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.
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 />
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