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| These days China features at all travel marts, events and conferences. Understanding China and more importantly, the importance of bilateral cooperation in winning travel business from China, has been keeping many of us busy. Roy Graff of ChinaContact gives some pointers.22 Sep 2006 |
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No where is it more important to develop a bilateral strategy than when doing business with China. Especially when it comes to tourism, Chinese sensibilities must be considered carefully. An approach that places bilateralism at its heart will be richly rewarded.
As China’s outbound tourism market continues to grow and develop, all destinations are considering how best to attract and retain visitors from there. At government level, tourism promotion requires more sensitivity and creativity than other more mature markets.
At private sector level, as much emphasis needs to be placed on building relationships and rewarding loyalty as on offering great rates and spending marketing dollars.
Western national tourism boards have been set up with one important function – to promote incoming tourism to their destination.
Western tourism companies are split between those selling an inbound destination (suppliers or receptives) and those that sell travel products abroad. Multinational corporations have specific brands or departments to deal with these two very separate sectors.
When it comes to China, however, things are not as straightforward. If we want to increase the benefits of tourism for Europe's travel service providers we must understand how China officially and culturally views business in general and tourism in particular.
The overwhelming role of Chinese governmental institutions is not much understood by Western governments and businesses. The Chinese national, provincial, and city governments greatly influence the development of the tourism sector.
Foreign tour operators are not allowed to conduct outbound travel in China in any legal form. While the emphasis of the Chinese government is clearly on promoting inbound tourism, their control over the outbound travel sector means that they have to be engaged by any country or territory that is interested in China's outbound travel market.
In recent years this has been done through the 'Approved Destination Status' policy (ADS).
On a governmental level bilateral cooperation has political and general economic implications. It has been shown that China rewards its close political or business partners with access How to win tourists from China? Send them yours! These days China features at all travel marts, events and conferences. Understanding China and more importantly, the importance of bilateral cooperation in winning travel business from China, has been keeping many of us busy. Roy Graff of ChinaContact gives some pointers. to the China outbound travel market.
The favourable business climate that is formed out of these relationships leads to higher business and leisure travel in both directions. When Chinese media report on high level political meetings between their leaders and a foreign nation, this raises interest in this nation as a potential tourist destination.
When Chinese hear of important China related events that take place in a destination, it stimulates their curiosity. In a cultural context, Chinese appreciate those in the West that reach out to China, and normally respond in kind.
Countries such as Germany and Australia have been quick to recognise this and benefited from higher tourism arrivals as a result. The United States, thanks to its many business dealings with China, has enjoyed high Chinese visitor numbers for several years.
In business, the current restrictions on trade in services in China requires Western companies to either work with a local partner or focus only on incoming tourism before being allowed to offer outbound travel products in China.
Chinese travel companies almost always operate travel business in both directions, and prefer to seek out partners in the West that can reciprocate. This is deemed as a win-win scenario and in addition makes international financial transactions easier.
This and other issues take centrestage at the World Travel Mart-ChinaContact conference on “China – the future of Travel.“ It takes place on November 6. Chairing the panel discussion is Shen Huirong, the former director general of Marketing and Communications at China National Tourism Administration.
Contact ChinaContact at www.chinacontact.cn
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