Naked Retreats eco-resort in Moganshan, Zhejiang province

Naked Retreats eco-resort in Moganshan, Zhejiang province

 

 

China Traveller

June 2009

 

With the steady maturing of China’s outbound tourism market a number of destination and hospitality brands are banking on the emergence of a growing segment of Chinese travellers now opting to partake in the niche ecotourism market to ensure their continued growth.

 

Despite China’s place as the world’s third largest economy and source of an enlarging pool of consumers with considerable disposable incomes, it is debateable what length of time will be required before a significant number of Chinese tourists start to chose eco-sensitive options, especially when considering the country’s delayed industrial revolution and accompanied level of development in comparison to its developed counterparts.

 

All who have visited China’s famed tourist sites can attest to the hundreds of packed buses offloading thousands of local tourists dashing for the restaurants, souvenir vendors and the obligatory photo opportunities creating everything but a tranquil experience. Even famed natural sites are inundated by these large crowds staying in eye-soaring concrete hotels heaving with activity completely devoid of any selling point other than ‘renao’ (lively). An over simplified presumption of current mass tourism (read: group) as it exists in China could not be further from conservation – it is all about consumption.

 

But evidence has started to emerge that a niche market of ‘back to nature tranquillity seekers’ is starting to emerge. From a personal observation, I never observed any Chinese travellers when trekking in the Thailand jungles five years ago. At that time, Chinese tourists were confined to group tour packages that would not go beyond itineraries packed with multiple sites, activities and shopping stops in a single day. A comparison of the same time with personal trips to neighbouring countries with incentive company outings consisting mainly of local staff members could not produce a more stark contrast. Back then there was an absence of eco-sensitive travel push-pull factors, the tourists themselves, who at that time had limited international travel experience, had little interest in anything other than a destination’s main attractions, while tour operators stood to lose out on the lucrative multiple-stop itineraries that have come to define group travel profitability.    

 

However, over the past two to three years I have observed a growing number of independent group travellers from China who seek a more relaxed and tranquil travel experience when abroad in South East Asia. These groups, usually four to six people consisting of families, couples or friends, are the trailblazers of China’s maturing market who either pick a relaxing spot (e.g. Koh Samui-Thailand) to spend the majority of their holiday, or who travel off the beaten track (e.g. North Luzon-Thailand) seeking the destination’s premier natural landmarks and landscapes. While these trailblazers might not share the same socio-economic status as they range from third-tier city teachers to first-tier city company executives, what unites them is the ability to conduct their own research and develop their own itineraries, the curiosity to dig deeper in alien cultures, the confidence to communicate in a foreign language (English), and the aspiration to travel freely and independently. While all forms of travel cannot avoid consumption, these trips have a far greater emphasis on emotional over material consumption and thus bode well for the emergence of eco-sensitive travel.

  

Before eco-sensitive destinations abroad can realistically expect to attract Chinese tourists it would be prudent to first take a look at the home market. To date China’s domestic tourism market has little to offer in terms of eco-friendly resorts for the simple reason that eco-friendly models are rarely supported and are often hindered by local stakeholders stress on quick profits in a booming economy. This challenge is compounded by the lack of a universally agreed upon definition of ecotourism, a banner that disappoints more often than not – containing only some flora with no supporting sustainable policies whatsoever. Despite high levels of development and environmental consciousness abroad, no international consensus on green tourism standards exists, so it is possible to infer that such standards will not be developed and abided by in China anytime soon.

 

In the absence of local ecotourism options a number of entrepreneurs have taken the initiative to fill the void and respond to a potentially lucrative domestic market. One such example is Naked Retreats which operates a boutique eco-resort in the pristine bamboo forest of Moganshan (Zhejiang province). Commenting on the growth of sustainable tourism in China, Naked Retreats Chairman Grant Horsfield says: ‘In many cases the term is misused by the tourism and hospitality industries which often use the term ’sustainable’ for their marketing purposes…a good example of how you notice the increase in this form of tourism in China is the rapid increase in outdoor environmental clubs, but once again, these clubs are not necessarily doing anything environmental. The most important element of eco-friendly and sustainable tourism is how the local communities are benefiting. This is still small in China.” He further added that there “was absolute evidence of growth in sustainable tourism in China but that it is still in its early stages because of the lack of real understanding of what eco-friendly and sustainable tourism actually means.”

 

 

Entrepreneurs have taken note of the gap in China, more established brands in the eco-sensitive realm such as Banyan Tree (See ‘Interview with Banyan Tree’s Claire Chiang’) can expect a two-fold result, near term profitability for local properties and medium to long-term brand loyalty development for properties abroad, operations of which are all guided by the company’s triple bottom line (economy, society and environment). Claire Chiang, senior vice president of Banyan Tree Holdings, has observed that: “today’s Chinese traveller is seeking rewarding travel experiences and cultural exploration, as opposed to previously when the interest was largely to accumulate as many travel destinations as possible”, and considering that the majority of Banyan Tree’s clientele at properties in China are of local origin and the fact that they enjoy a hospitality experience that abides by eco-sensitive practices, it has a net positive effect on nurturing this new market.   

 

While numerous country destinations are also set to profit from the emergence of this niche market and leading the charge is New Zealand with its 100% Pure New Zealand global campaign (See ‘Interview with Tourism New Zealand’s Asia regional manager, Mark Frood‘). Asked if he had observed any evidence of Chinese interest in sustainable tourism, Mark Frood stated: “Yes, Chinese are more and more interested, this is what we are about. Taking photos of glaciers, taking these natural wonder photos by themselves, it is a statement of freedom.”

 

Thus in anticipation of the maturing of the Chinese outbound market accompanied by a shift in emphasis of quality over quantity in the near to medium future, a number of destinations and hospitality brands have already adjusted their strategies to profit from the most lucrative potential of China’s future tourism: longer stays, higher spending, return customers in search of something more authentic as well as tranquillity and exclusivity.

 

The very nature of sustainable tourism implies exclusivity as an environmental protected and conservation area by definition cannot host hordes of tourists at one time due to the damaging effect on the environment. Accordingly, destinations that effectively implement sustainable tourism strategies will be the recipients of the most sought after economically blessed tourists.

Claire Chiang on eco-sensitive tourism in China

Claire Chiang on eco-sensitive tourism in China

 

China Traveller

June 2009  

 

Q: Average occupancy rates in China?

A: The occupancy rates range from 50% to 70% for newly opened hotels and ‘matured’ hotels that have been operating for 3 years.

 

Q: Local/foreign guest occupancy ratio?

A: The guest ratio at Banyan Tree Lijiang is 35% foreign guests in 2008.

 

Q: Occupancy % of outbound Chinese at Banyan Tree abroad?

A: For Country of Residences as Chinese passport holders, it was 8% in 2008.

 

Q: Definition of environmentally sensitive?  

A: I see the ‘environment’ as being integrated, comprising culture & nature. We are culturally responsible – our resorts reflect a sense of place, we use resources from the area for construction as far as possible, we hire people from the region – and show respect for the local culture, thereby connecting us more closely with the locals. This is for us a longer term investment, as we are recognized for this, and in turn leads to creating a network of partners with similar values.

 

Right from the beginning, CSR has been ingrained in our operations and business values. “Embracing the Environment, Empowering the People” – this simple, effective phrase directs the CSR activities of Banyan Tree. The philosophy aims to drive the company’s triple bottom line (economy, society and environment) and helps generate the company’ sustainable development by assisting those around us. Since Jan 2008, all our resorts must track and report their energy and water consumption, as we aim to achieve a 10% reduction in each year for the next three years in energy consumption, water consumption and waste management.

 

Q: Is being environmentally sensitive good for business?  

A: Banyan Tree’s guests have a myriad of choices for travel destinations. As a resort operator blessed with idyllic locations, if we were not able to protect and share the charm and beauty of such locations, guests would not invest the time, effort and money to visit our sites. For non-resort businesses, environmental considerations are also friendly to the bottom line. Conserving the resources consumed is not only friendly to the environment, but it also reduces recurring operational costs. Investment in an energy saving bulb that may cost twice as much as a comparable incandescent bulb but lasts 5 times longer or reduces energy consumption by 50% is not just the best environmental decision, it is also the most effective business decision.

 

Q: How would you define brand Banyan Tree?

A: As a niche premium brand, Banyan Tree is all about creating unforgettable, deeply personal and cherished memories. It is about the romance of travel and connecting people with a ’sense of place’ through the design and architecture of our resorts, that promotes the uniqueness of indigenous cultures of the place. Our philosophy is based on providing a place for rejuvenation of the body, mind and soul – what we have branded: a Sanctuary for the Senses. Guests can also embark on specially developed experiences to enjoy an authentic taste of the local lifestyle.

 

Q: To what extent are your branding activities in China creating a brand loyalty that outbound travelers insist on staying at Banyan Tree when abroad?

A: Having experienced our Banyan Tree resorts in China, guests always have a keen expectation to return or try another Banyan Tree property that they have not stayed with before. Same in China, as in the rest of the world, the Banyan Tree experience is conceptualized to be like a theatre setting: we create a magical atmosphere where dreams really can come true. We want to evoke emotional responses from our guests; when a Banyan Tree property provides unforgettable experiences, the guests then seek to repeat them elsewhere, and therefore we build our brand loyalty.

 

Q: Methods/tactics to generate better awareness?

A: Through an integrated approach using PR, marketing and sales channels, as well as strategic partnerships with leading travel companies, airlines and banks to leverage on the partners’ influence, reach and resources to generate awareness in China.

 

Q: Most creative or audacious tactic/ strategy/ campaign?  

A: Recently we have launched the XTC (eXtraordinary Travel Consultant) awards to recognize our top performing agents and provide them with the opportunity to sample the Banyan Tree experience for themselves. Through this initiative, it will motivate our agents to further familiarize themselves with our products and in turn, be able to present them more confidently to customers.

 

Q: Any additional comments?

A: Today’s Chinese traveller is seeking rewarding travel experiences and cultural exploration, as opposed to previously when the interest was largely to accumulate as many travel destinations as possible (i.e. the mindset has evolved with more emphasis on the quality of the travel experience, rather than the quantity of places visited).

 

Ms. Claire Chiang is the Senior Vice President of Banyan Tree Holdings Ltd.