
Jamie Lee, Chief Representative of LAWA/ LA INC China Office
China Traveller
May 2009
Q: Description of foreign travellers to LA in 2008?
A: LA received 2,345,741 foreign travellers in 2008. Our largest foreign market was Asia with 892,951 arrivals comprising Japan (279,748), South Korea (157,389), Chinese Taipei (108,267), Mainland China (83,327) and Hong Kong (36,530) leading the group. Europe produced the second largest regional group of arrivals with 824,512.
Q: What impact has ADS had on Chinese arrivals?
A: Prior to ADS, arrivals from China grew at 10% but it is currently growing at 20 – 30%. This needs to be seen in the context of Japanese arrivals experiencing double digit decline.
Q: Breakdown of Chinese travellers by geographic location?
A: Beijing is responsible for the largest share of arrivals evident with its 7 flights per week. Shanghai also has 7 flights per week but includes cancelations from time to time, while Guangzhou has 4 flights per week. Beijing delivers a mix of travellers with various purposes while Shanghai is mostly for business and Guangzhou mainly for leisure travel. 2nd and 3rd tier cities also make a strong contribution with an estimated 30% of Beijing’s travellers originating in outlying cities.
Q: How has the financial crisis affected Chinese arrivals?
A: According to our January 2009 arrival figures there has been no impact thus far.
Q: When did LA INC establish representation in China?
A: We were the first US city-level tourism office to be approved by CNTA and consequently established our office in 2006. To date we do not know of other cities that have the same approval and thus they operate through PR companies.
Q: How is LA perceived by Chinese travellers?
A: LA is a recognised city with Hollywood playing a prominent role. There are both good and bad misconceptions however, but generally expectations are extremely high. Part of our job at LA INC is to moderate expectations, (e.g. they will not necessarily meet any of the Hollywood stars), ensure that the correct messages are disseminated that our visitors have a positive experience and return again in the future.
Q: Characteristics of average Chinese traveller to LA?
A: Previously it was dominated by government officials attending functions and events, but now it has shifted to leisure groups. We still maintain a good mix of leisure and function purposes groups as LA is a must visit place with perfect weather all year round. Roughly 70% of our travellers come in groups while business travellers account for 10% and 5% independent travellers.
Q: Greatest challenge to promoting LA in China?
A: Sending out the correct messages and ensure that tour operators don’t package tours at too much of a discount that might have a negative impact of the traveller’s experience. We want to ensure we are offering the correct value.
Q: Measures taken to combat effects of financial crisis?
A: Hotels etc., have already reduced their prices. We are utilizing the time to conduct proper in-house training and improve strategic relations to ensure we are 100% ready when the crisis subsides and the market explodes.
Q: Who are your natural competitors (domestic and abroad)?
A: Domestically we all work together. Internationally our competitors are generally English speaking long haul destinations.
Q: LA’s strategy for attracting increased Chinese travellers?
A: We are looking towards the future of FIT travellers from China. With the maturing of the market, we expect China’s 1st tier cities to be more inclined towards FIT travel within three years.
Q: Tactics to promote LA in China?
A: We engage in media interviews and FAM tours. On a limited basis we also conduct receptive trainings which are coordinated with tour operators. We will also be coordinating more road shows into other provinces such as Hunan, Hebei and Shanxi etc.
Q: Most creative campaign undertaken?
A: China’s first Olympic gold medal was won at the 1984 Olympics in Los Angeles and accordingly last year on the 8th of August we organised an event with LA officials, Chinese sports persons, media and travel agents to celebrate that history. Corresponding visits were undertaken including a gold-to-gold itinerary for travel agents visiting the LA sports centre within an overall sports themed itinerary. The campaign met all our expectations. We continuously conduct direct-mailing to our partners, media, tour operators, airlines and other contacts as well as a monthly newsletter and press releases.
Q: Strategies/ trends becoming more popular over time to promote in China?
A: Promotions will become more hi-tech, greater focus on IT with multi-media presentations to underscore strong promotional strategies.

China Traveller 
