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Ready for departure: the role of public relations in boosting tourism from China to the U.S.

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Ready for departure: the role of public relations in boosting tourism from China to the U.S.

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Content 1 READY FOR DEPARTURE THE ROLE OF PUBLIC RELATIONS IN BOOSTING TOURISM FROM CHINA TO THE U.S. by Chia-Ling Melody Yuan A Thesis Presented to the FACULTY OF THE USC GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements for the Degree MASTER OF ARTS (STRATEGIC PUBLIC RELATIONS) August 2013 2 Acknowledgements First and foremost, I thank my incredibly supportive parents Weimin and Mari Yuan for encouraging me throughout this process. I also thank my wonderfully insightful professors and peers at the USC Annenberg Strategic Public Relations program who have guided and given me constructive feedback during this incredible journey. 3 Table of Contents Introduction 5 Preface Research 6 China’s current economic status 7 Special Considerations 8 Chapter One: Tourism as a Cultural Platform 10 Chapter Two: Policies for Entering the U.S. 12 Post 9/11 12 Easing Travel Restriction 14 Chapter Three: The Travel and Tourism Industry Impact on the U.S. Economy 18 Current Numbers in Tourism 18 U.S. Travel Promotion Act 19 Brand USA 20 Discover America 21 Chapter Four: The Growing Tourist Industry in China 23 History of Travel and Tourism in China 23 Top Destinations 24 Travel Seasons and Cultural Ramifications 27 Chapter Five: Chinese Traveler Profile 30 Overview 30 Middle Class Growth 31 Consumer Confidence 32 Emergence of the New Rich 34 Chapter Six: Consumption Habits 37 Travel Expenditures 37 Going Online 39 Brand Loyalty 42 Value Perception 43 Chapter Seven: Segmenting the Chinese Traveler Market 45 Leisure 45 First-Timers 46 Repeaters 47 Business 49 4 Chapter Eight: Travel Deterrents 52 Language Barriers 54 Political Strain 55 Inconvenience Chapter Nine: Gauging Competition 57 Tactics Used by Competing Long-Haul Destinations 57 Competitive Advantages of the U.S. 62 Industry Performance Comparison 64 Chapter Ten: Identifying Opportunities in Creating Values 67 Understanding the Consumer 67 Conclusion 72 Bibliography 75 5 Introduction The World Tourism Organization predicts that by the year 2020, 100 million Chinese travelers will go abroad. (“Tourism 2020 Vision: East Asia Pacific”) That’s almost equivalent to the entire population of Mexico packing up their bags and going on vacation. Not only does the sheer number of travelers demonstrate potential, last year’s total expenditure of $72 billion shows that they are also eager to spend money. In the year 2012 alone, outbound tourism from China grew 20 percent within the first five months. (“Chinese to become biggest spenders as record numbers head overseas”) Needless to say, the Chinese outbound travel market is an area of hot topic with nations aggressively competing to attract this niche group of travelers. Contrary to the unstable world economy, the travel and tourism industry shows continued growth with the number of international tourists up by 4% between January and August of 2012. At this rate, the World Tourism Organization (WTO) is confident that by the end of this year, over one billion tourists will have traveled abroad. With a combination of easier access to travel and the strength of emerging economies predominantly from BRIC (Brazil, Russia, India and China) nations compensating for the slowdown of matured economies, the industry is seeing radical changes in the way people travel. Destination marketing and more importantly, branding is no longer one- dimensional but involves multiple parties and increasingly relies on consumer feedbacks that go beyond national boundaries. Higher levels of strategic communication practices must be implemented to compete, as simple advertising campaigns are no longer the primary method of reaching target audiences. With this acknowledgement, the U.S. must 6 successfully portray itself as a country that has high visitation values across a range of countries, cultures and consumers. This thesis carefully assesses and further explores the ways in which efforts in the U.S. can be developed to better receive Chinese tourists. It discusses the importance of understanding travel as a cultural platform and how to create a symbiotic relationship between the traveler and the host nation. Tactics, challenges and recommendations on how to effectively communicate the U.S. brand identity with relevance to the Chinese visitor will also be one of the main focuses of the thesis. Market trends, consumer profiles and value creation opportunities are written with the intent that they will provide useful insights to promote the U.S. as an attractive destination. Research Both primary and secondary researches were involved to substantiate this thesis. While secondary research investigated historical, economical and societal contexts, primary research focused on the outlook of Chinese outbound tourism from key industry experts and opinion leaders. Primary research included interviews from industry leaders in both the U.S. and China. In depth content analysis of industry reports, graphic representations and trends are also included to provide a visual understanding of the dynamic industry. Secondary research involved a variety of sources ranging from news features to professional market studies. A total of three one-on-one interviews with travel and tourism communication professionals contributed to the majority of the qualitative research while syndicated research acquired from the China Marketing and Media Study (CMMS) accounted for 7 most of the quantitative research. Supported by China’s leading research group Sinomonitor, CMMS market research and data reflect the industry in 2011 and the first quarter of 2012. China’s Current Economic Status China has had a 180-degree transformation from a communist economic model to one that embraces a state capitalist system in a short amount of time. Although picturing this fact may be difficult given the enormous capital progress in the recent years, the Cultural Revolution and the stronghold of communist isolation thrived in the 70s, less than five decades ago. China only began to consider opening up to foreign trade in the late 70s and early 80s sparked by initiatives from both President Richard Nixon’s visitation and Deng Xiaoping’s ambitious economic strategy. Both leaders recognized the need of a positive relationship between the two countries to mutually grow and guarantee national security on various levels. Leader Deng Xiaoping’s famous quote, “black cat, white cat, what does it matter so long as it catches mice?” (Cosbey) accurately illustrates his plans to industrialize and make China more internationally competitive. While his ideas for modernization may not have directly involved the tourism sector, his proactive and sometimes martial campaigns eventually led to the emergence of China as a capital marketplace. Obligatory economic reforms and the aggressive push to advance China stimulated job growth with competitive wages, boosted productivity levels and higher standards of living. According to China’s Friendship Award recipient Robert Cosbey, “in 1982, washing machines began to appear in stores,” and in a society where only gray, 8 black and navy colors were once permitted in public, colors began to saturate the streets. Cosbey recalled that, “more and more, as the decade went on, people indulged in hobbies,” (Cosbey) signaling a more comfortable lifestyle for Chinese citizens. Today, the domestic consumer in China is becoming increasingly powerful and involved in the nation’s economic performance. With sustained yet rapid economic growth, the annual average growth domestic production (GDP) level has been at nine percent with a historical high of 14 percent. (“The World Bank”) Since then the GDP has dropped slightly to seven percent but remains high relative to the rest of the world. The slowdown has been attributed to the sluggish global economic recovery, however, China’s Xinhua News agency quotes that the government is “confident of achieving annual targets and the economy will continue to show positive changes.” (“China GDP Shows Pickup Signs After Seven-Quarter Slowdown”) Special Considerations Due to the immensity of both the population in China and the cultural diversity within each of its regions; findings and suggestions will be made on a general level that address the entire country. Because there are infinite factors that influence individuals in their decision to travel, the researcher has identified the most relevant ones to expand in detail on certain ideas. Data collected from the China Marketing and Media Study research tool has been incorporated to analyze consumer behavior, preferences and dispositions. Chinese consumerism is currently being researched across all industries and countries as a topic of heavy interest. Reports have been published pertaining to the Chinese travel market and 9 the latent influx of capital involved. For this reason, the researcher applies key findings to the content analysis to decipher and develop a tailored nation branding public relations strategy for the U.S. Rather than concentrating efforts on criticizing the current initiatives being implemented to attract travelers and promote the U.S., the researcher’s intent is to unearth opportunities for niche traveler markets to visit. The established programs aimed at promoting the U.S. as a destination are significant first steps for the overarching nation branding effort. The purpose of this thesis is to enhance these campaigns by building a framework that helps Americans better understand the Chinese traveler and to strategize on ways to best prepare for their arrival. 10 Chapter One: Travel and Tourism as a Cultural Platform China today has a population of 1.3 billion and 56 recognized ethnic groups. Conversely, the United States has a population of 314 million and 50 very distinct states. This level of diversity and scope appears challenging at first to any communications practitioner attempting to create points of contact between the two countries. Through the perspective of viewing the glass half full, however, this rich multiplicity is also identified as an opportunity for both countries to discover and appreciate the complexity of each other’s identities. Interestingly, with the pressure of marketing efforts and analysis of ROI, most destination branding campaigns overlook the value of cultural exchange. Although this element is less tangible than the dollar amount spent by visitors, positive cultural effects propel the underlying incentive for travelers to pick one destination over the other. The key is to relate the unique characteristics of the U.S. to the Chinese traveler in order to establish a strong bond. Unfortunately, the bond connecting the U.S. to international travelers has started to fade as its world market share fell from 17.2 percent in 2000 to about 11.6 percent in 2010. (Discover America) In fact, while long-haul travel increased between 2001 and 2010 by 52.1% globally, those coming into the U.S. grew by only 1.5%. (Discover America) With competing long-haul destinations such as France and Australia intensifying their branding and marketing efforts aimed directly at Chinese tourists, the U.S. should also leverage its existing travel programs to create a more targeted travel initiative campaign for influential countries. Leveraging existing travel programs, however, is not limited to one-sided marketing tactics. The most compelling way to 11 capture an audience is to tell a story that they can empathize with. The story itself must be relatable but fresh, with the ability to draw the Chinese to learn more about an America beyond stereotypes. It should also extend beyond the great things the U.S. has to offer in general and focus more so on what great experiences and benefits visitors can receive. Storytelling as a branding strategy is crucial for communicating a nation’s identity and attracting travelers through that identity. To convert perception and more importantly, to have that perception turn into the act of visiting the U.S., there must be a strong understanding of complex cultural nuances about visitors and their country of origin. For example, when identifying the occasions when the Chinese travel most, researchers must comprehend why certain national holidays such as the Spring Festival cause domestic travel to spike while heavy international travel is attributed to other holidays. Although the characteristics of the Chinese travel market are disparate across generations, purchasing power and geography, these individual travelers are also bound by implicit traditions. Culture lies at the core of national identity and must be understood, appreciated and promoted throughout travel and tourism efforts. The quantifiable objectives for promoting the U.S. as a top tier destination for Chinese tourists are clear: enhance businesses, increase jobs and pump money into the economy. In addition to these outcomes, applying travel and tourism as a cultural platform enriches the perceptions between the traveler and host, leading to a more amicable relationship between both countries. Travel must be promoted with the intent to encourage exploration and break down ignorance. While bringing in first-time travelers to the U.S. is crucial for industry growth, it is equally important to retain those travelers 12 and convert them into repeat visitors. Simple logic dictates that the more enjoyable their first experience is, the more positively they will associate with the country and the more likely they are to return. To identify what is agreeable to the Chinese traveler, however, one must thoroughly research their culture and distinguish certain values. General awareness levels of cultural contexts on those traveling to the U.S. will once again strengthen the bond connecting the country to international travelers and recover its world market share. 13 Chapter Two: Policies for Entering the U.S. Post 9/11 Stricter travel restrictions and policies can be attributed, for the most part, after the deadly terrorist attack of September eleventh in 2001. While public relations, marketing and advertising can bolster the image and create a desire for people to visit the U.S., efforts in successful nation branding go to waste if policies and travel sanctions don’t support the influx of visitors. The convoluted and time-consuming process of applying for a visa to simply enter the U.S. is a big deterrent for those considering long haul travel destinations. Between implementing strict security measures to protect the safety of citizens and attempting to increase the number of visitors to cross the border and spend money, the U.S. faces a delicate quandary on how to best tailor policies that satisfy both objectives. Since the 9/11 attacks, the U.S. clamped down heavily on national security on all levels. Visible changes in the airports included more stringent security checks and the number of patrolling police officers. Security technology projects received large portions of money and attention and government officials quickly changed travel policies (both for people and cargo) to involve intense screening procedures under the term ‘prevention at all costs.’ Long term travel provisions included the Congress passing the Aviation and Transportation Security Act two months after the incident, the Enhanced Border Security and Visa Entry Reform Act and President Bush passing the Homeland Security Act in 2002 that controlled all immigration and visitation agencies such as the U.S. Immigration and Customs Enforcement (ICE) and the U.S. Customs and Border Protection. (“Five Ways Immigration System Changed after 9/11”) Protecting the American people became 14 the national agenda and put a large dent in the U.S. travel and tourism industry. Jack Riley of the RAND National Security Research Division claimed that, “we have not developed a reasonable way to reduce that inspection workload is perhaps the biggest missed opportunity of the past decade.” (Jenkins, B., Godges, J.) International tourism coming to the U.S. fell for three consecutive years after the attack and concurrently, the number of Americans engaging in international travel also declined. According to the Office of Travel and Tourism Industries, in August of 2001 the U.S. saw 775,516 visitors from Asia. That number dropped drastically to 394,676 in September and even lower in October to 249,815 with a negative 59.2 percent change. (Office of Travel & Tourism Industries) 12 years since the 9/11 attacks, visitation numbers into the U.S. has seen a gradual incline, however, at a pace much slower than its rivaling national contenders such as France, Australia and Canada. In fact, while only 13 percent of Chinese travelers visited the U.S., 38 percent went to Western Europe in 2010. (“Simpler visa procedures for Chinese tourists”) The strict security protocols that were put into place in 2001 have somewhat eased with the appointment of President Obama who recognized the need for policy reforms in order to boost the travel and tourism sector. The lingering emphasis on national security, however, cannot be undermined as airport procedures, frequency of flight delays and some visa application processes begets disgruntled foreign visitors. Easing Travel Restrictions “We want to welcome you,” said President Obama as he initiated the Global Entry Program. The level of change that the U.S. would initiate could be seen with the 15 number of travel initiative programs and easing restrictions across the nation. 9/11 imposed large setbacks to the number of visitors as the U.S. issued 7.6 million visas in 2001 and only 6.5 million in 2010. 1.3 million jobs and an additional $860 billion would push the American economy if visitation levels bounce back to pre-9/11 days. (“Obama eases visa rules to boost U.S. tourism”) According to the China Tourism Academy, the numbers seem bright as Chinese visitors alone grew from 400,000 in 2007 to over 1 million in 2010. (“Simpler visa procedures for Chinese tourists”) While national security cannot be compromised, easing travel restrictions for those simply wanting to visit for the holidays can certainly be done to stimulate the economy. Policy changes and improvements that directly affect Chinese travelers include faster visa interviews conducted within three weeks upon receiving a visa application as opposed to the previous three months, an expanded Visa Waiver Program and the Global Entry Program for expedited clearance for pre-approved travelers. Some travelers who are identified as ‘low-risk’ may even avert the interview process altogether and receive their visa faster. Furthermore, the recent announcement in October 2012 that Taiwan would be added onto the Visa Waiver Program shows tremendous support for visiting Chinese and Taiwanese visitors. Through the Visa Waiver Program that allows visitors to stay in the U.S. for up to 90 days without a visa, Taiwanese visitors may rise by 30 percent. In 2011 alone, over 290,000 Taiwanese visitors came and spent approximately $1.1 billion. (“United States adds Taiwan to Visa Waiver Program.”) Interestingly, however, despite the newly implemented Visa Waiver Program and the predicted 30 percent increase, the number of Taiwanese visitors coming into the U.S. has slowed while China has shown strong growth. This proves that while policies may change in favor for 16 the certain visitors to come and visit, efforts are futile without the proper messaging, branding and marketing strategies. To demonstrate the effectiveness of President Obama’s initiatives to bolster the U.S. travel and tourism industry, data from the Office of Travel & Tourism Industries has shown that the number of visitors from China has escalated at a faster rate since President Obama’s initiative in 2012. He mandated that the goal for the State of Homeland Security departments in 2012 was to boost visa-issuing capacities for China and Brazil by 40% and stressed the importance of projecting a welcoming image of the U.S. to the world. (“Obama Eases Visa Rules to Boost U.S. Tourism.”) Latin American countries have also shown tremendous growth in visitation numbers as Brazilian, Colombian, Venezuelan and Argentinean travelers flood the arrival gates. Brazil in particular has shown the fastest growth than any other country with over 980,000 visitors in the U.S. within the first three quarters of 2012. Source from the Office of Travel & Tourism Industries monthly arrivals 2011 17 Source from Office of Travel & Tourism Industries monthly arrivals 2012 Public relations, marketing and advertising efforts at its core can only encourage people to consider and act upon the idea of visiting the U.S. The actual contact and experience in the pursuit of travel lie at the mercy of policies and mandates that the U.S. government dictates. President Obama’s initiative to ease travel restrictions and plans to increase visitation from Brazil and China show that the industry is headed in the right direction. With adequate attention and collaboration with the government, the U.S. travel and tourism industry can continue to grow, generate more jobs and bring in a bigger economic stimulus to the U.S. economy. 18 Chapter Three: The Travel and Tourism Industry Impact on the U.S. Economy Current Numbers in Tourism The U.S. Travel Association has claimed that the travel and tourism industry is one of America’s largest and core revenue generators. Research from the Power of Travel Coalition shows that travel continues to be a strong force in the U.S. economy as the industry generates $1.8 trillion in economic output and generates jobs for one in every nine Americans. (“Impact of Travel”) Data collected in 2010 indicates that the industry is also one of the nation’s largest service exports. Specific numbers include, “direct spending by resident and international travelers in the U.S. averaged $2 billion a day, $88.6 million an hour, $1.4 million a minute and $24,000 a second.” (“Economic Impact of Travel and Tourism”) The industry has shown a high level of lucrative growth as there was a reported $32 billion surplus in the balance of travel trade for the U.S. Despite the dip that followed immediately after 9/11, hospitality has always been a familiar trade nationwide. With 14 million jobs sustained through the industry, Americans are affiliated with the travel and tourism in one form or another. The nation will get more acquainted, as according to data released by the Commerce Department, tourism will grow on average at six to eight percent annually. (“Economic Impact of Travel and Tourism”) The industry’s importance prompted President Obama to make a speech in Disney World in the beginning of the year. Encouraging the arrival of foreigners to visit the U.S., the president affirmed that, “people want to come here. China and Brazil are two of the countries with the biggest backlogs.”(“Obama Disney World Visit: President Touts Tourism, Mickey’s Big Ears During Speech”) His sentiments are reflected in numbers as visitors from Brazil are expected to grow 150% while those from China are set to grow at 19 232%. (“New Report Forecasts Strong U.S. Travel and Tourism Growth During Next Five Years”) Easing visa processing and issuing the “Global Entry Program” are some of the actions involved in sending the message: America welcomes you with open arms. U.S. Travel Promotion Act March 4, 2010 marked a major step forward for the U.S. Travel Association as President Obama signed the nation’s first travel promotion program into law. His signature delineates the need to boost tourism levels to inevitably improve the nation’s economic circumstance. While the Act is a government initiative, none of the costs incurred will be paid with taxpayer money. Instead, private sector contributions, funds from the Immigration and Nationality Act and a $10 fee from foreign travelers who do not pay for a visa to enter the U.S. will support the Act along with its programs. The Travel Promotion Act is responsible for the communication programs and campaigns directed toward demonstrating the greatness of the U.S. and making it a more inviting place to visit. If the Travel Promotion Act succeeds, it will “yield $4 billion in new spending annually, create 40,000 new jobs and generate $321 million in new tax revenue each year” according to Oxford Economics. Furthermore, the Congressional Budget Office estimated that, “the Act would reduce the federal deficit by $425 million over ten years.” (“President Obama Signs First-Ever Travel Promotion Program”) The Act will involve the participation of both government and private sectors through an eleven- member board collectively known as the Corporation for Travel Promotion that will directly oversee the strategies applied to current and future campaigns. As a relatively 20 new initiative, the Travel Promotion Act has high hopes to generate revenue and jobs in the hospitality and travel industry. Brand USA As the Corporation for Travel Promotion began to actively draw out communication and marketing strategies, they appointed the J Walter Thompson (JWT) agency in 2011 to strengthen their efforts. Other agencies included for the implementation of strategies were Mediacom, Hill + Knowlton and The Brand Union. JWT spearheaded meticulous global research that involved questions on what people thought about the U.S. and what their definitions were for the “American dream.” The findings were interesting yet expected as the majority of respondents identified “freedom” as a positive quality of the U.S. (“Brand USA and JWT launch America’s first global marketing campaign to attract international travelers”) People were also much more familiar and comfortable with the U.S. due to the ubiquity of the country through movies, television shows and sitcoms aired overseas. This acquaintance of the media’s depiction of America is beneficial in terms of public awareness levels but remains limited and skin deep. Brand USA acknowledges that destinations not commonly recognized internationally must be featured and promoted strongly in their campaigns. Rather than opting to use the quintessential Statue of Liberty or the Hollywood sign, fresh icons and sceneries are used to represent the country in its entirety. During a Danny King interview, Brand USA CEO Jim Evans was asked about the public response for this campaign launch. “I’ve never in my life launched something that’s been received as well as this,” he replied, “I really believe at a minimum that we’re 21 going to unite this industry in a way that we’ve never done before.” (“Jim Evans Brand USA”) According to their site, advertising efforts were launched May 1 st 2012 in the United Kingdom, Japan and Canada using a budget of $12.3 million in the first three months. The Department of State and Homeland Security announced a progress report on August 21, 2012 outlining the return on its communication programs in the three key markets. The results were overwhelmingly positive as each of the consumer launch markets had a significantly higher awareness level and positive association of the U.S. Adjectives such as “energetic,” “optimistic” and “a place you always feel welcome” were used to describe the country. Brand USA’s press release also showed metrics that reflected sanguine levels on each market’s intent to visit the U.S. with 13 points in Canada, 17 points in the UK and 11 points in Japan. (“Brand USA Announces Preliminary Results”) Discover America “Discover this land, like never before” is the slogan used to promote the “Discover America” campaign. America’s first wide-ranging destination marketing campaign officially launched in March 2012 in conjunction with JWT. The press release explains that the “campaign showcases the diversity of experiences available in the United States in a fresh and unexpected light,” and Brand USA CEO Jim Evans proudly claimed that, “our goal is nothing short of rekindling the world’s love affair with the USA.” (“Brand USA Launches First Global Marketing Campaign”) With objectives to communicate to an international audience, the campaign needed to find a common ground and tool to reconnect with the world. The proposed solution: music. 22 The legacy of musicians such as Elvis Presley and Johnny Cash coupled with the strong international presence of today’s American pop stars such as Lady Gaga and Justin Bieber prompted “Discover America” to decide that music would act as the universal language and voice to express the eminence of the U.S. The campaign moreover used Rosanne Cash, daughter of the iconic Johnny Cash, to compose the song, “Land of Dreams” to represent the campaign. Through the bond of music, “Discover America” has not only found a way to reach international audiences transcending age, gender and socioeconomic status, but have also used music to invite musicians worldwide to share their own music also. As mentioned in their press release, “Discover America” plans on utilizing every media outlet available to reach audiences both domestically and internationally. Integrated strategies on Facebook, Twitter and YouTube “will showcase country specific promotions and engagements and the newly launched website DiscoverAmerica.com will act as visitors’ information portal for trip planning.” (“Brand USA Launches First Global Marketing Campaign”) Their website assists potential travelers in planning a trip with inspiring ideas, destination highlights and practical information about each destination. In response to the U.S.’s first national promotion campaign, Stephen J. Cloobeck, Chairman of Brand USA’s Board of Directors replied, “the new campaign will tap into an incredibly valuable economic resource—the millions of visitors who want to experience what our great country has to offer.” (Brand USA Launches First Global Marketing Campaign”) 23 Chapter Four: The Growing Tourist Industry in China History of Travel and Tourism in China China’s economic and consumer explosion happened in a matter of 20 years. While the vast variety of consumer goods and the ability to choose was still a relatively new concept in the 80s and 90s, the new cohort of Chinese consumers today are well accustomed to the habit of purchasing based on careful evaluation and personal preference. Currently, the most dominant consumer segment in China is the 18 to 35 year old. (Li) Travel and tourism in China evolved from the need to travel for pragmatic reasons to now incorporating travel as a personal luxury and diversion from everyday life. Business travel is of course also an integral part of the industry, however, the concept of traveling overseas for fun rather than from necessity was foreign less than 30 years ago. China’s government has also had a role in encouraging the development of the travel industry. Most national holidays include three paid vacation days and were started by the government in 1999 to boost the domestic travel industry. Their efforts to encourage travel continue today as in 2012 the government announced that national highways would be toll free during Golden Week, an official week off combined with holidays and the weekend. (“It’s Golden Week in China, and the traffic jams are like nothing you’ve ever seen.”) To rekindle national spirit and celebrate their Chinese traditions, the government implemented new holidays such as Tomb-Sweeping Day in April, the Dragon Boat Festival in June and the Mid-Autumn Festival in September. (“China changes public holiday schedule”) This nationwide emphasis to take a few days 24 off to celebrate and travel boosted the travel and tourism industry domestically and internationally. The response to longer vacation days and the freedom of travel has been astonishing as international travel from China is expected to grow at the rate of 17% annually over the next decade. As part of a middle class that is already bigger than the population of the U.S. and estimates that the number will reach 800 million over the next 15 years, the Chinese are willing to take time to relax and indulge in leisure activities. The Hurun Report, a research agency specialized in Chinese consumer behavior, announced that, “there will be an average of 25 million first-time Chinese travelers every year, or 70,000 every day” (“Essential China Travel Trends Dragon Edition”) and with every traveler spending over $1000 on average, their monetary value is intensely sought after destinations around the world. While these first time travelers and many of China’s tourists joined tour groups that waved around fluorescent flags and shuffled through archetypal landmarks, a group of more sophisticated, independent and repeat travelers are emerging steadily. Top Destinations In terms of continent, data collected from CMMS shows that Asia remains the top travel destination for most Chinese tourists while Africa, Latin America and the Middle East are still in their infancy. While there is a large gap between the numbers of travelers going to Asia as opposed to Europe, the difference between Europe and North America is only about six percent. 25 Source: Sinomonitor 2010 China Marketing and Media Study Within Asia, Hong Kong, Macau and Japan remain the most popular places to visit. Chinese continue to travel to these places presumably because these three destinations are close to Mainland China while still being considered overseas vacation spots. Furthermore, all of these places have advanced economies, services and lower taxes for shopping purposes. Europe comes second as the continent is perceived by the Chinese to have a rich prestigious history. Cities like Paris, Rome and London are often advertised with a tone of aristocratic sophistication that many Chinese aspire to become. Furthermore, the Chinese are more knowledgeable about European history as it was often interlaced with China through instances such as journeys on the Silk Road, Marco Polo and through Marxist roots. North America is in third place and offers a completely different experience than that of Asia and Europe. Consequentially, those traveling to North America also have different agendas for traveling. North America is a relatively 26 new continent in comparison to Asia and Europe. It embodies the image of modernism and pioneers as the continent was established by founding fathers who broke free of the traditional European regime. Moreover, the development of popular Hollywood movies, music and icons has only strengthened this impression. A survey conducted by the Hurun Report showed the top 10 long-haul travel destinations for affluent Chinese travelers in 2011. Affluent travelers who were surveyed were defined as millionaires and billionaires with assets of at least RMB 10 million. Numbers of wealthy Chinese citizens are growing and associated to their status, they are the market segment most likely to engage in international and long haul travel. Results showed the rankings as: Source: Hurun Report. Essential China Travel Trends Dragon Edition. In correlation to the growing rich in China, the tourist industry is also booming as the Chinese Tourism Association (CTA) forecasts that Chinese outbound tourism will increase by 12% in 2012. An explanation as to why the countries listed above are the top international destinations for Chinese tourists will be discussed in Chapter Eight. The chart clearly demonstrates that the U.S. is ahead amongst other nations and in close 27 competition with France for affluent Chinese arrivals. The China Outbound Tourism Research Institute (COTRI), a prominent research powerhouse following the trends of the Chinese travel and tourism industry predicts that, “unless there are major natural disasters or a new contagious disease scare, in 2012 COTRI expects the number of border crossings from mainland China to surpass 80 million and the average spending per trip to surpass US $1000.” (“Essential China Travel Trends Dragon Edition”) Travel Seasons and Cultural Ramifications To understand the Chinese traveler, it’s important to note the major holidays and vacation seasons. According to Travel China Guide, the Chinese legally receive 115 days off with 104 of those days being weekends and 11 days of festival vacation days. Summer vacations typically are enjoyed only by those affiliated with the education system starting from late June and early July and stretching for a month until the end of August. Winter vacations begin in January and lasts for close to two weeks. (“Official Public Holidays in China”) While their vacation days may seem short, those days often fall parallel to the weekends, allowing the Chinese to combine both and take longer holidays. In fact, this phenomenon is called “Golden Week” and the name applies mainly to the Spring Festival holiday and National day as they are permitted to take longer days off. During this time a huge burst of travel and spending occurs, spurring economic stimulus around the world. Unlike the West, China does not hold Christmas, Thanksgiving or Labor Day as a tradition. Their list of celebratory occasions is as follows: 28 Festival Date Avg Vacation Days Year 2012 Dates New Year’s Day January 1 st One day January 1 to 3 Spring Festival Subject to lunar calendar Three days January 23 (January 22 nd to 28 th off) Qingming Festival April 4 th or 5th One day April 4 (April 2 to 4 off) May Day May 1st One Day May 1 to 3 Dragon Boat Festival May 5 th of the lunar month One day June 13 (June 13 to 15 off) Mid-Autumn Day Festival August 15 th of Lunar month One day September 30 th National Day October 1st Three Days October 1 to 7 Traditionally, the focus of these holidays would be to return to the homeland and visit relatives. Lately, however, exposure to information about other countries and the realization of a better lifestyle have made the Chinese are becoming more aware of the options. China Daily, a prominent news source claimed that over 660 million Chinese packed their bags and traveled during the National Day holiday, with “an increase of 8.8 percent from the same period last year” (“Number of Chinese holiday travelers to rise”) and the numbers are set to rise again next year. In addition to the custom of visiting family members during national holidays, the Chinese also have a tradition of gift giving to celebrate their reunions. According to the China Gift Industry Institute, China spends close to $122 billion in gift buying. The Spring Festival has proven to be the hottest purchasing season as families visit one another after the Chinese New Year. The Ministry of Commerce announced that over 29 RMB 470 billion ($74 billion) was spent during the Spring Festival this year, a 16.2 percent increase form 2011. (“Chinese spend $122b a year on gifts”) The robust purchasing power of the Chinese are reflected in rising sales records during this festive period despite inflation. Major news channels such as china.org.cn and CCTV also commented on the expanding wealth overseas as, “some major outbound tour agencies expected a 35 percent rise in foreign tours during Spring Festival holiday.” (“Spring Festival spending chalks up USD 74 bln”) Needless to say, these seasonal holidays, especially New Year’s, Spring Festival and National Day, provide immense surplus for industries ranging from retail to service that feed off of the high consumer energy. 30 Chapter Five: Chinese Traveler Profile Overview This chapter goes over the main driving factors and emerging trends of the consumer sector with the biggest potential for traveling overseas. Chinese consumers, regardless of their gender, age or socioeconomic status are enjoying easier access to a wider variety of commodities. Having recently surpassed Japan as the second largest economy in the world, China has blossomed into an international marketplace and is becoming an increasingly important world player. Initially, the sudden saturation of products and brands that the Chinese have never heard of before was a point of novelty that piqued them into purchasing foreign goods. Americans have been exposed and familiarized to brands at a relatively young age whether through media, recommendation or personal experience. The protracted contact between Americans and brands establishes a relationship where the key messages, logo and product or service of the brand is firmly engrained. For example, one could have been exposed to eating Kraft Macaroni & Cheese as a child and feel a sense of nostalgia with the brand. This feeling of familiarity may encourage the now adult consumer segment to purchase the same brand to feed their children. This long-term penetration and emotional attachment in the everyday lives of consumers is exactly what marketers strive to achieve. For the Chinese, however, because the influx of commodities and brands came only after the 80s, marketers and communicators needed to find a different approach in creating relationships. Growing sophistication and the eagerness for Chinese consumers to establish a trusting relationship with brands today is a great indicator of the transition from being a pragmatic society concerned with cost-base analyses to one that values quality and 31 consistency. With bigger disposable incomes, the Chinese are willing to pay a little extra for better service, quality and experiences. This should come as an encouragement for retail, service and hospitality industries overseas. Having a head start in terms of offering excellent service and a variety of travel options, the U.S. travel and tourism industry has great potential to attract bigger numbers and more diverse segments of Chinese travelers. Middle Class Growth The focus from a predominantly agricultural and peasant based society has shifted to rapid industrialization and growth in urban population. The ratio between the number of persons living in urban areas in comparison to rural areas is split evenly with numbers for urbanization expected to reach higher than rural areas. A WARC report from March 2011 points out that, “there are 52 million middle-class families in China. It is estimated that this figure will increase to 98 million by 2015.” (10 Affluent Chinese consumption trends”) With middle class families almost doubling within the next few years, travel and tourism industries around the world can expect Chinese tourists to continue pouring in across their borders. The next phase of Chinese tourists will be even more sophisticated, demanding higher expectations than previous groups. Repercussions from the one-child policy, China’s biggest societal policy, have also added to the spike in the growing middle class and their spending habits. Introduced in 1978 to a culture and society that placed value on large families, the government initiated severe population control measures and used the act as a mandatory form of family planning. The policy was effective in restraining the growth of the population, and also effective in creating a generation of materialistic children. Coincidentally born 32 during a time when foreign investment, services and products were being introduced to China, these children are the first generation to have grown up with commercial capitalism. Parents and grandparents pour their resources and concentrate their expectations onto one child. To compensate for the immense pressure ranging from academic performance to career goals, the child is showered with material rewards. These children grow up with full self-awareness, ambition and the need to prove their status. Today in year 2012, these children have reached their twenties and early thirties representing the dominant consumer segment. “Consumption has always been a part of the s-generation’s lives and will be as much a part of their future as it ever was for the baby boomers of the 1950s,” says Conghua Li in his book China: The Consumer Revolution, “but China’s s-generation may be even more egocentric in focus, and fickle in its tastes,” Li warns. The age of consumerism has already arrived in China with spreading levels of sophistication. This generation of consumers, their increased complexity and the rise of the middle class are centripetal forces that will help drive the hospitality industry and stimulate the economy. Consumer Confidence With the steady improvement in citizens’ living standards and a generation of Chinese born into material availability, consumer confidence is expectedly high. Nielsen’s study on Chinese consumers showed that when it came to personal finance confidence across major cities, 62 percent of Chinese consumers said that their finances were “good” or “excellent” with rural citizens also having a more positive perspective for financial opportunities. The latest report also mentions that 81 percent of Chinese 33 consumers felt positive about the economy in 2011 (“Chinese Consumers’ Reluctance to Spend Weakens Confidence”) despite the country’s recent GDP slowdown. Nielsen’s chart featured below shows where consumers allocate their spare money. The categories circled in red show the biggest growth since the previous consumer group and the convention of saving money continues to be of top priority to the Chinese. Although the “Tour/holidays/vacations” category has also grown, it is ranked at number eight behind “buy books and magazines.” Source: Nielsen. China Consumer Confidence Survey 2012 An explanation for the reluctance in spending money on travel can be the presumed risk that consumers take when planning a trip. Traveling is a commitment on many levels, especially when it comes to going overseas as multiple factors must be aligned in order to have a pleasant experience. One of those is the financial assurance in terms of having extra cash to spend on leisurely travel. As seen in the chart above, the Chinese are historically very frugal and tend to focus on saving rather than spending. The 34 act of splurging a large sum of money toward one experience can invoke a sense of guilt, doubt and even regret. Time commitment is also a large factor and may deter consumers from traveling. To truly enjoy a foreign place and enjoy their time abroad, an extended period of time must be dedicated specifically toward travel. Finally, the unfamiliarity of these foreign places may evoke a sense of insecurity and incapability. With many of these stakes at hand, high levels of competition from other destinations and the thinning patience of the middle class, efforts to entice the Chinese must go beyond middling marketing ploys. Dr. Georg Wolfgang Arlt, Director of China Outbound Tourist Research Institute affirms that, “mass tourists will stay on the beaten track, but New Chinese Tourists can be attracted to less known places if they are provided with a good reason to go there which translates again into prestige.” Generally speaking, unless the middle class Chinese are reassured that they will be well taken care of with plenty of options provided by their host, they will be hesitant to step out of their comfort zone. Emergence of the New Rich A recent report from WARC mentioned that, “the number of wealthy Chinese with a personal fortune of RMB 10 million reached 960,000 in 2010, an increase of 9.7% compared to the previous year 1 .” The Hurun Wealth Report of 2011 has identified the top 10 geographic areas in China where people make an income of RMB 10 million or more. While they are mainly concentrated in coastal areas, unlike previous years the level of wealth has also spread inland. The areas with the wealthiest concentrations are: 1 Luxury and China’s netizens the market and the audience. WARC. 35 1. Beijing 2. Guangdong 3. Shanghai 4. Zhejiang 5. Jiangsu 6. Fujian 7. Shandong 8. Liaoning 9. Sichuan 10. Henan McKinsey Quarterly speculates that by 2015, China will consist of the fourth-largest concentration of rich and potential big shot customers. The Chinese population in urban areas is constantly bombarded with commercial goods and capitalist stimulation. Luxury is now the new necessity, accessories that accentuate life. “Today, the Chinese consumer makes purchasing decisions based on deeply entrenched social and cultural values, the very same reasons consumers make purchases in the West” explains Conghua Li, “the singular difference is the speed at which the Chinese consumer has moved from functionally driven purchases, to intangibly driven purchases, and the high degree of their commitment to these intangible qualities.” (Li, 122) The growing number of middle class and affluent individuals combined with globalization, expansion of the Internet and developments in transportation have already fueled the escalation of travel. The China Outbound Travel Research Institute pointed out that authorities in Beijing have given licenses to foreign travel companies to organize tours for outbound Chinese tourists. Tour groups are traditionally the most accepted and popular methods of traveling in and from China. As the Chinese become more comfortable with traveling, however, they are also showing more interest in organizing their own travel schedule instead of relying on tour groups. Their curiosity for lesser- 36 known places of the world along with distinctive hobbies and confidence in independent travel only adds variety and new market shares in the growing industry. Dr. Georg Wolfgang, Arlt, Director of China Outbound Tourism Research Institute (COTRI) believes that, “the second wave of China’s outbound tourism has started, with more self- organized travelers slowing down and spreading further afield.” The past decade has shown tremendous growth for the industry and while many fear that the slowing Chinese economy will hurt consumer confidence and expenditure, the travel and tourism industry is set to continue soaring. 37 Chapter Six: Consumption Habits Travel Expenditures The World Travel Organization (WTO) has announced that, “the top ten ranking by international tourism spenders shows one remarkable change in 2010, with China (US $55 billion) moving up into third position, overtaking the United Kingdom (US $49 billion).” (“About the China outbound market”) What compels the Chinese to spend an average of over US $1000 overseas and more importantly, what are they spending the money on? Data collected by the WTO further shows that, “China has shown by far the fastest growth with regard to expenditure on international tourism in the last decade, multiplying expenditure four times since 2000.” China Elite Focus CEO Pierre Gervois explains that “the number one reason Chinese tourists come to the U.S. is for shopping.” Commodities, especially imported luxury brand items are taxed higher and have custom duty costs attached in Mainland China. For example, Louis Vuitton’s Speedy 30 bag is sold in China for RMB 6,100 (US $960) while it sells for €500 (US $620) in Europe” (“Luxury brands may raise EU prices to protect Chinese market”) This price disparity leads many Chinese consumers to conclude that going overseas and buying luxury items in bulk is much more cost effective than buying it in China. One of the main destinations for purchasing luxury items and other products is the U.S. ranking after places like Hong Kong, Singapore and Japan. Specific to the U.S. the average travel spending per Chinese visitor was at $6,243 followed by India at $6,131 and Brazil at $4,940. (“Made in America: Visa Process Slowing Down Tourism”) Shopping is by far the area that stimulates the highest financial transactions as Ben Macklowe, vice president of Macklowe Gallery admits that, “there’s 38 been prosperity across so much of Asia that you’re starting to see it much more in the profile of the tourist on Madison Avenue.” (“Luxury Stores Pull Out Mandarin Books to Make the Sale”) An increasing number of department and boutique stores are hiring sales staff with Mandarin Chinese language skills. Products are even being exclusively designed and catered toward the Chinese consumer as Montblanc produced their first Year of the Dragon pen collection in 2012. Pierre Gervois, CEO of China Elite Focus, a luxury tourism communication agency, also attributes sightseeing as the second main reason for the Chinese to visit. “The U.S. is well known for their movies and Hollywood scenes” and with quintessential scenes such as the Empire State building and the Hollywood sign placed in many box office hits, the Chinese are eager to relive their favorite movie scenes casting themselves within it. Another area that generates great revenue from Chinese tourists involves theme parks and attraction sites like Disneyland and Las Vegas. The Las Vegas Convention & Visitors Authority put in additional funds and resources to boost visitation rates after the global recession in 2008 in hopes of saving the casino industry. Their efforts were answered as in 2009 roughly 200,000 Chinese visitors came to play and by 2010, tourism increased by 2.8% with gaming revenues on the Strip also up by 5%. (“Chinese Tourists, Investors Try Their Luck with Vegas”) Positive numbers can bring a sense of restored confidence, however, Las Vegas cannot let their guard down as they face fierce competition from Macau and Singapore. Collectively, spending time at these destinations also translates into spending money not only for the admission ticket but also for lodging, souvenir shopping, transportation and perhaps even gambling. Cities and attractions in the U.S. 39 must find ways to amplify shared interests between the Chinese tourists and capitalize from ensuring that they attain the commodities and experiences that they seek. Going Online Despite stern government regulation on content for traditional media such as television, radio and newspapers, the Internet is essentially a free-for-all with only basic parameters. With approximately 500 million registered Internet users, China holds the number one position in largest online population. Online presence for the Chinese has strengthened significantly since the worldwide web was first introduced over a decade ago. Internet based companies have become some of the most profitable in the world. Although China restricts much of U.S. based Internet moguls such as Google, Youtube and Facebook to enter their domain, parallel companies such as Baidu, Youku-Tudou and Sina Weibo exist with a higher figure of registered users. The 2010 McKinsey report showed that 70% of Chinese Internet users are below the age of 34 and make at least 55,000 RMB (approximately $18,000) annually. (“Brands Rush to Tap China’s Web Boom”) Booking vacations through the help of a travel agency in large groups remains the preferred method for many Chinese travelers to go overseas. As the Chinese grow increasingly acclimatized to intercontinental social norms and gain confidence in the global arena, a new trend for travel is emerging. These self-organized travelers are using the Internet as a major source to research, schedule and purchase their vacations. “There is still a queue of—according to COTRI estimates—at least 150 million Chinese waiting for their turn to join travel groups for shopping in Seoul and photo opportunities in front 40 of the Eiffel tower,” said Dr. Georg Wolfgang Arlt, “but tourism outside package tours is growing fast.” Unbridled consumerism, simplified bureaucratic procedures and better information about specific destinations encourage travelers to take matters into their own hands and plan their own trip. According to China Internet Watch (“Online Travel Booking Websites in China”), the travel booking sites that are most used amongst these self- organized travelers and listed by revenue are as follows: Ctrip: 55.6% eLong.com: 9.9% mangocity.com: 6.2% 118114.cn:5.8% 12580.com: 3.2% etpass.com3.1% 17u.com: 2.7% aoyou.com: 1.5% Others: 12% Most of these travel-booking sites focus on domestic travel and attractions; however, they also feature international destinations along with flight and hotel bookings. Within these sites, the U.S. as a destination is not featured on any of their home pages and links to the U.S. campaigns such as Brand USA and Discover America are not included. Instead, destinations such as Hong Kong, Korea, Japan, France and even the Maldives pervade their international booking tabs. Ctrip was the only site that mentioned a U.S. destination, Hawaii as a tropical getaway in their international travel tab banner. It is clear that the promotion of the U.S. in these travel sites is virtually non-existent and other destination images, prices and packages crowd these sites. With a growing number of self-organized travelers, the U.S. must also aggressively display their various destinations and travel promotions on these sites. 41 In addition to booking their trips online, these self-organized travelers also rely on the feedback of the destination from other travelers when deciding on where to go. Daodao, the Chinese version of Trip Advisor also uses rating systems and customer review boards and is becoming an increasingly notable site for travelers looking for clarification from unbiased sources. Bulletin Board Systems (BBS) function as discussion forums where in depth talks on any category including destinations and travel experiences are shared. In fact, CIC, a Shanghai-based social media consultancy claimed that 80% of BBS users read the opinions and feedback of other users when making purchasing decisions. (“Brands Rush to Tap China’s Web Boom”) Sina Weibo and Renren, the social media giants in China also provide platforms for reviews and comments written by peers for various locations and enterprises in the U.S. Rand Han, founder and strategy director of Resonance China, a Shanghai-based social media digital agency gives insight and online branding advice. “Still run your traditional campaigns, but add a social media recruitment element at the end,” Han says, “once your customers have followed, periodically push them from your social community to other assets, such as your website, ecommerce site, or offline retail POS.” Currently, Discover America and Brand USA have no presence in the Chinese social media and none of the reviews written by the Chinese travelers mention campaign efforts. This lack of online presence indicates that there is a serious lack of awareness about the U.S. making efforts to better accommodate for their target visitors: the Chinese demographic. 42 Brand Loyalty The notion of brands reflecting their owner’s identity has taken a stronghold in Chinese society. Brands speak multitudes about the individual flaunting them such as their socioeconomic status, personal style and sophistication level. Because China’s open door policy only began in the late 1970s, “all brands are coming in generally at the same time, so communication of brand values, position, culture and general education becomes an issue,” says Han. Since then, however, consumers’ taste and appetite for quality and luxury brands continues to grow with an emphasis for specific demands. Interestingly, the Chinese and many other Asian countries reflect a high-context society where social acceptance is valued. With the influx of western attitudes and brand options, however, this mentality is also changing as the younger generation aspires to be seen as unique individuals and use brands as a means to achieving this goal. Unfortunately, the relentless hunt for brands does not mean these Chinese consumers will continue to be loyal to them. The 2012 China Shopper Report conducted by Bain & Company and Kantar Worldpanel revealed that, “more than 60 percent of the respondents said they first look at brands when trying to decide what products they want to buy. But, when it comes to making a purchase, other considerations take on greater importance.” (“Chinese shoppers less loyal to brands”) Because the study focuses primarily on daily consumer goods, there is little tangible substantiation that the findings can be applied directly to the travel industry. What the study does reveal, however, is the overall attitude that consumers display when making decisions. Chinese consumers exercise practicality and cost benefit over loyalty when choosing which brands to purchase. Bruno Lannes, partner of Bain & Company advised, “brands that are likely to 43 enjoy the least loyalty should run TV commercials and use similar methods to remind shoppers of their products.” In deciding where to travel, the Chinese are also most likely to assess the cost benefit associated with going to the U.S. If other destinations that are geographically closer to China offer the same types of benefits, they will logically pick the destination that will cost them less money and travel time. Emphasizing the great qualities of the Chena or Tolovana natural hot springs in Alaska will be futile as the Chinese can easily go to Zhongshan or even Japan to enjoy the same benefits. Instead, it would be more meaningful to promote things that they cannot readily access such as icebergs, whale watching and the northern lights. Similarly, while utilizing the gondola rides at the Venetian Hotel as a promotional strategy for Las Vegas is an integral piece of a marketing plan, the Chinese will be more interested in visiting the real Venice Canal in Italy. Prestige is tied to the origin and history of a destination and the Chinese place much more value in visiting places that are authentic and have a sophisticated heritage. Value Perception Value perception and attachment in travel differs considerably between the East and West. The cultural meaning for traveling to certain destinations may not have a heavy socioeconomic stigma attached in the West; however, the East recognizes them as symbols of opulent success. The mentality seems to be that the further and more famous the destination is, the higher the traveler’s perceived ranking. “Be the most famous, oldest, greatest etc. in your field, provide a mix of entertainment and education,” stresses Dr. Georg Wolgang Arlt while sharing ways to attract the Chinese. According to COTRI, 44 the Chinese place value in the richness of a destination’s cultural history. Europe, and especially France is a popular destination due to the image of a prestigious and sophisticated culture. A destination’s popularity is bound to increase by simply being the most authentic and tying in a way to relate its cultural history to the Chinese. By creating meaning and values that resonate with the Chinese traveler, they are more inclined to choose the destination in an effort to associate with such perceived values. Because social acceptance and peer reviews are regarded very highly in China, word of mouth is also something that many travelers listen to when making travel arrangements. Whether from family members, friends or strangers, the traveler is bound to ask questions and ask for opinions about a destination before embarking on their journey. What these individuals and opinion leaders say about a destination is regarded as deeply valuable and will either strongly encourage or discourage a traveler to visit certain places. To generate positive feedback and make the local people spokespersons for the U.S., a much greater effort to inform the public of the country’s travel campaigns must be made. The Internet with its various social media and website outlets is a cost-effective and relatively simple way to ignite word of mouth. For the word of mouth to contain validity and go viral, however, the content must be attractive and relevant to the Chinese. This once again reaffirms the importance of identifying value perception and cultural meanings for foreign brands and destinations wanting to break into the Chinese marketplace. 45 Chapter Seven: Segmenting the Chinese Traveler Market Leisure As aforementioned, the number of Chinese citizens traveling for leisure has risen steadily over the past two decades. The new middle class is interested in learning more about places, cultures and histories beyond their own backgrounds. While their preferred method of traveling is still via tour groups organized and carried out for Chinese natives, repeat middle class travelers are also beginning to venture into the realm of individual and self organized travel. In addition to the expanding middle class, China now has the biggest group of self-made millionaires and billionaires in the world. (“Essential China Travel Trends Dragon Edition”). The emergence of wealthier individuals in China is due in part to China’s robust economy and appreciation of the Yuan. Vested with this economic power, the Chinese are more willing to reward themselves generously by traveling. According to a survey from Essential China Travel Trends produced by Dragon Trail, COTRI and PATA, it was found that on average that the “affluent set travels abroad three times a year, with 20% of them going abroad more than five times a year.” It was also found that these travelers were below the age of 30 and about 15 years younger than European and American affluent travelers. (“Essential China Travel Trends Dragon Edition”) This data is incredibly optimistic as the affluent set traveling and being exposed to international destinations at an earlier age demonstrates a high likelihood that they will also continue to travel abroad in their later years. Interestingly, when studying this audience segment’s preference, the study found that the U.S., Australia and Japan were some of the most favored long haul destinations. Having been more exposed to these 46 regions’ opuses ranging from literature and art to research, the young and rich Chinese are naturally curious to immerse themselves and learn more about these places. “As education drives luxury travel, the U.S. is the preferred destination for travel, followed by the UK and Canada. More than half choose English-speaking countries.” (“Essential China Travel Trends Dragon Edition”) Leisure travel is now well accepted within the Chinese society, especially with the continued stability of the Yuan, vast options for travel methods, and easing passport and visa applications. This number will continue to increase in correlation to the growing new rich and middle class populations. First-Timers Individuals from the rising middle class collectively represent an enormous number and the number of first-time travelers from within this segment demonstrates great potential to build relationships and convert them into repeat travelers. According to the Boston Consulting Group, the positive performance of China’s economy has in turn increased the confidence of Chinese citizens “with an average of 25 million people taking their first-ever trip every year,” and there is high expectations of that number doubling by 2020. (“Taking Off: Travel and Tourism in China and Beyond”). The study also shows that the inexperienced segment of China’s travel market represents 70 percent of all domestic overnight travelers and also 77 percent of outbound travelers. The key to catching their attention is in stirring their awareness of the U.S. as a plausible destination and allow them understand how this experience will benefit their quality of life. While marketing and advertising budgets do play a major role in amplifying the awareness of 47 these first-time travelers who are looking to go overseas, what remains important is not the money or medium but the message that this audience segment receives. To convey the best message, a thorough understanding of the process, factors and preferences of first-time travelers is needed. Because traveling is a novel experience to these first-time travelers, they are more likely to travel closer to home. The desire to take their first step out of the country yet remain in the comfort of a familiar landscape explains the phenomenon for most Chinese travelers picking Asian destinations. Most first-time travelers book budget-minded tour groups through a trusted travel agent. By eliminating their concerns for language barriers, geographic unfamiliarity and isolation, the first-time traveler is much more inclined to join a large group of like-minded travelers to go overseas. These large groups also offer low price packages that include predetermined schedules full of sightseeing activities. By signing up with a tour group, a large part of their uncertainty and pressure in organizing their own itineraries is thwarted. The majority of these first-timers are seemingly more timid than their well-traveled peers, however, it would be wrong to completely rule out the self-challenging first-time traveler who seeks to travel far. Having been exposed to more Western thoughts and products, received a higher education and capable of navigating the Internet at ease, there is potential for younger first-time travelers to visit the U.S. Repeaters Repeat travelers are those who have already made their first trip overseas and are looking to venture out again. With experience under their belt and a better understanding of what to expect, this segment has higher confidence levels in both the preparation and 48 execution of traveling abroad. Their confidence compels them to travel further in distance from beyond their comfort zone of Asian countries to Western destinations. Their motivation for traveling includes seeing quintessential sightseeing spots, however, goes deeper than just going down the checklist. This segment of travelers are interested in going to the culturally valuable, scenically beautiful, historically momentous and personally relevant places to learn more about their destination and about themselves. The Boston Consulting Group found that, “experienced travelers are more willing to spend time and money on activities such as entertainment and shopping—an inclination that also influences their choice of destinations.” (Taking Off: Travel and Tourism in China and Beyond”) In essence, while many first time travelers prefer to pack in as many tourist sites as possible into their schedule, experienced travelers see more value in going at their own pace and enjoying their personal activities. There are less organized activities and dictated locations involved and the pace of travel is generally slower. As their travels increase and their tastes become more distinguished, this segment of travelers will soon be the leading experienced travelers of the world. BCG’s 2010 Chinese Consumer Travel Survey predicts that in 2020 41% share of total travel spending will come from experienced affluent Chinese travelers and has concluded from their research that, “by 2020, we expect relaxation to become the dominant travel goal.” (“Taking Off: Travel and Tourism in China and Beyond”) With a strong prediction that the current market of inexperienced and first time travelers will develop into more experienced and hopefully frequent travelers, the U.S. travel industry should take measures to act as soon as possible to welcome these travelers to visit. To accommodate the spike of outbound Chinese tourists, the Civil Aviation 49 Administration of China (CAAC) announced on May 24, 2012 that the country plans to build 70 new airports and rebuild or expand 101 others over the next five years. China will add over 2,500 planes and import approximately 500 planes annually over the next five years. (“70 New Airports Planned Aviation Official Says”) In 2011 the U.S. Bureau of Transportation Statistics revealed that 2.65 million passengers took nonstop flights between the U.S. and China, a 30 percent increase from 2010. (“Global Economic Trends Writ Small: U.S.-China Flights Surge.”) With major projects implemented to advance the industry and make overseas travel more accessible to residents across China, the U.S. must insure that the number of flights between the two countries continue to soar. Business Business travelers coming to the U.S. from China have also risen considerably as the economy and global business demands grow. With more Chinese corporations acquiring and investing heavily in American companies, there will be a surge in bilateral partnerships and more opportunities for business travel. According to the Office of Travel and Tourism Industries, business travel from China is expected to increase by 232 percent in the next five years. In 2010 alone, the State Department issued close to half a million visas to Mainland Chinese coming for business purposes. (“American Hotels Embrace Chinese Business Travel”) This mounting influx of Chinese business travelers has already prompted many hotel chains into action. For example, Starwood Hotels and Resorts began accommodating to Chinese travelers’ needs by hiring bilingual staff members, placing slippers and teakettles in rooms, incorporating Chinese channels in their television channels and having hotel and local information available in Chinese. 50 Menus were also translated and modified to include Chinese dishes such as congee porridge. (“American Hotels Embrace Chinese Business Travel”) These 500,000 Chinese business travelers stayed an average of 23 nights and spent $7,200 per visit according to the U.S. Travel Association. Twenty-three nights is a long duration for a business trip and Christie Hicks, Starwood Hotels and Resorts global sales representative attributes this length to Chinese business travelers seeing their trip as an incentive travel and shares her positive outlook on the growth of North America as a destination. Travel from outbound Chinese tourists in the U.S. generates $246 billion in spending and 2.3 million U.S. American jobs. (“Travel Facts and Statistics”). By 2013, visitation from China to the U.S. is expected to grow 61% and this number will continue to rise as all four traveler segments: leisure, first-time, repeaters and business are expected to go overseas in larger masses. While the U.S. has a stronghold as an appealing destination to repeat and business travelers, a stronger emphasis for leisure and first-time or inexperienced travelers to visit should be made. The first step to having these traveler segments step foot in the U.S. is to have them become aware and consider going to the U.S. as an option. To raise their awareness levels, a more welcoming message and image that speaks directly to these segments and caters to their needs must be drafted. Simultaneously, the message and image should also portray the diversity and range of activities that can be enjoyed exclusively in the U.S. to give these segments a valuable rationale for visiting. In terms of physical visibility and presence, the U.S. should leverage its marketing and advertising dollars not only in traditional media but also in China’s digital platforms to expand the reach while targeting specific traveler segments. While entering into the Chinese media market may be equivalent to going into 51 unchartered waters, with the proper messaging strategy and expertise to navigate China’s market, the U.S. travel and tourism industry will tap into a much larger traveler segment with greater potential and heavier wallets. 52 Chapter Eight: Travel Deterrents Language Barriers Any traveler going overseas faces the likelihood of encountering language barriers. This added uncertainty in going to an unfamiliar place and not being able to communicate acts as an additional challenge for both travelers and the tourism industry. Fortunately for the U.S., English is the most commonly taught second language in Chinese schools and students are familiarized to a certain extent with the language and culture. The TOEFL (Test of English as a Foreign Language) is the second largest test amongst students after the gaokao college entrance exams. In fact, Premier Wen Jiabao stated in a speech in 2009 that there were close to 300 million Chinese learning English. (“In Battle to Save Chinese, It’s Test vs. Test”) Their proficiency levels, however, vary according to their educational background and there are still many Chinese who lack the confidence in English speaking abilities. To avoid this insecurity, most Chinese travelers book through tour agencies and travel with Chinese guides. To better accommodate their needs, many hospitality businesses such as hotels, airlines and retail stores now have programs and trained staff fluent in Mandarin Chinese and even Cantonese. These programs and staff members, however, are limited and accessible in mostly larger cities where the number of visiting Chinese tourists is already high. When considering lesser-known areas that have a good potential for attracting Chinese visitors, there seems to be a lack in programs for non-English speaking tourists. In contrast to the ritz and glamour of well known metropolitan hubs such as New York City or Los Angeles, Charleston, South Carolina is a historic destination full of sites 53 that date back before the civil war ranging from Fort Sumter to lofty plantation estates. The city is also close to many natural beaches and offers a variety of recreational activities such as golfing and horseback riding. Downtown Charleston boasts nationally acclaimed dining places and culturally relevant houses. The city is one that has high potential, as is located between New York and Florida, which are already two popular destinations in the U.S. for Chinese tourists. Despite all of the attractive elements present and being voted the number one city in the U.S. (“Is Charleston the World’s Best City?”), Charleston is virtually unknown among the Chinese traveler group. The main reason for this lack of awareness is once again tied into the lack of presence about the smaller cities and destinations within the U.S. While Brand USA has a Marketing Opportunities Kit that allows cities within the U.S. to become partners, they charge a fixed price. The Charleston Area Convention & Visitors Bureau lacks a website that welcomes foreign visitors as it is written strictly in English and with only one phone number available for contact during limited business hours. Charleston should partner with Brand USA and use the Native Creative Content Creation Program to have their multimedia content revamped and available in multiple languages. With an initial fee totaling over $5,000 to use Brand USA’s services and no legitimate exigency other than increasing the number of foreign tourists, Charleston will most likely remain a hidden gem of the South. Moreover, other cities that are smaller in size and budget may also come to the same conclusion and opt out of partnering with Brand USA. If the objective of Brand USA’s “Discover America” campaign is to invite more foreign visitors to the U.S., a better method of involving and promoting lesser-known destinations within the U.S. must be facilitated. 54 Political Strain U.S. and China relations have always been unstable in terms of political accord. U.S. Commerce Secretary Carlos M. Guiterrez signed a memorandum of understanding to help ease the arrival of leisure travel groups from China in 2007 (“Guttierez Signs U.S.-China Tourism Agreement to Boost Visits to U.S.”) and even President Obama publicly addressing the need to welcome international visitors to U.S. borders. Political differences and territorial disputes over Taiwan and Tibet have historically proven to be difficult challenges for both nations to reach an amiable relationship. Since President Nixon’s initial visit to China in February of 1972, relations have slowly improved and China has opened up tremendously to the international market. (“Assignment China: The Week that Changed the World”) As China more readily embraced the capitalist economic model and continued to fuel the global economy, the relationship has gradually become more deferential and less antagonistic. Bilateral cooperation through shared interests and optimizing economic opportunities will ensure that both the U.S. and China will foster a forthcoming relationship. Ideological disparities also seem to mean little to the Chinese traveler as they continue to visit the U.S. by the millions. “Values matter. We have an opportunity to shape outcomes by living up to our ideals and demonstrating we are worthy of the region’s admiration and emulation,” says Jon Huntsman, former U.S. ambassador to China. “We must work with China on shared interests, while remaining vigilant to the inevitably competitive nature of our relationship for the foreseeable future.” (“How to Manage the China Relationship”) 55 Inconvenience While booking through a travel agent and joining a tour group is the most hassle- free process of going abroad, there is an increasingly self-motivated segment of Chinese travelers who intend on going overseas individually. When planning for trips, their first line of action is research. This initial stage is usually meticulous and time consuming as travelers compare prices online, read reviews, scour the Internet and find locations they can trust. Everything from booking flights to hotels must be done on an individual basis, putting a large amount of organizational pressure on the individual. How can the U.S. help simplify the research process and provide travelers with the most helpful and up-to- date information? This is precisely where Brand USA and the “Discover America” should come in and make themselves the most trusted and focal site for foreign travelers seeking direct answers. Foreign visitors should be able to access the Brand USA site in their native language and navigate through the diverse array of cities with ample information from lodging to rental services listed within the site. Additional tips from residents living in the area and reviews by those who previously visited can be included to give travelers more unbiased and personal suggestions. By making themselves the most central and dominant travel site for visitors coming to the U.S., Brand USA can promote their campaign and other destinations in a cost effective way. Once they are able to book and finalize their travel plans, Chinese travelers embark on their journey unaccompanied. While repeat travelers may have more knowledge about how to maneuver around the U.S., inexperienced travelers will initially feel overwhelmed by the vastness and countless travel options once they arrive. As mentioned earlier, lesser-known and smaller destinations in the U.S. lack multilingual 56 programs and staff members. To ease their anxiety and provide them with the best guidance catered to their interest, these Chinese travelers should be able to call Brand USA representatives who are bilingual and knowledgeable about areas within the U.S. to help these travelers. This service will not only assist Chinese travelers to ensure they have a pleasant trip; it also reinforces Brand USA and “Discover America” as an essential and supportive tool for Chinese travelers. Language barriers, political unrest and inconvenience are some of the major travel deterrents for Chinese tourists. One of the first areas that Brand USA should address is how to strategically position themselves as a vital travel resource and eliminate travel deterrents for international visitors. Currently, the focus of Brand USA lies in uniting the U.S. travel industry across the many states and cities. Its intent is to develop a collective effort for promoting the U.S. and assist locations in return for financial reimbursement. While pulling the country together to encourage travel is equally as important, a more specific direction on how Brand USA plans to build national awareness overseas and improve travel processes for foreign visitors has yet to be explicitly outlined. 57 Chapter Nine: Gauging Competition Tactics Used by Competing Long-Haul Destinations Through its cultural, political and economic influence over the world, the U.S. has successfully landed within the top twenty long-haul destinations to visit for Chinese tourists. There is no denying, however, that it is in close competition with destinations such as France, the United Kingdom, Australia and Canada. In terms of 2011 Chinese tourist numbers, France welcomed 500,000, the United Kingdom drew 150,000, Australia accommodated 536,000 and 242,000 visited Canada. The U.S. drew in 940,000 Chinese visitors in 2011 with the average visitor spending $6,000. (“Chinese Travelers are seeing the USA in Record Numbers”) With competitors increasing their marketing and advertising dollars in China, the U.S. must stay ahead of the game and find a more strategic message, method and means of connecting with the Chinese traveler. Part of the requirement in staying ahead is to carefully assess the marketplace and evaluate what strategies and tactics are being used by competition and how successful their travel and tourism industry is. Tourism Australia recently conducted an in depth study of China’s travel industry by first segmenting the Chinese market. Their potential market audience was divided into five categories: Self Challengers, Family Connections, Sightseers, Ready to Leave and Close to Home. By profiling their travelers, Tourism Australia was able to better identify and understand their segments’ interests and reasons for traveling. This knowledge allows them to effectively use their marketing funds to target specific segments and maximize their return on investment. By studying their behavior, insight into where the segments find travel information and how they book for their trips are revealed. Segments were 58 determined by through a survey that measured travelers’ level of experience, interest in long haul travel and preference towards challenging themselves when travelling. The segments were positioned based on respondent answers into a chart below: (Tourism Australia) Tourism Australia’s segmentation research showed that the Self Challengers, Family Connections and Sightseers were the most likely to seek out long haul travel destinations. The remaining Close to Home and Ready to Leave sectors were inexperienced travelers who are new to the concept of traveling. They are more comfortable with staying mainly in Asia or even traveling domestically. While the three segments share an interest to venture beyond Asia, their reasons for going are very different. Self Challengers look forward to immersing themselves completely with the local culture and prefer to stay off the beaten tourist track. Family Connections are interested for the most part in visiting relatives overseas and tend to have a higher income level. They are, however, also interested in engaging in activities such as shopping and visiting iconic sites at their destination. Sightseers have the objective of reasserting their 59 social status by purposefully going to long haul destinations and visiting famous sites. They are not as adventure hungry as the Self Challengers or interested in understanding or being a part of the local culture. Instead, they enjoy being well taken care of and touring the destination as a complete outsider. With this information, Tourism Australia set out to narrow their marketing efforts to directly engage with these segments. Their research also identified each segment’s media consumption habits that further assisted in deciphering the best communication channel to use. For instance, while the Self Challengers spend most of their time surfing the Internet to gather information, sightseers are more inclined to watch television and read the newspaper. Family connections spend the least amount of time consuming media, however, tune in frequently to the radio presumably during their commute to and from work. The three segments that have the greatest potential in the short run to engage in long haul travel to the U.S. are the Self Challengers, Sightseers and Family Connections. Those who aspire to travel far overseas are the ready to leave segment that are the youngest and lack the financial or experiential support to embark for long haul destinations. The Close to Home segment will be an audience that will be hard to convince, as they are most comfortable remaining in Asia. Tourism Australia has intensified its marketing and audience segment research to gain further comprehension on China’s traveler segments along with their media and behavioral habits. The U.S. should apply Tourism Australia and other published research about China’s travel industry and core targets to its own marketing initiatives to maintain sustainable tourism growth. France’s travel initiative named “Rendez-vous en France” has revamped its website so that it caters toward 23 major countries including China. When entering the 60 site, users can choose their country of origin and be directed to the site’s homepage in their native language. (rendezvouseenfrance.com) The image above is from a screen shot of their website. Everything is written in Chinese (with an option of Mandarin or traditional) and there are buttons that connect to their Chinese social media, blog and visitor review pages such as Weibo, Kaixin and Douban. “Rendez-vous France” is already deeply involved with China’s digital platforms and understand where their travel target markets socialize. The website features tabs that allows users to view the actual map with popular cities dotted across France. Users can click on the city of their choice and be redirected to a webpage that contains information specific to that city. Other tabs include general information about the country, scheduling assistance for those planning a trip to France and information on upcoming holidays and activities in the country worth joining. Their website is incredibly easy to navigate and visually appealing as it has been designed around images and video content. In comparison, Brand USA’s “Discover America” website only includes five languages and 61 three social media buttons that are inaccessible to the Chinese: Facebook, YouTube and Twitter. The British government initiated an eight million pound ($12.5 million) marketing campaign in 2012 to increase the volume of Chinese visitors. (“UK’s Initiative Targets Tourists from China”) The government announced its most recent goal to increase their Chinese tourist numbers from 150,000 to 500,000 by 2015. With this new objective, the British government’s tourism promotion agency VisitBritain has initiated the GREAT campaign in China intended to increase awareness levels and attractiveness to the Chinese over a span of four years. Launched at the same time as the Olympics in London, the GREAT campaign highlights some of the nation’s most appealing features. Those features are listed as tabs in the GREAT campaign website and include: the countryside, creativity, entrepreneurs, green, heritage, innovation, knowledge, music, shopping and technology. The list of features indicates that the GREAT campaign targets not only tourists coming to the country but also potential business partners and industry experts. Visa processes are also intended to become more efficient and additional flights between the UK and various Chinese cities are set to increase. While Great Britain’s strategy and tactics for marketing to the Chinese are still unclear, the money invested in the GREAT campaign demonstrates that their focus is to make the country an attractive long haul destination and a considerable competitor for the U.S. tourism and travel industry. Canada, despite only recently been granted the Approved Destination Status (ADS) by Beijing in June 2010, has already attracted a good number of Chinese visitors. The Canadian Tourism Commission (CTC) strengthened Canadian presence in the 62 Chinese media, especially through television programs. The “Canada—you can be a star” campaign has been the latest promotion in China, featuring five Chinese couples to enter a televised competition in various regions of Canada. The 26-part TV series will be aired on China’s Travel Channel and promoted on daily blog posts with images and videos. Since the “Canada—you can be a star” campaign, the site has had over 200,000 click- throughs and 5,000 images and videos uploaded by potential entrants. This high level of exposure using extensive media outlets such as the television and the Internet, coupled with the creative idea of starring ambitious Chinese couples in a televised competition across Canada has caught the attention of millions of Chinese hopefuls. Derek Galpin, CTC-China managing directors states that, “we can showcase the fascinating and endless adventures that Canada has to offer through the Signature Experiences Collection while these outgoing Chinese couples generate lots of creative and entertaining content.” (“CTC promotion boosts Canada exposure on Chinese TV”) Canada’s decision to aggressively pursue Chinese visitors through big scale marketing campaigns has had a positive effect on awareness levels in China, which will most likely also translate into higher visitation levels and greater return on investments. Competitive Advantages of the U.S. What can the U.S. offer that other competitors lack? One advantage the U.S. has over the majority of its competitors is its sheer size and diversity across the 50 states. Attractive locations ranging from exotic Hawaii to metropolitan New York bring in large volumes of tourists that may have different intentions and interests for visiting the U.S. Just as Tourism Australia conducted segmentation research, the U.S. must also address its 63 target audience and tailor varying and appropriate messages to each of these audience segments. Currently, both Brand USA and the Discover America campaign lack audience segmentation and strategic messaging for each target segment. Because the U.S. is incredibly vast and holds countless activities that interest all types of visitors, messages should also emphasize that the U.S. cannot be covered in simply one trip. Message content must emphasize that the diversity of all 50 states will have visitors wanting to come back for more. The U.S. is also the political and cultural leader of the world. President Obama himself is an icon of the U.S., holding equal status of a celebrity as the world watches and judges his every decision and statement. In the 2012 presidential election, the AFP-Ipsos online poll showed that 63% of around 800 Chinese respondents would vote for Obama’s reelection. (“If China voted, it would be Obama in a landslide, surveys show”). With the positive influence of President Obama on China and his perceivable efforts to boost travel and tourism to the U.S., the Chinese feel more confident in traveling to the U.S. In terms of culture American music, movies and sports are extremely popular in China. The level of popularity in China for Hollywood was so immense that the Dalian Wanda Group purchased the U.S. based movie theater chain AMC Entertainment for $2.6 billion in September 2012. (“Chinese company Wanda completes buy of AMC theaters”) Despite the recent censorship of pop stars such as Lady Gaga and Katy Perry, (“China Says Lady Gaga, Beyonce and Other Pop Stars Are a Threat”) famous singers such as Celine Dion and Mariah Carey continue to have a strong fan base. Sports celebrities such as Kobe Bryant, Lebron James and the recently retired Yao Ming also increase sports gear wears for famous brands like Nike, Adidas and Reebok. Brand USA can leverage 64 these trends and feature celebrities in its messaging campaigns to capture the awareness and interest of Chinese visitors. One of the most popular traveling and tourist activities for the Chinese is shopping. In 2012, 25% of the world’s luxury purchases were made by Chinese nationals compared to 5% in 2007. (“Chinese make 25% of world’s luxury buys”) This spike of purchasing power in just five years demonstrate that the Chinese are more open to buying luxury items and becoming increasingly sophisticated in the materials that they buy. The demand for luxury products is extremely high as 31% of Chinese tourists’ expenditures go towards shopping (“Tourism flows outbound: China”) and year-on-year increase in spending was 91% between 2010 and 2011 (Essential travel trends 2012). Higher product prices, distribution costs and import tariffs deter many Chinese from buying luxury brands domestically and there are consumers who are willing to go abroad just for the intent of shopping. With major shopping outlets and a multitude of brands present in the U.S., many Chinese come with the eager intent of purchasing luxury and brand items that are too expensive to purchase at home. With significantly lower prices and larger brand choices in every state of the U.S., the Chinese can shop to their heart’s content. China and the U.S. are the biggest partners in terms of trade and business. With the reelection of President Obama and the new leadership of Xi Jinping, talks on increased trade and better market access will propel the economy of the two nations forward. With over half a million Chinese business travelers going in and out of the U.S. border in 2010, the U.S. must also find a better way to convince more business travelers to spend additional days for sightseeing and exploration in the U.S. (“American Hotels Embrace Chinese Business Traveler”) A recent poll from the Wyndham Hotel Group 65 found through 4,300 business traveler respondents that 67% invite a spouse or family member to accompany their business travel. (“Chinese Tourists Are Increasingly Ubiquitous; Is The West Ready?”) This family member goes beyond business practices and engages in leisurely activities during their stay. Positive experiences derived from business trips by these Chinese business travelers may encourage them to return as leisure travelers with family members for a longer duration in the U.S. Decisions from the annual U.S.-China Joint Commission on Commerce and Trade will impact businesses between the U.S. and China and with a deeper economic engagement between the two countries, the U.S. will continue to see an increase in the number of incoming business travelers. (“U.S. to press China on trade as Beijing eyes fiscal cliff”) Industry Performance Comparison The U.S. is well received by the Chinese travel market, as visitor rates are high and consistently ranks in the top twenty long-haul destinations. The top 10 cities for Chinese travelers reported by China’s biggest travel website Qunar.com revealed that in 2012 long-haul destinations such as Paris, Dubai, the Maldives and Sydney were the most popular. (“Top 10 dream destinations for Chinese tourists”) In order to add one of the many cities in the U.S. to the list, Brand USA must concentrate efforts on projecting individual cities and sites within the U.S. as eclectic and exciting places. Because the U.S. received its Approved Destination Status (ADS) only in 2007, the Chinese travel market is novel for both the countries and the national branding campaign is still at its initial stage. Just as the Chinese are becoming more sophisticated in their purchasing decisions and exercising judgment based on preference over simply budget, the same trend and 66 higher level of sophistication is happening in the travel industry. As the Chinese become increasingly well traveled and more experienced in their trips overseas, they will incorporate personal tastes and interests into their travel purpose. In other words, they will seek out more personalized travel options catered to their needs. The emergence of specialized travel groups ranging from ecotourism to food tourism will attract specific types of travelers and will segment the Chinese traveler profile even more. In anticipation of this trend, the U.S. already has a clear advantage as the nation offers a wide variety and capacity for activities such as wine tasting and outdoor adventures. The preparation and arrangement for niche travelers are already in place. What the U.S. must administer are the means to reach the Chinese market, identify potential niche travelers and market heavily to these groups and individuals. A thorough market analyses that goes deeper than what Tourism Australia executed will be required to forestall the future development of the Chinese travel industry and traveler behavior. 67 Chapter Ten: Identifying Opportunities in Creating Value Understanding the Consumer Condensing the Chinese consumer market is impossible. Each demographic represents unique characteristics, needs and profiles that segments the market and makes it challenging for foreign businesses to operate. In terms of the tourism and travel industry, data shows that within the 1.3 billion people populating China, 100 million are predicted to travel abroad by 2020. This number, while substantial, points the industry to where the biggest potential travelers reside, their unique profiles and what their consumption habits are. Because each traveler encompasses an incredibly diverse set of backgrounds, personalities and reasons for travel, promoting the U.S. in China cannot be haphazard. The U.S. must: 1. Create a greater awareness of the cultural implications for Chinese travelers. Identifying current and potential long-haul travelers is a rather straightforward task that has already been executed by a number of agencies and countries. More importantly, the U.S. must pinpoint and develop strategies for the traveler segment within the current and potential long-haul travelers. For example, there are great opportunities in targeting affluent Chinese citizens residing in tier-one cities such as Beijing, Shanghai and Hong Kong. Their needs, however, are completely different from those of middle class citizens who may be venturing overseas for the first time. First understanding the underlying reasons as to why the Chinese travel and purchase certain merchandise along with how they make their decisions are key in tailoring a strategic public relations campaign for the traveling demographic. 68 2. Data has also shown that the number of people booking tours online and using the Internet to research destinations is also on the rise. Closely monitoring what the Chinese travelers talk about online in real-time is a crucial factor in understanding the evolving market and industry. To enter the dialogues in the Chinese digital realm, Brand USA must penetrate the Internet domain more aggressively and identify niche and potential niche travel groups within the online market. Creating a Sina Weibo account and receiving analytics from Baidu (China’s equivalent of Google) are just some of the ways for the U.S. to stay informed. Brand USA must seriously reconsider restructuring their website to be more internationally friendly where the website content can be available in any language, especially Mandarin Chinese and Portuguese, where the level of outbound tourism traffic is set to increase most. 3. Project the image of the U.S. as an inviting destination with ample campaigns, advertisement and marketing efforts communicating the diversity of the nation. Lesser known landmarks and cities that offer unique attributes should be displayed in a manner that relates to the average Chinese consumer. For example, running a campaign right before Chinese New Year to encourage the Chinese to visit Napa valley and other wineries nationwide is much more effective as the biggest sales for alcohol occur over the Spring Festival. 4. Upon identifying the cultural implications, values and incentives for each Chinese traveler segment, Brand USA should tailor short and concise messages directed to each different segment. Business travelers have very different agendas from honeymooners or 69 first time travelers. A message that emphasizes ecological preservation efforts and outdoor activities may be appealing to the adventurous traveler but certainly is not applicable to a repeat business traveler. 5. Tap into the hobbies that the Chinese love most and leverage these interests into Brand USA and Discover America’s communication strategy. As mentioned before, the Chinese are brand-hungry, insatiable shoppers, especially during their overseas vacation. Informing Chinese shoppers of the states without sales tax (such as Oregon, Delaware and Montana) while also emphasizing the great attractions and activities these destinations offer, gives the practical Chinese traveler a bigger reason to consider lesser- known States. Releasing substantial promotional sales and package deals before the Chinese New Year can leverage the industry to attract the Chinese to purchase family travel packages and buy goods overseas for cheaper rates. 6. Continue to project the U.S. as the political and cultural leader of the world. The Chinese see incredible value in places with originality and unique histories. While most Chinese are aware that New York City was the capital for immigrants seeking a new life under the Statue of Liberty, they may not be so informed that Charleston was one of the first cities founded by Christopher Columbus or that Chicago was home to some of the world’s most renown gang leaders such as Al Capone and Bugs Moran during the Prohibition era. The strategy of using stereotypes and familiar places such as New York, Las Vegas and Los Angeles as a pedestal to inform the Chinese about these lesser-known locations is key. A picture says a thousand words. A popular celebrity photographed in a 70 lesser-known city will increase awareness and buzz, not only for the celebrity but also for the location. Although the chosen celebrity will be based on their popularity among Brand USA’s target audience, having a photo spread of Rihanna in Savannah, Georgia across travel magazines and websites most used in China will generate more buzz than a simple feature of the location by itself. 7. Make traveling to the U.S. easier for the Chinese in second-tier cities and middle- income travelers. Despite the strong interest of the travel and tourism industry on affluent Chinese citizens, the U.S. must acknowledge the potential for the rising middle class. With the recent improvements in their livelihoods and higher disposable income, they are now looking for a way to splurge and demonstrate their social upgrade. Their growth in numbers, exposure to American media and willingness to venture overseas are optimistic indicators. Most of the rising middle class, however, resides not only in tier-one cities but also in smaller and more inland locations that have harder access to international airports and longer visa application processes. The U.S. must work to alleviate the cumbersome procedures and time constraints involved with visa applications for smaller Chinese cities. The Chinese middle class are more likely to have never ventured beyond the Asia- Pacific region and will feel more comfortable joining a travel group with package rates that allow them to visit all the major sites and cities during one trip. Travel agencies and reliable Internet connection past the big cities are sparse and there must be a greater push for easier access for the Chinese middle class to book trips and attain visas to the U.S. 71 8. Create brand loyalty through personal relationships. Brand awareness is important for the Chinese when making large purchasing decisions. Awareness levels for quality service and comfort are imperative for the hospitality industry and brands have the opportunity to generate positive word of mouth. In a survey, it was found that the Chinese rarely rely on brands that are completely foreign, however, they are willing to try new brands that they have heard of before. (Chinese Traveller. BCG). As mentioned in Chapter four, however, with the influx of brands into China’s market all competing for capital from respective target audiences, a start-up brand finds incredible challenges in being distinct for their audience. The Chinese are already aware of the exciting attractions and opportunities offered in the U.S., regardless of whether or not their perspectives and stereotypes of the U.S. are completely accurate, they are very aware of the U.S. as a brand. More importantly, the next step is to carry the awareness level over and lead it to action. The actual visitation to the U.S. and converting the visitor into a loyal customer who consistently comes back to discover different attractions is the ideal situation. Currently, visiting the U.S. for many average middle-class Chinese is something of great interest, yet most are hesitant to visit for the reasons listed in Chapter eight. Once visa application process becomes more advanced and traveling to the U.S. becomes hassle-free, the possibility to build loyalty becomes greater. Positive experiences built through excellent customer service, navigable booking sites, easy accessibility, guest service programs, and a variety of travel options create a strong base to acquire new customers and keep visitors coming back for more. 72 Conclusion China is a challenging market to tap into for all foreign companies in all lines of business. The travel and tourism sector in China is still a growing industry with massive potential for new travelers in the coming years. Definitive travel seasons and holidays as listed in Chapter four, voracious brand appetite of the upper and growing middle class, fragmented audience segments and increasingly tech savvy Chinese consumers, help guide Brand USA in readily strategizing on how to best reach out to potential travelers. Multiple researches on their behavior and consumption patterns have also been published, giving greater insight into what Chinese consumers value and what they generally avoid. In order to truly understand the characteristics and motives surrounding travel and purchasing decisions, however, a greater awareness on the cultural significance of holidays and behavioral patterns need to be made. The main areas that need enhancements are the ways in which the U.S. is reaching out to their target audience and how to leverage the opportunities at hand to develop relationships. 73 Because of their strong cultural influence and distinct historical background, public relations and former national branding strategies cannot simply be replicated and reproduced in China. A campaign targeted at the Chinese must be produced with strategic endeavors to raise awareness beyond typical U.S. cities and attractions by highlighting the diversity and the benefits for the Chinese visiting the U.S. Whether it’s for a multitude of shopping opportunities, adventurous eco-tours or locations that demonstrate prestige and wealth, if messages are focused on what they gain from coming to the U.S., the Chinese will be interested. Businesses within the travel and tourism industry must likewise pay attention to serving the needs of the many niche Chinese traveler segments and prepare themselves beyond the superficial level to provide a positive experience and establish relationships. Policy changes ensuring the quick and effortless delivery of visas and entry permits to the Chinese are crucial to the overall experience of coming to the U.S. With President Obama’s speech and initiative by signing in the U.S. Travel Promotion Act and instigating programs such as the Global Entry Program and Visa Waiver Program show promising signs of growth in the travel and tourism sector since 9/11. The nationwide effort to promote the U.S. will inevitably build momentum to make it a world-leading destination for not only Chinese tourists but for visitors all over the world. The challenge will be to promote all of the diverse facets and attractions the nation has to offer to the right target audience. Competing long-haul nations have already begun extensive consumer research and created effective message delivery systems to the Chinese traveler market. The U.S. must go beyond replicating similar tactics in order to compete and remain one of the top overseas dream destinations. 74 Defined objectives have been set to increase the number of Chinese visitors. An emphasis on continuing this trend and specifically launching campaigns relevant to the Chinese market (and each individual audience segment within this market) will bring better overall results rather than just having an overarching campaign intended for all visitors. With the emergence of more sophisticated and niche travelers alongside a growing number of first-time long haul travelers from the middle class, Brand USA has ample opportunity to take the lead in a relatively unexploited and emerging market. Ranging from luxury to business and with different motives for coming, identifying the attractions that fit best with each visitor and successfully catering to their expectations is imperative. Brand USA needs to act quickly, however, as this market will soon be one of the biggest traveler segments in the world and as demonstrated in Chapter nine, countries are already fiercely competing to grab China’s attention. Beyond the obvious quantifiable objectives of bringing in Chinese tourists, Brand USA must view the exchange of tourists between the U.S. and China as an important cultural platform. Cultural awareness and programs reflecting its considerations will resonate deeply and positively within the Chinese traveler segments. The more comfortable they are with the idea of coming to the U.S. and the more affirmative their perspectives are of the U.S. being a welcoming nation, the more likely they will visit. 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Web. 20 Oct. 2012. <http://www.chinadaily.com.cn/business/2012-08/16/content_15680116.htm> Makinen, J. “If China voted, it would be Obama in a landslide, surveys show.” Los Angeles Times. 6 Nov. 2012. Web. 9 Nov. 2012. <http://latimesblogs.latimes.com/world_now/2012/11/if-china-voted-it-would-be-obama- in-a-landslide-surveys-show.html> Mckinley Jr., J. “China Says Lady Gaga, Beyonce and Other Pop Stars Are a Threat.” The New York Times. 26 Aug. 2011. Web. 9 Nov. 2012 <http://artsbeat.blogs.nytimes.com/2011/08/26/china-says-lady-gaga-beyonce-and-other- pop-stars-are-a-threat/> Monthly Tourism Statistics. Office of Travel and Tourism Industries. Web. 27 Sept. 2012. <http://tinet.ita.doc.gov/view/m-2001-I-001/table_2.html> Muir, D. “Made in America: Visa Process Slowing Down Tourism.” ABC News. 31 Oct, 2011. 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Web. 20 Aug. 2012. <http://www.ustravel.org/news/press-kit/travel-facts-and-statistics> Wang, W. “Chinese Consumers’ Reluctance to Spend Weakens Confidence.” The Nielsen Company. February, 2011. Web. 17 Aug. 2012. <http://blog.nielsen.com/nielsenwire/wp- content/uploads/2011/02/Nielsen-China-Consumer-Confidence-Q4-2010.pdf> Wang, Z. “Chinese shoppers less loyal to brands,” China Daily. 29 Jun. 2012. Web. 20 Aug. 2012. <http://www.chinadaily.com.cn/bizchina/2012-06/29/content_15534264.htm> 80 Weisenthal, J. “It’s Golden Week in China, and the traffic jams are like nothing you’ve ever seen.” Business Insider. 30 Sep. 2012. Web. 20 Oct. 2012. <http://www.businessinsider.com/golden-week-huge-traffic-james-in-china-2012-9> White, M. “American Hotels Embrace Chinese Business Travel”. The New York Times. 3 Oct. 2011. Web. 10 Oct. 2012. <http://www.nytimes.com/2011/10/04/business/american- hotels-embrace-chinese-business-travelers.html> Xin, D., Zheng Y., Shi, Y. Simpler visa procedures for Chinese tourists. China Daily. 8 Feb. 2012. Web. 12 Aug. 2012. <http://usa.chinadaily.com.cn/china/2012-02/08/content_14556441.htm> Yancey, J. “Is Charleston the world’s best city?” ABC News. 22 Oct. 2011. Web. 10 Oct. 2012. <http://www.usatoday.com/story/dispatches/2012/10/20/charleston-best-city/1646229/> Yu, R. “Chinese travelers are seeing the USA in record numbers.” USATODAY.com. 2 Feb. 2012. Web. 20 Aug. 2012. <http://travel.usatoday.com/flights/story/2012-01-31/Chinese- travelers-are-seeing-the-USA-in-record-numbers/52905866/1> Zhang, Lifei. “China GDP Shows Pickup Signs After Seven-Quarter Slowdown.” Bloomberg. 18 Oct. 2012. Web. 12 Nov. 2012. <http://www.bloomberg.com/news/2012-10-18/china-s- economy-grew-7-4-in-third-quarter-vs-7-4-estimate.html> Zhou, A. “10 Affluent Chinese consumption trends”. WARC. March 2011. Web. 20 Jul. 2012. <http://www.warc.com/Pages/Search/WordSearch.aspx?q=10%20affluent%20trends&Fil ter=ALL%20OF%20WARC&Area=ALL%20OF%20WARC> Zhou, Ting. “Luxury brands may raise EU prices to protect Chinese market. WantChinaTimes.com. 09 Aug. 2012. Web. 20 Oct. 2012. <http://www.wantchinatimes.com/news-subclass- cnt.aspx?id=20120809000017&cid=1102&MainCatID=0> Transcripts Interview Transcript with Dr. Wolfgang George Arlt, Director of China Outbound Tourism Research Institute 1. Traditionally, outbound Chinese tourists came in budget minded travel groups; however, there is a shift and increase in wealthier Chinese tourists who wish to travel individually. Do you see this as a growing trend? Yes. 81 The second wave of China’s outbound tourism has started, with more self- organized travelers slowing down and spreading further afield. Increasingly travel-savvy and globally connected, below 45 years and green, the New Chinese Tourist (NCT) is arriving in exotic locations and is staying for more than just a snapshot. Chinese research results confirm analyses of COTRI that the Chinese outbound tourism market has segmented quickly, with two main segments of the mostly non-business travel orientated travellers clearly distinguishable: Group travel segment: There is still a queue of - according to COTRI estimates - at least 150 million Chinese waiting for their turn to join travel groups for shopping in Seoul and photo opportunities in front of the Eiffel tower. The “Four- nights-on-Phuket” and the “Europe-from-the-Coach-Window” mass market based on low price, bad quality package tour products will still serve the majority of tourists in terms of participants but not necessary in terms of turnover. Self-organized segment: From small beginnings, tourism outside package tours is growing fast. A number of developments have positively influenced the start of the second wave of China’s outbound tourism. Rampant consumerism linked with the growing affluence of the top 5% of the Chinese society, simplified bureaucratic procedures making it easier to obtain passport and hard currency in China, simplified tourist visa procedures and the possibility of using Chinese credit cards in many destinations, increased offline and online tourism marketing by national and regional tourism organisations, better information about travel forms and quality from a Chinese point of view through social media contacts and more all combine with the increase of experience of repeat-travellers in shaping new interests and new confidence of the NCT. 2. It seems as though Chinese tourists spend most of their money on luxury retail, casinos and theme parks attractions. What are some ways that other industries could entice Chinese tourists to spend money at their businesses? What are the primary motivations for Chinese visitors to come to the U.S.? Primary motivation to travel to the US - beside business and visiting friends and relatives - is to gain prestige and to learn. To attract Chinese visitors these two aspects have to be emphasised: Be the most famous, oldest, greatest etc. in your field, provide a mix of entertainment and educuation. To build fame social media marketing is the most efficient instrument. Luxury retail and casinos will remain major activities, not the least as some of the money spent abroad comes from rather shady sources within Chinese. 3. How do you think Chinese tourists decide on destinations and in your opinion, how can certain cities or smaller towns increase their attractiveness for Chinese tourists to visit? Mass tourists will stay on the beaten track, but New Chinese Tourists can be attracted to less known places if they are provided with a good reason to go there 82 which translates again into prestige. Connecting destinations with the history of Overseas Chinese living in that area might also be a good starting point. 4. In your opinion, how will president Obama's travel initiative strategy help American place marketers in the future? What are some tangible impacts you foresee from the traveler facilitation reforms in the Consolidated Appropriations Act of 2012? I am not an expert on US policies, sorry. 5. Do you think that Taiwan will receive the Visa Waiver Program? This will depend on non-touristic geopolitical influences and circumstances which are difficult to foresee. 6.There have been substantial increases in Chinese investors for the EB-5 and the EB-6/ Start Up Visa Act of 2011 program. Just out of curiosity, do you think this increase can be directly attributed to improvements in the travel process? I am not an expert on US policies, sorry. Generally speaking, certainly the difficulty to obtain visa for the USA has been one of the greatest hurdles for Chinese tourism to the US. Any policy which makes it easier for Chinese citizens to enter another country will result in increased numbers of Chinese visitors. 7. Are any places/locations having any issues with Chinese tourists? In the past, Chinese mass tourists have often been regarded as rather loud and unsophisticated. With more travel experience and more better educated and affluent Chinese self-organized travelers on the road, this image is now changing for the better. Interview Transcript with Rand Han, CEO of Resonance China, a digital consulting agency. 1. With the growing number of Internet users in China, how can businesses use social media sites such as Weibo to identify and interact with potential clients and consumers? Should they use similar approaches to that of Facebook and Twitter? Weibo is a mix of Facebook and Twitter, so engagement methods should be generally the same. I've always thought if social media as "newsletter 2.0"; the strategy being to entice users to subscribe or follow so they can be messaged later cost effectively. 83 For businesses then; still run your traditional campaigns, but add a social media recruitment element at the end, which helps leverage your initial spend with cost effective communications over the long tail. Once your customers have followed, then they’re likely to entertain and stay informed. From there you can periodically push them from your social community to other assets, such as your website, ecommerce site, or offline retail POS. 2. Do you think that the government will intervene more heavily in the social media domain as the number of registered users grows? They'll intervene if users get political and threaten society stability. The social sword is double edged; so as more users log in, government then monitors more people. With the ever-growing safeguards put in place it’s doubtful government will shut social down; but you can bet that their ability to monitor and nip potential destabilizing political issues / rebellions in the bud will be increasingly sophisticated. 3. What are some of the biggest challenges/limitations facing businesses that are attempting to break into the Chinese digital media scene? (Ex. Audience fragmentation, apathy, cultural miscommunication etc.) In the west, we've had time to get t know brands based on our ages, income and society status; ie nickelodeon when we're young, nike as teens, car brands we get older, luxury brands after, etc. We have a long relationship and knowledge of brands. In China, all brands are coming in generally at the same time, so communication of brand values,position, culture and general education becomes an issue. So first, communication. Second is finding the audience – general FMCG and youth brands markets are easier to find than luxury watch and jewelry markets. Next is building channels, and bending brand DNA enough on a daily basis to connect with the newly minted Chinese consumers understanding of that brands value add. 4. As a strategy director, what marketing advice can you provide for businesses looking to communicate online with clients/consumers? Beginning strategy is universal: 1. understand your market *intimately*. 2. understand how the behave online. 3. know the channels they often visit. 4. mix and match behavior and channels to map a consumer journey toward your business goal. 5. How do you see the implementation of the 12th five year plan affecting> businesses? 84 Lots of effects for sure, the business that use digital/social tend to be the ones the 12th 5yr plan will help as that plan looks to create a sustainable future for China, and digital and social is about sustainable communications. Forward thinking industries are the benefactors - and forward thinkers tend to be on social. Interview Transcript with Pierre Gervois, CEO of China Elite Focus 1. Traditionally, outbound Chinese tourists came in budget minded travel groups. Today, however, there is a shift and increase in wealthier Chinese tourists who want to travel individually. Do you see this as a growing trend? Yes. This is definitely a growing trend. We focus a lot on the Chinese tourists who come back from their trip abroad and when they’re back in China, we ask them questions and talk with them. Through this, we see that the new generation of wealthy Chinese people no longer likes the 85 concept of group tourism. They want more freedom to discover—to choose their hotels, to choose their shopping area, and to do what they want to do on an individual basis. We see that the first time Chinese people travel lets say to the U.S., they will probably go in a group tour. But the second time, they will choose to travel independently, they will come back as independent travelers and this is a very strong trend. 2. What compels them to come through a group the first time and then independently the second time? Probably it’s due to the tourist visa issue. A couple of years ago, it was quite difficult for Chinese citizens to get tourist visas from the American embassy in China. So they initially needed to go through a travel agency and group tour. Now, the U.S. government has made things much more easier and quicker for a Chinese individual tourist to have a tourist visa. The process is quicker and easier with the new policy and Chinese citizens like that. 3. In your opinion, how will President Obama’s travel initiative strategy help American place marketers here in the future? I think it’s a great initiative and it will tremendously help the United States’ hospitality industry, travel industry and shopping industry. It will create a lot of results in the U.S. because Chinese tourists will spend a lot of money in tourist activities, which is great for the economy. 4. I see that, based on research, most Chinese tourists’ money goes to luxury retail, casinos and theme park attractions. Do you know what are some other ways that other industries can entice or invite Chinese tourists to spend money at their businesses? You’re right. A Chinese tourist in the U.S. mostly wants to shop and bring back gifts for themselves and friends. I think American tourism organizations linked with cultural tourism may also entice Chinese tourists and some Chinese tourists may want to discover historical places that aren’t that advertised. I think that historical and cultural places should make an effort to be better known by Chinese visitors. 5. Why do you think the Chinese visitors primarily come to the U.S.? Is it for shopping or is it just for exploring the famous Hollywood sites? I think the number one reason is shopping. They want to have a large choice of shopping. The second reason may be the fact that the U.S. is well known with their movie stars and the huge movie industry, prompting Chinese tourists to visit the places where the movies have been shot. 86 Sightseeing magnificent places in the U.S. like Utah or Nevada just to enjoy the landscape is also a good reason for them to travel. 6. Have you seen any differences between the amounts of travel in smaller U.S. cities? Los Angeles, New York City and Las Vegas are the primary places that the Chinese like to travel to, but are there any smaller or unique cities that are getting more attention within the Chinese community? This is an issue because now, because most of the Chinese tourists go to big cities in the States and I think that the U.S. tourism board for every state should be more proactive to communicate their attractions to China. 7. There’s been an increase in Chinese investors for the EB-5 and EB-6 visa act program. Just out of curiosity, do you think that increase can be attributed to the improvement of the travel process? We have seen a surge of Chinese private investors in the U.S., specifically in the real estate business. I was discussing with a New York City real estate company and he told me that he sees Chinese people coming into buy one to 3 million-dollar condominiums everyday. A lot of Chinese people come now to invest in apartments, villas and houses in the U.S. 8. Are there any locations or cities in the U.S. that are having issues with the sudden influx of Chinese tourists? No, honestly I’ve not heard about that. Everybody loves the Chinese because they bring in revenue!

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Asset Metadata

Creator Yuan, Chia-Ling Melody (author)

Core Title Ready for departure: the role of public relations in boosting tourism from China to the U.S.

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 07/22/2013

Defense Date 07/22/2013

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag attractions,china,cultural diplomacy,cultural exchange,destinations,Hospitality,International relations,OAI-PMH Harvest,Public Relations,tourism,tourist,Travel,US

Format application/pdf (imt)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Wang, Jian ""Jay"" (committee chair), Floto, Jennifer D. (committee member), Lynch, Brenda (committee member)

Creator Email melodyuan52238@gmail.com

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c3-294569

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Dmrecord 294569

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