China Fact Sheet Targets (Rev. Aug 2013)
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1 China Overview Hawai i Tourism China will be represented by Travel Link Marketing (TLM) beginning January. TLM was established in 2005 with its offices in Beijing, Shanghai, Guangzhou and Chengdu. We look for accelerated growth compared to previous years with increased frequencies to five weekly flights out of Shanghai starting from the end of December and new direct services out of Beijing by Air China and Hawaiian Airlines, each providing three weekly flights beginning in January and April respectively Quick Facts & (Jan Oct) Visitor Expenditures: $280.2 million Primary Purpose of Stay: Pleasure (101,268) vs. MCI (9,038) Average Length of Stay: 6.18 days First Time Visitors: 85.5% Repeat Visitors: 14.5 % China MMA (by Air) (Rev. Aug ) % Target to Actual to % Visitor Expenditures* ($ Millions) % % Visitor Days 364, , , , , % 1,128, % Arrivals 61,455 81, , , , % 182, % Per Person Per Day Spending* ($) % % Per Person Per Trip Spending* ($) 2, , , , , % 2, % Length of Stay (days) % % *Excludes supplemental business spending Contact Information Hawai i Tourism Authority: Hawai i Tourism China: Jadie Goo Tourism Brand Manager Tel: (808) jadie@gohta.net Brenda He General Manager Tel: 86 (10) hemiao@tlmchina.com As of December 1
2 Market Summary year to date arrivals from China rose 13.4 percent over the same period last year to 102,144 visitors and down from our target by 7.1 percent. Most (95%) visited O ahu, 16.0 percent visited Hawai i Island, 14.4 percent went to Maui and 2.7 percent visited Kaua i. Number of visitors to Kaua i remains the lowest, mainly due to lack of Chinese speaking receptive tour operators and tour guides on that island. Chinese visitors spent an average 6.18 days in the islands, slightly longer (+4.7%) than the same period in Average daily spending by Chinese visitors in the first ten months of was $391.40, the highest out of all visitors to Hawai i. Shopping was their number one expenditure, followed by lodging, food and entertainment. Majority of Chinese visitors to Hawai i are first timers. Year to date, 85.5% visited Hawai i for the first time (1.2% down from 2012). 52% came on group tours (1.0% down from 2012). As the market continues to develop and mature, FITs will increase gradually. Market Conditions Economy Trends China's Foreign Exchange Trading System reported the Chinese currency Renminbi, or yuan, weakened 23 basis points to against the U.S. dollar on Thursday, October 17. The National Bureau of Statistics reported China's GDP grew 7.8% year-on-year in the third quarter. Retail sales, a key indicator for consumer spending, rose 13.3% in September yearon-year, and fixed asset investment, a measure of government spending on infrastructure, rose 20.2% during the first nine months. China's General Administration of Customs released third quarter figures showing a recovery in both exports and imports that points to the full-year 8% government growth target being achieved. The National Bureau of Statistics reported China's consumer price index (CPI), the main gauge of inflation, increased 3.1% year-on-year in September, compared with 2.6% in August. China's CPI averaged 2.8% in the third quarter compared with 2.4% in first and second quarters. As of December 2
3 Outbound Travel Market Brand USA predicted China will become one of the top tourist source markets for the United States in 2018 when the number of visiting Chinese hits 4.7 million. Chinese travelers spent US$8.8 billion last year in America, making America the top spending destination for Chinese tourists. The U.S. Consulate in Wuhan will open its U.S. visa service to the public in It is estimated that the Wuhan Consulate will process 200,000 visa applications per year. Competitive Environment South Korea Tourism Bureau confirmed a new visa policy for Chinese tourists from Beijing and Shanghai, allowing them to apply for three-year multiple entry visas. The visa s popularity has lead to reservations for appointments through the official website of the South Korean Consulate General in Shanghai being booked out until late November. Tourists can alternatively apply for the visa through travel agencies. The UK Office for National Statistics reported only 215,000 visits by residents of mainland China to the UK last year, compared to 2.8 million from the U.S. However total spending by Chinese in the UK market nearly equated to that by U.S. market visitors in the same period. China is recognized as a high-spending market, with average per Chinese visitor spending in the UK reaching US$ Tourism Western Australia has signed a partnership with Union Pay through 2015 to encourage more Chinese tourists to visit Australia's most western capital, Perth, and southern wine regions surrounding Margaret River. Consumer and Travel Trends China's National Tourism Administration (CNTA) reported tourism spending during the National Day Golden Week holiday was billion yuan (US$36.47 billion), a year-on-year increase of 21.2%. Since the new China tourism law took effect on October 1, prices of group tours have increased because the law forbids the levying of extra costs during tours. Individual travel trips therefore became more prevalent than group tours during Golden Week than in the past, according to CNTA. Forbes magazine released its China Rich List, ranking the top 400 wealthiest Chinese based on the number of Chinese mainland residents with personal assets of more than US$1 billion rose to an increase of nearly 49% from last year's 113. The average combined net worth of those listed surged 35% to US$570 million each. As of December 3
4 New statistics from Hotel.com s Chinese website reveal that nearby Asian destinations are attracting Chinese visitors. Nine Asian cities rank in the Top 10 list and Hong Kong, Seoul, Taipei and Bangkok are the Top 4; Las Vegas is the only Western city ranked. The Chinese will make more than 90 million trips by the end of this year and it is estimated they will take an unprecedented 100 million trips in. Shao Qiwei, head of China's National Tourism Administration, stated that the government will be promoting cooperation between tourism authorities in China and the U.S. China's National Tourism Administration has implemented the China Outbound Tourism Quality Service Certification Program (QSC Program) to improve the service quality of Chinese outbound tourism. It will issue a corresponding Criteria of Certification and Assessment to China Outbound Tourism Quality Service Suppliers. Visitor Statistics China MMA (by Air) (Rev. Aug ) % Target to Actual to % Visitor Expenditures* ($ Millions) % % Visitor Days 287, , , , , , , % 1,128, % Arrivals 54,235 41,924 61,455 81, , , , % 182, % Per Person Per Day Spending* ($) % % Per Person Per Trip Spending* ($) 1, , , , , , , % 2, % Length of Stay (days) % % *Excludes supplemental business spending China: Distribution by Island % YTD O'ahu 49,778 38,734 58,057 76, , , % Maui 7,601 4,802 6,683 10,564 15,343 16, % Moloka'i 1, , % Lāna'i , % Kaua'i 2,360 1,391 2,026 2,868 3,828 3, % Hawai'i Island 8,328 6,191 8,655 12,115 17,929 18, % As of December 4
5 China: Airlift ( vs. ) Q1 Q1 %Chge Q2 Q2 %Chge Q3 Q3 %Chge Q4 Q4 %Chge CY CY %Chge China 25,340 11, % 19,539 9, % 20,040 10, % 23,063 11, % 87,982 42, % China: Group vs. FIT; Leisure vs. Business % 2012F- 2011F % YTD Group vs FIT Group tour 37,790 25,644 37,807 48,339 68, % 60, % True Independent 9,040 9,045 12,964 15,364 22, % 27, % Leisure vs business Pleasure (Net) 35,395 30,734 48,812 61,592 99, % 101, % MCI (Net) 7,235 5,410 5,879 11,242 8, % 9, % Convention/Conf. 2,307 2,518 2,808 4,558 3, % 3, % Corp. Meetings 1, ,142 3,798 1, % 2, % Incentive 2,962 2,038 2,073 3,379 4, % 3, % China: First Timers vs. Repeat Visitors % YTD 1st timers (%) Repeaters (%) Tax Revenue China MMA (by Air) P State tax revenue generated* ($ Millions) *State government tax revenue generated (direct, indirect, and induced) As of December 5
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