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Lecture # 2.1 In-bound Travel Service

Lecture # 2.1 In-bound Travel Service. Lecture Objectives: Understand contribution of tourism to China’s national economy and opening to the world China’s comparative advantage in attracting in-bound tourists resources diversity history

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Lecture # 2.1 In-bound Travel Service

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  1. Lecture #2.1In-bound Travel Service Lecture Objectives: • Understand contribution of tourism to China’s national economy and opening to the world • China’s comparative advantage in attracting in-bound tourists • resources diversity • history • mystery of a closed communist regime from 1949 to the early 80’s • Review culture as an attraction for promoting in-bound travel • a case analysis of early 1990’s • a current case in Beijing • Discuss issue of authenticity in tourism study (part #1) • tourism infrastructure development and modernization of China

  2. Useful References • Li, Y. (2003). Heritage tourism: Contradictions between conservation and change. Journal of Tourism and Hospitality Research, 4 (3): 247-261 • Xie, F. (2003) The bamboo-beating dance in Hainan, China: Authenticity and Commodification. Journal of Sustainable Tourism, 11: 5-16 • Wang, X. (2003). China in the eye of Western travelers, 1860-1900. InLew, A., Yu, L., Ap, J. & Zhang, G. (Eds.),Tourism in China, pp. 35-50. New York: The Haworth Hospitality Press

  3. Understand contribution of tourism to China’s national economy & opening to the world in the 80’s and early 90’s

  4. Major Characteristics ofChina’s Tourism Industry • The political: • Socialist/communist • centrally planned economy • top-down approach as opposed to bottom up needs of tourism resource management • The economic: • Profit-oriented • hunger for capital investment in the so-called ‘early stage of socialist market economy’

  5. The development mode • Rapid growth at a recent start • Mode of development: #1 Int’l inbound =>#2 Domestic + Int’l Inbound =>#3 Domestic + Int’l in- & out-bound manifestation #1: culture as a resource for tourism

  6. Political guidance and central control (top-down) evolution of tourism management at nation-state level • early 1950s: politics and Chinese ‘face” culture Mao Ze Dong: (打掃干淨房子再請客) • 1964: China Travel and Sightseeing Bureau (中國旅行游覽事業管理局)

  7. 1982: China National Tourism Administration (中華人民共和國國家旅游局) • 1983: The State Council made the strategy for tourism development: (友誼為上,經濟受益) • 1995: The 9th Five-Year Plan designated tourism to be the first among the “tertiary industry”(第三產業) • Continuous growth for 3 decades

  8. Regional difference in development

  9. Contribution of Tourismto China’s National Economy • Enhancing development of other related economic sectors • Food and beverage • Accommodation • Transportation • Sightseeing • Shopping • Entertainment (吃﹐ 住﹐ 行﹐ 游﹐ 購﹐ 娛)

  10. Creating employment opportunities1:5 relationship • 1 job in tourism industry can indirectly create 5 jobs in related industries • Increasing foreign exchange earnings 2 ways of increasing foreign exchange earnings: • commodity trade • service trade (including tourism) • what are advantages and disadvantages of service trade?

  11. For your critical thinking: • Along with rapid growth of China’s economy, what are the associated changes regarding: • tourism product supply & resource management? • mode of tourism development? • implications for balancing international trade?

  12. The advantage of tourism trade – points for you to reflect critically: • Trade of intangible products: • commodity supply • tourism related goods • consumption of energy • less than other kind of industries? • Place of trade: • cost of storage and transportation • Place of consumption: • cash trade and exchange rate

  13. Review culture as an attraction for promoting in-bound travel for tourism development of China

  14. A case analysis in the early 1990’s References: Li, Y. 2000. Ethnic tourism: A Canadian experience. Annals of Tourism Research 27 (1):  115-131. Swain, M. B. (1995). A Comparaison of state and private artisan production for tourism in Yunnan.InLew, A., and Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism inChina, pp. 223-236.Boulder: Westview Press

  15. Ethnic tourism & Yunnan’s rich culture resources • Clarifying the concept: ethnic tourism: • The term: • is interchangeable with the concept of “cultural tourism” • referrs to the “quaint” customs of indigenous & other “exotic” peoples • The experience • involves some direct experience with ethnic culture & environment • The most important element is • human culture & heritage

  16. Cultural & Economic Perspectives of Ethnic Tourism • Food and beverage • Accommodation • Transportation • Sightseeing • Shopping • Entertainment Product (attraction) Market (origin) Physical Travel Spatial Movement Cultural commodification demand supply Ethnic cultural resources

  17. Discuss issue of authenticity in tourism study (Part#1)

  18. One of the consequences in the process of cultural commodification: problem of authenticity Understanding “authenticity” • Authenticity as tourism image • staged authenticity

  19. Culture tourism in China today:Case of Art 798 in Beijing:

  20. Further discussion of authenticity • Authenticity as individualism • Freedom of an American style • Authenticity as liberation of a modern society • Tourism impacts and modernization of China (to be discussed in future lectures) An authentic or false modern China?

  21. Is China a modern, and / or modernized society?

  22. Lecture # 2.2Demand of Outbound Travel Lecture Objectives: • understand leisure as a concept and a life style in China • examine increasing demand of China’s outbound leisure travel • discuss implications of such demand for Hong Kong and the international community Useful References Xiao, H. (2003). Leisure in China. InLew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 263-276. New York: The Haworth Hospitality Press Zhang Qiu, H., Jenkins, C. & Qu, H. (2003). Mainland Chinese outbound travel to Hong Kong and its implications. InLew, A., Yu, L., Ap, J. & Zhang, G. (Eds.), Tourism in China, pp. 277-296. New York: The Haworth Hospitality Press

  23. Understand leisure as a concept and a life style in China

  24. LEISURE Tourism Passive Leisure Sport Recreation Figure 1 The Leisure Domain Source: Prosser (2000) Leisure, Recreation and Tourism, p. 4.

  25. HK$ 28,000 HK$4,200 • Personal Income Distribution (based on Mill & Morrison, 2006, pp. 261): It is also important to understand that the income spent on tourismis spent at the expense of something else. Tourismexpenditures are in competition with other expenditures, some of which are discretionary: HK$23,800 Food, utilities, rent, etc. HK$13,000 HK$10,800 Collecting; gardening, gambling, theatres and concerts, etc. from the HK10,800 How much, from the HK10,800, could be spent on tourism travel?

  26. Conceptualize Leisure • What is leisure? • time (discretionary time) • expenditure (discretionary income) • an antithesis • a state of mind: freedom of being different

  27. Major academic enquires about leisure: • Leisure participation and social stratification • Hi-income earners with more ‘culture capital : • legitimate forms of leisure • Low-income earners with less ‘culture capital : • popular forms of leisure Where does tourism belong?

  28. Today, this overall picture of the relation between social structure and the cultural composition of the leisure field has become more complex, largely due to the rise of the new middle class in size and politico-culturalsignificance: • Educated – college or above • Professional – white collar? • Middle to high range of income • Diversified family backgrounds • etc.

  29. As a result…… The leisure field has become more open with all kinds of national public cultural monopolies being side tracked by different kinds of global cultural flows and changes, of which….. ….TOURISM IS ONE

  30. Evolution of leisure as a life style in China (1)please read your textbook (Chapter #14) Leisure before 1979, give your thoughts to: • How leisure in China was shaped by these factors: • discretionary income • discretionary time • quality and availability of public leisure facilities • urban & rural differences in leisure provision/participation => • leisure behavior patterns

  31. Evolution of leisure as a life style in China (2)please read your textbook (Chapter #14) Leisure since 1979, give your thoughts to: • How leisure life in China has been shaped by these factors: • Public policy (especially the economic) • improved global-local nexus in the 1990’s • international relations • exposure to new information and technology • foreign trade increase • Transformation of public policy (social) =>  Direct effect on leisure provision & management

  32. 1. Diversification of income & increase of disposable income • State Council Pay Raise Act 2. New system of labor and employment • competition and work pressure • need for leisure 3. Trade union’s role in 1990s • Public welfare extended to wider section of community • Sources increase for leisure activities China’s outbound travel as one of the direct effects

  33. Examine increasing demand of China’s outbound leisure travel

  34. BACKGROUND • China will be the 4th biggest world outbound tourist-generating country by 2020 (WTO, 1997) World’s Top 10 Tourist-Generating Countries in 2020

  35. Major social, economic & political factors for the demand • Economic growth • Increasingly open-oriented public policy • Relaxation of travel rules • Seven day free visa to HK • Single currency system • 5 day working policy • CEPA arrangement

  36. The engine of growth • Rapid growth of the economy(south china morning post 15/01/2009) : • 2008 = has been recorded as 9% (accessed on 22/01/2009: http://finance.sina.com.cn/g/20090122/10005791031.shtml • 2009 = predicted to be 8%

  37. Income increase lifted living standard greatly • With economic expansion, came the inexorable rise of the new middle class 中国: USD2460 => 104 香港 USD29149 => 28 台湾 USD16274 => 36 澳门 USD36357 => 20

  38. Outbound Travel by Chinese Residents • The rippling effect: Inter-continental travel Outbound Intra-Asia Travel to HK, Thailand, Malaysia & Philippines Domestic Tourism

  39. Where would they like to go? Major destinations : • Hong Kong • Macau • Thailand • Malaysia • The Philippines • Japan • Russia • USA • Singapore • Australasia • Everywhere in the world since 2000…...

  40. VISA, can’t leave home without it! • The ability to travel outside China depends on not only adequate income but… Official permission for both exit and entry as well

  41. More and more foreign countries are granting visas to Chinese tourists reflecting China’s growing economic stature and the increasing affluence of her nationals

  42. Where are outbound travelers from? 3 top sources: • Guangdong • Shanghai and adjacent provinces like Zhejiang and Jiangsu • Beijing and its coastal neighbouring regions

  43. The favorite destinations: • Thailand • Singapore • Malaysia Main reasons • Large number of ethnic Chinese • Moderate level of economic development • Relatively cheap • Short distance • Devaluation of currencies • etc.

  44. Discuss implications of China’s outbound travel demand for Hong Kong & the world

  45. Tourism forecast for HK in 2009 • Total arrivals • 29 million (-1.6%) • Mainland arrivals • 17.5 million (+4.1%) • Other arrivals • 11.4 million (-9.2%) • Average stay (days) • 3.2 (-0.1%) • Per capita spending • HK$5,278 (-1.5%) • Tourism revenue • HK$148b (-0.4%) Source:South China Morning Post 15/01/2009)

  46. The implications for Hong Kong • China is already the largest tourism market within the Asia Pacific regions • The launch of the individual travel scheme only cements further China’s position as Hong Kong’s top tourism market • Reconsider Hong Kong’s focal appeal: • “City of life” and Asia’s leisure capital? • Asia’s World City as a strategy for global marketing? • New attractions such as Disneyland?

  47. Implication for the World • China’s large population base gives her the NUMERICAL potential to become a huge source of international outbound tourism

  48. What should the rest of the world do? • The needs and preferences of Chinese travelers should be better studied and known • Care should be taken to meet their needs and supply services in a way appealing to their preferences and tastes

  49. More actions to be taken? • Market research to sort out market segments • Variable factors for segmentation: • Motivation • Behavior • Geographic origins • Gender • Age • Education • Income • Development of special travel packages • Identification of destinations with features appealing to Chinese tourists • More provision for the use of the Chinese language as English is not widely used among Chinese people

  50. How to cope with the tourists froma ‘false modern society’? 法国旅游业者称中国游客最难伺候 (French tourism agents found Chinese tourists to be the most difficult to handle) http://www.sina.com.cn 2006年12月27日01:35 北京晨报: 两节将至又到出境游高峰，各方讲述部分国人不文明举止，法国旅游界人士说——　临近元旦和春节，国人出游的热情再次高涨，欢乐旅游的同时，游客的不文明行为也将再次增多。日前，记者采访了国内旅行社、国外旅游业工作人员以及中国留学生，发现尽管国家旅游局发布了《中国公民出国(境)旅游文明行为指南》和《中国公民国内旅游文明行为公约》，但部分中国游客在旅游时仍然“不拘小节”，令人尴尬。 http://news.sina.com.cn/c/2006-12-27/013511891746.shtml

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