- A segment of those who used to travel are now lacking in travel confidence
- Personal safety, destinations friendly with China, travel convenience are key motivations
- Visa-free entry, visa-on-arrival, good air options help with Chinese outbound return
The What’s New in Chinese Outbound Travel April 2023 research by Dragon Trail International (DTI) and ForwardKeys has identified persistent travel hesitancy among Chinese consumers, with 26 per cent needing persuasion to travel in 2023 and 28 per cent looking to travel only in 2025.
Furthermore, according to a poll of 1,012 respondents, 27 per cent did not know if they would travel this year, and 37 per cent want to wait until 2024.
These and other details were shared during a recent webinar.
DTI research analyst, Yelinuer Kadeerbieke, said the research conducted in early-April showed that 30 per cent of respondents had previously travelled internationally.
Key reasons for the reluctance to travel abroad were concerns about destinations not being “as safe as China”, “countries opposing China” and “Covid-19”.
Kadeerbieke stressed: “The Chinese are affected by news like gun ownership and Chinese being attacked or robbed even if there are only one or two cases. It’s about personal safety and about the communication.”
While crowds were a concern, being able to take in local experiences was a top reason for going abroad,” she said.
On what travellers want, research shows that 56 per cent voted for landmarks; 61 per cent still want to buy a complete package with visa, guide and transport for “convenience”, “safety” and to be “worry-free” when travelling with children or the elderly; and 48 per cent only want to book flights and hotels.
Traveller uncertainty has presented destinations keen on tapping the China market with the opportunity to “message and target” the “26 per cent who hope to travel in 2023 but had not booked”.
Kadeerbieke commented: “Many Chinese travellers renewed their passports recently, but 31 per cent would not be travelling abroad,” and with 20 per cent planning to go to Europe, this buys destinations and businesses “time to get ready”.
She noted that five million passports were issued in 1Q2023, that about 10 per cent of Chinese had passports pre-pandemic but the number would have gone down since.
Asia remains top choice
Sienna Parulis-Cook, DTI director of marketing and communications, noted of 40 destinations given to respondents to choose from, Asia was in the lead, with Japan, South Korea and Europe also favoured.
The top destinations for 2023 according to the research are:
Hong Kong (22.1 per cent)
Macau (9.9 per cent)
Thailand (9.6 per cent)
Japan (6.7 per cent)
South Korea (4.4 per cent)
Taiwan (3.3 per cent)
France (3.2 per cent)
Singapore (3.2 per cent)
Australia (3.0 per cent)
Russia (2.2 per cent)
For preferred accommodation type, respondents picked boutique hotels, resorts, private homes stays and Airbnb options. Nancy Dai, China market expert, ForwardKeys, added there was increasing demand for homestays and apartments, and the availability of such options would make a destination more attractive.
As of March 15, 2023, 60 countries – 46 per cent of 2018 figure – had received approval to sell group and packaged travel to the Chinese, Parulis-Cook said, while Dai pointed out that longhaul trips were “picking up again”.
Dai added that destinations offering visa-free entry or visa-on-arrival facilities were “showing good recovery” while connectivity to and from China to some mid-haul regions had increased exponentially.
According to ForwardKeys data announced ahead of the webinar, Africa and the Middle East are set to increase the most at 75 per cent in 2Q2023, with six per cent of total international capacity from China, while the UAE is the most well- connected destination at 44 per cent.
The number of seats between China and Kenya has doubled since 2019, and Egypt has also experienced 10 per cent growth. These three countries are included in the destination list of approved group tours and have a close relationship with China through the One Belt, One Road initiative.
For short overseas trips, Dai said South Korea “was a particularly important destination for singles and couples, and had become more prominent in 2Q2023”.
The research, conducted between April 3 and 7, had a profile breakdown of 51 per cent female and 49 per cent male.
Forty-nine per cent of respondents were from first-tier and new first-tier cities and 51 per cent were from second-tier cities.
Of the 1,012 respondents, 25 per cent were born post-2000, 34 per cent post-1990, 26 per cent post-1980, 11 per cent post-1970, and four per cent post-1960 and older.
Editor’s note: The percentage of countries approved for Chinese group and packaged travel is 46 per cent of 2018 figure, not eight per cent. This has been corrected.
Your new report, Decoding the Luxury Traveller Mindset: Spotlight China, looks at a hot topic: the travel behaviours of wealthy Chinese. There have been so many other studies on Chinese travel intentions, so what makes this latest study stand out from the rest?
Barr will be succeeded by Elie Maalouf, a member of IHG’s Board and Executive Committee, who has led IHG’s Americas business as regional CEO for the past eight years. Taking up his new position on July 1, Maalouf will be based in the UK.
Results from the Southeast Asia Summer 2023 Domestic Travel Survey, conducted by consumer research firm Milieu Insight, reveals interesting insights on the willingness to travel domestically, concerns for safety, and the number and duration of trips planned for the year.
The survey involved 2,500 working individuals aged 20-65 in Indonesia, Thailand, Vietnam, Philippines, and Malaysia in April 2023.
Findings show a positive outlook for the travel industry in the region, with about eight in 10 respondents (76%) keen to travel in their own country; 85% of respondents across the region plan to embark on at least two domestic trips this year.
Four in 10 respondents in Thailand intend to take four or more trips this year, the highest across the region for domestic travel intent. This suggests that travel companies should consider offering packages and promotions that cater to multiple trips to boost the frequency of travel.
Additionally, the duration of travel per trip remains stable across markets, with the majority preferring an average of three to four days per trip. This information is valuable for travel companies when planning their packages and promotions.
Interestingly, the promotion of the destination is less impactful than a recommendation from family/friends in most countries, except Malaysia and Thailand, which means the tourism offices have done well in boosting local tourism.
The survey also revealed that concerns about Covid-19 safety have waned across most of the countries surveyed, with the Philippines showing the highest level of concern, likely due to rising cases in the country as reported by the Department of Health (4,456) in the last week of April 2023.
Travel spots and sceneries rank highest in key considerations for domestic travel in Indonesia (69%), Thailand (66%) and Vietnam (58%), while the safety of travel (69%) tops the list of considerations for respondents from the Philippines.
Of noteworthy mention is that while costs of the whole vacation do have an impact on travel decisions, especially for domestic travellers in Indonesia (61%), Malaysia (61%) and Thailand (60%), the weather of the destination takes precedence especially for those living in Thailand (62%) and Vietnam (55%). This could likely be due to concerns about extreme weather events that can happen quite frequently in both countries, reflecting the negative impacts of global warming.
Beach holidays are popular across the region, with destinations known for their beautiful beaches ranking first in each country: Boracay in the Philippines, Bali in Indonesia, Danang in Vietnam, Sabah in Malaysia, and Phi Phi Island in Thailand.
Waterfalls across Thailand are hotspots for domestic travellers, with 24% of respondents choosing them as favourite travel destinations.
National carriers (full-service airline) are top choice among respondents in the Philippines, Indonesia and Vietnam: Philippine Airlines (76%), Garuda Indonesia (74%), and Vietnam Airlines (72%).
In Malaysia (84%) and Thailand (83%), low cost carrier AirAsia is the airline of choice, likely due to higher price sensitivity for travellers in both the countries.
When planning holiday activities, South-east Asians prove to be foodies, with about five in 10 planning a food trip experience, while four in 10 respondents from Indonesia, Malaysia and Vietnam are keen to shop locally.
Beach holiday activities are especially popular among Filipinos, with five in 10 respondents choosing swimming and other beach activities like paragliding or parasailing (13%).
Among Thai respondents, 65% is keen to join tours, which is also a popular activity for Malaysians (45%), Indonesians (40%) and Filipinos (43%).
Museum visits are especially popular among respondents in Vietnam and Malaysia, with at least two in 10 inclined to visit a museum while on vacation.
From sightseeing to relaxing holidays, travel planners should consider that South-east Asian travellers are drawn to activities that offer them opportunities to relax and unwind. With the diverse food culture in different states, the opportunity to eat like a local and discover hidden food gems will definitely be a draw.