Paws up: the new luxury lifestyle for pets in China

Pandas may be the animal we most associate with China, but the growing trend of pet ownership in the People’s Republic reveals an increasing love for dogs and cats. China’s total pet population – a category which includes dogs, cats, birds, fish and a reassuringly small number of reptiles – passed 500,000 in 2017 and shows no sign of slowing.

Traditionally, animals in China have been viewed as sources of food rather than companions. Having an animal purely for pleasure was a luxury which few could afford. But pet ownership has boomed in recent years. Keeping a dog or cat is especially popular among younger generations including millennials, with later (or no) marriage, high disposable income and a desire for companionship driving pet ownership.

By some estimates, China’s pet retail market is worth more than the nation’s tea industry.

In May 2020 China’s cats and dogs were officially reclassified as “companion pets”. Previously they had been recognised as agricultural and livestock products. As the purpose of having a cat or dog has changed, the corresponding commercial environment has grown. Cat cafes are multiplying. Chain brands are expanding in pet hospitals, pet beauty and insurance. There are even dog and cat influencers, or Key Opinion Leaders as they are known in China. In 2020, China’s top beauty influencer and livestreamer, Li Jiaqi, debuted his puppy Never, who has become an influencer in his own right. Never even appears on his own make-up palette.

It’s (not) a dog’s life

Recent research indicates that the domestication of dogs first took place in southern China around 15,000 years ago.  Ancient China valued dogs for their usefulness and lauded their loyalty with jade amulets and statuary outside homes. But dogs were also killed to release their spirits for protection. The tradition of burying dogs outside homes for protection eventually graduated to statues of lion-dogs at the gates of temples and cities. Meanwhile Pekingese enjoyed special treatment as Royal lapdogs in the Forbidden City, sleeping on silk cushions and cared for by eunuchs who worked for the Dog Raising Office.

Yet during the Mao era, owning pets was vilified as bourgeouis, frivolous and wasteful. For many decades it was illegal to own a dog in Beijing, and as recently as 2011 Guangzhou added a ‘one dog’ policy to the existing ‘one child’ rules. In 2014 the Communist Party’s official news outlet, the People’s Daily, decried a “dog infestation” and denounced dogs as elitist. But by then the horse – or dog – had bolted. Pet ownership was embedded in the ways of the burgeoning Chinese middle-class and only set to grow.

Confucius had a cat

Cats also have a long history in China. In northwest China, small cat bones – indicating a domesticated feline – were found at an archaeological site, dating human-feline interaction to more than 5,000 years ago. Depictions of cats in Chinese art abound. Confucius had a cat.

Yet there is no Year of the Cat in the Chinese zodiac. Legend has it that the cat was sleeping on the day of the race that would decide which animals would be included. This will come as no surprise to cat owners. Or cats.

Especially favoured by young women, many Chinese felines are enjoying a luxury lifestyle. The Shanghai Traditional Chinese Medicine Neurology and Acupuncture Animal Health Centre offers acupuncture for cats. Their wardrobes are expanding to include hanfu, the traditional clothing of China’s Han ethnic group. There’s even a new Chinese phrase, smoking cats, to refer to spending quality time with feline friends.  

No longer on the menu

In common with many other countries in East Asia, the once widespread practice of eating dogs and cats is in decline as incomes rise, tastes change and the status of animals increases. The origin of Covid-19 in a wet market in Wuhan heightened opposition to eating exotic animal meat, and led to Chinese authorities banning the trade and consumption of wild animals. In April 2020 Shenzhen became the first city in China to ban the sale and consumption of dog and cat meat.

But China’s pet world is not without controversy. Fashion has recently favoured Western breeds such as golden retrievers, poodles and labradors while the status and value of Pekingese has declined. Panda dogs and panda dog cafes seem to exemplify a trend towards pets as playthings. And a (presumably) unsuspecting Tibetan Mastiff was caught masquerading as a lion at a zoo in Henan province in 2013.

For most pets, though, it seems that life is good in China. Whether you’re a pampered Pekingese or a committed Meowist, the future’s bright in the Middle Kingdom.

12 months on from the lockdown of Wuhan, we ask ‘When will Chinese tourists be back in Britain?’

This article, written by China Travel Outbound’s Managing Director, Helena Beard, appeared on the UK travel trade website, Travelmole, in January 2021.

China has successfully controlled the spread and impact of Covid-19 despite being the first country to have been affected 12 months ago. The number of recorded infections stands at just over 88,000 cases and 4,635 deaths have been recorded; incredible figures considering the population of China is more than 1.4 billion. As small outbreaks occur, entire cities are periodically locked down and the level of compliance is extremely high. Day to day life is much more normal now in China. But when can we expect to see these valuable, high spending tourists back in the UK?

The UK and the Chinese media – how is Britain perceived?

The UK hit the headlines in China at the beginning of the pandemic. While our government  discussed herd immunity, Asia scratched its collective head in confusion as to why the UK was not being locked down immediately. Our colleagues in China urged us to take the virus more seriously than our leaders, to get fit, lose weight and stock up on disposable masks, way before any of these messages hit our own news bulletins. There was then a long period where Chinese news was dominated by the situation in the USA and other countries. However, recently, the UK has been back as a ’hot topic’ on Chinese social media, Weibo, due to the new variant of the virus. 

On the plus side, the fact that the Oxford vaccine was developed here reinforces Britain’s position as the leading academic centre of the world, which will be positive for Brand Britain both in terms of international education and tourism from countries which value such things (particularly the Asian countries). Also, the emergence of various strains of the virus in other corners of the world eg South Africa and Brazil (and there are bound to be more), will lessen the significance of this individual variant and its prevalence in Britain. The news about vaccinations and the (hopefully) swift vaccinating of the British citizens provides great hope for the travel industry going forward.

However, that is not to belittle the seriousness of the current situation in the UK and the Chinese are very much aware that our country’s ‘performance’ vs Covid-19 in terms of infection rate and deaths is very poor. Whilst this continues to be the case, it is unlikely that the authorities will allow travel to and from the UK. There is currently a ban in place with no defined date when it will be lifted. This week, of course, the UK too has its own bans being implemented.

More generally, the international travel market from China is temporarily and effectively closed to all but the ‘exceptions’. Outbound tour operators are still closed and most staff have been redeployed to work in the domestic travel market (which is booming due to the pent up demand for travel). In many ways, this is good news. Those staff will return to international travel when it re-opens and, hopefully, there are not too many trade contacts who will be entirely lost to the industry.

Vaccinations in China

Beijing has begun its vaccination programme, aiming to have vaccinated all 21million+ citizens of Beijing by the end of March. Priority is being offered to students and business people who need to travel for study and work. This is a clear indication that the government of China values highly international trade and education. It has been reported that vaccinations are planned to reach 50 million people across 75 Chinese cities by Chinese New Year in mid February.

When will the Chinese start to return to the UK?

The short answer is that they will return when it is safe to do so. We do not believe that the image of Britain has been significantly damaged in China by its response to Covid-19 nor by Brexit and we are confident that there is still a high aspiration amongst Chinese people to visit the UK for all the reasons they have always longed to visit and study here (heritage, the royal family, culture, nature, education, home of the English language). But the Chinese government will decide when it is safe for people to come and that will depend entirely on how the virus is controlled, the roll out of the vaccination programme and the emergence of any new variants.

If all goes well, we can reasonably expect to see some FIT travellers returning to the UK this summer and students returning to universities in September. I think it is less likely that we will see a return of Chinese school children this summer on study tours as parents are likely to be more cautious. It is entirely possible that, during the Autumn and Winter season of 2021/22, the Asian market’s dislike of the cold British weather may be trumped by their desire to travel, creating an extraordinary peak season for this market.

It should be noted that there are other unknowns to consider. In a move that I fail to understand, VAT reclaim for international visitors to Britain was abolished on 31 Dec 20. This will doubtless make the UK somewhat less attractive than its European counterparts for all international tourists with an interest in shopping, but not least the Chinese. Perhaps this could be off set by any fall in sterling, but we don’t know how the pound is going to respond to Brexit in the longer term. And the political relationship between the UK and China is yet to play out following the US electoral result, the situation in Hong Kong, the UK’s stance regarding the treatment of Uyghur muslims, and any trade disputes.

Don’t ignore the Chinese student market

What does seem safe to say is that the USA’s relationship with China is worse than the UK’s. There is also a big issue of anti-Chinese sentiment and concerns over racist attacks in Australia. So international students, given the choice, are likely to choose Britain over America and Australia this year. In fact, 2020 (pre covid) research by New Oriental showed for the first time that the UK had moved into the top popularity spot as the most desirable destination for Chinese students, above the USA. In 2019, around 120,000 students came the Britain to study and their disposable income is five times that of a British student, so this is a segment with huge potential for UK tourism.

Read more about Chinese students and how to target them here.

Is it worth spending any money in China at the moment?

The short answer is yes, it is worth spending money on staying front of mind, on brand building, on placing reassuring messages that your attraction or destination is taking Covid seriously and is a safe and secure environment, and in maintaining relationships and loyalty with consumers, fans, followers, media and trade partners. It is not worth spending money on activity expecting to generate a short term return on investment.

We manage a number of Chinese social media accounts for our clients and these have been maintained throughout the pandemic. Despite the uncertainty, followers on Weibo for our larger accounts are still building at approximately 50% of 2019 levels. However, views are 5% up. But the most remarkable difference has been seen in engagements, where people have the time to get more involved in content and comment, like and share posts. Engagements in 2020 were a massive 45% up year on year on our travel Weibo accounts.  We are also seeing very good responses to the promotions we have been running with partners such as VisitBritain and Edinburgh Tourism Action Group.

This level of engagement and the clear desire to continue dreaming about travel, is why international destinations have continued to spend heavily on their Chinese social media accounts throughout the pandemic. Loyalty to China is also an extremely important factor in future success.

How many will come?

In terms of visitor figures, the Chinese market itself is likely to be smaller than 2019 for at least a couple of years. However, this is likely to be true of all international markets. Where the Chinese market will differ is that the ‘value’ of the market is likely to be higher, in terms of spend per visitor and environmental impact. China is one of the very few countries in the world whose economy is growing as we head into 2021. According to The Centre for Economics and Business Research, (CEBR) the Chinese economy will grow by 5.7% for the next five years. People in China still have money and they still want to travel. Fewer are likely to come, but they will travel to more diverse regions, travel differently and spend more money. They are going to be extremely valuable tourists for the UK. Students will also have spent a year learning online and saving their money. They are already an affluent segment. Next year, that affluence is likely to be even more marked.

I believe that one impact of Covid is that it has returned the tourism industry to a level playing field ie. there are opportunities for attractions, destinations, hotels which have not traditionally attracted the Chinese market to now position themselves as perfect for this market in a post Covid world. The rule book has been rewritten. It is not a foregone conclusion that, just because an attraction or hotel had a huge share of this market pre-covid, it will hold onto that share post-covid. The competition for this valuable market will be immense once it starts up again.

Marketing Britain to China

Travel and tourism businesses also need to consider another factor at play; the activities and plans of their national tourist boards. VisitBritain currently has no plans for a major advertising campaign in China for this year, nor is there a plan at this stage around the usual trade activities such as Destination Britain China. The focus for now is on the European markets, presumably to offset the impact of Brexit on Brand Britain and, perhaps understandably, to target what is seen as the ‘lower hanging fruit’ in terms of short term visitor numbers from neighbouring countries. This year, UK destinations, attractions and retailers in the Chinese market can not rely on VisitBritain’s activity to pull them through. If China was an important market to you pre-Covid, it is likely you will want to recover it post-Covid. It would be foolhardy to risk allowing the Chinese to forget you.

The new Chinese tourists: how to make them welcome

With recent news of Covid-19 vaccines, the natural optimism of the travel industry is starting to re-emerge – and all eyes are on China. The Chinese domestic market is well on its way to recovery and it seems set to be the first outbound market to recover too. So what’s changed since the arrival of coronavirus and how can tourism brands get ready for the new Chinese tourists?

In the first stages of post-pandemic travel, prices for travel and accommodation in China were reduced to stimulate demand. Latterly, as demand has climbed towards normal levels, prices have stabilised. China’s largest airline, China Southern, returned to profit in Quarter 3, and Boeing predicts that it will sell 8,600 jets worth US$1.7 trillion to the Middle Kingdom over the next 20 years.

China’s economy has bounced back too. The world’s second-biggest economy grew by +4.9% year/year in Quarter 3 and it’s set to be the only major economy to grow in 2020. Luxury is booming, restaurant chains are expanding and rising spend on socialising is providing a welcome boost to overseas spirit brands.

The rise of revenge travel

Meanwhile revenge travel has taken off in the Middle Kingdom, proving the resilience of Chinese travellers. Wuhan was China’s most-visited city during Golden Week in early October. And a recent survey by Hilton found that 91% of Chinese travellers plan to travel again once the travel restrictions ease and they can travel with peace of mind.

There is plenty of evidence, then, of a return to high demand for travel from the world’s largest outbound market. And as soon as China lifts its quarantine restrictions and allows free movement, its citizens will once again take to the skies to explore the world.

Are you ready?

But how do you ensure that your tourism brand is ready to welcome the new wave of Chinese tourists? How will you meet their post-pandemic needs? Some small insight into Chinese culture and providing menus in Chinese is no longer enough to stand out from the crowd and attract your fair share of these high-spending travellers.

Freedom, fresh air and luxury

The growing interest in self-drive and self-guided tours has strengthened in the post-pandemic Chinese domestic travel market. Freedom to create their own tours and explore off the beaten track is increasing attractive to Chinese tourists, and a great opportunity for more out-of-the-way destinations and attractions to expand its share of this business.

Trends also reveal a renewed interest in being in nature, with 53% of Chinese parents and 56% of Gen Z travellers citing this as a draw for travel. Fresh air and spending time in rural locations is increasingly important on trips. Gardens and countryside spots are likely to see a corresponding uptick in Chinese visitors.

Luxury trips are also showing growth in China, as tourists treat themselves to an indulgent holiday to make up for missing vacations earlier in the year. Enjoying high quality food and drink and trying out new experiences are important too, as travellers yearn to expand their horizons and satisfy their wanderlust with new and exciting adventures.

The rise of daka tourism is likely to drive even more Gen Z Chinese tourists to venture overseas too.

Brush up on your China Welcome

In Mandarin, the concept of hospitality suggests being friendly to strangers and treating guests well, so that’s what the Chinese expect when visiting new places. Hotels need to positively welcome Chinese visitors, and that’s not just about a friendly check-in; an understanding of Chinese culture and true anticipation of Chinese tourists’ needs is necessary. This may include tea on arrival and help carrying suitcases, and it certainly includes showing respect to Chinese guests.

In the age of coronavirus, Chinese guests expect to be appreciated for their willingness to travel. Of course hotels, destinations and visitor attractions need to show that they’re safe and hygienic too. Enhanced cleaning regimes, no-touch protocols wherever possible, and increased digitisation will all help attract and reassure the new wave of Chinese tourists.

We can help you get ready for the new wave of travellers from China. All types of tourism brands can benefit from our advice on welcoming the new Chinese tourists. And for hotels specifically, we have launched a NEW affordable, ‘Get ready for China’ consultancy service which combines an introduction to Chinese culture, update on post-pandemic trends, advice on sales and marketing your hotel, along with great tips for preparing your offering to make your Chinese guests feel welcome.

‘Get Ready for China’ hotel consultancy (one hour) – £300 plus VAT

Independent, single property – discounted rate – £200 plus VAT until 31 January 2021.

The meeting will be conducted over Zoom and can include up to three attendees. Additional attendees will be charged at £50 per person.

Contact Julie Withers to book your dedicated hour today.

China travel market update 20 November ‘20

China’s domestic travel market continues to make a strong post-pandemic recovery. China’s three largest carriers each launched 10 new domestic routes in October while China’s largest airline, China Southern, returned to profit in Quarter 3. Meanwhile key hotel markets including Sanya, Shenzhen, Chengdu and Xi’an have recently recorded occupancy levels of more than 70%.  And Alibaba’s online travel platform Fliggy reported more than double last year’s sales of domestic hotel nights during China’s annual online shopping bonanza Singles Day.

Intra-China passenger flights stood at 98% last year’s volumes in September in the build-up to Golden Week, the first in the time of Covid-19. And while countries across Europe were entering second lockdowns in early October, photos of busy tourist spots and transport hubs showed the Middle Kingdom rediscovering its wanderlust. The chairman and co-founder of online travel mega-agency Trip.com, Liang Jianzhang, forecast that China’s domestic tourism market would be fully recovered by the end of 2020.

China-Southeast Asia travel bubbles opening

At least 500 million Chinese went on holiday during Golden Week. In fact China’s Ministry of Culture and Tourism puts the number of travellers as high as 637 million. And Chinese online travel agency Qunar.com reported an increase of around +20% in the average hotel booking price compared to last year.

Attesting to China’s regained consumer confidence, a USD500 million Legoland theme park is planned for Shanghai. The first Chinese holidaymakers in 7 months arrived in Thailand in October, and a Hong Kong-Singapore travel bubble is due for launch on 22 November.

A return to explosive shopping?

The Pfizer/BioNTech announcement that their Covid-19 vaccination candidate proved 90% effective in global trials has received widespread coverage in China. This follows positive news for the nation’s own candidate vaccines. And with Covid-19 largely under control at home, the return of one coronavirus positive tourist from Mongolia in recent days has been headline news.

Chinese tourists are not just returning to travelling – they’re spending too. The Middle Kingdom’s – and perhaps the world’s – biggest annual shopping day, Singles Day, on 11 November broke all spending records. China’s online retail giant Alibaba reported record sales of 583,000 purchases every second with 1.9 billion sales in total.

Although the Chinese economy took a significant dip during the heights of the pandemic in Quarter 1, it picked up speed in Quarters 2 and 3. Quarter 3 saw growth of +4.9% year/year, and retail sales grew by +3.3% in September. China is the first major economy to resume growth at pre-pandemic levels and is expected to be the only G20 economy to grow this year.

Chinese students and the UK education market: an interview with Tony Evans, Co-Founder of Experio Life and Bristol International College

Tony, tell us about yourself; what’s your experience in education and what do you do?

After graduating in Modern European Studies in 1984 and travelling extensively throughout Europe for a year, I embarked on a career in Teaching English as a Foreign Language (TEFL) which spanned 6 years and took me to Germany, Italy and France. I then moved into Operations Management (staff recruitment, programming and troubleshooting) before taking on roles in Sales and Marketing with a number of leading organizations in the industry. Since September 1995 I have been involved in the creation and management of 4 start-up companies in the UK, France and Germany. In 2001, I set up Experio Life Ltd., a consultancy business specializing in educational travel for the youth market and in 2019 I co-founded Bristol International College, a University of London-recognised teaching centre located in the heart of Bristol.

What proportion of Chinese students attend your independent and public schools? And how has the market changed over the last few years?

In 2019, 50% of our international students were from China compared to less than 10% in 2016. While it’s true that we saw growth in many existing and several new markets over that period, none was so strong as that from China.

When did you start first realise that there might be an opportunity to attract Chinese students to independent schools and summer schools in the UK?

Since the early 2000s, we have had a good number of Hong Kong students every year but in spite of the best efforts of those Hng Kong-based agents to penetrate the mainland Chinese market, we didn’t welcome our first Chinese students until 2014.

How did you approach the market?

In the first instance, we were approached by the Bristol-China Partnership (now known as the Bristol & West of England China Bureau) to host a small group of friends and relatives of one of their Chinese staff members who was also a Post Graduate student at the University of Bristol. This turned out to be a very positive experience for all concerned and was repeated the following summer with a much larger group. At that point I realised the growth potential for student recruitment from China.

How did you find someone to work with in China?

We received another local contact from the Bristol-China Partnership, a Chinese lady with a background in Finance but with great entrepreneurial spirit and skills who had recently moved to Bristol to accompany her son, who had taken up a place in Clifton College Prep School. We immediately agreed to work together on the recruitment of Chinese students for our summer schools and state school integration programmes and I’m delighted to say that we are still working together and had great success up until Covid-19 struck.

At around the same time in 2015, we were talking to a student marketing company about how best to access the Chinese market from an in-country perspective and they recommended that we engage a full-time bilingual Sales Representative who we trained in the UK and then deployed in China to contact and pre-select educational travel agents on our behalf.

You visited China for 30 days/year for several years to build contacts; how did you plan your visits and decide who to meet?

Yes, that’s correct…so from 2016 – 2019 I visited China two or three times per year in order to meet and consolidate existing relationships and to forge new ones with agents who had been pre-selected by our local representative (ie vetted to meet certain criteria that qualified them as having good potential to deliver students to our portfolio of programmes). Our local rep was responsible for the itinerary for each trip including accommodation, ground transportation and flights but in some cases these costs were borne by the agents that we were meeting since I would be required to visit schools and universities together with the agent and often give a presentation to Senior Management Teams, English teachers, students, parents etc.

What are your general experiences of working in China? What were your biggest challenges?

I must say that despite the extensive travel involved and the somewhat repetitive nature of visiting schools and giving presentations, I have really enjoyed all my trips to China and I have been made to feel extremely welcome wherever I have been. And I have eaten some of the most delicious food I’ve ever had anywhere. On the few occasions that I have travelled alone in China, I found the language barrier the biggest challenge…especially with taxi drivers!

Can you tell us about guanxi and how it has affected how you work with the Chinese?

Guanxi is a Chinese term meaning “networks” or “connections” that open doors for new business and facilitate deals. Understanding this concept and how to implement it within the context of student recruitment has been fundamental to our success in developing China as a market. Having a basic understanding of Chinese culture and demonstrating this understanding and your respect for the ways in which things are done through the way you behave yourself in everyday situations, and in the way you do business, is key to creating the guanxi from which successful and long-lasting business relationships and partnerships develop.

What are the most important factors in attracting Chinese students in the age of Covid-19?

The most important factors are showing empathy and understanding for the concerns that students, parents and agents have surrounding safety and security issues, and then being able to address those concerns with tangible solutions. Students want to study abroad and many would be prepared to take the small risk involved currently but parents are the ultimate decision makers since they are financing it and they won’t take any risks where their children are concerned. Consequently, we have to satisfy the parents that not only will we provide an excellent educational experience for their children but that we can also guarantee their safety and well-being. We need the external factors such as transportation and visa processing to be available too.

How to do business in China: the importance of guanxi

If you’ve ever made a business trip to China, you’ll have heard about guanxi. If you’re new to China and considering doing business there, you need to know about guanxi. So what is this key element of building relationships with Chinese business partners? What is the importance of guanxi?

Who you know is more important than what you know

It isn’t easy to directly translate guanxi into English but its approximate meaning is ‘social connections’ or ‘personal relationships’. Essentially it refers to the interpersonal networks of people we each build to help us succeed in our careers. And guanxi is key to being successful in business in China.

For much of Chinese history, guanxi has been the glue that has held society together. Traditional Chinese society was mostly rural and built around family and social connections, which are also emphasised in Confucianism. Essentially, it’s natural to do business with people you know. We might even characterise guanxi as ‘Who you know is more important than what you know’.

So how should you approach doing business in China, taking guanxi into account?  And can you create your own guanxi?

Creating your own guanxi

Is it possible for a non-Chinese person to create their own guanxi? Tony Evans did. Tony is Co-Founder of Bristol International College and Experio Life Ltd, a consultancy business specialising in educational travel for the youth market. With more than 30 years’ experience in education and a continent-spanning career, Tony is used to cross-border working and international collaboration. So he wasn’t phased by getting involved with the Chinese market. We spoke to Tony to hear more about his experiences.

In 2015 Tony identified untapped Chinese demand for international education. Working with a Chinese business partner in the UK, Tony selected and appointed a bilingual in-country representative. The local rep identified suitable schools and agents, arranged local introductions, and planned itineraries and every aspect of travel. Tony visited China two or three times every year, spending about 30 days annually travelling vast distances and holding many meetings in China to build relationships and establish that all-important guanxi.

The result? In 2019, 50% of Tony’s summer school students were from China – an increase from just 10% in 2016.

How to do business in China

So it is possible to create your own connections, or guanxi. But it’s a lot of work and commitment, and you need inside help.

  1. Have a trusted local partner

Work with a local partner to identify the right people to meet. The right person in China knows your market and industry, and will have the necessary connections to match you with promising business contacts.

  • Get introductions

Make sure you’re not approaching potential business partners ‘cold’. A written introduction from a trusted Chinese contact is the minimum; an inperson introduction is better.

  • Work with a local translator who is not just bilingual but bicultural

Use a translator who understands your industry jargon and can interpret cultural differences for you. Understanding cultural and linguistic nuance is vital to achieving results.

Many cross-cultural challenges in business

And tackling guanxi is just one cross-cultural challenge among many. Don’t forget:

  • Seniority is important. It’s vital that senior associates make contacts and nurture relationships. Don’t ever send someone who the Chinese might perceive as junior to a meeting
  • The Chinese don’t like to say no. Apparent agreement is often not what it seems
  • Meeting etiquette is important. What Westerners perceive as ‘small talk’ is crucial relationship-building

We can help you establish great working relationships with business partners in China. We are experts in promoting tourism brands in the Chinese market and have long-term relationships with the important Chinese media, Key Opinion Leaders (influencers) and travel trade. The travel specialists in our Beijing office have existing guanxi with many of your potential business partners – and can visit them in person to promote your product ready for when China’s 100 million plus outbound tourists start booking overseas travel again.

Contact us now for a no obligation chat about the possibilities of the Chinese outbound travel market and how we can help guanxi work for you.

Travelling to be seen: the rise of daka tourism in China

When the Chinese first began to travel overseas, the cliché was that they loved to take short trips covering as many destinations and countries as possible. And while this contained some truth in the early days, Chinese travel patterns have evolved towards longer, more in-depth holidays. Getting under the skin of a destination and enjoying authentic local experiences has fast moved to the top of the Chinese tourist’s wishlist.

Yet there are as many different travel styles as there are Chinese tourists – millions – and the latest millennial trend is daka tourism. Daka tourism – essentially to be seen to have been somewhere, or preferably many places – is enjoying its time in the sun as the latest trend driving domestic travel in China.

In the Middle Kingdom, there is kudos to be seen to have visited significant and fashionable places, especially temporary ones. And how best to show you have visited somewhere? Through sharing digital video evidence on Douyin. Douyin is the original, censored version of Tik Tok with 230 million monthly users. Where Tik Tok rules for short video content in the USA and Europe, its censored parent Douyin rules in China. At the heart of Chinese digital trends, it’s through Douyin that daka culture has really taken off.

“Punching in”

The term daka originally refers to “punching in”, the act of using a card to punch in and out of work. In its latest form daka tells of marking one’s visit to a hot destination by posting on social media.

“Make every second count” is Douyin’s slogan, and this is reflected in the proliferation of short destination videos in the app.

Unexpected consequences of daka include the recent surge in travellers to Zhanjiang, an otherwise unremarkable city in Guangdong province. Location of the hit tv show Bad Kids, Zhanjiang is experiencing an unexpected boom in visitors to locations featured in the drama, including a swimming pool which has achieved the dizzying heights of 2,000 visitors daily. And in the city of Chongqing, the mock-traditional style of architecture of a stilt-house complex in Honyadong became the second-most popular attraction in China after the Forbidden City thanks to a surge in Douyin coverage.

Selfies in space

Daka culture has its roots, of course, in selfies. Selfies have gradually infiltrated our most important moments over the last few years, making experiences more real and memorable by the act of digitally memorialising them. We usually think of selfies as a recent digital trend, but their history actually goes back centuries. The Library of Congress in the USA holds a picture Robert Cornelius took of himself in 1839, believed to be the world’s first photographic selfie. Second man on the moon, Buzz Aldrin, took the first space selfie in 1966, and what are Rembrandt’s self-portraits than a selfie by slower means? The 1990s saw selfies take grip in Japan as part of kawaii [cute] culture. In 2001 Instagram introduced auto filters for beautifying faces. And so in 2020 we arrive at daka culture.

Ephemeral beauty

Daka culture is related to, but not the same as, the search for Instagrammable backgrounds. While London’s Sketch hopes to use its soft pink benches to attract Instagrammers for years to come, a daka-friendly venue is more likely to be a pop-up, temporary in its location and especially on-trend in its looks.

Pre-pandemic China saw daku zu – daka tribes – touring cities to “punch as many destination cards as possible”. Travel agents started offering daka tours, and social media-friendly installations are even taking off in the art world. Savvy destinations and attractions ‘build in’ striking views and backgrounds to their offering, and plan PR-worthy temporary installations. Tourism brands work with Key Opinion Leaders and influencers on Douyin to encourage them to visit to put them on the daka map.

It will be fascinating to see how long daka tourism endures – especially if it turns out to be as fleeting as the visits it inspires.

Chinese Tourism Leaders’ (Virtual) Forum 2020

On 21 October, we were delighted to share insight into the Chinese travel market with senior representatives from the UK’s leading destination organisations, transport operators, tour operators and visitor attractions at the fourth annual Chinese Tourism Leaders’ event. Hosted by China Travel Outbound and Capela China, settling around Zoom wasn’t quite the same as enjoying Peking Duck in Chinatown but it was a fantastic success nevertheless.

Vivienne Song, China Director for China Travel Outbound, and Helena Beard, Managing Director in the UK, shared the latest information on the Chinese travel market. We heard that life in China is back to normal with the only Covid-19 changes relating to mask-wearing and Track and Trace requirements. China’s domestic travel market has been the first in the world to recover, with flight bookings down only -2% in August, and 75% of China’s travel agents back at work. Post-Covid-19 revenge travel took hold for Golden Week with 637 million trips being made, and strengthening trends include small tailormade tours, self-drive, rail, and luxury and personalised service. A lust for open spaces, remote islands, and direct contact with local cultures will be an emerging trend once the market returns to our shores.

We were delighted to be joined by Richard Nicholls, Head of Research and Forecasting for VisitBritain, who talked us through recent changes to VisitBritain China stats. For several years now there have been significant anomalies between VisitBritain figures for Chinese inbound tourists to the UK, and data from other sources such as number of visas issued. This issue has been discussed at length by the Chinese Tourism Leaders’ group in the past so the audience was very happy to hear that this has now been resolved.  The updated stats show a very substantial increase in Chinese inbound tourist visits to the UK with the revised total more than doubling to 860,000 in 2018. 2019 saw 883,000 Chinese inbound visits to the UK. In fact China’s £1.7bn spend in 2019 makes it the second largest inbound market by expenditure.

The timing for the return of the market was also discussed, with expectation that the first significant influx of Chinese tourists will be seen in Summer 2021. More accurate predications will be possible following Chinese New Year in February 21 when we will see how and where the Chinese government lifts restrictions on international travel. Helena Beard highlighted to the audience that the more immediate opportunity lies with international students and announced that a new student-focused product would be launched by the agency next month to service this market.

We also heard from Clive Doble of Value Retail, Bicester Village, who talked about the abolition of tax-free shopping for international visitors to the UK from 1st January ’21. This policy would make it about 20% more expensive for Chinese travellers to visit the UK and shop here. It would have a detrimental impact on international visitor figures and come as a huge blow to the inbound tourism sector which is already one of the sectors impacted most severely by COVID-19.  Joss Croft, CEO of UKinbound, reassured the forum that intense lobbying continues to try to reverse this decision.

The Chinese Tourism Leaders’ group was created by specialist agencies China Travel Outbound and Capela China to share insights and best practice between the destinations, visitor attractions, transport companies and tourism brands who are at the forefront of Chinese inbound tourism to the UK.

Post-pandemic revenge travel takes to the skies in China’s Golden Week

Thousands of years ago China’s emperors worshipped the moon for bountiful harvests, and on 1 October Chinese people believe that the moon is at its very brightest and fullest. China’s landscapes are dotted with lanterns to light the way to good luck, and across the nation people give mooncakes, rich pastries filled with sweet-bean or lotus-seed paste, as gifts in the week-long Mid-Autumn Festival.

China’s Mid-Autumn Festival this year coincides with National Day on 1 October, creating an eight day Golden Week holiday which is widely seen as a test for China’s post-pandemic bounceback. In mid-September, online travel booking website Qunar was forecasting that the total number of domestic flights over the holiday would surpass 15 million, a ten per cent increase on 2019. Lower ticket prices, promotions and curbs on international travel are all contributing to this surge in domestic traffic.

Chinese domestic tourism reaching last year’s levels?

Mid-September had already seen the first sales figures showing tourism growth year-on-year. China’s hotel occupancy rates in the week to 12th September stood at +9% against last year; this marked the first year-on-year increase since the beginning of the pandemic. Meanwhile Alibaba-backed online travel platform Fliggy announced that hotel and airline bookings made in the week to 15th September outsold those made last year.

There is plenty of confidence in the domestic market. China’s largest mainland hotel operator  Huazhu has unveiled plans to open more than 1,600 new hotels this year and has just raised HK$6.07 billion (USD783 million) with a second listing in the Hong Kong Special Administrative Region. Hauzhu is aiming for a total of 10,000 hotels in China by 2023. And Hampton by Hilton has just signed its 500th property in China.

The Red Dragon’s economic recovery

It’s increasingly clear that there’s plenty of pent-up demand in China. Restaurants, hotels and airports are busy again. Luxury spend is bouncing back. Expenditure from China’s middle income segment is not far behind, with compact cars following luxury models in seeing sales rise to near last year’s levels.

In fact, The Organisation of Economic Cooperation and Development’s recent reforecast for China predicts that the country will experience growth of +1.7% this year. This would make it the only member of the G20 to see positive economic output in 2020. Prompt initial action against Covid-19 positioned China for a quicker recovery than many nations, and the OECD’s forecast of growth of +8% next year suggests a speeding uptick in spending.

Revenge spending and revenge travel

The recent surge in household expenditure has been characterised as “revenge spending” as Chinese people celebrate surviving the fear and death of the pandemic. Golden Week is the first real opportunity for “revenge travel” and all indications point to a population increasingly comfortable with ‘the new normal’ and willing to travel. Complaints on online forums about sold-out hotels and tourist attractions abound, and traffic analysis indicates plenty of China’s traditional Golden Week jams on major routes.

Winners of the Golden Week visitor numbers lottery so far include Sanya on China’s holiday island Hainan, with reported waits for check-in up to 40 minutes in recent days. Even in August, Sanya Phoenix International airport in Hainan was reporting arrivals up +4% year-on-year. Macau relaxed its entry requirements for mainland tourists on 23 September, just in time for Golden Week. On the mainland, weekend hotel availability is limited in many cities.

Travel in the age of coronavirus

To help meet this increasing demand, China’s Ministry of Culture and Tourism allowed tourist attractions and scenic sites to increase their capacity to 75% for Golden Week. In the age of coronavirus, this is of course combined with pre-booking, temperature checks, mask-wearing and social distancing protocols, helping both visitors and attractions to find new levels of reassurance of safety in travel.

The Chinese Outbound Tourism Research Institute compares the post-pandemic recovery to that which took place after the 2008 Wenchan earthquake in Sichuan. The Wenchan earthquake survivors showed similar inclinations towards revenge travel as they wanted experiences to bring them joy post-trauma. Elements which will help in the era of coronavirus include not just implementing anti-Covid 19 measures but effectively communicating them too.

China’s travel future

Traditionally one of the busiest times to travel in China, 782 million holidays were taken over Golden Week last year, and more than 7 million people travelled abroad. While 2020 levels may not quite reach these dizzying heights, China’s travel sector is unquestionably picking up. More than 90% of attractions are open, and so are over 75% of travel agents. While some of this is discount-driven, Chinese travellers’ increasing comfort with trip-taking bodes well for the future.

Professor Dr Wolfgang George Arlt of the Chinese Outbound Tourism Research Institute is confident that mainland China will remain the no 1 international tourism source market for many years to come. Economic and demographic developments, a growing middle class, more openness and increased ease of travel, and the easing or removal of visa restrictions will all contribute.

As Chinese tourists’ previously constrained holiday ideas take flight in the Middle Kingdom, interest in overseas destinations is rising too. While quarantine remains in force for international arrivals (including returning Chinese nationals), many tourism brands are maintaining awareness in the market through smart digital initiatives.

We can help maintain and increase your visibility to China’s travellers ready for the restart of international travel. Don’t let your competitors get ahead of you when the Chinese start booking overseas travel again. Contact us for a no obligation chat now.

China travel market update 21 September ’20

China’s domestic travel market is recovering strongly so far. Travel data analysts Forward Keys report that domestic arrivals reached 86% of 2019’s level in the second week of August, while domestic flight bookings hit 98%, with most bookings for travel in the same month.

Over 90% of China’s hotels and attractions are open. The Greater China hotel market is picking up at speed with destinations including Shanghai and Sanya, on popular tropical holiday island Hainan, showing a significant rebound in occupancy levels. And in further Chinese holiday island news, Macao has launched a promotional campaign to attract more mainland Chinese visitors to spur the recovery of the local economy.

China’s theme parks are booming [paywall] as the global restrictions on travel encourage the population to look for holiday experiences closer to home. China has around 160 large-scale theme parks ranging from international brands like Shanghai Disneyland to home-grown offerings such as Wuhan’s Happy Valley and Kunming’s Colourful Yunnan Paradise, with many more in development.

Hainan Airlines is operating charter flights from Chongqing to Manchester to bring new and returning Chinese students to the UK for the beginning of the 2020-21 academic year.

Meanwhile China’s August retail sales recorded an increase of +5% year-on-year, the first growth since the start of the Covid-19 pandemic. And China’s luxury market is thriving, partly driven by displacement of sales which would have taken place on overseas trips. Tiffany & Co reports retail sales up by +90% year-on-year in China in April and May. And new food experiences remain popular. New York’s lively burger bar brand Shake Shack opened its first outlet in Beijing in August and was met by queues around the block, despite pouring rain.

Quarantine rules remain in force for international arrivals, although it is expected that travel corridors are being negotiated with other Asian countries in preparation for Golden Week.