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Waikato Business News July/August 2017

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.

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<strong>Waikato</strong> tipped to cash in<br />

on rise in Chinese tourism<br />

Chinese travellers are spending nearly a<br />

third of their income on international travel<br />

and <strong>Waikato</strong> is seeing the benefit.<br />

By GEOFF TAYLOR<br />

The sixth annual Chinese<br />

International Travel<br />

Monitor(CITM) released<br />

by Hotels.com has revealed<br />

that Chinese travellers<br />

are spending on average a<br />

whopping 28 percent of their<br />

income on international travel.<br />

They also intend to spend<br />

10 percent more on travel in<br />

the next 12 months, with New<br />

Zealand ranked number seven<br />

for most desired global destination,<br />

up five places from<br />

2016.<br />

Hamilton & <strong>Waikato</strong> Tour-<br />

ism chief executive Jason<br />

Dawson confirms that <strong>Waikato</strong><br />

is seeing a strong uplift in<br />

visitors staying their “first” or<br />

“last” nights in the region as<br />

visitors.<br />

The trend has been growing<br />

as visitors make the most<br />

of cheaper accommodation<br />

and a chance to see <strong>Waikato</strong><br />

attractions before returning to<br />

Auckland.<br />

“This is a key message<br />

Hamilton & <strong>Waikato</strong> Tourism<br />

has been pushing for the past<br />

few years into our key markets<br />

and travel trade sector,”<br />

he says.<br />

“China continues to be a<br />

Top ten destinations Chinese travelers are intending<br />

to visit in the next 12 months, according to CITM:<br />

Country<br />

France 18<br />

USA 18<br />

Australia 16<br />

Canada 16<br />

Germany 12<br />

Maldives 11<br />

Japan 10<br />

New Zealand 10<br />

Singapore 10<br />

Thailand 10<br />

UK 10<br />

% of Chinese travelers<br />

key market for us as a region<br />

and we are seeing some good<br />

growth in ‘first or last’ nights<br />

from free independent travellers<br />

and groups including the<br />

China market.”<br />

Regardless of many key<br />

indicators showing signs of<br />

a slowdown in the Chinese<br />

economy, this year’s CITM<br />

found spending on travel increased<br />

across all age brackets,<br />

with Chinese travellers spending<br />

US$3,600 in the last 12<br />

months – more than a quarter<br />

of their income and an increase<br />

of four percent compared with<br />

the previous year. Nineties<br />

millennials are the biggest<br />

spenders, allocating 35 percent<br />

of their income to travel.<br />

The rise of the Chinese<br />

‘more generation’ is a key<br />

finding in Hotels.com’s sixth<br />

annual CITM report, with<br />

Chinese travellers of all age<br />

groups revealed as travelling<br />

more often and longer, visiting<br />

multiple cities per trip, and increasingly<br />

influenced by free<br />

and easy travel trends.<br />

The CITM report reveals<br />

that tour buses and group<br />

travel are on their way out<br />

for Chinese travellers, with<br />

independent travel (51 percent),<br />

eco-tours (14 percent),<br />

and backpacking (12 percent),<br />

even among older age groups,<br />

on the rise. Shopping no longer<br />

holds the attraction it once<br />

did for Chinese travellers,<br />

taking a whopping 35 percent<br />

drop from last year. Dining (55<br />

percent), sightseeing (53 percent)<br />

and rest and relaxation<br />

activities (41 percent) took out<br />

the top spots for daily expenditure<br />

by Chinese travellers.<br />

The Hotels.com report revealed<br />

a gap in what Chinese<br />

guests want versus what hotels<br />

are providing, highlighting<br />

that, by making some adaptions<br />

to accommodate Chinese<br />

tourists, there is huge potential<br />

for New Zealand hotels to further<br />

tap into this market.<br />

While Kiwi hotels are focusing<br />

their efforts on social<br />

media and marketing programs<br />

in a bid to attract Chinese<br />

travellers, the investment<br />

in on-site services for Chinese<br />

guests has decreased according<br />

to the Hotels.com data,<br />

with less than one per cent<br />

spending more than $10,000.<br />

The report identified key<br />

areas where hotels could improve<br />

their services, according<br />

to Chinese travellers:<br />

• In-house Mandarin speaking<br />

staff was ranked number<br />

one by travellers but<br />

was low on the list for NZ<br />

hoteliers, with only 17 percent<br />

currently offering the<br />

service and eight percent<br />

planning to in the next 12<br />

months.<br />

• Chinese payment facilities<br />

at hotels, such as Union<br />

Pay, rank second for consumers<br />

in importance, yet<br />

only 12 percent of NZ hotels<br />

currently offer these<br />

facilities. Indeed, only 18<br />

percent intend to offer them<br />

in the next 12 months.<br />

• Translated travel guides<br />

were ranked number four<br />

by travellers but are a low<br />

in priority for hoteliers; 24<br />

percent currently offering<br />

this and only five percent<br />

planning to in future.<br />

Jason Dawson says the<br />

three tips are good, although<br />

quite basic.<br />

“In terms of China Union<br />

Pay, it can be a bit trickier to<br />

set up and expensive, so you<br />

would need to pushing through<br />

significant numbers to recoup<br />

the benefit,” he says.<br />

Hotels.com marketing<br />

manager for Australia and<br />

New Zealand, David Spasovic<br />

says the New Zealand tourism<br />

industry needs to cater to the<br />

new generation of Chinese<br />

traveller.<br />

“Chinese travellers make<br />

up New Zealand’s second<br />

largest inbound tourist market<br />

with nearly 400,000 visiting<br />

New Zealand in 2016. And as<br />

the number of Chinese travellers<br />

grows so too do their<br />

expectations of new, more adventurous<br />

and diverse travel<br />

offerings.<br />

“It is important that hoteliers<br />

continue to adapt to the<br />

evolving needs of this market<br />

and develop tailored hotel<br />

services that tap into the<br />

enormous spending power of<br />

Chinese travellers. Hotels.com<br />

is proud to partner with accommodation<br />

providers who<br />

work hard to ensure Chinese<br />

travellers get the most out of<br />

their Kiwi travel experience.”<br />

In terms of hotel requirements,<br />

free Wi-Fi (78 percent),<br />

Chinese breakfasts (61<br />

percent), and in-room kettles<br />

(31 percent) are still the top<br />

requests by Chinese travellers.<br />

Interestingly, other observed<br />

requests from Chinese travellers<br />

include slippers, instant<br />

noodles, Chinese TV programs<br />

and hotel level or room number<br />

preferences, and Feng Shui<br />

rooms.<br />

The CITM research also<br />

identified that, while APAC<br />

is still the most popular destination<br />

(82 per cent have visited<br />

in the past 12 months),<br />

Chinese travellers showed a<br />

desire to travel even further<br />

than before, with countries<br />

such as France, the USA, Canada<br />

and Germany leaping in<br />

popularity.<br />

Publisher<br />

Alan Neben<br />

Ph: (07) 838 1333<br />

Mob: 021 733 536<br />

Email: alan@nmmedia.co.nz<br />

Sales director<br />

Deidre Morris<br />

Ph: (07) 838 1333<br />

Mob: 027 228 8442<br />

Email: deidre@nmmedia.co.nz<br />

Editor<br />

Geoff Taylor<br />

Ph: (07) 838 1333<br />

Mob: 022 694 1595<br />

Email: geoff@nmmedia.co.nz<br />

Production Manager<br />

Tania Hogg<br />

Ph: (07) 838 1333<br />

Email: production@nmmedia.co.nz<br />

ADVERTISING INQUIRIES<br />

Please contact:<br />

<strong>Business</strong> development manager<br />

Jody Anderson<br />

Ph: (07) 838 1333<br />

Mob: 027 236 7912<br />

Email: jody@nmmedia.co.nz<br />

Advertising account managers<br />

Joanne Poole<br />

Ph: (07) 838 1333<br />

Mob: (021) 507 991<br />

Email: joanne@nmmedia.co.nz<br />

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Ph: (07) 838 1333<br />

Mob: (021) 055 5555<br />

Email: penny@nmmedia.co.nz<br />

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Ph: (07) 838 1333<br />

Mob: (022) 309 9336<br />

Email: suzanne@nmmedia.co.nz<br />

ELECTRONIC FORWARDING<br />

Editorial:<br />

<strong>News</strong> releases/Photos/Letters:<br />

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Production:<br />

Copy/Proofs:<br />

production@nmmedia.co.nz<br />

Subscriptions:<br />

kim@nmmedia.co.nz<br />

12 Mill Street, Hamilton PO Box 1425,<br />

Hamilton, 3240. Ph: (07) 838 1333<br />

Fax: (07) 838 2807 | www.nmmedia.co.nz<br />

LIQUIDATE IT<br />

Corporate undertakers<br />

Company liquidations and restructures<br />

Kelera Nayacakalou<br />

BMS, LLM (Honours)<br />

021 0577198 www.liquidateit.co.nz<br />

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Contemporary NZ art works for hire<br />

in workplaces & private homes.<br />

FrEE consultation & installation<br />

Consultancy services available.<br />

Portfolio Art Hire<br />

Janet Knighton<br />

P 021 059 0028 E art.hire@xtra.co.nz<br />

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