PHILIPPINE MARKETING PLAN FOR CHINA. Outline of Presentation Background on China Background on China Outbound Travel from China Outbound Travel from China

PHILIPPINE PHILIPPINE MARKETING MARKETING PLAN FOR PLAN FOR

CHINACHINA

Outline of PresentationOutline of Presentation

Background on ChinaBackground on China

Outbound Travel from ChinaOutbound Travel from China– 10-year Chinese Outbound Travel Market10-year Chinese Outbound Travel Market– China Outbound vis-à-vis East Asian CountriesChina Outbound vis-à-vis East Asian Countries– Destinations of Chinese TouristsDestinations of Chinese Tourists– Travel PreferencesTravel Preferences

ArrangementsArrangements Sources of InformationSources of Information

– Profile of Outbound Chinese TravelerProfile of Outbound Chinese Traveler Demographic ProfileDemographic Profile Travel Profile Travel Profile

– Growth trendGrowth trend– Factors fueling outbound travel growthFactors fueling outbound travel growth

Chinese Tourists to the PhilippinesChinese Tourists to the Philippines– 10-year Visitor Arrivals from China10-year Visitor Arrivals from China– Profile of Chinese VisitorsProfile of Chinese Visitors– Flight frequencies between the Philippines and ChinaFlight frequencies between the Philippines and China

Outline of PresentationOutline of Presentation

Competitive AnalysisCompetitive Analysis– Arrivals from China to ASEAN CountriesArrivals from China to ASEAN Countries– Air Seats Capacity between China and ASEAN CountriesAir Seats Capacity between China and ASEAN Countries– Comparative Profile of Chinese Visitors in the Comparative Profile of Chinese Visitors in the

Philippines and ThailandPhilippines and Thailand– Tour Products and PackagesTour Products and Packages– Marketing Strategy and ToolsMarketing Strategy and Tools

Issues and Action PlanIssues and Action Plan

Philippine Tourism Marketing Plan for ChinaPhilippine Tourism Marketing Plan for China– ObjectivesObjectives– StrategiesStrategies– Marketing ToolsMarketing Tools– Work and Financial PlansWork and Financial Plans– Communication PlanCommunication Plan– Monitoring and EvaluationMonitoring and Evaluation

BackgroundBackground

DemographicDemographic PopulationPopulation

– 1.298 Billion as of July 20041.298 Billion as of July 2004– 15 – 64 years account for 70% of the population15 – 64 years account for 70% of the population– 56 ethnic groups with the Han as the largest group 56 ethnic groups with the Han as the largest group

accounting for approximately 91% of the populationaccounting for approximately 91% of the population

Mandarin is the standard dialect widely spoken and Mandarin is the standard dialect widely spoken and understood with Cantonese commonly used in the province understood with Cantonese commonly used in the province of Guangdongof Guangdong

Fourth largest country in the world with 9.3 million sq. km. Fourth largest country in the world with 9.3 million sq. km. land arealand area

23 provinces, 5 autonomous regions and 4 municipalities23 provinces, 5 autonomous regions and 4 municipalities

Major business centers are Beijing, Shanghai, and Major business centers are Beijing, Shanghai, and GuangzhouGuangzhou

Economic GrowthEconomic Growth

1999 2000 2001 2002 2003

Gross Domestic Product (%) 7.1 8.0 7.3 7.0 7.4

GDP per capita Current Price in Yuan 6,551 7,086 7,651 8,214 9,073 Current Price in US$ 789 853 921 990 1,093 % 6.2 7.3 6.8 6.5

6.9

Source: Asian Development Bank Outlook 2003 Report

Family Income and Outbound Family Income and Outbound Travel PlansTravel Plans

Family Monthly One Journey Two Journeys Three Journeys

Income

Less than US$ 180 25%

US$ 180 – US$ 360 55% 2%

US$ 361 – US$ 550 70% 9%

More than US$ 550 34% 58% 3%

Source: SSIC 2000: Survey of Five Cities

Outbound Outbound Travel from Travel from

ChinaChina

Top Tourist Destinations, Top Tourist Destinations, 20032003

Visitor VolumeVisitor Volume Visitor ReceiptsVisitor Receipts

( in Million)( in Million) (in US$ Billion) (in US$ Billion)

FranceFrance 75.075.0 36.636.6

SpainSpain 52.552.5 41.741.7

United StatesUnited States 40.440.4 65.165.1

ItalyItaly 39.639.6 31.231.2

ChinaChina 33.033.0 17.417.4

United KingdomUnited Kingdom 24.824.8 19.419.4

AustriaAustria 19.119.1 13.613.6

MexicoMexico 18.718.7 n/a n/a

GermanyGermany 18.418.4 19.119.1

CanadaCanada 17.517.5 n/a n/a

20,200

16,602

12,133

10,4729,066 8,426 8,170

6,230

4,5203,730 3,740

0

5,000

10,000

15,000

20,000

25,000

2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993

Chinese Outbound TravelChinese Outbound Travel(in Thousand)(in Thousand)

Growth Rate 21% 37% 16% 13% 7% 3% 32% 38% 21% (.002%)

China Outbound Travel vs. China Outbound Travel vs. Outbound Travel from East Asia Outbound Travel from East Asia

(2003)(2003)

CountryCountry Volume Volume

ChinaChina 20,200,00020,200,000JapanJapan 13,296,33013,296,330KoreaKorea 7,086,323 7,086,323TaiwanTaiwan 5,923,072 5,923,072Hong KongHong Kong 8,380,467* 8,380,467*

*exclude outbound to Mainland *exclude outbound to Mainland ChinaChina

China Outbound Market China Outbound Market

Total Outbound to Asia in 2002 – Total Outbound to Asia in 2002 – 14,271,519 (which includes outbound 14,271,519 (which includes outbound travel to Special Administrative Regions)travel to Special Administrative Regions)

By 2020, WTO predicts China will have By 2020, WTO predicts China will have more than 100 million outbound more than 100 million outbound travelers travelers

Source: WTO ReportSource: WTO Report

Destinations of Chinese Destinations of Chinese TouristsTourists

Destinations 2001 2000 Growth Rate

Hong Kong SAR 4,448,583 4,142,191 7%Macao SAR 3,005,733 1,644,421 82%Thailand 695,372 707,456 (1%)Vietnam 672,372 n/a n/aRussia 606,102 n/a n/aRepublic of Korea 482,308 400,958 20%Malaysia 453,206 n/a n/aJapan 391,384 595,660 (34%)Australia 171,900 126,852 36%

Preferences of Chinese Preferences of Chinese TravelersTravelers

Extremely price – consciousExtremely price – conscious

– Price is a major considerationPrice is a major consideration– Tour cost has to be cheapTour cost has to be cheap– Mass market and not high-end nor deluxeMass market and not high-end nor deluxe– No optional tours but would not mind paying extra to go No optional tours but would not mind paying extra to go

shopping or take part in activities not included in the shopping or take part in activities not included in the package. Extra cost must not be too highpackage. Extra cost must not be too high

– 3-star accommodation3-star accommodation– Demand compliance with tour descriptionDemand compliance with tour description

Information in Chinese languageInformation in Chinese language– Word-of-mouth communication from friends and Word-of-mouth communication from friends and

relatives is still an important information sourcerelatives is still an important information source

Preferences of Chinese Preferences of Chinese TravelersTravelers

Multi/Single-destination tied with Multi/Single-destination tied with varied interesting spotsvaried interesting spots

– Beautiful sceneryBeautiful scenery– Shop authentic but cheap souvenirs for Shop authentic but cheap souvenirs for

neighbors, colleagues, etc.neighbors, colleagues, etc.– Relaxation, knowledge and experience Relaxation, knowledge and experience

different culturedifferent culture– Taste different foodTaste different food– Give status in the communityGive status in the community

Sources of InformationSources of Information

Travel AgentsTravel Agents 38%38%

Books/ Newspapers/ TVBooks/ Newspapers/ TV 33%33%

Word of MouthWord of Mouth 18%18%

Brochures/ FlyersBrochures/ Flyers 7% 7%

InternetInternet 2% 2%

Source: PATA China Outbound Travel Study, 1994

Travel Agency, 33%

Personal, 29%

Semi-Independent

TA, 10%

Own Employer, 9%

Parent Company, 9%

Other, 7%

Travel Arrangements for Pleasure Travel Arrangements for Pleasure TravelersTravelers


Readership of Different Types of Readership of Different Types of MagazinesMagazines

Type of MagazineType of Magazine Pleasure TravelerPleasure Traveler Business Business TravelerTraveler

Major news magazinesMajor news magazines 50%50% 61%61%

Digest magazinesDigest magazines 44%44% 46%46%

General interest magazinesGeneral interest magazines 44%44% 35%35%

Film/TV magazinesFilm/TV magazines 34%34% 18%18%

Travel magazinesTravel magazines 24%24% 13%13%

Professional magazinesProfessional magazines 24%24% 45%45%

Sports magazinesSports magazines 22%22% 27%27%


Demographic Profile of Chinese Demographic Profile of Chinese TravelerTraveler

SexSexMaleMale 71%71%FemaleFemale 29%29%

AgeAge30 or younger30 or younger 27%27%31 – 5031 – 50 49%49%51 and older51 and older 22%22%

EducationEducationNo higher educationNo higher education 20%20%Less than4 yearsLess than4 years 27%27%4 years and more4 years and more 52%52%

PositionPositionTop/SeniorTop/Senior 33%33%Middle-levelMiddle-level 50%50%OtherOther 15%15%

Monthly household incomeMonthly household incomeLess than1600 yuanLess than1600 yuan 30%30%1601 – 2400 yuan1601 – 2400 yuan 32%32%More than 2401 yuanMore than 2401 yuan 34%34%

Marital StatusMarital StatusMarriedMarried 78%78%Non-marriedNon-married 20%20%


Travel Profile of Chinese TouristTravel Profile of Chinese Tourist

Purpose of VisitPurpose of Visit

Business (64%)Business (64%)Visiting partnersVisiting partners 24%24%ConventionsConventions 12%12%Exchange toursExchange tours 10%10%Sports/ CulturalSports/ Cultural 2% 2%OthersOthers 13%13%

Pleasure (39%)Pleasure (39%)SightseeingSightseeing 19%19%Visiting relativesVisiting relatives 16%16%Visiting friendsVisiting friends 2% 2%Sports/ CulturalSports/ Cultural 2% 2%

Frequency of travelFrequency of travel1 trip1 trip 59%59%2 trips2 trips 19%19%3 or more trips3 or more trips 20%20%

Length of most recent tripsLength of most recent tripsOne week or lessOne week or less 19%19%8 to 21 days8 to 21 days 54%54%More than three weeksMore than three weeks26%26%

TraveledTraveledAloneAlone 21%21%With others (78%)With others (78%)

DelegationDelegation 16%16%Company TripCompany Trip 40%40%Package TourPackage Tour 14%14%Spouse/ChildrenSpouse/Children 6% 6%


Most Popular Items Chinese Buy When Most Popular Items Chinese Buy When Traveling AbroadTraveling Abroad


ItemsItems Pleasure TravelerPleasure Traveler Business Business TravelerTraveler

Food/ candy/ chocolateFood/ candy/ chocolate 57%57% 50%50%Liquor/ TabacoLiquor/ Tabaco 34%34% 36%36%Women’s clothingWomen’s clothing 36%36% 17%17%SouvenirSouvenir 30%30% 20%20%Men’s clothingMen’s clothing 31%31% 17%17%JewelryJewelry 25%25% 19%19%ElectronicsElectronics 18%18% 20%20%Leather goodsLeather goods 17%17% 12%12%

Market SegmentMarket Segment

59% 41%1992

Business Purpose Pleasure Purpose

46% 54%2000


Chinese Travel OutlookChinese Travel Outlook

Type of travelersType of travelersPleasurePleasure 54%54%Business (46%)Business (46%)

EconomicEconomic 48%48%Non-economicNon-economic 40%40%

Frequency of travelFrequency of travelOnceOnce 38%38%TwiceTwice 46%46%FrequentFrequent 70%70%

CityCityBeijingBeijing 61%61%ShanghaiShanghai 39%39%GuangzhouGuangzhou 38%38%

Place of workPlace of workForeign-invested/foreignForeign-invested/foreign owned enterprisesowned enterprises 51%51%State enterprisesState enterprises 48%48%Academic/ researchAcademic/ research 48%48%GovernmentGovernment 41%41%Other non-profit orgsOther non-profit orgs 33%33%

Have relatives living abroadHave relatives living abroadYesYes 48%48%NoNo 26%26%


Major Sources of Outbound Major Sources of Outbound TravelTravel

Beijing ShanghaiGuangdong

(Peking)

Population 13 M 16 M 72.70 MUrban Population 4.7 M 7.5 M 2.6 M (Guangzhou)Per Capita Income US$ 13,471 US$ 13,602 US$ 2,029

Capital of Industrial/Political/Economic

China Financial/Technological/

Commercial Cultural CenterCenter

Places of interests Shops 83% 85% 93% Historical sites 65% 75% 66% Theme parks 46% 45% 58% Museums 41% 35% 41% Casino/ Bar 13% 9% 15%

Chinese Travel OutlookChinese Travel Outlook Rising rapidly and will be first tourist source Rising rapidly and will be first tourist source

nation by 2020nation by 2020

Major visitor-generating market for ASEAN Major visitor-generating market for ASEAN destinationsdestinations

77thth largest tourism spender in the world largest tourism spender in the world

Global trend for short - haul travelGlobal trend for short - haul travel

Workers enjoy seven-day holidays on May 1 (International Workers enjoy seven-day holidays on May 1 (International Workers Day) and October (National Day) for a total of 14 Workers Day) and October (National Day) for a total of 14 days yearlydays yearly

Factors Fuelling Outbound Travel Factors Fuelling Outbound Travel GrowthGrowth

Growing gross national income which is Growing gross national income which is number six (6) in the worldnumber six (6) in the world

Growing disposable income with household Growing disposable income with household savings in urban and rural areas exceeding 10 savings in urban and rural areas exceeding 10 trillion RMB. GDP per capita is expected to trillion RMB. GDP per capita is expected to reach US$ 1,000reach US$ 1,000

Shifting consumption pattern from dressing Shifting consumption pattern from dressing warmly and eating one’s fill, to living a well-warmly and eating one’s fill, to living a well-off lifeoff life


Outbound travel restriction are being relaxedOutbound travel restriction are being relaxed

– Exit clearance has been lifted since 01 February Exit clearance has been lifted since 01 February 2002, However, Chinese traveling abroad must 2002, However, Chinese traveling abroad must obtain or hold a valid visa issued by a foreign obtain or hold a valid visa issued by a foreign government before they are allowed to exit Chinagovernment before they are allowed to exit China

– Chinese tourists can take between US$ 3,000 – Chinese tourists can take between US$ 3,000 – US$ 5,000 on a trip abroadUS$ 5,000 on a trip abroad

– Outbound tourists can also buy foreign currency Outbound tourists can also buy foreign currency themselves rather than thru travel agencythemselves rather than thru travel agency

– More travel agencies are being allowed to More travel agencies are being allowed to operate outbound toursoperate outbound tours

Simplification of passport application proceduresSimplification of passport application procedures


Improving air capacity infrastructure. By 2019, China Improving air capacity infrastructure. By 2019, China is projected to have 22,000 passenger airplanes which is projected to have 22,000 passenger airplanes which is more than 10 times the world’s totalis more than 10 times the world’s total

Increasing number of destinations being granted ADS Increasing number of destinations being granted ADS from 4 in 1992 (Thailand, Malaysia, Singapore and from 4 in 1992 (Thailand, Malaysia, Singapore and Philippines) to 73 in September 2004Philippines) to 73 in September 2004

Outbound tour is no longer a once-in-a-lifetime event. Outbound tour is no longer a once-in-a-lifetime event. Repeat outbound travel is becoming common.Repeat outbound travel is becoming common.

Middle-class families are becoming main force. Middle-class families are becoming main force. Middle-aged travelers and educated young adults with Middle-aged travelers and educated young adults with high incomes comprise a big proportion of outbound high incomes comprise a big proportion of outbound touriststourists

List of ADS CountriesList of ADS CountriesYear Countries

1983 Hong Kong, Macau

1988 Thailand

1990 Singapore, Malaysia

1992 Philippines

1999 Australia, New Zealand, Republic of Korea

2000 Japan, Vietnam, Cambodia, Myanmar, Brunei

2002 Nepal, Indonesia, Malta, Turkey, Egypt

2003 Germany, India, Maldives, Sri Lanka, South Africa

Croatia, Hungary, Pakistan, Cuba

2004 Austria, Belgium, Cyprus, Denmark, Estonia, Finland

France, Greece, Italy, Latvia, Lithuania, Luxembourg

Netherlands, Poland, Portugal, Ireland, Slovakia,

Slovenia, Spain, Sweden, Norway, Iceland,

Switzerland, Liechtenstein, Romania, Zimbabwe,

Brazil, Tanzania, Russia, Ethiopia

Chinese Passport and Visa Chinese Passport and Visa BeforeBefore

– Chinese citizens wishing to travel overseas need Chinese citizens wishing to travel overseas need to apply for a passport which is valid only for the to apply for a passport which is valid only for the journey appliedjourney applied

– Invitation from foreign country is requiredInvitation from foreign country is required

– For ADS countries, invitation is not required but For ADS countries, invitation is not required but the number of Chinese citizens visiting said the number of Chinese citizens visiting said countries is established through “quota system” countries is established through “quota system” for authorized travel agents only allowed to sell for authorized travel agents only allowed to sell outbound toursoutbound tours

– Exit clearance is requiredExit clearance is required

Chinese Passport and Visa Chinese Passport and Visa

AfterAfter

– July 2000: Chinese citizens can obtain July 2000: Chinese citizens can obtain passport without an invitation letter from passport without an invitation letter from foreign country but requirement to obtain foreign country but requirement to obtain “permission” /exit permit or visa for each “permission” /exit permit or visa for each journey remainsjourney remains

– February 2002: Exit clearance has been lifted, February 2002: Exit clearance has been lifted, however, valid visa from foreign country to be however, valid visa from foreign country to be visited must be secured before Chinese tourists visited must be secured before Chinese tourists are allowed to exit China are allowed to exit China

Chinese Chinese Tourists to Tourists to

the the PhilippinesPhilippines

Arrivals from China to the PhilippinesArrivals from China to the Philippines1993 - 20031993 - 2003

0

5000

10000

15000

20000

25000

30000

35000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 200332% -7% 83% 21% 27% -13% -31% 29% 47%

7,0119,259

8,606

15,757

19,093

24,252

21,220

14,724

18,937

27,803

Source: A/D Cards

% increase/ decrease

32,039

15.2%

Profile of Visitors from China to Profile of Visitors from China to the Philippines, 2003the Philippines, 2003

SexMale 61.61%Female 33.45%

Age25 – 34 years old 25.22%35 – 44 years old 31.51%45 – 54 years old 17.37%

OccupationProfessional/ Managerial/ Administrative 24.57%Clerical/ Sales Services 1.23%Housewife 4.54%Student/ Minor 4.51%Not Stated 60.09%

Purpose of VisitHoliday 40.69%Business 8.83%VFR 8.21%Convention 1.19%Official Mission 0.26%Not Stated 37.52%

ActivitiesShopping 94.80%Sightseeing 10.30%Sports 1.90%Conference 1.30%Others 1.30%Beach Holiday 0.60%Incentive Travel 0.60%


Type of AccommodationHotel 16.07%Apartel/ Rented Homes 3.76%Homes of Relatives/ Friends

5.63%Not Stated 74.55%

Travel ArrangementsPackage 32.27%Independent 17.86%Not Stated 49.87%

Frequency of VisitFirst Visit 32.92%Repeat Visit 20.79%Not Stated 46.29%

Average Daily Expenditure (in US$)

Accommodation 20.06Shopping 11.35Food/ Beverage 9.72 Local Transport 3.19

Entertainment/ Recreation 2.93Guided Tour 0.19Miscellaneous 8.77

US$ 56.21

Average Length of Stay 11.10 nights

Visitor Receipts US$ 19,900 M


Things like most about the Philippines

Warm, hospitable and kind people 37.60%Beautiful scenery/ nice beaches 20.70%Good climate 14.10%Good food/ liquor/ fruits 8.50

Things dislike most about the Philippines

Heavy traffic 36.20%Air/ water pollution/ dirty environment/ bad roads

32.10%Crime incidents/ poor peace and order 23.30%Widespread poverty beggars 4.80%Cheating, reckless/ dishonest taxi drivers 2.60%

Flight Frequencies between Philippines and Flight Frequencies between Philippines and ChinaChina

(as of October 2004)(as of October 2004)

China Southern Airline (96,252)China Southern Airline (96,252)>> Peking (Beijing) – Xiamen – Manila (Daily) Peking (Beijing) – Xiamen – Manila (Daily)>> Canton (Guangzhou) – Laoag (Wed, Fri, Sun) Canton (Guangzhou) – Laoag (Wed, Fri, Sun)> Shanghai – Laoag (Fri, Sun)> Shanghai – Laoag (Fri, Sun)

Philippines Airlines (117,832)Philippines Airlines (117,832)> Shanghai - Manila (Daily)> Shanghai - Manila (Daily)> Xiamen - Manila (4 times)> Xiamen - Manila (4 times)

Cebu Pacific (38,688)Cebu Pacific (38,688)> Canton (Guangzhou) – Subic – Manila (Fri, Sun)> Canton (Guangzhou) – Subic – Manila (Fri, Sun)> Manila – Xiamen (Sun)> Manila – Xiamen (Sun)

Based on CAB Summer ScheduleBased on CAB Summer Schedule

Entitlements 624,000

Utilized entitlements 214,084

Visas Issued by Philippine Consulate General Visas Issued by Philippine Consulate General January – September 2004January – September 2004

Type of VisaType of Visa BeijingBeijing ShanghaiShanghaiTotalTotal

PleasurePleasureIndividualsIndividuals 4,5974,597 Tour groupsTour groups 2,399 2,399

BusinessBusiness 1,5231,523 OfficialOfficial 6 6 Crew membersCrew members 96 96 StudentStudent 1 1

TotalTotal 4,8364,836 8,6228,622 13,45813,458

Strengths, Weaknesses, Opportunities Strengths, Weaknesses, Opportunities and Threats (SWOT) of the Philippines and Threats (SWOT) of the Philippines

as a destinationas a destinationfor Chinese touristsfor Chinese tourists

StrengthsStrengths

- natural scenery (beaches, - natural scenery (beaches, etc.)etc.)

- friendly to Chinese (Chinese - friendly to Chinese (Chinese heritage of Filipinos)heritage of Filipinos)

- different culture - different culture

- variety of seafood (for - variety of seafood (for southern Chinese) and sunny southern Chinese) and sunny island resorts (for island resorts (for northerners)northerners)

- proximity to China- proximity to China

- English-language facility- English-language facility

WeaknessesWeaknesses

- lack of information on Philippine - lack of information on Philippine destinations (consumers and destinations (consumers and tour operators)tour operators)

- pricing (high price and not one - pricing (high price and not one price) price)

- negative image re: security - negative image re: security problemsproblems

- no variety in tour offerings- no variety in tour offerings

- lack of infrastructure - lack of infrastructure developmentdevelopment

- lack of professional Mandarin-- lack of professional Mandarin-speaking tour guidesspeaking tour guides

- aside from Manila, no direct - aside from Manila, no direct flights from China to Cebu and flights from China to Cebu and DavaoDavao

-- fragmented private sectorfragmented private sector

OpportunitiesOpportunities

- compared to Bali and Phuket, - compared to Bali and Phuket, several Chinese tour several Chinese tour operators prefer Boracayoperators prefer Boracay

- China is a seller’s market, so - China is a seller’s market, so with enough local advertising with enough local advertising and information to operators and information to operators and consumers , Philippine and consumers , Philippine tour packages can be pushed tour packages can be pushed moremore

- China is used to charters - China is used to charters

- good relationship established - good relationship established between DOT and CNTA and between DOT and CNTA and local officialslocal officials

- large portion of outbound - large portion of outbound market are first-timers out of market are first-timers out of ChinaChina

- Future events in China - Future events in China require them to learn English require them to learn English fast (i.e., 2008 Olympics)fast (i.e., 2008 Olympics)

ThreatsThreats

- More countries granted Approved - More countries granted Approved Destination Status (ADS) as of Destination Status (ADS) as of 2003 especially in Europe2003 especially in Europe

- terrorism and security problems- terrorism and security problems

- aggressive marketing and - aggressive marketing and sufficient budgetsufficient budget

Strengths, Weaknesses, Opportunities Strengths, Weaknesses, Opportunities and Threats (SWOT) of the Philippines and Threats (SWOT) of the Philippines

as a destinationas a destinationfor Chinese touristsfor Chinese tourists

Approved Destination Status Approved Destination Status (ADS)(ADS)

According to the China National Tourism Administration According to the China National Tourism Administration (CNTA), several countries who have been granted ADS , (CNTA), several countries who have been granted ADS , have not been successful in getting substantial share have not been successful in getting substantial share of the Chinese outbound market due to : of the Chinese outbound market due to :

– no advertising for tour offerings in publications of travel agenciesno advertising for tour offerings in publications of travel agencies

– high price is a major obstaclehigh price is a major obstacle

– no brochures and lack of communications making it difficult for no brochures and lack of communications making it difficult for Chinese travel agencies to promote new destinationsChinese travel agencies to promote new destinations

– more professional tour guides requiredmore professional tour guides required

COMPETITORS’ PACKAGESCOMPETITORS’ PACKAGES

ThailandThailand - Beijing-Phuket, 6 days – 5 - Beijing-Phuket, 6 days – 5

nites, with airfare nites, with airfare

3980 RMB or 3980 RMB or $ 485.$ 485.

- Beijing-Bangkok-Pattaya - Beijing-Bangkok-Pattaya (full board), 6 days-5 nites, (full board), 6 days-5 nites, 4480 RMB or 4480 RMB or $ 545 or $ 545 or $691 $691 during high season during high season (May and Oct)(May and Oct)

• Thailand spent $200,000 in Thailand spent $200,000 in advertising in China during advertising in China during 11stst year of operation year of operation

PhilippinesPhilippines

- Beijing-Manila-Cebu, - Beijing-Manila-Cebu, 6 days-5 nites, 5980 6 days-5 nites, 5980 RMB or $ 728.RMB or $ 728.

Philippines

Singapore

Indonesia

Vietnam

Malaysia

China

Thailand

MAP OF ASIA

Documents

PHILIPPINE MARKETING PLAN FOR CHINA. Outline of Presentation Background on China Background on China Outbound Travel from China Outbound Travel from China