vietnam, Singapore, Malaysia, Russia, Indonesia, Australia)

Regional Comparison

In 2014: Hong Kong (39.94%) Macao (26.89%) Hong Kong, Macao, Taiwan (approx. 70%) Excluding Hong Kong, Macao, Taiwan Aisa (65.4%) Europe (11.7%) Africa (9.4%) America (9%) Oceania (3.9%)

China Outbound Tourism to Australia

•  Tourism Australia’s China 2020 strategic plan (forecast figures): •  Total spend: $7-9billion •  Visitor arrivals: 860,000 (forecast) vs 840,000 in 2014

•  Tourism Forecasting expert Prof. Haiyan Song from Hong Kong Polytechnic University forecasted: –  By 2020: China outbound tourists will read 350 million (vs.

WTO: 100million) –  By 2020: China outbound tourist arrivals to Australia will

reach 880,000

China Outbound Tourism

To Australia: Air connections

Australia’s Market Share in China Outbound Tourism

Regional Comparison

Regional Comparison

General market profile

Top 5 considerations of outbound Chinese travelers

State Destinations in Australia visited by Chinese Travelers

China Outbound Tourism

Characteristics

• Propelled by China’s economic boom

• Outbound tourists generated from more affluent areas such as Beijing, Shanghai, and Guangzhou; but second tier cities are catching up.

•  Approved Destination Status (ADS) policy requires package tours to most destinations

• ADS destinations: 111 countries and regions, covering all continents

Chinese Outbound Tourist

Characteristics • Middle age (26-45)

• Well educated

• Package tour as preferred consumption mode while individual travel arrangement preferred by young, affluent and experienced travelers

• Motivation: knowledge, relaxation, novelty (probably culture-bound but we don’t really know much)

• First timer and big spender for long haul destinations

Preferred Australian experiences by Chinese travelers

• Wildlife and coastal or harbor settings

• Niche tourism activities: surfing, diving, fishing and golf

Top 5 considerations of outbound Chinese travelers

•  Attractions, especially nature based

•  Value for money

•  Good shopping

•  Good quality food, Western and Chinese

•  Chinese language services

Key factors determining Chinese tourist satisfaction

Source: Tourism Research Australia’s: Chinese Visitor Satisfaction Research January 2014

•  The quality of Chinese food is an important aspect of a positive travel experience; positively related to satisfaction and WOM advocacy

•  Repeat visitors are more likely to be satisfaction with shopping, food and wine experience.

Key factors determining Chinese tourist satisfaction

Source: Tourism Research Australia’s: Chinese Visitor Satisfaction Research January 2014

A multi-perspective framework

•  Tourist experience perspective

•  Market (consumer) perspective

•  Destination perspective

Conceptualizing Food in tourism toward Chinese visitors

•  Quan & Wang (2004): •  Food as extension of the ontological comfort of home

•  Food as peak experiences

•  Variety vs. Novelty

•  Cohen and Avieli (2004) •  More of a sociological perspective

•  Food as attraction and impediment at the same time •  “In terms of bodily involvement, vision and taste are polar opposites. In vision, bodily

involvement and hence risk to the body are relatively low. Virtually everything can be looked at without serious bodily risks. … in contrast, eating or drinking, activities mediated by taste, involve the body directly with the environment and hence pose a potential risk” (p. 758)

Food experiences in Tourism

•  Kim, Eves, Scarles (2009) •  Motivational factors: exciting experience; escape from

routine; health concern; learning, authenticity; togetherness, prestige; sensory appeal; physical environments

•  Demographic factors: gender, age, education

•  Physiological factors: Food neophilia vs. Food neophobia

•  Mak et al. (2012)

•  Cultural/religious;

•  soic-demographic;

•  motivational;

•  personality;

•  exposure effect/past experience

Food experiences in Tourism

•  Who are food tourists? They can’t seem to be clearly identified (McKercher et al.). Few differences were noted in demographic characteristics and trip profile

•  However, food plays a major role in tourists’ destination experience (Kivela & Crotts, 2006)

Food tourist market

•  Chang, Kivela & Mak, 2010: •  Chinese food: core teaching behaviour; familiar

flavour; appetizing assurance

•  Local food: culture, authentic travel experience; learning, prestige/status; group influence

•  Non-fastidious: group harmony; compromise in supporting experience; prejudiced advocacy

Food Preferences of Chinese tourists in Australia

•  Food as tourist attraction and resources (Karin, & Chi, 2010; Henderson, 2004)

•  Food to symbolise place identity, authentic tourist experience, local pride, and job creation (Everett, Aitchison, 2008; Sims, 2009; Rand, Heath, & Alberts, 2003; Tsai & Lu, 2012)

•  Authentic food in sustainable tourism development (Sims, 2009)

Developing food tourism: Destination perspectives

•  Influenced by Chinese food culture

•  Would like to try local destination food; but definitely not for every meal

•  Seeing local food as in the cultural exploration

•  Home food attachment may vary by sub-culture region and age

•  Younger generations more used to Western fast food

•  Generally seeking familiar flavour

•  Social media (WeChat) marketing opportunities for SME food and wine businesses

Preferred Chinese food experiences

•  From food and wine to food (and wine) culture

•  Integrate food and wine into local culture exploration

•  In-depth experience with local food and wine

•  Chinese understanding of food and food culture

•  Stories of CCTV Tasting China “A Bite of China” Series

•  Food and wines as attractions

•  Cultural interpretation of food

•  The need to bring forward the background stories of food with humanistic interpretation

A Chinese perspective of food (and wine)

China Central Television Documentary “A Bite of China”

Food experiences through social media

•  Provide choice in food product supply, balancing Chinese vs local food elements toward group vs FIT markets

•  Develop food and wine as resources and explore their role in regional branding, community identity and sustainable development

•  Develop the cultural identity of Australian food & wine by assigning cultural meanings and telling good stories (South Aussie with Cosi TV series)

•  Break language barrier in menus; mandarin–speaking service staff

•  Develop effective channels through Chinese social media (WeChat and Weibo, not Facebook and Twitter)

Marketing Strategies

•  A call for university-industry partnership in defining research needs

•  Understanding the Chinese palate – an immediate knowledge concern for Australian food and wine industries

•  Connecting food, wine, tourism and regional development through clustering

Needs for more research addressing real industry development issues

Thank you!

Email: sam.huang@unisa.edu.au Phone: 08 8302 9308 Skype: songshan2004 WeChat ID: samhuangunisa