The Chinese Luxury Traveler

2014 The Chinese Luxury Traveler

Welcome Note This is the fourth consecutive year that Hurun Report has cooperated with ILTM Asia to publish The Chinese Luxury Traveler (2014). This report analyzes the travel habits and consumption patterns of China s HNWIs in the past year, and includes a new case study on medical tourism through collaboration with DIADEMA. According to statistics provided by the China Tourism Academy, consumer demand was strong as China s tourism economy grew steadily in 2013, with the number of Chinese outbound tourists coming to a staggering 98 million, up 17.8% year on year. However, the international tourism trade deficit continued to widen due to the rapid growth of outbound tourism. The China Tourism Academy continues to hold relatively optimistic expectations for the tourism economy in 2014 and believes it will continue to maintain steady and rapid growth. Our data is mainly derived from three special surveys completed by Hurun Report in collaboration with DIADEMA, ILTM and GHC Asia. Of particular note is that DIADEMA s 2014 Survey on China s High-end Tourism, currently the most comprehensive special survey conducted on China s super tourists. The study found that tourism is still the most popular leisure pursuit among China s HNWIs; China s HNWIs travel frequently for business, spending over 1/4 of their time on the road; online social media has become the most important source of information; China s super tourists spent 18 days abroad on average last year; per capita travel spending is RMB150,000 a year; China s HNWIs love island getaways; more than half of China s HNWIs select their travel destination themselves; a high proportion of them design their own tours; 66% would consider medical tourism; tours to the north and south poles have become the new darling of luxury travel; the preferred destination for cruise tourism is the Caribbean Sea. Best Luxury Hotel Brand: Jing An Shangri-La

About International Luxury Travel Market Asia (ILTM Asia) Now entering its 8th year, ILTM Asia is the leading luxury travel event for the Asia Pacific region. ILTM Asia is an invitation-only event, where the very best travel agents and advisors from across Asia meet the world s very best luxury travel experiences. For more information on ILTM Asia please visit www.iltm.com/asia About International Luxury Travel Market (ILTM) International Luxury Travel Market is a portfolio of global, regional and specialist luxury travel events. Alongside the global flagship event in Cannes, ILTM has core international events in the Asia Pacific and Americas regions and three specialist events; ILTM Japan, ILTM Africa and ILTM Spa. For more information on ILTM events please visit www.iltm.com

About Hurun Report Passionate about Chinese Entrepreneurship Headquartered in Shanghai, Hurun Report is an interactive, multi-platform media group targeted at high net worth individuals (HNWIs). Hurun Report is widely recognized as the foremost authority in tracking and profoundly influencing the changes amongst China s HNWIs. Hurun Report has a stable of four platforms, i.e. magazines, new media, events and research. In 1999, Rupert Hoogewerf founded the China Rich List, an annual ranking of the 1,000 wealthiest Chinese with personal fortunes of more than CNY2 billion. The list has been published for 15 consecutive years. In 2004, the Hurun Philanthropy List, a ranking of the 100 most generous philanthropists in China, was first released and has since been published for 10 consecutive years. In 2012, the Hurun Global Rich List was launched and has since been published for three consecutive years. The list identified 1,867 people worldwide who were worth more than US$1 billion. Hurun Report s four magazines include the Hurun Report, a monthly magazine; Hurun Schools Guide, which offers guidelines on studying abroad for children of high net worth families; Wings & Water, designed for China s super-hnwis who possess or dream to possess over CNY200 million in assets, and targets buyers who have a strong interest in business aircrafts and super yachts; Horse & Polo China, an upstart fashionable magazine offering extensive coverage of equine sports. The Hurun Report ipad magazine, the top ranking business & investment title Apps according to Apple APP Store, is Chinese HNWIs preferred wealth and lifestyle guide. In 2013, Hurun Report organized a total of 91 events mainly in China, including gala dinners, private cocktail receptions, high-end forums, high-end exhibitions, press conferences and luxury workshops. Hurun Report, which shapes opinions on luxury travel, once again is in collaboration with International Luxury Travel Market (ILTM). This year is the eighth consecutive year that Hurun Report is the official media partner of ILTM Asia. Following the Hurun World s Largest Charter Yachts 2013 last year, the Hurun Research Institute released its second ranking of the world s charter yachts in March 2014. This is also the first authoritative ranking of the world s fastest yachts. In June 2012, for the third consecutive year, Hurun Report hosted a photo exhibition entitled The World at Their Fingertips: Ecotourism through the Lenses of China's Entrepreneurs in Shanghai, showcasing works from six Chinese billionaire entrepreneurs with a passion for eco-travel. In 2009, Hurun Report launched the Hurun Presidential Awards, which are presented to the best presidential suites, executive suites, executive lounges and swimming pools of outstanding luxury hotels. The authoritative awards endeavor to provide a trusted top hotel guide for China s HNWIs, while helping the hotels to continuously improve their facilities and services. For more information, please visit Hurun Report s website (www.hurun.net) You can follow us on Sina Weibo on WeChat (HurunReport) (weibo.com\hurunreport) or

EXCELLENT SERVICE CREATES UNFORGETTABLE MEMORIES The Ritz-Carlton, Sanya boasts nearly 30 international ladies and gentlemen from more than 10 countries, including America, Russia, France, Italy and Thailand, among others. The entire team of almost 800 personnel live by the renowned Ritz-Carlton credo, We are Ladies and Gentlemen serving Ladies and Gentlemen, helping guests navigate an exquisite travel journey in the tropical splendour of Sanya with their multi-cultural backgrounds, and creating unforgettable memories with their refined service offering. French-American General Manager Mr. Michel L. Goget said, Among the diverse nationalities represented at The Ritz-Carlton, Sanya, we are bound by one common thread -- the pledge to provide the finest personal service and facilities for our guests, who will always enjoy a warm, relaxed and refined, yet international ambience. Personalized service The hotel s 450 rooms include 33 pool villas, each with their own private butlers, in addition to 21 luxury suites. Being nestled between the pristine white sand beach of Yalong Bay on one side and a mangrove reserve on the other, views from all guest rooms are breathtaking. Each of the 33 one-, two-, and three-bedroom private pool villas are Mr. Michel Goget tastefully and sensitively furnished with a large outside deck, double and single sun General Manager of The Ritz-Carlton, Sanya loungers for lazy days and evenings, and intimate infinity pools which merge with the horizon. The Villas at The Ritz-Carlton, Sanya offer the very highest levels of comfort, style, service, facilities and luxury. Offering a range of tailor-made and unique facilities, guests staying at The Villas can enjoy the services of their own butler, private dining, yoga or tai chi classes, even take advantage of the resort s Romanceologist. Destination of romance Sanya is an ideal destination for weddings and honeymoons. To ensure guests enjoy a uniquely unforgettable experience with their beloved, The Ritz-Carlton, Sanya has engaged the world's first in-house romance expert or Romanceologist. The ultra-luxury resort is Sanya s first resort to be able to offer guests an intimate waterfront wedding chapel set against the breath taking backdrop of the pristine white sand beach of Yalong Bay.

Contents Welcome Note About International Luxury Travel Market Asia (ILTM Asia) About Hurun Report Part 1: How Big is China s Luxury Travel Market? How Many Chinese HNWIs are there? Distribution of Chinese HNWIs across China s Major Cities Part 2: China s Wealthiest Lifestyle Review Travel is the Preferred Leisure Pursuit for Chinese HNWIs Swimming is the Preferred Sport for Chinese HNWIs Online Social Media Key to Influencing China s HNWIs China s Wealthy Spend Over 1/4 of Their Time on the Road 01 02 03 07 07 08 09 09 10 11 13 Part 3: Travel Habits Travel Schedules Hotel Reservation Overseas Study and Immigration Drive Outbound Travel Market Part 4: Top Travel Destinations among China s Wealthy Consumers Sanya Remains the Hottest Domestic Travel Spot HNWIs Interest in Australia Increased Significantly Travel Shopping Gifting Part 5: Travel Habits and Trends of Chinese Super tourists Travel Experience Travel Decision-making Process Case Study 1: My Best Trip Case Study 2: My Trip during Chinese New Year in 2014 Case Study 3: Travel Trend Prediction Case Study 4: Medical Tourism Photography Appendix: 2014 Survey on China s High-end Tourism 14 14 16 17 18 18 18 19 20 22 22 23 24 25 26 28 30 31

07 Part 1 : How Big is China s Luxury Travel Market? How Many Chinese HNWIs are there? There are approximately 8,300 individuals with CNY 1 billion or more in assets in China today, up 200 on last year. 2,800 of them have been identified by the Hurun Research Institute and a further estimated 5,500 have been missed, the so-called hidden wealth. There are 300 individuals with CNY 10 billion or more in assets, up 20 on last year by 7%. Among them, 140 individuals have been unearthed by the Hurun Research Institute and 160 individuals classified as having hidden wealth. There are about 67,000 individuals with personal wealth of over CNY100 million in China, up 2,500 or 4% on last year. The Hurun Research Institute forecasts that the number of individuals with personal wealth of over CNY100 million in China could reach 73,000 in the next three years. There are 2.9 million individuals with personal wealth of over CNY 6 million in China, up 100,000 or 3.6% on last year. The Hurun Research Institute forecasts that the number of individuals with personal wealth of over CNY 6 million in China could reach 3.35 million in the next three years. Known Wealth Total Wealth CNY 10 billion CNY 2 billion 140 1,018 CNY 10 billion CNY 2 billion 300 3,200 ( 7.1%) ( 6.7%) CNY 1 billion 2,800 CNY 1 billion 8,300 ( 2.5%) CNY 100 million 67,000 ( 3.9%) CNY 10 million 1,090,000 ( 3.8%) CNY 6 million 2,900,000 ( 3.6%) Hidden Wealth Increase Compared to 2013 CNY 1 billion CNY 2 billion CNY 10 billion 5,500 2,200 160 Source: Hurun Research Institute

Nobody Knows China s Rich Better Dollar Millionaires (CNY 6 million) Average age 38 60% male Average annual income over 0.5 million First Tier Cities Second Tier Cities Third Tier Cities and Others Total 1,145,710 754,560 999,730 2,900,000 Chinese Super-Rich (CNY 100 million) Averageage39 70%male Averageannualincome over5million First Tier Cities Second Tier Cities Third Tier Cities and Others Total 26,100 20,650 20,250 67,000 Harbin 13,590 390 08 Beijing 490,000 Xi an 14,140 440 Zhengzhou 11,300 10,760 410 Chongqing 36,200 830 Wuhan 15,120 570 Shenyang 21,170 490 Dalian 22,120 Tianjin 51,400 600 1,600 Qingdao 23,310 Nanjing 30,240 650 920 Suzhou 47,520 Hangzhou 1,340 Shanghai 90,420 2,180 Wenzhou 420,000 9,100 41,790 Fuzhou 22,890 1,090 Shenzhen 121,500 630 Xiamen 17,220 Chengdu 27,090 980 Changsha 12,570 340 Foshan 48,600 1,000 3,000 Guangzhou 114,210 2,700 490 First Tier Cities: Shanghai, Beijing, Shenzhen, Guangzhou. Second Tier cities: Tianjin, Nanjing, Wuhan, Shenyang, Xi an, Chengdu, Hangzhou, Jinan, Qingdao, Dalian, Ningbo, Suzhou, Wuxi, Harbin, Changchun, Xiamen, Foshan, Dongguan, Hefei, Zhengzhou, Changsha, Fuzhou, Shijiazhuang, Kunming, Nanchang, Nanning, Taiyuan, Yantai, Wenzhou, Chongqing, Zibo.

09 Part 2: China s Wealthiest Lifestyle Review Dollar Millionaire Chinese Super-Rich 18.5 annual vacation days; travel, reading and tea tasting are preferred leisure activities; Internet is still the main information source, especially WeChat, followed by print media; 70% take regular physical examinations; 60% do not smoke; 60% consume alcohol, of which 40% prefer red wine; Sleep 6.2 hours on weekdays, sleep 7.0 hours on weekends; On average own 3 cars and 4 watches; ROI and business ownership/sale are the two main sources of wealth; 22 annual vacation days; travel, reading and tea tasting are their preferred leisure activities; Internet is still the main information source, especially WeChat, followed by print media; Nearly 60% do not smoke, 70% consume alcohol; Sleep 6.4 hours on weekdays, sleep 6.5 hours on weekends. On average own 4 cars and 5 watches; ROI and business ownership/sale are the two main sources of wealth; Travel is the Preferred Leisure Pursuit for Chinese HNWIs Tourism remains supreme as the number one leisure pursuit for China s wealthy, with 56% of surveyed HNWIs listing travel as their preferred form of leisure activity, despite dropping seven percentage points from last year. Reading is still the second most popular, but drops three percentage points to 39%; Tea tasting, family life and driving remain steady in third to fifth places, but their popularity decline in varying degrees, showing a diversifying trend among China s wealthy when choosing leisure activities. Travel Reading Tea tasting Family time Driving Preferred Leisure Pursuit 56% 39% 28% 23% 15% Spa Looking after pets Wine tasting Photography Karaoke Fishing Foot massage Yachting/Sailing Games Cigar Appreciation 13% 11% 9% 8% 8% 8% 4% 4% 2% 1% Source: Hurun Report Chinese Luxury Consumer Survey 2014 *Note:FromApriltoNovember2013,HurunResearchInstituteresearchedon393ChineseHNWIswithassetsatCNY10millionormore.

Nobody Knows China s Rich Better 10 Swimming is the Preferred Sport for Chinese HNWIs Swimming remains the preferred sport among Chinese HNWIs, while jogging replaces badminton among the Top 5 preferred sports. Golf maintains its second place, despite declining 17% in popularity. Yoga and mountaineering keep their replaces among the top 5. Swimming has become the preferred sport of both male and female Chinese HNWIs, at 35% and 41% in popularity, respectively. Scuba diving ranks seventh, rising from 9% last year to 13%, and is equally popular among both male and female Chinese HNWIs. Yoga is still much preferred by female Chinese HNWIs, at 33.9%, while 14.7% of male Chinese HNWIs preferred yoga, up from 9% last year. 37% Swimming Preferred Sports 20% 15% Jogging Mountaineering 10% 9% Tennis Horse Riding 23% Golf Yoga 13% Badminton 7% Skiing 22% 13% Scuba Diving Source: Hurun Report Chinese Luxury Consumer Survey 2014 The Hurun Report Polo Team has won two consecutive championships of 2012 and 2013 Consul General s Polo Cup.

11 Online Social Media Key to Influencing China s HNWIs Online social media, dominated by micro-messaging and micro-blogging, is the most popular source of information, with 53% of respondents listing them as a preferred information source. Traditional information sources such as TV and newspapers follow closely in second and third places. Relatively, online social media (68%) are more important for women, while only 48% of men prefer online social media. TV (45%) and newspapers (45%) are still men s main sources of information, while women prefer reading magazines (45%). Preferred Source of Information 53% 44% 43% 35% 33% Online Social Media TV Newspapers Word of Mouth Magazines Source: Hurun Report Chinese Luxury Consumer Survey 2014 HNWI Media Usage Pattern Chinese HNWIs use the internet on average 6.5 days a week, and use other media approximately 2-3 days a week. It should be noted that Internet access mentioned here mainly refers to using the Internet for browsing information and is not limited to micro-blogging and micro-messaging. Media Channel Usage 21% 6% 35% 31% 12% 23% 2.1 37% Av.daysaweek 2.9 Av.daysaweek 6.5 Magazines Newspapers Internet Av.daysaweek 30% 11% 1 1 % % 91% Every day 1-5 times a week 1-3 times a month No usage Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report *Note: Hurun Report cooperated with DIADEMA and conducted a special research into 203 HNWIs with polar travel experiences.

Nobody Knows China s Rich Better 12 HNWI Phone Usage Patterns Other than SMS and calling, the number of HNWIs who use their phones to email is up to over 50%. It is worth mentioning that microblogging usage has dropped from 27% in 2013 to 13% this year; while micromessaging jumps to second place at 39%. In comparison, men more often use their phones to send and receive mail, at 54%; women and young HNWIs (below 30 years old) more often use chat tools (eg: WeChat, Whatsapp) on their phones, at above 50%. ( 60%) 25% 7% 8% 23% ( 28%) Visit 52% SMS Watching videos Playing games Chatting Send/receive emails Source: Hurun Report Chinese Luxury Consumer Survey 2014 HNWI Micromessaging Usage Phone Usage Patterns Taking pictures 26% ( 18%) Micromessaging 39% ( 22%) Microblogging 13% ( 51%) Listening to music 10% websites 35% Increase compared to 2013 Decrease compared to 2013 Relative to microblogging, micromessaging is more popular among HNWIs. Among them, 80% use it throughout the day every day and 19% use it 1-2 times a day. The micromessaging features they mainly use include friend circle (24%), text chat (19%), as well as photo-sharing (17%). Micromessaging Usage 1 % 19% 80% Use all day everyday 1-2 times a day 1-2 times a week Friend circle Text chat Share photos/news/ microblogs with friends Watch news Voice/video chat Send files Make new friends Micromessaging Feature Usage 0% 5% 10% 15% 20% 25% 3% 9% 13% 19% 17% 16% 24% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Note: Each respondent answered 3.7 times on average

13 China s Wealthy Spend Over 1/4 of Their Time on the Road China s wealthy are spending over 1/4 of their time on the road (for business purposes) which is on average 8.3 days a month, 0.8 day more than last year. Of particular note is that the proportion of long business trips for more than 20 days per month increased from 3% last year to 8%. The top travel destinations of China s HNWIs last year are Hong Kong, Shanghai, Beijing, Sanya and Hangzhou. They mainly traveled to Hong Kong for shopping, investment research and study tours, in addition to business travel and sightseeing. On the other hand, they traveled to Shanghai and Beijing mostly for business. China s national holidays are 11 days per year, and Chinese HNWIs annual holidays are stable at 20 days in 2013; but the number of overseas trips for Chinese HNWIs has dropped to 2.1 on average over the same period. Last year, China s HNWIs made four trips (including one business trip) on average, including three domestic trips and one outbound trip. Business Travel Frequency (Monthly) 53% 54% 26% 25% 17% 14% 8% 3% Less than 3 days 3-10 days 11-20 days Over 20 days 2014 Average 8.3 days 2013 Average 7.5 days Annual Holiday 40% 38% 23% 22% 18% 20% 18% 22% 2014 Average 20.1 days Less than 10 days 10-20 days 21-30 days Over 30 days 2013 Average 19.8 days Trips Overseas (Annual) 47% 31% 28% 36% 11% 9% 10% 8% 2014 Average 2.1days 2013 Average 2.8 days 1-2 times 3-5 times Over 5 times None Source: Hurun Report Chinese Luxury Consumer Survey 2014

Nobody Knows China s Rich Better 14 Part 3: Travel Habits Travel Schedules According to Hurun Report s analysis of ILTM s domestic travel agency database, the 25 travel agencies surveyed organised an average of 80 outbound tour groups in 2013. Tour group sizes are generally smaller for luxury travelers who spend over US$10,000 (excluding airfare) per capita. Their groups average 8.3 people and only 21% of their tour groups number more than 10 travelers. Trips average 7.8 days of which 58% are 5-8 days and 37% are over 8 days. 50% fly business class, 25% first class and 25% economy. Length of Travel - Luxury Travelers Who Spend Over US$10,000 5% <5nights 37% 8-15 nights 58% 5-8 nights Flight Class - Luxury Travers Who Spend Over US$10,000 25% First Class 25% Economy Class 50% Business Class Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014 Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014 Among the average 80 outbound tour groups organised last year by the 25 surveyed travel agencies, overall average was 30.5 people per group. 48% of the groups are made up of 3-10 travelers, while 52% are made up of over 10 travelers. Tour Size 48% 47% 5% 3-10 people 11-50 people Over 50 people China s HNWIs personally spend an average of US$5,500 (excluding airfare) every time they travel abroad. Among them, 53% personally spend US$1,000-5,000 and 5% over US$10,000. China s HNWIs spend an average of 8.6 days on outbound trips. Over 60% spend 5-8 days and 32% spend more than 8 days, up 11 percentage points over last year. Per Capita Spending 5% 53% 37% 5% <US$ 1000 US$ 1000-5000 US$ 5000-10000 >U$S 10000 Length of Trip 5% 63% 27% 5% <5 days 5-8 days 8-15 days >=15 days Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014

15 Sightseeing is their main purpose to travel abroad, followed by shopping. South Korea has become a new outbound shopping destination for China s HNWIs. Accounting for 48% of travel purposes, business travel ranks third, growing at an average rate of 35% in 2013. The most popular destination country is France, followed by Australia. Outbound Travel Purposes Top 10 Chinese Outbound Luxury Travel Agencies 2014 According to latest statistics from GHC Asia, the top 10 travel agencies in the outbound travel market include CTRIP, CTS, CITS and CAISSA. Among them, CTRIP s top brand HH Travel has become the most popular travel agency among China s HNWIs. Sightseeing 64% Shopping 52% Business 48% Inalphabeticalorder 8 Continents CAISSA CITS CTRIP CTS Diadema Farers International Visiting relatives 16% Medical treatment 12% Leisure 4% HH travel My-Tour Zanadu Source: Hurun Report, GHC Asia Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014 China s HNWIs differ relatively widely when choosing flight class, with 25% choosing to fly first class and 39% choosing business class. Over half of the HNWIs would choose to travel during non-holidays. For traveling during holidays, they mostly do so during the summer and Spring Festival holidays, which account for a combined 75%. Flight Class 25% First Class 36% Economy Class 39% Business Class We at GHC Asia are delighted to have worked closely with Hurun Report for nearly 10 years as the publishing group has established itself as a leading worldwide voice on luxury consumer trends in China. Hurun Report's annual Chinese Luxury Traveler white paper is one of the most well-respected and in-depth analyses of the development of the world's fastest and most exciting luxury travel market. The growth in luxury travel in China is clear to see - and it's only going to grow even more. The rise of sophisticated, unique and bespoke travel experiences is central to this and the companies that deliver these to China s increasingly discerning global travelers are the future of the industry in China. Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014 When making travel arrangements, the factor most considered is convenience of shopping, followed by beaches, and then local cuisine and fine wines, as well as local culture. Most travel bookings are made by family members, friends or company colleagues, mainly via travel agencies and online booking websites. Booking Considerations As a leader in providing public relations and marketing services to the luxury travel industry in Asia and beyond, GHC Asia is proud to collaborate once again with Hurun Report on this year's white paper and to provide research support in this important sector of the industry. - Lynn Grebstad, Founding Partner & Chairman, GHC Asia GHC Asia is a leading PR agency specializing in travel and hospitality services Shopping 60% Beaches 40% Local cuisine & wine 36% Culture 32% Description: Based on the survey of the 35 senior management of global high-end hotel by Hurun Report and GHC Asia from April to May 2014, the question asked was: Please think about the best Chinese outbound travel agencies currently? Business Mentioned in magazine Cruises 20% 16% 6% Medical treatment 4% Source: Hurun Report / ILTM Special Survey on Chinese Outbound Travel Agencies 2014

Nobody Knows China s Rich Better 16 Hotel Reservation According to Hurun Report s survey on ILTM s international high-end hotel database, most Chinese tourists staying at the hotels are on Frequent Independent Travel, accounting for 80%, up nearly 10% on last year. Most Chinese tourists book their hotels via direct customer bookings, followed by domestic travel agencies. They generally spend more than average on their rooms, and less than average on food & beverage, spas and shopping. 30% of VIP hotel guests (guests with the highest expenditure in the hotel) stayed twice or more often in the same hotel in 2013, but are staying with fewer people each time usually with 2-5 people staying around 4 nights. The main considerations when choosing a hotel are geographical location, hotel brand and price, followed by hotel facilities, cuisine and service quality. Top Considerations: Integrated Considerations: 1Location 2Hotel Brand 3Price AFacilities BCuisine CService Source: Hurun Report / ILTM Special Survey on Chinese High-end Hotels 2014 Source: Hurun Report / ILTM Special Survey on Chinese High-end Hotels 2014 Shangri-La is still the preferred hotel brand among China s HNWIs, while Four Seasons, Kempinski and InterContinental are rising quickly in popularity. Hilton drops sharply from last year s second place to this year s ninth place. * Chinese HNWIs Preferred Hotel Brands - TOP 15 Change Rank Hotel Index 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Shangri-La The Ritz-Carlton Peninsula Mandarin Oriental Four Seasons Sheraton Park Hyatt Kempinski Hilton Intercontinental Marriott Grand Hyatt Fairmont St. Regis Westin 100 99 85 79 61 58 50 49 47 47 46 33 31 25 25 * *Changes compared to 2013 *Index calculations: Based on the percentage of preference from those interviewed. Score is out of 100, the higher the score, the higher the degree in popularity. Source: Hurun Report Chinese Luxury Consumer Survey 2014

17 Overseas Study and Immigration Drive Outbound Travel Market University is considered to be the most suitable time to study abroad, followed by high school, while studying abroad in high school and university is easier to drive the family to outbound travel. When To Send Your Child Overseas? 34% 31% 29% 27% 20% 20% 13% 10% 11% 5% 2014 2013 UniversityHighSchoolMiddleSchoolPrimarySchoolPostgraduate Source: Hurun Report Chinese Luxury Consumer Survey 2014 Hurun Schools Guide covers 8 countries and regions, providing Chinese parents with unrivalled insight ight into the Local boarding school and undergraduate education in countries including the UK, US, Switzerland, Singapore, Canada, Hong Kong, Australia and New Zealand. For high school and lower level education, 28.7% say UK is the destination of choice, while 26% prefer the US. 36% favour the US for undergraduate and higher level education. In addition to the US and the UK, Canada is also a preferred choice of China s HNWI to send their children for high school and lower level education, while Australia is preferred for undergraduate and higher level education. International Education Destination (High School & Lower) Percentage International Education Destination (High School & Lower) Percentage 1 2 3 4 5 6 7 8 9 10 UK US Canada Australia Switzerland New Zealand Singapore France Germany Hong Kong 28.7% 26.2% 12.0% 9.4% 7.5% 3.6% 3.4% 2.8% 2.3% 2.1% 1 2 3 4 5 6 7 8 9 10 US UK Australia Canada Switzerland New Zealand Singapore Japan Germany France 36.4% 24.4% 10.8% 8.4% 6.2% 4.8% 4.0% 1.5% 1.4% 0.7% Source: Hurun Report Chinese Luxury Consumer Survey 2014 According to the International Migration Report 2013 released by the United Nations, China was the world s fourth exporter of migrants in 2013, accounting for 9.3 million migrants, after India, Mexico and Russia. 62.4% of China s HNWIs have emigrated or are considering emigrating. The US and Canada are still their top choices for investment immigration. Los Angeles, San Francisco and Vancouver are the preferred cities for immigration, followed by New York, Toronto and Seattle.These cities are also the preferred outbound travel destinations of HNWIs. 1 2 3 4 5 6 7 8 9 10 Preferred Immigration Destinations Los Angeles San Francisco Vancouver New York Toronto Seattle Boston Melbourne New Zealand Sydney Percentage 13.9% 13.7% 13.4% 8.6% 8.4% 7.6% 4.6% 4.3% 4.1% 3.5% Source: Visas Consulting / Hurun Immigration and Chinese High Net Worth population Survey Report

Nobody Knows China s Rich Better 18 Part 4 : Top Travel Destinations among China s Wealthy Consumers Sanya Remains the Hottest Domestic Travel Spot Sanya continues to be the top domestic tourist destination, Hong Kong remains second, and Tibet continues its upward trend, rising to third place. In addition, Macau, Beijing and Qingdao have varying degrees of increasing popularity. Yunnan, Hangzhou, Xinjiang and Sichuan, which were either top-ranking or growing in popularity last year, have varying degrees of decline in popularity rankings. 2014 Region Percentage 2013 Region Percentage 1 2 3 4 5 6 7 8 9 10 Sanya Hong Kong Tibet Yunnan Macau Hangzhou Xinjiang Beijing Qingdao Sichuan 14.4% 13.9% 13.9% 10.6% 10.6% 5.8% 5.5% 5.1% 4.5% 4.5% 1 2 3 4 5 6 7 8 9 10 Sanya Hong Kong Yunnan Tibet Hangzhou Xinjiang Macau Xiamen Sichuan Qingdao 18.9% 15.1% 11.1% 9.5% 6.8% 6.1% 6.1% 5.9% 5.1% 4.4% Source: Hurun Report Chinese Luxury Consumer Survey 2014 Domestic holiday home ownership among China s wealthy is up to 62%. Among billionaires, domestic holiday home ownership is at a whopping 83%. Sanya remains the most popular place to buy a holiday home in China, while the popularity of Hangzhou and Qingdao has slightly improved. HNWIs Interest in Australia Increased Significantly Australia has jumped from seventh to first place to become the HNWIs most preferred international tourist destination. Meanwhile, Dubai, Maldives and Hawaii are rising rapidly in popularity as destinations due to their distinctive characteristics. The popularity of European countries has declined. While they accounted for half of the Top 10 last year, only three European countries are in the Top 10 this year. 2014 Region Percentage 2013 Region Percentage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Australia France Dubai Switzerland Maldives US Japan Germany Singapore New Zealand Italy Thailand UK Canada Hawaii 11.8% 9.6% 9.5% 8.7% 8.7% 7.7% 6.5% 6.2% 5.6% 5.6% 5.6% 4.1% 3.9% 3.4% 1.8% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 France US Singapore Switzerland UK Italy Australia Dubai Germany Maldives Japan Canada South Korea Thailand New Zealand 11.8% 11.8% 9.2% 8.0% 7.7% 7.3% 6.8% 6.0% 5.7% 4.8% 4.7% 4.4% 4.2% 3.9% 3.8% Source: Hurun Report Chinese Luxury Consumer Survey 2014

19 Travel Shopping Chinese tourist spending No 1 for 4th year, widens gap between second place Mainland Chinese tourists are for the fourth consecutive year ranked No. 1 in terms of spending, up 3% over last year, widening the gap between second place to 10 percentage points. Russia, Indonesia, the US and Japan remain in the Top 5, but their rankings have changed as Japan drops from third to fifth. United Arab Emirates and Hong Kong move up into the Top 10. Asian countries account for eight of the Top 10, two more than last year, further demonstrating the huge spending power of Asian tourists. 1 2 3 4 5 6 7 8 9 10 Global Duty-free Shopping Country/Region Mainland China Russian Federation Indonesia US Japan Thailand Malaysia Saudi Arabia UAE Hong Kong Ratio 27% 17% 4% 3% 3% 3% 2% 2% 2% 2% Chinese tourist spending growth slows Chinese tourist spending growth slowed compared with the previous two years, at only 20%, but still 10 percentage points higher than global tourist spending growth. Source: Global Blue statistics on global traveler s spending 2013 At the same time, Chinese tourists spend 7 percentage points less per transaction, declining at a faster-than-average rate. Average spending per transaction was EUR 815 in 2013. In 2013, Chinese tourists spent 63% more than the average per transaction. Last year and the year before, they spent 71% and 68% more. Growth Rate of Traveler Spending 59% 70% 60% 57% 50% 40% 29% 30% 20% 20% 10% 10% 0% 2013 vs 2012 2012 vs 2011 2011 vs 2010 27% 1000 900 800 700 600 500 400 300 200 100 0 Individual Travel Spending (Euro) 815 7% 8% 875 813 2% 6% 501 512 485 2013 vs 2012 Years 2012 vs 2011 Years 2011 vs 2010 年 Chinese travelers Global travelers Source: Global Blue statistics on global traveler s spending 2013 Chinese travelers Global travelers Up Down Source: Global Blue statistics on global traveler s spending 2013 Chinese tourists mainly shop at specialty stores or brand retailers; department stores are also an important shopping destination. They prefer fashion and apparel, followed by jewelry and watches. Note: Global Blue is the world s largest tax-refund organisation; data does not include tax-free shopping at airports and only represents spending by Global Blue members.

Nobody Knows China s Rich Better 20 Gifting Gifting is one reason driving Chinese HNWIs travel shopping. Red wine is considered the ideal gift for men (33%), followed by watches (19%). Red wine is the top choice of both male HNWIs (35.3%) and female HNWIs (31.3%) as gifts for men. But for their second choice, male HNWIs prefer to give imported spirits (20.8%), while female HNWIs prefer to give watches (24.2%). Jewelry (49%) is an absolute gift of choice for ladies, followed by apparel (20%). It is noteworthy that travel vouchers have replaced gift cards to become the fourth gift of choice for women, at 14%, 6 percentage points higher than last year. When selecting gifts for the elderly, more than half of all HNWIs choose healthcare products, followed by travel products (19%). Healthcare products, considered an approach to maintain health, are becoming increasingly popular in the gift market. In addition, for both male and female HNWIs, watches and electronic products are among the Top 5 most popular gifts. 21.1% of female HNWIs would choose electronic products as gifts for gentlemen, and 13.2% of male HNWIs would choose electronic products for ladies. 0% 5% 10% 15% 20% 25% 30% 35% Top 5 Preferred Gifts for Men Red wine Watches Spirits Electronic products Tobacco 14% 19% 18% 17% 33% Source: Hurun Report Chinese Luxury Consumer Survey 2014 0% 10% 20% 30% 40% 50% 60% Top 5 Preferred Gifts for Women Jewelry Clothing Watches Travel products Electronic products 20% 18% 14% 12% Source: Hurun Report Chinese Luxury Consumer Survey 2014 49% 0% 10% 20% 30% 40% 50% 60% 70% Top 5 Preferred Gifts for Elderly Health products Travel products Houses Medical products Gift cards & Vouchers 19% 15% 11% 8% Source: Hurun Report Chinese Luxury Consumer Survey 2014 58%

21 Overall, gift giving has decreased by 25% from last year, possibly due to the impact of a slowdown in the Chinese economy, anti-corruption initiatives and increasing maturity among luxury goods consumers. Apple is the only brand of electronic products among the brands for gift giving, and remains the second choice of men for gift giving. This year, Louis Vuitton has lost its crown as the preferred brand for gifting by men, losing out to Hermès which has gained two places. Chanel continues as the preferred brand for gifting by women. Maotai remains the only Chinese brand that made it to the list, but it has fallen one place from last year. Lafite, ranked higher than Maotai last year, drops out of the list this year. Whilst accessories remain most popular, jewelry brands had a bad year in the gift market. This year, Italian brands are more popular than French brands among China s HNWIs for gift giving. 2014 Top 15 Brands for Gifting by Men 2014 Top 15 Brands for Gifting by Women Brand Percentage Brand Percentage 1 Hermès 10.5% 1 Chanel 9.5% 2 Apple 9.3% 2 Louis Vuitton 8.9% 3 Louis Vuitton 9.0% 3 Apple 8.3% 4 Chanel 8.6% 4 Hermès 7.9% 5 Gucci 7.1% 5 Gucci 6.7% 6 Cartier 5.5% 6 Dior 6.4% 7 Prada 4.2% 7 Cartier 5.6% 8 Montblanc 4.0% 8 Prada 5.2% 9 Giorgio Armani 3.8% 9 Giorgio Armani 4.5% 10 Burberry 3.5% 10 Bulgari 3.6% 11 Bottega Veneta 3.0% 11 Bottega Veneta 3.5% 12 Longines 2.9% 12 Fendi 2.9% 13 Zegna 2.8% 13 Tiffany 2.1% 14 Maotai 2.2% 14 Salvatore Ferragamo 2.0% 15 Bulgari 1.9% 15 Chopard 1.6% Source: Hurun Report Chinese Luxury Consumer Survey 2014 Source: Hurun Report Chinese Luxury Consumer Survey 2014 Ranking higher than last year Ranking down from last year Ranking same as last year New entrants into Top 15 compared to last yea Harrods won the Best London Luxury Shopping Destination of the Hurun Best of the Best Awards 2014

Nobody Knows China s Rich Better 22 Part 5 Travel Habits and Trend of Chinese Super Tourists Travel Experience The 203 super tourists surveyed have traveled on average 22 times, on each occasion visiting 2 2.5 countries. On average, each super tourist has visited 40 countries. Looking at the blood types, 33% of these are of type O blood, 32% type A, 24% type B and the other 11% type AB. In 2013, super tourists traveled abroad four times on average, over a total of 36 travel days, about half of which were for travel, and 22% for business trips. The super tourists traveled abroad for 18 days on average, with average spending of US$150,000. Their major tourist destinations were in Europe, the United States and island-based locations. Some 59% of these super tourists have island resort experience, 43% have experience of travelling by car, and it is worth mentioning that 38% of these super tourists have polar travel experiences. It can be seen that the super tourists tend to experience the process of travel, rather than just go shopping, dining or visiting landmark tourist spots. The future tourist destinations will become broader, deeper and more scattered. 0% 20% 40% 60% 80% Travel Experience Island Holiday Self-drive Food and Shopping South Pole and North Pole Nature Adventure Art Culture Outdoor Exploring Romantic Cruise Mountain Climbing Growing Purpose Celebrations and Races Sailing 20% 18% 14% 9% 6% 3% 43% 42% 38% 37% 28% 59% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Gulfstream won The Best Business Jet Brand of the Hurun Best of the Best Awards 2014

23 Travel Decision-making Process Comparison of the super tourists most impressive trip abroad in 2013 with the Spring Festival tour abroad in 2014 reveals evidence of differences in travel motivation and journey arrangements. In the most impressive trip abroad, friend s referral is the most important factor in inspiring travel motivation; while for the Spring Festival tour, opinions of the family played a decisive role. In these two trips, more than half the destinations were selected by their own decisions for the main purposes of sightseeing and cultural experiences; and a higher proportion of the tourists were on self-developed tourist routes. There is also a big difference in travel booking method. For the most impressive trip abroad, booking made by friends are the main methods (37%), with half booked through travel agents. For the Spring Festival tour, half are self-responsible for hotel bookings, 20% of bookings are made by the family, while booking through third party online booking (42%), is the main way of booking. The Most Impressive Trip Abroad Friend s referral is the most important factor 45% in travel motivation comes from a friend s referral Family suggestions, 20% ; travel agencies, 16% Inspired Travel Motivation Spring Festival Trip Abroad Family advice is the most important travel motivation factor 52% comes from family suggestions; friend s referral, 23% Source: travel agencies, ; networks, Destination decision making: self-made, Travel purpose: tourism, 31% 29% 49% 43% ; cultural experience, People accompanying: friends, ; family, ; Itinerary: private customization, ; own plan, 28% 58% 46% 15% 42% Travel Routes Planning Source: Internet, 44% ; travel agencies, 33% Destination decision making: self-made, 54% ; family, 37% Travel purpose: tourism, 25% ; cultural experience, 14% People accompanying: family, 72% ; friends, 24% Itinerary: own plan, 68% ; Reference guide, 12% Hotel booking: friends, ; own Booking method: travel agencies, 37% 34% Hotel booking: own, 50% ; family, 20% 50% Booking method: third party online booking, 42% ; travel agencies, 28% Trip Booking Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

Nobody Knows China s Rich Better 24 Case Study 1 : My Best Trip Last year, the most notable trips abroad of super tourists were to the South Pole and North Pole, followed by Kenya, with the United States and France joint 4th. Tourist destinations with challenges and more prominent features are becoming a new trend among Chinese super tourists. Among those visiting the South Pole, 55% are aged 31-45 years old, 58% have a bachelor degree or above, and 82% are married. Friend s referral (45%) is the most important factor in inspired travel motivation, followed by opinions of family members (20%) or travel agencies (16%). Travelling with friends (49%) or family (46%), a small number of peers, and with sightseeing as the main purpose are the characteristics for the most inspiring trips of super tourists. The average number of travel days is 12 days, with the average size of group being five people. Travelling with family and friends accounts for about 90% and on this trip, nearly 60% of super tourists choose economy class, with 34% going for business-class travel. Friends Family Colleagues Alumni/members Travel Accompanying Member 0% 10% 20% 30% 40% 50% 60% 3% 2% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report 46% 49% Business -class 34% 1 2 3 4 5 6 Destinations South Pole North Pole Kenya United States France Other Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Travel Tool Self-drive 7% First-class 2% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report 16% 9% 7% 3% 3% 62% Economy -class 57% For this impressive trip, 58% of the tourist destinations are decided by the super tourist themselves, and hotels are booked via a friend (37%) or by themselves (34%). Hotel booking is mainly through travel agents (50%) or third-party online booking sites (28%). Destination Decision Maker 0% 10% 20% 30% 40% 50% 60% Tourists themselves Family Friends Group Leader Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report 58% 18% 16% 8% Itinerary and Hotel Booker 0% 10% 20% 30% 40% 50% 60% Hotel Booking Method Locals 7% Business Hotel Official Partners 6% Web-site 9% Third-party Online Booking Site Travel Agency 28% 50% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Friends Tourists themselves Family Locals Secretary 13% 10% 7% 34% 37% Description: Based on the survey of the 203 super tourists by Hurun Report and DIADEMA, the question asked was: Please think about the most popular trip made in 2013 Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

25 Case Study 2 : My Trip during Chinese New Year in 2014 The number of super tourists choosing to travel during Chinese New Year continues to grow; with 54% of them choosing to travel abroad during the Spring Festival in 2014, a 7% increase over last year. Among destination choices, influence of distance weakened. Short-haul destinations such as Thailand, Bali and Cambodia, and long-haul travel destinations such as the United States, Australia and Dubai were all popular choices. Of the super tourists who traveled during Chinese New Year, 72% were accompanied by family members, averaging four, and they mainly traveled for a long vacation of 5 15 days. One to two took economy class, and 35% chose business class. In addition, over one in ten chose to drive, with destinations chosen by this group relatively close. Travel Accompanying Member Travel Tool Friends Family Colleagues 0% 20% 40% 60% 80% 72% 24% 5% Business -class 35% Self-drive 12% First-class 2% Economy -class 51 % Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report More than half of the super tourists decided on their tourist destinations for Spring Festival by themselves, and 37% were decided by their family. Half booked the itinerary and hotels themselves, with 20% booked by their family. Due to the specific travel time, only 5% were booked by a secretary. On-line booking was the main booking method accounting for 42%, whilst booking via travel agencies, hotel web-sites and locals was most common for hotel booking. Tourists themselves Family Friends Group Leader Destination Decision Maker 0% 10% 20% 30% 40% 50% 60% 6% 3% 37% 54% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Itinerary and Hotel Booker 0% 10% 20% 30% 40% 50% 60% Hotel Booking Method Hotel Official Locals 11% Business Web-site 14% Partners 5% Third-party Online Travel Agency Booking Site 28% 42% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Tourists themselves Family Friends Locals Secretary 7% 5% 20% 18% 50% Description: Based on the survey of the 110 super tourists by Hurun Report and DIADEMA, the question asked was: Please think about the trip abroad made during Spring Festival in 2014 Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

Nobody Knows China s Rich Better 26 Case Study 3 : Travel Trend Prediction Polar / Adventure travel has become the new dream for super tourists For dream travel experiences, nearly half of the super tourists choose natural adventure or self-drive trips, followed by 34% choosing Antarctic or Arctic travel tours, while island and marine-related holidays, romantic cruises and sailing events are also popular. When asked their must-achieve travel plans for the next three years, South America - Bolivia takes 36% of the vote and topped the list, followed by Polar trips reaching 34%, while mysterious Africa, Mexico / Cuba are ranked third and joint fifth. It can be seen that these destinations all have a strong sense of adventure and excitement with obvious regional characteristics. Dream Travel Experience 0% 10% 20% 30% 40% 50% Natural Adventure Self-drive South Pole and North Pole Island Holiday Romantic Cruise Outdoor Exploring Art Culture Food and Shopping Mountain Climbing Sailing Growing Purpose Celebrations and Races 5% 34% 30% 26% 25% 20% 23% 16% 14% 10% 45% 48% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Must-achieve Travel in the Next 3 Years 0% 10% 20% 30% 40% South America Bolivia South Pole and North Pole Africa Luxury Cruise Mediterranean Mexico & Cuba Bhutan New Zealand US/Canada Switzerland Dubai Island Space 10% 8% 7% 34% 36% 33% 30% 28% 25% 21% 23% 18% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

27 The Caribbean is the preferred destination for cruising Cruise travel is chosen by 26% of the super tourists as a dream travel experience, with 30% including a luxury Mediterranean cruise tour in their travel plans for the next three years. The Caribbean tops the cruise trip wish-list reaching 48%; followed by the Mediterranean at 43%; and the Arctic and Antarctic respectively 32% and 29%, ranking third and fourth. Destinations of Cruise Trip 0% 10% 20% 30% 40% 50% The Caribbean The Mediterranean of South Europe North Pole South Pole Baltic Sea of North Europe Alaska America Asia Pacific of Asia 4% 11% 32% 29% 28% 25% 43% 48% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report It is worth mentioning that 7% of the super tourists include space travel in their travel plans for the next three years. The bestselling point of space travel to 44% of the super tourists is seeing the earth from the space. The excitement of an astronauts experience is the second main factor at 18%. Reasons for Space Travel 0% 10% 20% 30% 40% 50% See the Earth from Space Experience the Excitement as an Astronaut Experience the High Acceleration of Spaceship Feel the Weightlessness Feel the Impact of Epinephrine in Adventure 18% 16% 13% 9% 44% More than half of the super tourists wish to travel 3 5 times a year Some 64% of the super tourists wish to travel more than twice a year, with 11% wishing to travel six times and more a year. For the most desired travel time next year, 45% of the super tourists say that they will travel on an irregular basis; 15% choose summer when they can look after their children; and another 24% choose the 1st October or Spring Festival vacation. Intended Travel Times of Next Year 1-2 times 36% 6 times or more 11% 3-5 times 53% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Irregular Summer 1st October Golden Week Spring Festival May Day Holiday Mid-autumn Festival Dragon Boat Festival Most Desired Travel Time Next Year 0% 10% 20% 30% 40% 50% 15% 13% 11% 5% 4% 2% 45% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

Nobody Knows China s Rich Better 28 Case Study 4 : Medical Tourism Increasing life and work pressures, together with concerns over issues such as food safety, prompt Chinese HNWIs to pay increasing attention to health issues. 87% of Chinese HNWIs go for regular health checks. Among them, 93% have a health check once a year, and another 7% twice a year. In addition to health checks, most Chinese HNWIs pay more attention to diet and love sports. Among them, 16% choose to use health care products, while another 15% have a family doctor/health consultant. Regular health checks Pay attention to diet Exercise Health products Family doctor/health consultant How the HNWIs Keep Healthy 0% 20% 40% 60% 80% 100% 16% 15% 50% 65% 87% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Regarding the choice of health care products, 67% of the super tourists choose some Chinese medical health care, while 87% choose Western medical health care. Among Chinese medical health care products, the most popular is Cordyceps sinensis, followed by propolis, bird's nest, gelatin and other more expensive tonics. But only 6% choose Chinese medicine for health care. The most popular Western health care product is vitamins, with more than half of the super tourists choosing to take vitamins, with collagen and cod liver oil also quite common. Choices of TCM Health Products Chinese medicine Ginseng 6% 14% Herbal paste 5% Gelatin Cordyceps sinensis 15% 28% Bird's nest Bee propolis 15% 17% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Choices of Western Health Products Cod liver oil 19% Placental extract 6% Collagen 20% Vitamins 55% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report For concerns about health issues, 66% of the super tourists consider medical tourism and 47% tend to choose to go to Europe and the US. The first choice is Switzerland (59%), followed by the US (22%). Of the 28% of super tourists tending to choose Asia, the first choice is Japan (44%), followed by Hong Kong (24%). Within China, 16% of the super tourists make Beijing first choice (25%), followed by local destinations (19%). Another 9% choose to go to the seaside for a stay at a medical resort, and of these 72% choose the Maldives. Medical Treatment Destinations Beaches 9% Mainland 16% Asia 28% U.S. and Europe 47% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

29 The main purpose for super tourists choosing medical tourism is convalescence rest (39%), and 34% is for medical checkup. However for the purpose of anti-aging, the number of super tourists reaches 21%, mostly female Medical Tourism Purposes 0% 10% 20% 30% 40% 50% Convalescence rest Medical checkup Anti-aging Cosmetic Medical treatment Childbirth 10% 5% 4% 21% 34% 39% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report When planning medical tourism, super tourists are most concerned about three issues: the brand qualifications of medical institutions (41%), security (33%) and Chinese speaking chaperone issues (26%). In addition, the scenery of the destination, quality of service after treatment, as well as price, visa procedures and other factors are taken into account. Medical Tourism Considerations 0% 10% 20% 30% 40% 50% Qualifications of medical institutions/brands Safety Chinese-speaking escort Destination scenery Post-treatment services Prices Visa procedures 5% 14% 26% 25% 22% 33% 41% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report For the health of their parents, 25% of the super tourists choose to send their parents travelling. Some 20% choose to give health care products to their parents, and 19% help parents contact doctors. Choices for Parents Health 0% 5% 10% 15% 20% 25% 30% Travel Products Health Care Products Contact Doctors for Parents Pay for Medical Fees Arrange for Health Care Centres/Treatment Clubs Real Estate 5% 20% 25% 19% 16% 14% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report

Nobody Knows China s Rich Better 30 Photography During their journeys, most super tourists love to photograph natural landscape During their journeys, the super tourist favourite subjects for photos are rivers, seas, lakes (26%) and mountains (20%) and other natural landscapes, followed by figures (18%) and animals (17%), flowers, and plants. Night photography is the third choice. Most Popular Shot 0% 5% 10% 15% 20% 25% 30% Rivers, Seas and Lakes Mountains Figures Animals Flowers and Plants Night Time Views 7% 12% 20% 18% 17% 26% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report In terms of photo shooting equipment, favourites of the super tourists are Canon cameras (31%) and mobile phones (28%). The micro-single camera (19%) is also popular due to its light weight, easy operation and other characteristics. Favourite Photo Shooting Equipment 0% 5% 10% 15% 20% 25% 30% 35% Canon Mobile Phone Micro-single Camera Nikon Card Machine 5% 13% 19% 31% 28% Source: 2014 Survey on China s High-end Tourism by DIADEMA and Hurun Report Hurun Report's The World at Their Fingertips: Ecotourism through the Lenses of China's Entrepreneurs photo by Wang Shi, Chairman of Vanke