Tapping into Chinese Tourism

China is now the world’s largest outbound travel market with around 145 million Chinese travellers journeying all over the globe, spending US$ 265bn in 2017, according to the World Travel & Tourism Council (WTTC). The Chinese are notoriously big-spenders. Citizens of a superpower, these tourists have significant disposable income and are not afraid to invest in the best. That means the best accommodation, transportation, experiences and souvenirs.

With all that tourism revenue on the table, Caribbean nations are increasingly eyeing the Chinese market. If island nations can overcome stumbling blocks such as lack of airlift, technological shortfalls and inadequate promotional efforts, the regional tourism industry is set for a significant payday.

A bad reputation

When China first started making significant inroads into the global tourism market, it wasn’t all smooth sailing. Chinese tourists quickly gained a reputation for rudeness, disrespect and even indecency with reports of public defecation, spitting and littering. Numerous episodes of obnoxious behaviour surfaced, including a 2013 incident where a Chinese visitor to Egypt carved ‘Ding Jinhao was here’ onto a wall at the 3,500-year-old Luxor Temple.

The Chinese government took note, with Vice Premier Wang Yang declaring: “They speak loudly in public, carve characters on tourist attractions, cross the road when the traffic lights are still red, spit anywhere and [carry out] other uncivilized behaviour. It damages the image of the Chinese people and has a very bad impact.” This national embarrassment led to the 2013 Tourism Law which compels the Chinese to act sensitively and respect local customs, requiring them to ‘observe public order and respect social morality in tourism activities’.

Five years on, and the Chinese are now more experienced travellers — contributing to destinations, rather than defacing them. It’s also worth noting that a 2015 poll from travel analysts Travelzoo declared Americans to be the world’s worst behaved tourists, beating out the Chinese, Germans, British and Canadians in categories such as skipping out on a bill and taking hotel items.

Spend more, play more, shop more

China accounts for more than a fifth of the money spent by outbound tourists worldwide, according to the United Nations World Tourism Organization (UNWTO).

The spending power of the Chinese tourist is a boon to the high-end and luxury market, whether hotels, tour companies or retailers. In their leisure time, these vacationers enjoy the kinds of activities associated with the ultra-wealthy. They may want to spend the morning on the golf course, the afternoon shopping and the evening trying their luck at the casino or partying at nightclubs.

Glamour, luxury and being given VIP service are all crucial to capturing and retaining business from the affluent Chinese. Saint Lucia hopes to deliver exactly what Chinese visitors want with its US$ 2.6bn Pearl of the Caribbean project. The development in the south of the island will feature a racetrack, marina, casino and high-end shopping — all the amenities Chinese tourists typically seek out, though it is currently unclear when the project will officially be completed.

The Chinese may love to splurge, but destinations need to consider not just where they shop, but also how they shop. Chinese tourists are very tech savvy and this can be an issue for Caribbean countries who are drastically mismatched when it comes to technological capability.

The Chinese are so au fait with mobile payment systems that they are now forcing their favourite destinations to get up to speed, according to a recent report from data analysts Nielsen. The Nielsen survey shows that 75% of merchants in Chinese tourism hotspots Singapore, Malaysia and Thailand are now accepting Chinese mobile payments, with Nielsen China President Andy Zhao commenting: “Along with the increasingly personalised and sophisticated demand of Chinese tourists, improving the global coverage of mobile payments is a long-term project for merchants.”

China in the Caribbean

Several Caribbean countries are already reaping the rewards of attracting Chinese tourists. Just under 50,000 Chinese tourists visited the Caribbean in 2016, according to the UNWTO, and most of these went to Cuba, with Jamaica the second choice. Havana benefits from having the only direct flight to China in the region, while Jamaica has seen more interest after removing visa restrictions for Chinese travellers.

Other islands making inroads into this profitable market include The Bahamas which has been steadily building links with the superpower for many years: making diplomatic overtures, facilitating Chinese investment, and welcoming China Construction America to construct and manage the country’s newest mega-resort, Baha Mar, as well as The Pointe development in downtown Nassau.

Typically, Chinese interest has centred on the Caribbean islands closest to central transport hubs such as those within easy travelling distance of the US Eastern Seaboard. While the cost of the long journey from China to the Caribbean may not necessarily be a dealbreaker for wealthier travellers, the inconvenience and sheer discomfort of such a trip is definitely offputting. For most of the Caribbean, poor air connectivity has been the main stumbling block to penetrating the Chinese market so far but other issues include lack of promotional efforts and targeted marketing in China, and visa or other travel restrictions.

The interest is there, however, and there are signs that Chinese tourists are beginning to broaden their horizons and are keen to discover what other islands have to offer. This year, the Caribbean Hotel and Tourism Association welcomed 20 Chinese travel buyers to Caribbean Travel Marketplace 2019, marking the first time the renowned trade show has ever hosted Chinese delegates.

On the rise

With the unprecedented swell of Chinese tourism in recent years, it’s easy to think this market may be in danger of reaching its peak. It’s not. There is still much more potential to be mined in Asia. Currently around 8% of China’s population have a passport but the country’s biggest online travel firm, Ctrip.com, is predicting that the number of passport holders in China will double to 240 million by 2020, kickstarting another wave of adventurous travel-seekers. Research from Bloomberg suggests that the Chinese government is issuing around 10 million new travel documents every year and the WTTC says Chinese tourists will take an estimated 400 million trips in 2030.

But how many of these trips will be to the Caribbean islands? Airlift is probably the biggest obstacle so far, but there has been progress on this front with Jamaica pushing the idea of multi-destination trips. If Chinese tourists can fly directly to Cuba, this gives Caribbean countries an opportunity to work with Havana to offer single-visa tours with multiple destinations.

Getting the Chinese into the region is one thing, but retaining that business will mean a thoughtful shift in focus. Selling the Caribbean halfway across the world requires a nuanced promotional approach that understands, and caters to, a culture wildly different to the Caribbean melting pot.

As Xu Jing, UNWTO’s Regional Director for Asia and the Pacific, told the UNWTO Global Conference on Jobs and Inclusive Growth: “More work is needed when it comes to publicity. To make an impact you have to offer more ‘Chinese friendly’ services. The region needs amenities such as Chinese language services, free Wi-Fi, integrating elements of Chinese culture and special conveniences. These adjustments will make the Chinese feel more welcomed and can increase the demand in the future.”