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?

Relais & Chateaux Logo

China Traveller

June 2009

 

Independent boutique hotels are sprouting in key tourist destinations in China from Lijiang, Guilin, Xi’An to Shangri-La. Relais & Châteaux, a non-profit hotel and gourmet restaurant association, is looking at China as part of its expansion plans in Asia.

 

Currently, Relais & Châteaux comprises of an exclusive collection of 475 of the finest hotels and gourmet restaurants in 55 countries with two properties in China – Hotel of Modern Art (HOMA) in Guilin and Fortaleza De Sao Tiago Da Barra in Macau.

 

Based in Bangkok, Mr Stéphane Junca, Director of Development-Asia for Relais & Châteaux, who is responsible for developing the brand in the Asia Pacific, was in Shanghai for their inaugural press conference and spoke with China Traveller on their development plans in China and how they define a “Relais & Châteaux” property.

 

Q: Local/foreign guest occupancy ratio?

A:  85% foreigners and 15% local Chinese guests respectively with the later segment growing.

 

Q: Geographical breakdown of foreign clients?

A: 65% European, 20% United States, 15% Asia Pacific.

 

Q: Percentage of Chinese outbound travelers compared to the global market?

A: With Relais & Chateaux at the global level, the Chinese clientele represent less than 1% of the total, having said that we only stared experiencing Chinese visit’s from 2 years ago. Our global customer breakdown is as follows: 

 

France 22%

US-Canada 17%

UK 14%

Germany 10%

Switzerland 6%

Italy 5%

Be-Ne-Lux 5%

Spain 4%

Japan 3%

Australia-NZ 2%

 

Q: How do you define a “Relais & Châteaux” property?

A: They are unique hotels – each “Relais & Châteaux” property is different in each location. From South Africa to Thailand, the hotels are independent and each hotel has their own unique offerings. The property showcases the local characteristics.

Relais & Châteaux hotels do not belong to any hotel chains and they must be in operation for at least a year with less than 100 room keys. The hotels also have restaurants with excellent cuisine. Other than hotels, Relais & Châteaux members also include independent gourmet restaurants.

 

Q: If Relais & Châteaux were a person, how would you describe that person?

A: Relais & Châteaux is discreet and low-key. I would say gourmet as well.

 

Q: How does one become a member of Relais & Châteaux?   

A: Usually we receive applications, the first criterion is for the property to be in operation and we will organize a mystery guest to visit the property to evaluate on our behalf. Other criteria are available on our website. The findings will be evaluated and decided by an elected board from Relais & Châteaux.

 

Q: What are Relais & Châteaux’s expansion plans in China?

A: We are looking at properties in China aggressively and looking to grow the brand. However, the quality of the boutique hotels has not reached a Relais & Châteaux standard. We are still observing. We are constantly searching for great properties that match our values. At the same time, by increasing our properties in China, by being here in the market, we also want to build the brand awareness of Relais & Châteaux amongst the Chinese travelers to visit a Relais & Châteaux property overseas.

 

Q: Who is your target audience in China?

A: We have 1.3 billion Chinese in population. We are happy to get the top 0.5% of the most discerning Chinese travelers. They are for people who know us and once they have tried us once, they will be addicted.

 

Q. What are your target locations in China?

A: We are looking for anywhere with great properties – in Xi’An, in Lijiang, in Shangri-La, in Shanghai and even in Beijing.

 

Q: What is the brand strategy of Relais & Châteaux in China?

A: Our strategy in China is to be here in the market. Let the product speak for itself. We do not use advertising. We are looking to theme the properties in a collection too – for example as “Silk Road” properties or in Japan, we have a collection of “Onsen” properties. In South Africa, we can have a chain of properties along the wineries.

 

Frenchman Stéphane Junca is Director of Development-Asia for Relais & Châteaux, responsible for developing the brand in the Asia-Pacific. Currently based in Bangkok, he was appointed in 2006 and has since inspected over 150 hotels and boosted the brand’s regional portfolio of exclusive small hotels and restaurants to 23.

 

Leveraging the ultimate branding trump card, the 2010 FIFA World Cup South Africa

Leveraging the ultimate branding trump card, the 2010 FIFA World Cup South Africa

China Traveller

January, 2009

 

The Republic of South Africa is more than a nation of nearly 50 million people with an area of over 1.2 million km², the nation is a brand, and the task of managing this brand falls on Ms. Tracy Qi, acting country manager for the tourism section of the South African Embassy in Beijing. A local Beijinger, Tracy has been with the Embassy since 2005 and has since become an expert on the South African brand. During a recent interview in her South Africa-themed office in the Embassy, we had the opportunity to learn about this brand and it’s standing in the China outbound tourism market.

 

Q: How would you define China’s outbound travel industry in 2008?

A: China’s outbound travel was marked by many ups and downs in 2008, but in the end, it was a good year that left us and the whole industry optimistic for the future. For South Africa, international arrivals continued to grow, although growth rates were down from around 12% at the beginning of the year to around 6% right now. There are many reasons for this slight decline, the Olympic Games for example, but we expect full recovery – the Chinese market is very resilient.

 

Q: How would you define the Chinese traveler?

A: Travelers from China are quite different from those in other markets. They try to follow their palates, which are as diversified as the many types of cuisine in this country. In other words, they need choices, and lots of them. Travelers from China are also concerned about the quality of services like accommodation, transportation and tour guiding, etcetera. They also have the habit of travelling with lots of cash, which isn’t such a good idea.

 

Q: What effects, if any, has the global economic downturn had on the tourism industry?

A: The turmoil that hit financial markets in the third quarter of the year has taken its toll on both the global and South African travel industries. Along with other occurrences like the Beijing Olympic Games, it has seen growth of foreign arrivals to South Africa slow markedly. Fortunately, South Africa enjoys the benefit of excellent foreign exchange rates for tourists and this has given the destination an enviable level of affordability when compared to other country brands and makes the nation an extremely attractive option for those who still want to travel during difficult times or insist on excellent value for money.

 

Q: What sorts of trends have emerged among Chinese travelers and which ones do you foresee increasing in popularity?

A: A growing number of Chinese travelers are using the internet as their favorite tool to learn about destinations, accommodation, air tickets and itinerary packages. South African Tourism has noted this trend and will invest significantly in this area in 2009.

 

Q: How would you define brand South Africa and what does it offer travelers?

A: South Africa is a very unique brand. It not only offers tourists scenic beauty, local culture, wildlife and adventure, but also luxury travel services and great value. South Africa also enjoys the benefit of being host to the FIFA 2010 World CupTM, an event that attracts hundreds of thousands of visitors and that is set to bring unprecedented publicity to South Africa over the next 18 to 24 months. In the run up to this event, we are working to make FIT visas available later this year and will be offering special event visas for 2010. For more information, just contact the South African Embassy.

 

Q: How is brand South Africa perceived in the China market?

A: People in China think South Africa is very far away and that a tour to the country would cost quite a lot of money. Some people also think that South Africa isn’t the safest of destinations. All of these perceptions are not quite true. South Africa is no further than the US in terms of flight hours, and South Africa enjoys the benefit of excellent foreign exchange rates, in fact, the New York Times named South Africa the second most US$ friendly destination on earth late last year. As for safety, travelers to South Africa  should be careful when deciding where and when they tour certain locations, just as they should when travelling to any foreign country.

 

Q: What countries compete with brand South Africa?

A:  Our competitors could be said to include Australia, Egypt, Turkey, Italy, Kenya and New Zealand because these countries provide similar activities and attractions at comparable costs and distances. But some of these brands are our ‘cooperative competitors’, like Egypt and Kenya, due to tour packages which bring tour groups to two or more destinations in Africa rather than just one.

 

Q: What successes has brand South Africa gained in the China market and what drove them?

A: The biggest single success for the brand’s marketing efforts in China was the signing of the ADS agreement in 2003. And now, even though awareness of South Africa in China is still low, it’s rising steadily during the run up to the upcoming 2010 FIFA World CupTM. For example, Chinese arrivals to South African reached over 47,000, an annual increase of nearly 13% in 2007.