China Traveller – January 2012

 

Destination Placement in Chinese Movies


The marketing strategy of consumer product placement in film and TV is everything but new and well documented. The most explicit example being Cast Away starring Tom Hanks that was little more than a product placement ad for Wilson, FedEx and Jeep. The placement of destination brands (destination placement) however has without doubt shifted from the subtle to in your face obvious over the past five years. For good reason to as the Mecca for movies, Hollywood, must be without doubt the greatest and most sustained promotional campaign the US could ever hope for in terms of tourism appeal.

 

On the international stage the evidence of increased tourism arrivals to a country following successful box office sales of a movie filmed on their soil is well documented. Lord of the Rings is a classic example of a destination, New Zealand, which reaped the tourism rewards of an internationally popular film. Mindful of the Kiwi’s success, neighbouring Australia, through the Australia Tourism Commission, spent in the region of AUD$40 million to promote the country branding flick Australia staring Nicole Kidman and Hugh Jackman. Pity the movie was such a disappointment. Perhaps an unintentional Australia branding film, The Boys are Back staring Clive Owen, was more effective in portraying the land of Oz as a great holiday destination despite the serious plot. Other examples of films that have generated strong destination branding include Woody Allen’s Vicky Christina Barcelona and Eat Pray Love starring Julia Roberts in a spiritual quest taking her role to Italy, India and Indonesia. The cartoon Madagascar was punted as the movie to improve tourist arrivals to their exotic destination (“daddy, daddy, I want to go to Madagascar to see lions”) but regrettably the financial crisis stopped such hopes dead in their tracks.

 

The exceptionally large cinema viewing audience in China has driven western film producers of late to produce China characteristic, or at the very least China friendly, films. Examples include Kungfu Panda, 2012 and Transformers. Higher international box office sales means more profit for film makers, and with one quarter of the world’s population, currying favour with the Chinese cinema audience is good for business.

 

Enter the country branding industry. With countries being viewed and compared as brands in the same light as traditional consumer products, country branding in China is taking on a whole new significance. With China on the rise to produce 100 million outbound travellers by 2020 it is hardly surprising that a number of destinations have lobbied Chinese film makers to shoot on their lands, but with varying results to date.

 

The Chinese produced film If You Are the One staring Ge You and Shu Qi made Hokkaido, Japan’s second largest island, an instant hit amongst China’s tourists. According to reports the movie was filmed without financial or any other overt support from the Hokkaido tourism department but resulted in significant branding of the destination in China supported by subway billboards city wide depicting the picturesque island to promote the film. Local tour operators subsequently launched If You Are the One tour packages resulting in Chinese outbound travel to the island climbing by 175% between 2007 and 2008 from 26,950 to 47,400 respectively. Air China and Costa Cruises also got in on the action with brand footage in the movie. If You Are the One 2 subsequently featured local Beijing sites including the Great Wall’s Mutianyu, Tanzhe Temple and the artist 798 district. Deputy Director Gu Xiaoyuan of the Beijing Tourism Administration highlighted the fact that their cooperation with the film was an experiment in their marketing strategy. Travel companies like C-trip also cashed in on the movie’s popularity by launching themed tourism products that fans could follow.

 

National tourism bureaus have proven their willingness to provide significant support to film producers with the objective of securing superior coverage of their product in the Chinese market thus far. The Tourism Authority of Thailand for example provided the producers of Go! Lala, Go! starring Xu Jinglei and Huang Lixing, with logistical, food & beverage and accommodation support to shoot on-site at their beach destination of Pattaya. It is estimated that their destination placement cost Thailand less than a million Renminbi. The French region of Bordeaux also benefitted from their destination placement in the Chinese film Eternal Moment starring, again, Xu Jinglei and Li Yapeng. Director and actress Xu Jinglei is without doubt one of the pioneers in the destination placement business also having completed projects in South Africa and serving as Sri Lanka’s Tourism Ambassador.  Her more recent movie, Dear Enemy also included Hong Kong, the UK, Australia and South Africa. It is understood that their tourism promotion bureaus were approached for support but it is unclear how much was received in the end.

 

As for the results of these destination placement efforts, If You Are the One was viewed by nine million Chinese cinema goers and as previously stated resulted in Hokkaido arrivals increase of 175% year-on-year. If You Are the One 2 was viewed by almost 13 million people and was ranked third in China’s top ten box office in 2010. Go! Lala, Go! was viewed by almost four million people while Eternal Moment was viewed by nearly six million viewers at cinema’s in China.

 

While the industry remains in its pioneering stage it is true that some destinations have already benefited from placement in Chinese films. But no country destination to date has reaped the full potential of hosting a Chinese box office winner than has dramatically improved Chinese tourist arrivals to their land like Lord of the Rings did on an international stage for New Zealand tourism. Who will be first?

 

Jamie Lee, Chief Representative of LAWA/ LA INC China Office

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.

Aggressively targeting China to be top foreign customer by 2019

Aggressively targeting China to be top foreign customer by 2019

 

 

China Traveller

May 2009

 

Q: Proportion of travelling Asian customers to MOA?

A: Mall of America attracts about 40 million visitors annually. Approximately 7%, or 2.8 million, are from international destinations. About 1.5 million annual visitors are from Asia. Mall of America is only five kilometres from Minneapolis/St. Paul International Airport (MSP). Northwest Airlines (now Delta Airlines) has operated one-stop service from Beijing, Hong Kong, Shanghai and Taipei to MSP (via Tokyo) since 1991. Northwest has added service from Guangzhou also in recent years. This excellent flight schedule has been a valuable asset for Mall of America and we have worked closely to promote the Mall to China’s travelling public (including participation in the China International Travel Mart 2008 in Shanghai last November).  Mall of America looks forward to continued promotion to Mainland China’s leisure and business travel markets. 

         

Q: Estimate on the proportion of Mainland Chinese, Hong Kong Chinese and Chinese Taipei customers?

A: Mall of America opened on August 11, 1992. For the first ten years, the majority of its Chinese visitors were from Hong Kong and Taiwan. However, the numbers have started shifting more to Mainland China in the past seven years fuelled by the rapid expansion of China’s economy and easing of travel restrictions on Mainland China travellers. In addition, many multi-national corporations are based in Minneapolis/St. Paul such as 3M, Cargill, General Mills, Medtronic and Best Buy. As these corporations expand operations in China, more business travellers are visiting Minneapolis/St. Paul and Mall of America. Finally, the University of Minnesota in Minneapolis/St. Paul has the highest number of students enrolled from Mainland China of any other US university. Naturally, these students like to visit Mall of America.   

   

Q: Proportion of Mainland group travellers versus independent travellers?

A: To date, about 70% of Mainland China visitors to Mall of America are independent travellers (mainly business travellers). This is expected to shift more to group travellers in the near future as Mall of America is more active in promoting group travel itineraries with China’s travel trade (tour operators and travel agents). 

 

Q: Growth or decline of Mainland Chinese customers visiting MOA?

A: We are excited to see 5-10% growth annually in the number of Mainland China visitors to Mall of America over the past three years. China is a very important emerging market for our company and we will aggressively promote the Mall to China’s travel audiences going forward. This means spending more marketing budget on attending travel shows in China, advertising and public relations activities in Mainland China and other tourism initiatives.

 

Q: Estimate of the average amount spent by a Mainland Chinese customer?

A: The average international visitor to Mall of America spends about 2.5 times more money per visit than a local shopper – or about USD $300. The average visitor from Mainland China to Mall of America spends about USD $400. This indicates visitors from Mainland China find shopping, dining and entertainment attractive (Mall of America features “world-class shopping” with 520 stores, popular designer fashions and no sales tax on clothing or shoes).  

 

Q: Is MOA actively targeting the Mainland China market?

A: Yes, as I mentioned , we attended the China International Travel Mart with three Minnesota tourism officials from November 20-23, 2008 in Shanghai. Mall of America plans to attend a travel show in China annually from this point forward (in Beijing and Guangzhou also) and is interested in hiring a marketing firm in China. We will add Chinese content to our web site in the near future (we know this is critical for Mainland China consumers) and have invited the China Travel Channel (who we met at CITM) to visit Mall of America in the coming months to film a story about our destination. 

 

Q: Strategy undertaken by MOA to target this market? 

A: Mall of America attended CITM last November. We met with over 50 Mainland China tour operators at the show and have sent them follow-up information to develop and promote Mall of America tours. We will host FAM trips to Minnesota/Mall of America soon for Chinese tour operators and media. We will add Chinese content to our web site (www.mallofamerica.com) and hope to partner with a Mainland China-based marketing firm soon. Finally, Mall of America and its Minnesota partners (Explore Minnesota Tourism, Meet Minneapolis and the Bloomington Convention & Visitors Bureau) will attend at least one travel show in Mainland China annually.

 

Q: Greatest challenge/limitation to branding MOA in China? 

A: The great challenge is using our finite marketing resources in the most effective manner to promote our destination to 1.2 billion potential travellers. In addition, language is a challenge but definitely an opportunity. We understand the importance of our promotional information (web site, brochures, marketing reps) communicating in Chinese. For this reason, most of our marketing efforts in the next five years will be focused on the largest markets: Beijing, Shanghai and Guangzhou. However, in the long-term we plan to market Mall of America throughout Mainland China and expect it be become our largest international market in ten years.

 

Q: Other insights you would like to share?

A: I was formerly Director of International Communications for Northwest Airlines and travelled annually to Beijing to work with NWA’s and Weber Shandwick’s marketing team. I know the importance of Mainland China and brought that knowledge to my position as Director of Tourism for Mall of America. I have hosted several Mainland China shopping center development teams at Mall of America over the past five years and have enjoyed hearing how they are building large shopping and entertainment centers. Finally, Mall of America plans to more than double in size over the next five years by adding a high-fashion district, four on-site hotels, spa, indoor ice-skating arena, performing arts theatre, entertainment district and other features. We know visitors from Mainland China love to shop and we believe Mall of America offers the best shopping in the world (in terms of selection, price and convenience). Mall of America therefore expects Mainland China to become its most important international market within the next decade.

Alaska Travel Industry Association LogoChina Traveller

May 2009

 

The US’ final frontier, Alaska, is attempting to make in-roads into the Chinese market encouraged by strong Japanese tourist arrivals. On the surface of it, the task seems herculean considering China’s northern neighbour, Russia, offers similar attractions, but tourist friendly regulations and a depth of organisational capacity will give Alaska the upper hand.  

 

Exhibiting at the China Outbound Travel & Tourism Market Expo in Beijing in April, Alaska Travel Industry Association travel trade & international marketing manager, Jesse Carlstrom, took time to answer a few China Traveller questions.

 

Q: Who is responsible for the marketing of America as a travel destination?

A: The US Travel Association (TIA) is the national driven platform for promoting America and they are responsible for the ‘Discover America’ program. All the individual states however have to promote themselves abroad, and fund such promotions themselves. There is a bit of overlap as the majority of visitors to Alaska visit our destination as part of a group of other destinations.

 

Q: What are your largest international tourism markets?

A: The United Kingdom is the greatest source of our inbound tourism, and they almost entirely travel to Alaska as part of a cruise ship package. Our tourism bureau works hand in hand with the cruise liners. The cruise liners have a big influence on the branding of Alaska as they have enviable budgets. At the Alaska Travel Industry Association it is our duty to try and get more visitors to experience more on shore. Currently cruise liners are responsible for about 70% of tourism to Alaska in the summer time, and around 50% year round.

 

Our third largest market is Germany while our largest Asian markets remain Japan (15,000 per/year) and Korea (2-3,000 per/year). Our Japanese visitors are the ideal tourists as they visit equally as much in the summer as in the winter.

 

Q: Alaska’s tourism promotion in China?

A: Due to the US receiving Approved Destination Status (ADS) last year, we are slowly building a presence in China. In May 2008 we received our first FAM tour of tour operators. The process has just begun however and as such some glitches do still exist with regards to visas etc.

 

For the time being we are maintaining a minimal presence in China as it would be difficult to justify a significant investment considering the currently low arrival numbers from China. We are taking the market seriously however and have participated in three travel exhibitions in China over the past two years. Furthermore our travel interests are represented by the Alaska Governor’s Office of International Trade in Beijing. To act prudently however, we have to prioritise successful markets such as Germany and Japan.

 

Q: What attractions do you think will make an impact on Chinese travellers?

A: The same attractions that captivate other travellers from large, crowded cities, the fact that everything is 100% natural, its clean, its fresh, its quiet, it has vast tracts of open land and space, it is a surreal experience. One attraction that has been gaining ground with other Asian markets is aurora viewing. Alaska is one of the best places in the world to see the Aurora Borealis or northern lights.

China Traveller

March 2009

 

With damaging storms, upheaval in Tibet, the Sichuan earthquake and the hosting of the Beijing Olympics, 2008 was expected to be an unassuming year for Chinese outbound travel. Initial figures collected from China’s exit ports however indicate that despite all the herculean challenges met, outbound growth remained surprisingly robust for most regions.

 

With the exception of troubled Thailand, South East Asian countries benefited significantly with overall high growth rates while Europe almost universally suffered under a cloud of downturn pessimism (complete table of figures on data page, pg. 7). Growth rates were also reversed in a number of African and Latin American countries, a serious issue of concern for developing countries reliant on foreign arrivals for job creation.

 

No surprise in that Hong Kong remains the most popular destination with over 17 million Mainland travellers visiting the Special Administrative Region in 2008, closely followed by Macau with over 15 million arrivals. Neighbouring Japan remains the global destination of choice for Chinese travellers receiving 1.55 million persons at a growth rate of 6.8% over 2007. Vietnam was the second largest recipient of Chinese visitors with 1.45 million at a whopping 58% growth over 2007. It is interesting to note the disparity in figures between China and Vietnam as destination itself only recorded 650,000 visitors. The disparity can been explained due to Vietnam sharing a border with China, a consequence of which Chinese figures include local border day trips, with the Chinese persons returning on the same day, whilst Vietnamese figures only include over night stay.   

 

The order of remaining neighbouring countries with the highest Chinese arrivals include: Korea in third place (1.34 million); Singapore surpasses Thailand for fourth place with 713,000 arrivals; Thailand (624,000); Malaysia (623,000); Taiwan replaces Indonesia for seventh place (279,000); Indonesia received 248,000 arrivals on the back of impressive 46% growth over 2007 while the Philippines came in last with 163,000 arrivals on negligible 1.7% growth.

 

Travellers to Australia continued to grow at 3.7% resulting in 413,000 arrivals. Australian tourism figures also reflect lower numbers than China’s (356,400) which is partially explained by China’s numbers including all types of travellers (business, students, relative visits etc.) as opposed to pure tourism figures. New Zealand received 73,000 visitors at a growth of 7.7% over 2007. The United States, taking advantage of its fairly recent ADS (Approved Destination Status) status surged ahead with 775,000 arrivals, 8.5% growth on 2007 figures, while Canada almost reported zero growth resulting in 230,000 visitors.

 

With the exception of Russia (790,000 visitors at 7.2% growth over 2007) Europe performed poorly with Germany recording 253,000 visitors, a decline of 6.9%. The UK received 234,000 visitors (decline of 1.4% over 2007) while arrivals to France declined by 5.9% over 2007 resulting in 202,000 arrivals. The blanket drop in European arrivals has a number of influencing factors. Firstly, the number of natural calamities to hit China in 2008, along with the hosting of the Beijing Olympics, was always going to have the greatest impact on long haul destinations, and with Europe being the greatest recipient of Chinese outbound travel for so many years it was natural that for them to feel the greatest pinch. Canada, another long haul destination, as previously mentioned also reported near zero growth but the United States avoided the same fate due to its stronger business and student exchange relations with China as well as its newly acquired ADS status. Fearing illegal immigration, Europe also raised the bar on visa requirements for Chinese travellers that clearly had a direct relationship on the drop in tourist numbers. Lastly, the now infamous Olympic torch relay spectacle that occurred in Paris, protests in the UK compounded by the German Chancellor meeting with the Dalai Lama in the wake of unrest in Tibet galvanised potential Chinese tourists into an anti-Europe group.   

 

Brazil also received less visitors than in 2007 with a decline of 1.2% resulting in 23,000 visitors but the country to suffer the steepest decline in arrivals according to available information is 2010 FIFA World Cup host South Africa attracting a mere 34,000 Chinese visitors, a decline of 13.5%. In the Middle East the UAE registered robust growth of 19.8% totalling 118,000 visitors.   

 

Comparing the available Chinese figures with the actual destination arrival figures however, it becomes clear yet again the discrepancies that exist due to a number of reasons including the infamous Hong Kong/Macau factor as well as the fact that many Chinese travellers concurrently visit multiple destinations, the second and third stop, or more, of which are not reported at exit ports. Taiwan reported an additional 50,000 arrivals, while Singapore registered over 300,000 more Chinese visitors. Thailand reported an additional 150,000 plus visitors while Turkey and New Zealand reported an impressive 35,000 (more than double the Chinese figures) and 37,000 additional arrivals respectively. As allured to above, Hong Kong in particular and Macau account for much of these discrepancies serving as a hub for transferring flights.