country-brand-index-2009China Traveller

November 2009

 

 

 

Q: Background on the Country Brand Index?

A: This is the fifth consecutive year of the Country Brand Index study. The methodology is based on a three tier approach relying on 1) research involving approximately 3,000 international business and leisure travellers from nine different countries; 2) an expert panel of 47 persons and; 3) analysis of third party data such as World Economic Forum papers etc.

 

In addition to measuring 29 specific associations or attributes of countries, we also assess whether those associations in fact lead to preference for that country using our Hierarchical Decision Model, which tracks overall awareness through associations, preference and ultimately advocacy. This is what separates the FutureBrand Country Brand Index from other research studies. Other indexes measure brand image only, while we track the effectiveness of the brand in creating preference and advocacy, as such ours measures actual brand strength. Traditionally countries have been promoted for the purpose of attracting tourism, investment and trade in a series of communications programs, and therefore conducted by governments as stand alone marketing investments but now a days country brands should generate more comprehensive and integrated stories of what they have to offer. Numerous governments are furthermore grasping between the differences of marketing, branding and sales. It is clear that marketing creates positive conditions for sales to occur, but branding creates the overall framework for marketing to play its role within. For example, in the 2009 Country Brand Index Australia fell from 1st (2008 Top Country Branding Ranking) to 3rd. If one looks closer at the data it is clear that a key drop was recorded in the ‘Friendliness of Locals’ attribute, from 5th in 2008 to 14th in 2009. During that period there were negative reports of Asian students being harmed as well as international refugee issues which raised eyebrows internationally. As such the drop from 1st to 3rd is not surprising.

 

Most governments are not structured and strategically equipped for pulling their various departments together, with each of their various departments working in isolation of one another. The instinctive competition for limited resources ensures that little cooperation is in place, and this is the significant country brand challenge – how to structure the brand management of the country. 

 

Q: Despite the successful hosting of the 2008 Beijing Olympics China does not feature prominently?

A: The 2008 Country Brand Index data was collected just prior to the Olympics while the 2009 CBI data was collected post Olympics, so we do get a good picture of the impact. Major events such as the hosting of an Olympic Games have a two-fold impact of 1) drawing many visitors to that country and; 2) attracting a large TV audience, and as such China had high visibility. This visibility is much more powerful than traditional advertising campaigns based around 30 second commercials and paid media. What captures people’s imagination is what the country is really like, the culture, the authenticity, what the normal people are really like etc., these attributes are conveyed very powerfully through major events. A further example is what is expected for South Africa in hosting the 2010 FIFA World Cup, a big jump in brand power from 2008 to 2009. In the overall ranking South Africa jumped from 59th to 37th in 2009 while the ‘Desire to Visit’ attribute recorded a jump of 33rd place to 18th position for 2009 over 2008.

 

China for its part jumped from 56th position to 48th for the overall branding ranking in 2009. China’s overall image association is currently deeper, richer and more authentic due to its received exposure. The conjured up images of Beijing a mere four years ago included the Forbidden City, Temple of Heaven and Tiananmen Square (with possible negative connotations) whilst now it is viewed as a city of incredible skyscrapers and amazing sports complexes (Birds Nest & Water Cube) to the point that Beijing is now viewed as a mixture of modern and traditional. The attributes of ‘Friendliness of Locals’ increased from 68th to 54th while ‘Outdoor Activities & Sports’ also improved from 71st to 63rd, ‘Shopping’ increased (22nd to 2009’s 16th) and ‘Ease to do Business’ catapulted from 54th to 31st. As you can see from this data China is a classic case of improving weaknesses as opposed to increasing brand strengths.

 

China has thus made great strides but it is vital for them to maintain the momentum. China is a powerful country with a non-powerful brand meaning that people recognise the importance of China, but they don’t particularly like it. This is textbook perception problem at play here, for example, in terms of ‘Environmentalism’ China slipped further from 77th to 82nd position as China persistently conjures up negative environmental perceptions but this can be turned around quite quickly. China is now the world’s number one producer of eco-technology, something that President Hu Jintao himself is starting to focus on in his international addresses, and they are already starting to improve perceptions. China just needs to keep the momentum going to ensure that perceptions of the country continue to align more closely with the reality on the ground. A final comparison is Indonesia where the reality is that real progress in being made in the country in terms of the economy, education, justice etc., but it is still perceived poorly as a weak and inherently corrupt country.

 

Q: Was Obama’s election wholly responsible for America’s number one ranking?

A: America is always a strong brand but the Obama factor was critical. There are a wide variety of measurements however but there does seem to have been a feeling of relief that the Bush era was over. Furthermore, the election of President Obama signalled that America has ‘returned’ to its traditional progressive values that may be an effect that outlasts Obama’s influence as an individual. 

 

Q: The 2009 Top Country Brand Rankings include mostly traditional Western countries?

A: The reality of country situations on the ground are not necessarily inline with the brand strengths they maintain. The importance of the country brand’s are in how they are able to capture the audience’s imagination and as such the traditional Western countries have very powerful brands. Our research is based on a good cross section of respondents so it is clear that the more Western brands have captured the imaginations of those respondents residing in the East. Japan (overall no. 7) is an exception but its renowned distinctive culture, history and prowess in technology and business for decades has resulted in its strong brand. 

 

Q: This year Country Brand Index has included a regional ranking?

A: The regional rankings are a composite ranking which are becoming increasingly essential in the world’s geopolitical-economic shakeup. The Asia Pacific region (ranked 2nd after Western Europe) deserves special attention in that they account for seven of the Top 10 brands ranked for ‘Authenticity’, six out of the Top 10 in ‘Value for Money’ and five of the Top 10 in ‘Desire to Visit/Visit Again, Ideal for Business and Extended Business Trip’. This is a great combination basis from which to develop further.

 

Tim is the main Asia Pacific presenter of FutureBrand’s global Country Brand Index study.

cape-town-tourism-logo

China Traveller

November 2009

 

Q: Definition of the Chinese traveler for the Cape Town market?

A: To date Chinese tourists to Cape Town have been defined by group tour ADS travellers as well as significantly government delegation group travellers. Due to the predominant group tour nature of their visits they are limited to short stays of one to three days visiting the major attractions like Table Mountain, V&A Waterfront, Cape Point and the Wine Route. A popular part of their itinerary often includes shopping experiences like diamond purchases and Chinese visitors enjoy Cape Town’s offering of seafood. It is important to note that most Chinese visitors still prefer restaurants that specialise in Chinese cuisine. There are very few FIT travellers from China and this combined with the often “rushed” nature of itineraries, limits the overall exposure to Cape Town’s broader offering is limited.

 

Cape Town Tourism has hosted many groups from the Chinese government, business sector and media. We work hand-in-hand with local government in Cape Town to expose delegates to a broader Cape Town experience.

 

Q: Trends you foresee increasing in popularity?

A: There is a general increase in travel amongst the Chinese population, although the immediate trend is towards domestic travel. There are, however, a small increase in the  number of FIT independent travellers who not only have the confidence to travel alone or in smaller personal groups but also relish conducting their own destination research. These individuals travel for longer periods of time, get to see the real vibrancy that we have to offer and ultimately spend significantly more money while on holiday. This is the category of travellers we would like to see grow in popularity. Unfortunately foreign arrivals from China have been impacted by issues such as last year’s Olympic Games, internal disturbances such as the Sichuan earthquake, heightened competition from an increase in ADS countries, and safety concerns related to crime. Much work must be done by SA Tourism to educate and inform the Chinese market on South Africa as a destination. Cape Town Tourism plays a supportive role in this regard.

 

Q: Most recent figures for outbound Chinese travel to Cape Town?

A: While we don’t have specific figures solely for Cape Town the overwhelming majority of Chinese tourists who visit South Africa visit the Mother City. An estimated 37,000 Chinese tourists visited Cape Town in 2008.

 

Q: Breakdown in terms of ADS versus FIT travelers? What are the respective growth rates?

A: The overwhelming majority of Chinese tourists are still on ADS tour packages. More focus should be on attracting the FIT market, but we realize that this will take time and investment in particular media and PR representation to educate the Chinese market on Cape Town as a destination.

 

Q: Financial crisis and swine flu impacted on arrivals from China?

A: The global financial crisis had a negative impact on most long-haul destinations and this was no different for Cape Town. During times of increased hardship or caution the Chinese travelers tend to restrict their travels more to their immediate region of South East Asia. Swine flu naturally impacted travels worldwide, and in particular travel to and from East Asia. To my knowledge it did not have a direct impact on specifically Cape Town as our destination was not perceived as a hot bed for this potential pandemic.

 

Q: Is Cape Town expecting a boost in tourism from China for the FIFA 2010 World Cup?

A: Cape Town looks forward to hosting Chinese tourists attending the FIFA 2010 World Cup South Africa. There seems to be a growing awareness of South Africa hosting this premier sporting event on the Mainland and we get a sense there is growing interest in our destination in particular for Chinese fans privileged enough to travel here. It is a great pity that the Chinese national football team did not qualify for the World Cup that would have potentially resulted in a huge boost of tourism from China. It is difficult to predict, but we do expect a small percentage of Chinese football fans. The hosting of the FIFA 2010 World Cup is naturally an excellent event to leverage in our favour and attract visitors from new markets like China beyond 2010. Our focus is on media, PR and eMarketing to reach as many football fans as possible; inspiring these potential visitors to chose Cape Town as their next travel destination.

 

Q: How would you define brand Cape Town and what does it offer travelers?

A: Cape Town is an iconic world city; boasting incredible natural beauty and authenticity. It is often described as a “soft-landing” into Africa – a surprisingly sophisticated City, but boasting a rich cultural offering that is unlike any other world city.  It has a well-established tourism infrastructure with excellent hotels and restaurants. Cape Town can cater to different needs 365 days a year because the city’s offerings are diverse and plentiful. There are beautiful mountains and forests in which to hike, much-visited landmarks such as Robben Island and Table Mountain as well as endless beaches and natural attractions. There are museums that narrate our tempestuous history and art galleries that interpret our culture. Markets sell local produce and township tours take visitors on safe, guided visits through the Cape’s bustling townships. Another one of Cape Town’s gems is the Cape Winelands; an exquisite part of our city which shows off all the local vineyards, offering guided tours, wine tastings and stops at gourmet restaurants. A visit to Cape Town is filled with history, culture, excellent dining and enough relaxation time to soak up whatever the season has on offer. With the 2010 FIFA World Cup just months away, Cape Town’s infrastructure has been upgraded to offer world class transport and information, ensuring the visitor convenience and ease when moving around.

 

Q: How is brand Cape Town perceived in the China market and who does it target?

A: Although still fairly “unknown” as a destination, Cape Town is perceived in a very positive light by Chinese tourists in the know. Every single Chinese person learns of the Cape of Good Hope when they are in school so the Cape is viewed with mysticism and romance. Cape Town is known to be a very beautiful city with delicious seafood and this is definitely a pull factor for Chinese tourists. Our current target for Chinese tourists is that of ADS tour groups and we have been blessed with a significant amount of such groups arriving on our shores.

 

Q: Which cities compete with brand Cape Town?

A: Most long haul seaside cities compete with brand Cape Town such as Sydney, Rio de Janeiro and San Francisco.

 

Q: Major obstacles to positively brand Cape Town to a Chinese audience?

A: One of our biggest challenges is that Cape Town is very rarely differentiated from the rest of South Africa or even Africa in the eyes of the Chinese tourist. As such what is positive for the total South Africa brand is positive for the Cape Town brand, but it goes the other way as well. Accordingly, if any negative incidents occur in other parts of South Africa or Southern Africa it may well have occurred in Cape Town. Furthermore, the general perception of South Africa is that it is a country inundated with natural wildlife, elephants, lions etc. As such many tourists do not know that Cape Town is a wholly different experience, a vibrant, sophisticated city with world class hospitality infrastructure. Many of the tourists cannot believe their eye’s when they arrive in Cape Town for the first time, they honestly did not expect to find such a thriving and modern city in a spectacular setting. Our job is to educate potential tourists on the reality of what Cape Town has to offer and what differentiates Cape Town from other cities in Southern Africa and the world.

 

Q: What methods/tactics does Cape Town employ to generate better awareness in China?

A: South African Tourism plays a leading role in terms of destination marketing in new source markets such as China. Cape Town works with and supports these activities with the focus on PR, media and guest relations. Accordingly, whenever media and trade FAM tours are arranged we implement the Cape Town part of the itinerary. Recently the City of Cape Town Mayor visited China and while in Beijing he engaged with the leading travel media and held discussions with China’s leading tour operators. We are currently committed to improving and extending relationships with China’s tourism industry stakeholders and key decision makers. This is a lengthy process but we are making good progress. 

 

Q: How does Cape Town plan to leverage the 2010 World Expo Shanghai?

A: The City of Cape Town, along with its fellow South African cities and provinces will be allocated a significant period of time to make use of the South African Pavilion at The Expo. We are currently finalizing our Expo participation plans but will definitely take maximum advantage of the opportunity to show case Cape Town as an ideal ‘Better City, Better Life’ example on earth.

 

Q: Most creative or audacious tactic/ strategy/ campaign employed in China?

A: Cape Town does not promote itself independently from South Africa in China, but work in partnership with SA Tourism and other role-players. Penetrating a new market like China is expensive and a long-term approach is required where we work with key partners both in South Africa and China, focusing on media awareness and educating the Chinese market.  As a “watch-market” China holds tremendous opportunity for our city, but we are aware that it is a complex market to brand oneself in. We are thus cautious in our approach and want to ensure that the essentials are in place before we start attempting audacious campaigns.  

 

Q: New branding strategies becoming more popular over time? 

A: With the advent of time I expect Cape Town to start developing a much stronger online position as that is where the future of this industry lies. The Chinese citizen, in particular, the younger market, is becoming increasingly web-savvy. Working with web-media and platforms we hope to reach this very important and growing market, turning them into future travelers to Cape Town. Continued research and joint marketing agreements with relevant partners in China are essential.

 

Q: How is Cape Town leveraging off its host status of the 2010 FIFA World Cup to attract greater Chinese travellers?

A: As mentioned the promotion of the World Cup is playing a large role in our overall tourism promotions, but with the focus on a long-term marketing strategy that will reach potential visitors and educate new markets on the appeal of Cape Town as a destination. When the Cape Town Mayor was recently in Beijing, we placed great emphasis on the hosting of the World Cup when engaging key stakeholders. From the feedback we have received from the Chinese media and the media coverage we have seen thus far, it is clear that the local media is very interested in this topic and we will continue to focus our efforts on PR and Media.

 

Calm before the stormChina Traveller

August 2009

 

While health officials continue to caution that H1N1 swine flu remains a serious risk to all nations one would be forgiven for thinking otherwise considering the lax attitude adopted by seemingly all travellers today. The shock of worst case scenario swine flu projections no doubt caused initial self restricting measures but there currently seems to be little dampening effect on regional and international travel due to any health concern.

 

Attitudes towards virus outbreaks seem to have softened a degree since SARS all but obliterated travel in Hong Kong and on the Mainland in 2003. Those who lived in Beijing during the height of 100 people getting infected with SARS per day back then will remember the damaging effects of bringing great swathes of the economy to a grinding halt, especially the travel and leisure industry.

 

Generally speaking, China’s consumers can be described as anything but risk prone adventurers. The government’s stringent measures to prevent an H1N1 epidemic, the multiple temperature measurements before getting out of the airport for all passengers and the strict quarantine of potentially affected passengers spoke volumes of China’s health official’s learning curve since SARS. Furthermore, a number of Chinese tour operators were quick to cancel trips to North America immediately upon the H1N1 outbreak in Mexico reinforcing the nations cautious attitude. China’s outbound tourism industry is still dominated by ADS styled group travel, which by definition is a risk managed form of travel. The consequences of group travel market domination are that cancellations due to perceived risk will be total as opposed to independent travellers who might still weigh up the pro’s (including elements articulated by the destination’s crisis communications team) and con’s individually. This further compounds a potential damaging period for affected destinations.      

 

A number of leading health authorities have started to voice their concern that amid global warming, virus outbreaks similar to SARS and H1N1 will become more routine. While initial outbreaks will result in initial short-term panic, human nature dictates that over time consumers will start to become accustomed to such outbreaks and view such disruptions as unavoidable, yet temporary, inconveniences rather than life threatening pandemics. Assuming that this risk adverse nation, China, can acclimatise to such risks is a very liberal assumption however (especially with the tour operators making the decision), and it will nevertheless result in temporary, yet significant, spikes in travel, creating havoc for the industry.

 

Political instability also serves as an equally strong risk to tourism, of which Thailand must be the textbook example of a great travel destination plagued by divisions that have negatively impacted on tourist arrival numbers. Chinese arrivals to Thailand experienced a significant drop of 38% for the first quarter of 2009 following the protest enforced closure of Bangkok’s main airport last year while the ASEAN summit protests which prevented the free movement of world leaders including President Hu Jintao was sufficient evidence that Thailand remained a destination of choice only if you didn’t mind risk being holed up in an airport or hotel for a few extra days. Since then the Thai authorities have been slowly reclaiming ground through aggressive campaigns and the relaxing of visa restrictions that are already paying dividends. To be sure, Thai authorities are not promising an end to the disruptions, but their strategy of attacking the wallet and ease of use will perhaps shorten consumer’s memories when picking a holiday. 

 

A particular risk when targeting China is furthermore that of bilateral relations political risk. The collective urge to travel to Paris has lost its sparkle somewhat since Parisian demonstrators took it upon themselves to disrupt the Beijing Olympics torch relay through their capital. Even most recently, following Turkey’s Prime Minister’s declaration that the upheavals in Xinjiang could not be described as anything other than a ‘kind of genocide’, the Chinese official diplomatic notes of protest filtered rapidly through to its citizens that under no circumstances was Turkey to be promoted or engaged with inside China so long as bilateral tensions remained in place.

 

The combination of the perception of lack of development and outright personal danger has stifled Chinese outbound travel to numerous regions including the Middle East, Africa and South America. Mexico serves as a good example here where despite its renowned beautiful surroundings the destination is generally avoided by Chinese tourists out of fears for person safety from criminal elements whilst their North American and European counterparts take it more in their stride. While the reporting of a murder in Mexico does make the average Western tourist think twice about a Christmas getaway, the publicised news of a Chinese person being singled out in a criminal act serves as a progressively powerful deterrent.

 

Nothing tests a destination’s crisis communications system more than a wholly unexpected and immediate disaster however. Although the crisis can take on a number of forms, if the cause was man made and the consequence of extreme negligence or latent discrimination (i.e. avoidable) destinations with the appropriate systems in place will without doubt fare better than the unprepared.   

 

Crisis’ of all shapes and sizes catch those in responsible positions either by complete surprise or the magnitude of the crisis is the surprising factor. Either way they will not disappear as a threatening source to the reputation of destination’s we have been tasked to protect, the ‘calm’ we are enjoying right now would be a good time to prepare for the next storm to strike.

Small Luxury Hotels of the World LogoChina Traveller

August 2009

 

Q: China expansion plans?

A: We have noticed an increase in the number of hotel applications from China, which is a reflection of the growing maturity of the market and the subsequent proliferation of luxury boutique hotels across the country. SLH added three Chinese hotels to its 2008 global portfolio and we have already welcomed Han’s Royal Garden in Beijing, Pudi Boutique Hotel in Shanghai and Wuzhen Clubhouse in Tongxiang this year. Our first ski resort in China, Sun Mountain Lodge in Shangzhi, is also scheduled to open this year. This growth demonstrates Small Luxury Hotels of the World’s commitment to China and reflects the high standards of boutique accommodation that is developing across the country. Each of these has added to the breadth and depth of Small Luxury Hotels of the World’s offering in China.

 

Q: Occupancy percentage of outbound travelling Chinese staying at SLH abroad?

A: China is an increasingly important source market for SLH. Demand from Chinese travellers visiting SLH hotels in Europe and the Asia Pacific region is particularly high, whilst a growth in bookings for hotels in the Americas is expected in the next year now the destination has opened up to visitors from China. We have actually already seen a number of bookings for our hotels in the US from the China market. Compared to last year, Spain seems to be an increasingly popular destination for Chinese travellers – as does Bali, Australia and New Zealand. Despite the global economic downturn, revenue from bookings made from China has increased this year. Compared to the same period last year bookings from China have grown by 150 per cent in the first six months of 2009.

 

Q: How is brand SLH perceived in the China market?

A: We are seeing a growth in the number of bookings made through the GDS by travel agents in China. We have worked hard to build our relationships with the trade here – for example, through our attendance at trade shows such as Asia Luxury Travel Market (ALTM). Travel agents know that their clients will only experience the very best when they recommend an SLH property – wherever it is in the world. They trust us and they know they can rely on us to take care of their valued clients.

 

Q: What gives SLH the competitive edge?

A: We were recently awarded top honours for the third year running in the New York-based Luxury Institute’s annual Luxury Brand Status Index survey. SLH was voted number one luxury hotel brand by wealthy consumers beating off 21 other luxury hotel brands, including Ritz- Carlton and Peninsula. No brand is better placed than Small Luxury Hotels of the World to provide our guests with the best of the best. The fact that only five percent of the hotels that apply to join are successful is testament to the high standards we demand. Although our hotels have their own interpretation of luxury, they all subscribe to a single standard of excellence.  Although we are keen to grow, we will never compromise on our strict standards – our reputation depends on it. As well as personalised service, it is really the experiences our hotels offer that set us apart as a brand. From medieval sword fighting, moonlit sleigh rides, bob sledding at 80 miles an hour, exploring the Scottish countryside in a Jaguar E-Type Roadster, a one-to-one Thai cooking class to a private shopping spree in Cartier, the range of experiences is extensive. SLH hotels can also organise behind the scenes tours or opportunities to engage with the local community – for example, tea with the Berbers in Morocco, mingling with the Masaai tribes in Kenya or an overnight stay with a nomadic family in Mongolia.

 

Q: Major obstacles in positively branding yourself in China

A: We have not encountered any major obstacles. We are building the profile of our brand amongst consumers, trade and hoteliers. China is a market which is poised to be one of significant growth for SLH – and we are dedicating the resources necessary to fuel this growth.

 

Q: Outbound Chinese traveler’s loyalty to foreign branded hotels?

A: Traditionally Chinese travellers have been extremely loyal to the large, international hotel brands. However, our brand positioning matches exactly what experienced Chinese travellers are beginning to demand – individuality, memorable experiences and as sense of self-identity.  These discerning travellers do not want cookie-cutter hotels.

 

Q: Methods/tactics to generate better awareness in China?

A: We have an integrated approach to Sales, PR and Marketing. We hold a regular media event in Shanghai which is attended by representatives from our hotels around the world. We also have a presence at the top consumer shows such as Millionaire Fair, Extravaganza Fair, China International Luxury Property Fair and events such as the 9 Dragons Hill Polo Event. We have attended ALTM in Shanghai since the first event three years ago. We support a number of charity events across the region, such as annual charity fundraising event for The British Chamber of Commerce in Shanghai, as part our commitment to responsible tourism – an initiative we call ‘Caring Luxury’. We are also participating in various industry initiatives in-market. I am on the judging panel for the inaugural China Best Design Hotels Awards which are being organised by The Bund.

 

SLH appointed travel industry expert Alison Roberts-Brown as Area Director, Asia Pacific in June 2008. Alison is responsible for overseeing business development, sales, PR, marketing partnerships and stakeholder liaison.

visitscotland-logoChina Traveller

August 2009

 

Q: How would you define the Chinese traveler for the Scotland market?

A: 40% of our travellers from China are made up of business travellers and other short-term travellers. Another large component includes scholars. We receive on average around 10,000 Chinese travellers per year, basically, 10-15% of Chinese travellers who go to the UK travel to Scotland

 

Q: Breakdown in terms of ADS versus FIT travelers?

A: Over the past two years FIT travel has been the emerging trend amongst Chinese travelers, evidence of which can be seen on Ctrip and other online operators. This, FIT, will no doubt be the future trend but it is still early days. A very rough estimate of FIT travel to Scotland puts it at 10% of total Chinese travel.

 

Q: Financial crisis and swine flu impacted on arrivals from China?

A: The biggest impact of the financial crisis is that booking lead times are much shorter now and people are searching for greater value for money. From the China side trips to Scotland have also been delayed as a consequence but it is good news that travel has started to pick up from June. Nevertheless, tour operators continue to search for bargains to kick start stalled operations. Like the rest of the world the UK is not immune to the effect of swine flu, but in terms of outbound travel the US and Mexico have suffered greatly, while Scotland by comparison have not been that badly affected. The UK is very aware of these challenges and taking the threat seriously. 

 

Q: Define brand Scotland?

A: We have a shared industry ambition to grow revenues from tourism by 50 per cent by 2015.  Attracting visitors who want to experience a luxury break in Scotland will be an important element in achieving this goal.  Scotland has much to offer the luxury traveller, from world class five star resort hotels, to Michelin stared restaurants and high quality local produce – all set against a backdrop of vibrant cities and some of the most breathtaking scenery and heritage in Europe.” VisitScotland brand research shows that Scotland has world famous icons such as whisky, tartan, golf and castles along with strong, romantic and rich imagery. The people of Scotland are respected and admired throughout the world but there were issues with the destination being seen as expensive and remote. Emerging from the research were three key words, each representing the Scottish brand: Enduring – The buildings and architecture, history, culture and tradition. Dramatic – Dramatic scenery, beautiful light and the drama of the changing weather. Human – The Scots are seen as down to earth, innovative, solid and dependable, and full of integrity and pride.

 

Q: Golf as a draw card for Chinese tourists?           

A: Due to being the home of golf, St. Andrews, 8% of travelers to the UK include golf as part of their itinerary and the Chinese are showing great interest in this area. Accordingly, our golf operators are working very closely with their Chinese counterparts. Recently, VisitScotland and Connect2Golf launched an amazing opportunity for golfers in China to become Scottish golf club members in the Home of Golf by joining the new Scottish Prestige Golf Club. This includes the opportunity to play at over 30 courses throughout Scotland, from Gleneagles, venue for the 2014 Ryder Cup, to Carnoustie Championship, seven time venue of the British Open, and Turnberry, home of the 2009 British Open, and experience the world’s oldest and best greens and fairways, played on by so many of the world’s greatest golfers. The Scottish Prestige Golf Club has been created for Chinese golfers.

 

Q: Who do you target?

A: While our main target is affluent and well travelled Chinese, business extenders, golf players and repeat travellers to the UK, at the same time we will continue to push for increased ADS business most ADS tours only stop at Edinburgh as part of an eight day tour through the rest of the UK. At VisitScotland we would like to show the other parts of Scotland, especially of the more high end offerings. Accordingly we are working closely with golf operators and our PR key messages include golf as part of our priority target.

 

Q: What methods/tactics to generate better awareness in China?

A: We have engaged in a number of travel trade training activities for the larger tour operators and have also focused on FAM tours that tour operators, travel agents and the media can see for themselves exactly what we have on offer. VisitScotland was the first UK destination to launch a Chinese language agent training website. In terms of creative tactics we have tended to refocus our attention to hosting non-travel trade media. Furthermore we have successfully hosted the ‘Scotland Home of Gold Challenge Day’ in Shanghai in 2006/07. All our efforts are backed-up by annual trade missions to China. Our strategic partner, VisitBritain presents the whole of Britain to the China audience.

 

Poling Lee joined VisitScotland as Trade Promotion Executive in September 2005. She is responsible for identifying markets and developing the trade network in the Middle and Far East markets, in particular in her native China.

China Traveller

July 2009

 

As China continues to contribute to the enlargement of the world’s high disposable income pool, five star accommodation is becoming par for the course amongst China’s burgeoning elite. Revitalized by this new market that is currently growing in stark contrast to the rest of the world, owners and managers of ‘luxury’ five star hotels and resorts are sparing no effort to attract the generals of opulence.

 

While even group package Chinese tourists have already proven their passion for purchasing luxury products when abroad it is the upper most section of the ladder that the decadent brands are pursuing. For those who have both a before and current view of China’s urban life the targeting of China as a new luxury market will come as no surprise. Previously dominated by RMB1.2 Xiali taxi’s (with exception of the government driven black Audi’s); RMB10 per dish meals; RMB6,000 per/m2 apartments and clothing & accessories not even attempting to replicate international fashion trends, urban China today is virtually another world with stretch limo Hummer’s (not to mention the previously unheard of Sichuan province based company that just bought Hummer!); fantasy restaurant bills under RMB200; RMB30,000 per/m2 apartments and Gucci/ Prada outlets seemingly everywhere. In fact, similar to other newly wealthy countries, China’s growing adjustment to wealth has gone from the sublime to the ridiculous resulting in a situation where it is now almost impossible to order a bottle of champagne in a club without the accompanying sparklers and fanfare screaming ‘look at me, look at me’. Even my favourite burger joint now has a promotion offering Moët & Chandon, seriously…, champagne with a burger?         

 

Make no mistake, China’s new economic elite have serious money and they are happy to depart with a significant amount of it so long as the exercise heightens their social standing, music to the ears of luxury brand marketer’s intent on finding their emotional pressure points. But the challenge of targeting China’s economic elite is everything but child’s play, not only is the market unique due its relative youth but is further compounded by China’s cultural uniqueness long shut off from the rest of the world, which begs the question, how does an international marketer successfully attract the attention of individuals from a historically inward looking society?

 

Those in the best position to target China’s wealthy will not only have a reputed international brand but will also have dedicated operations on the Mainland itself targeting the source of the market. The aggressive entry of the world’s top luxury hotel brands is further depressing an already saturated market for the time being but the backroom planners are well aware that the pure numbers game that only China can produce will save the day in the near to medium future, and result in an enviable brand loyalty along the way essential in attracting a nation that is starting to look outwards.

 

Luxury hotel and resort groups without a China presence will find it more difficult in attracting sustainable Chinese numbers but do have the benefit of utilizing platforms such as the recently held Asia Luxury Travel Mart in Shanghai in addition to other traditional marketing tools. Such establishments might find it challenging to retain the loyalty of Chinese travellers however due to their lack of on-the-ground experience of satisfying particular Chinese clientele requirements, ranging from basic communication, hospitality offerings to cuisine.

 

Contrary to previous fears of Chinese group tour stowaway’s and the accompanied discriminatory visa procedures a number of informed destinations, led by Japan, are changing tack to target this lucrative Chinese luxury market by making provision for FIT visa procedures ensuring that those that have the means no longer have to be accompanied by tour guides and bank embarrassing deposits as a return guarantee. By cooperating with inventive partners such as VISA, who already have all required information of the potential traveller readily available, this trend is set to snowball.               

 

So just how does a luxury brand marketer target China’s economic elite? If looking for a silver bullet you will surely be disappointed as the answer is: ‘by getting back to basics’. Throughout the various interviews conducted on behalf of the China Traveller since its inception I have rarely heard the word ‘research’ mentioned. Dissimilar to the heyday of ADS promotions, the shotgun targeting approach is no longer relevant if brands expect to see a return on investment. Market segmentation, the most basic of marketing concepts in any MBA course or ‘10-Day MBA’ book for that matter, will also have to dig far deeper than the current ‘white collar target audience’ declaration and shed light on the varying preferences held by wealthy consumers based in different geographic locations, different age groups, different gender, different industries, different language abilities and different behavioural segmentation etc.               

 

Every luxury brand on earth will soon be gunning for the Chinese Yuan and if my Google alerts are anything to go by a new luxury hotel or resort seems to be launching every day somewhere on earth, ensuring that the international luxury market will remain a buyers market for the foreseeable future. Unlike the luxury market obligation, Chinese market share will not be served on a silver platter.

Ritz-Carlton LogoChina Traveller

July 2009

 

Q: Average occupancy rates in China?

A: Our occupancy rates are different for different cities. Hainan and Guangzhou are doing very well, in fact Guangzhou is quite unique as it is one of the few luxury five star hotels and we are doing well there. Ritz-Carlton is the fastest growing luxury five star group in China. We currently have six hotels with more than 2200 luxury rooms and 263 club and suite rooms. Some 60-70% of occupancy in our China properties are made up of local Chinese, while up to 80% in second tier cities.

 

Q: How to differentiate from competitors?

A: Firstly, we pride ourselves on our high levels of service and this is really the brand DNA of The Ritz-Carlton. During the financial crisis we did not cut down on staff. Secondly, what we refer to as our ‘Ladies & Gentlemen’, we highly value our internal staff and accordingly have achieved the best employer in Asia and China accolades. Opportunities exist for our Ladies & Gentlemen to move overseas and operate in different environments to improve their skills. This includes our rank and file and is not limited to management. Ritz Carlton is furthermore striving to become the social centre of cities, and we are moving towards that end through not only guests staying with us, but by enjoying our experience through weddings, dinning etc. Through this we are defining and generating loyalty beyond the normal hotel-customer relationship.

 

Q: Define the Ritz Carlton local Chinese clientele?

A: Out of the business travel segment our clientele is made up of local Chinese working for MNC’s, they are usually educated abroad. Our clientele also include SMME owners and a large percentage is also made up of MICE group tours. In the luxury travel segment we have young people between the ages of 23 and 40, children of SMME owners, overseas educated professionals and the generally affluent.

 

Q: Breakdown of Chinese travellers staying at The Ritz-Carlton abroad?

A: We are aware that numerous Chinese travellers stay with The Ritz-Carlton in Los Angeles, San Francisco, New York, Washington and Atlanta. Similar to the States, we also have many Chinese professionals staying at Ritz-Carlton in Europe when visiting their company headquarters. In addition to business travel, we also receive incentive travel groups but these are normally smaller groups, however, the MICE segment is enjoying good growth.

 

Q: How is brand Ritz-Carlton perceived in the China market and who does it target?

A: As the local experience grows our brand increases in stature. Top business persons are very familiar with our brand. As people show their wealth through visible consumer goods, Ritz-Carlton will always do well amongst Chinese people with high disposable incomes.

 

Q: How do your branding activities differ in terms of targeting potential foreign and local clientele?

A: It is different in China as all of our communications with consumers are conducted in Mandarin however, we never translate our Ritz-Carlton logo for any market. We leverage off the European originated ‘legacy of service’ whereby we never show the actual products but instead support our brand with visuals that taps the individual’s emotions. Our local operations are executed in a local friendly manner and we are furthermore proud of our China specific CSM programmes that are unique in the world, such as our Dinning Programme.

 

Q: Major obstacles encountered in China?

A: We only open our hotels when we are 100% ready, and this was something that was very difficult to educate our operators on from the very beginning, by far our biggest operational challenge. Initially we also spent much time on a suitable translation of Ritz-Carlton into Chinese which in the end resulted in a phonetic translation. We never benchmark ourselves to other hotels, we instead benchmark ourselves against other luxury brands. Furthermore, we don’t advertise our restaurant brands as they are secondary to our Ritz-Carlton brand. Other challenges are sometimes of a political nature, such as the visa restrictions that were in place last year during the Beijing Olympics.

 

Q: What methods/tactics does Ritz-Carlton hotels employ to generate better awareness of itself in China?

A: We have clearly defined market segments that we target. For example, out of the total China team we have a dedicated team of 15 professionals focusing exclusively on the business travel market, whilst we have duplicate teams focusing on lifestyle, group travel etc. These efforts are supported by our dedicated PR team and all teams contribute in an integrated manner with goals determined at the centre. All divisions operate as one team and that is our strength.

 

Q: Additional comments?

A: Ritz-Carlton is ahead of its competitors in China with the right deal structures and the right partners, and the best is still to come. Our new properties in China will be our flagship properties, namely the Ritz-Carlton in Pudong which will be the best five star hotel in China, and the new Ritz-Carlton to be launched in Hong Kong is also set to become one of the best hotels in the world which will win all the accolades, set in a phenomenal location, the tallest building in the world, the International Commerce Centre.

Jumeirah Hotels & Resorts LogoChina Traveller

July 2009

 

Q: Current China operations?

A: Our first China hotel will be located in Shanghai’s Xintiandi, the Covent Garden’s of Shanghai, a great location that is set to be come THE luxury area of Puxi. Pudong is an important area of Shanghai but Xintiandi remains the premier location, as our hotel will in fact be one of the closest to the World Expo Shanghai. We are scheduled to open in early 2010 in time for the Expo and we are already receiving booking requests for the Expo period.

 

Q: China expansion plans?

A: We are constantly looking for new opportunities in China but we officially have two projects in the pipeline that include Guangzhou and Macau. The Guangzhou property will be smaller in size with 200 rooms and 100 service apartments and is scheduled to open in 2012. Our Macau property is scheduled to open in 2013. Furthermore we are talking to developers in Beijing, Hong Kong, Hangzhou & Sanya to see what other opportunities exist.

 

We furthermore expect that 30% of our growth will come from Asia going forward and by 2012 we will be the proud guardians of 60 hotels & management agreements in place. 

 

Q: Breakdown of guests by geographical location?

A: In Dubai, where the majority of our hotels & resorts are located at the moment, we have recorded that 25% of guests originate from the UK, 16% from the Middle East, 12% from CIS countries, 9% from Germany, 9% from the US, 7% from Western Europe, 2% from China and 1.5% from Japan.

 

Q: Jumeirah’s competitive edge?

A: We are privileged in owning the most luxurious property on earth, the Dubai Burj Al Arab. The breakdown of guest staying at the Burj Al Arab includes the UK in 1st position, 2nd – CIS countries; 3rd – Middle East; 4th – Germany while China commands the 5th place of most frequent visitors. Part of the reason why the China market has responded so well to our brand is due to Dubai’s excellent branding activities over the past 10 years which has given us great visibility. Secondly, by building an iconic property such as the Burj Al Arab, we have properties that are compared with other iconic marvels of the world such as Paris’ Eiffel Tower, the Sydney Opera House etc. Lastly, at Jumeirah we naturally maintain the highest levels of service which sets us apart from our competitors. Besides the iconic status, location and excellent service, we also employ brilliant branding tactics. For high end Chinese travellers, staying at a Jumeirah hotel lends the individual unparalleled status, an important aspect within the ‘face’ conscious society.     

 

Q: Jumeirah brand recognition in China?

A: In 2007 & 2008 we conducted consumer surveys in China which showed that 16% are now familiar with Jumeirah, up from 9% in 2007. Despite not having a property in China yet we are thus gaining on the luxury market leaders in Asia Pacific. Of those surveyed, 78% said they would consider staying in a Jumeirah hotel while staying in Dubai, London or New York, up from 65% in 2007. Furthermore, 44% or respondents recognise the Jumeirah tagline of ‘Stay different’ while the Jumeirah Burj Al Arab is recognised as the number one property in Dubai. There is great branding strength in the association of Jumeirah and the Burj Al Arab with one in two respondents recognising Burj Al Arab as the most luxurious hotel in the world.

 

Q: How has Burj Al Arab impacted on the Jumeirah brand?

A: It has been a very important influence on our overall experience. Once people have stayed in the Burj Al Arab they want to see our other properties and experience our other ways of conducting business and providing a unique service. These guests are now forming their own preferences for our different styles.

 

Q: China branding methods?  

A: Brand awareness skyrockets with the establishment of a property in that country. With our property in New York our global US clientele now makes up for 18% as opposed to the previous 4%. Regarding China we are already positioned well globally while for the Asia Pacific region, and China in particular, this is our new target market. We established a sales office in Shanghai in 2008 which focuses on Guangzhou, Shenzhen, Beijing, Shanghai, Shenyang, Chongqing and Dalian. We look first at who are our main B2B clients, build the team and learn about the market. We have started to cooperate with the Dubai Tourism board to educate travel agents targeting 250 of them in Beijing, Shanghai and Guangzhou. We also focus our efforts on expo’s in China such as the current Asia Luxury Travel Mart. Thus our B2B programmes and expo participation are initial steps in China while we avoid a full marketing plan until our first China property is up and running. We furthermore already embarked on Jumeirah road shows in Beijing, Shanghai and Hong Kong exposing partners to all of our products, Guangzhou and Shenzhen will be next.

 

Q: Branding obstacles?

A: We are experiencing no difficulties in branding Jumeirah in China. The travel industry is very excited about our brand and products. For example, recently Ctrip cooperated with us to conduct a 200 person media training, something very rare for Ctrip to do.

 

Q: Chinese travellers loyalty to foreign brands?

A: We have 200% year-on-year growth in our loyalty card membership amongst Chinese guests along with 100% growth in revenue for visits. China’s most loyal members visit the Burj Al Arab twice a year. Nevertheless we are conducting further research into this area. By the end of this year we will conduct a survey on ‘How to conduct a dialogue with a Chinese millionaire’, how to talk to them and how they want to be communicated with. We are very curious about this and are willing to try new things. The main difference between Asia and the rest of the world right now is that of ‘face’ and status, and this is something we know we can deliver on.

 

David Loiseau is Regional Vice President of Sales & Marketing for Asia Pacific.

Disney USA Parks & ResortsChina Traveller

July 2009

 

Q: What offerings does USA Disney have for Chinese travellers?

A: Disney USA Parks and Resorts is new to the China market and accordingly we have different information going out to the travel trade including park maps, recommended attractions, specific programmes in the parks etc. We are also highlighting our Youth Educational Series, which is popular in China so far. We are furthermore looking at how we can offer Chinese meals.

 

Q: What is the year-on-year growth of Chinese nationals visiting?

A: While we don’t disclose specific attendance figures but I can say that our growth in the China market is acceptable under the current circumstances. We look to tourism from China as a growing business opportunity.

 

Q: Do you think Disney Paris limits potential Chinese visitors to USA Disney?

A: Absolutely not. It is important to understand that each of our worldwide parks and resort hotels are different and have their own character and offerings. Not all Chinese who visit Paris visit Disneyland Paris. Visits to Disneyland Paris sometimes compete with many of the other popular itineraries set by tour operators.

 

Q: Do you think Disney Hong Kong has a positive or negative impact of Chinese visitors to USA Disney?

A: It has no impact at all. The USA Disney is the original and therefore is very different from the Hong Kong Disney. Hong Kong Disney is more for short-to-medium haul destination travelers etc.  It is important to understand that we successfully operate Disney Parks in many regions of the world. For example, even though Disneyland Paris is closer to the UK, we still see strong attendance from the UK at our Florida parks. Each experience is different.

 

Q: Profile of the typical Chinese visitor?

A: Our customers come from all over China. Prior to ADS our visitors were mainly older ones of group trips or government delegations. Post – ADS we are attracting more family travel, students and generally white collars.

 

Q: What is the breakdown of Chinese visitors in terms of group travel vs. FIT travelers?

A: At a very rough guess I would say about 80% ADS and 20% FIT travelers.

 

Q: Who is your target audience in China?

A: We are targeting the middle class, ages 30-50. We are currently not engaging in B2C promotions but focusing our energies on training and educating travel agents, how to package and sell our product. Media also plays a big role in this.

 

Q: How is the Disney brand perceived in the Chinese market?

A: As a place for kids. The local market does not know what a theme park actually is whilst the US market naturally understands. Our job is to educate that it is not only for kids, but for adults as well.

 

Q: What type of strategy/ tactics does USA Disney employ to generate a better awareness on the Mainland?

A: We educate and rely on the media to get the correct messages out. We leverage on FAM trips through cooperation with airlines, executive profiling interviews and exhibition participation.

 

Q: What is the most creative campaign USA Disney has ever undertaken to brand itself in China?

A: As we have just entered the China market we rely on cooperating with airlines and tour operators. For example we have hosted theme trips with United Airlines and CITS to offer a 12 day USA tour that included Disney USA Parks and Resorts. The group consisted of over 300 people from all over China for Chinese New Year. The trip was a great success that resulted in loyal future customers. We have also teamed up with Continental and Ctrip’s Elite Traveller magazine that featured Disney in a 30 page article.

 

Q: New media branding? 

A:  We have a fully translated Chinese website with all of Disney’s international information and our 5 global parks. We have new media plans that are to be implemented but until then we will continue to rely on Sohu and Sina cooperation.

 

Q: Additional comments?

A: We have great faith in the China market with all the pent-up excitement that is building u here, a Disney destination for all ages.

 

 Nicky Tang is the Asia Pacific Sales Director for Disney USA Parks and Resorts

Tourism New Zealand LogoChina Traveller

June 2009

 

Q: Definition of Chinese traveller?

A: We are targeting the ‘Interactive Traveller’, persons who participate in all the activities we have to offer, longer duration stays and higher spender. Chinese travellers are on their way to becoming interactive travellers, they don’t necessarily bungy jump yet, but they are at least going to watch, showing interest. The interactive travellers are normally in smaller groups, two couples, a family, of independent travellers. Currently they are small in number, but they exhibit very high growth.

 

Q: Breakdown of ADS versus FIT travellers? Growth rates?

A: ADS tour groups make up about 40% of overall travel to New Zealand. FIT travel accounts for 8-10% of total travel, however it becomes complicated as visiting friends and relatives account for about 8-10% of total Chinese travel to New Zealand, however, many of these then go on to become FIT travellers as well. FIT growth is estimated at around 80% per annum.

 

Q: How would you define brand New Zealand?

A: ‘100% New Zealand’, our global campaign, is an emotional connection with our natural surroundings that include clear, blue skies, pure foods etc. Our brand is about connection with people, with the various cultures our Islands offer, whether it be the indigenous Maori people, our farmers, operators of the tourism activities etc. We understand that we are not the only brand with beautiful scenery, and our destination is a far distance to travel, so we need to convey an essential experience and be the best at it.

 

Q: How is brand New Zealand perceived in the China market?   

A: We are perceived well when understood. There is an awareness of New Zealand, mostly focused on sheep, mountains and so forth. Through our branding exercises we are making Chinese more aware, for example, we currently have a consumer campaign in Shanghai in full swing.

Q: Emerging trends amongst travelling Chinese?

A: Sustainable tourism has a good hook as China is going to lead the world in green technology, energy etc., and this is going to permeate into the rest of the society. New Zealand is known as a clean and green country so this works well for us. So sustainable tourism already resonates in China to a degree. The younger Chinese back packing style of travel will definitely get there one day.

 

Q: Evidence of Chinese interest in sustainable tourism?

A: Yes, Chinese are more and more interested, this is what we are about. Taking photo’s of glaciers, taking these natural wonder photo’s by themselves, it is a statement of freedom.

 

Q: Is New Zealand branded differently in China than abroad?

A: As part of our global campaign the age segment we are targeting in China is the youngest target audience. In China we target 35-50 year olds. We also focus on families and couples, people who have normally travelled 3-4 times before. These travellers normally have no visa issues and they are English independent. We also find that for our target segment the travel decision is quite collaborative between the male & female in the family or group, with perhaps the female having perhaps a little more decision power, but the planning of the trip is a lot of fun for them, both male and female.

 

Q: When will the China market mature?

A: New Zealand is perfect for FIT and in the past some thought it strange of us to focus more on this segment. Now local tour operators are approaching us more and more to target the FIT travellers. Online bookings are starting to take off but for the present travel agents remain important. I believe China’s market will mature within five years.

 

Q: Methods/tactics to generate greater awareness?  

A: We currently have a consumer campaign in Shanghai that is focused on TV and online media. We have also completed translating the Tourism New Zealand consumer, trade and media websites into Mandarin.

 

Q: How much emphasis placed on the new media?

A: A great deal. We are not so sure how well newspapers are doing and we have shifted our attention to screens (motion & sound), and online media does this well. Our activities include use of bloggers, video sharing platforms such as Tudou and Youku, standard TV, outdoor TV such as Focus Media etc. Through these platforms you get immediate feedback, you need to provide the essential experience, and do it the best. Such a campaign needs to be 100%, everybody needs to be on their toes and the consumers will judge you and judge you swiftly. We have done our research though, so we know what we are doing, we are ready.

 

Q: Most creative or audacious campaign?

A: Our most audacious campaigns have been those focusing on opinion leader FAM tours as we don’t put any restraints on them. For example, we have sent Wang Zhongjun of the Huayi film company, Hong Huang (blogger, TV host), Wang Chaoyong (founder of Chinese America’s Cup), Yuan Yue (blogger, TV host) to New Zealand in the past. These individuals are of a high profile so become great ambassadors to our country. In this way, these individuals, and their followers, experience their own emotional attachments to our brand. Tourism is an emotional purchase.

 

Q: Branding strategies that will become more popular over time?

A: More referral strategies, where consumers become the biggest referrals. If you get it right they will do your job for you, but if you do it badly you will find out very quickly, word of mouth to the extreme.