While China's rich history going back thousands of years and its countless dynasties lure millions of foreign tourists each year, more Chinese are now venturing beyond their country's borders.
Rapid economic growth has created a middle class no longer satisfied with the beaches of east coast cities such as Dalian or Qingdao, or the historical delights of cities such as Xi'an in the interior, with its underground army of terracotta warriors. While Chinese tourists have tended to favour destinations closer to home, more are venturing further afield to Europe, North America and - in growing numbers - the Middle East.
Despite the global economic crisis last year, the number grew by 4 per cent, as Chinese tourists made 47.7 million trips abroad, according to the China National Tourism Administration (CNTA). Those travellers spent US$43.7 billion (Dh160.5bn) abroad, up 21 per cent from 2008, lifting China to fourth place from fifth the year before in rankings of foreign tourist spending. And significant growth is likely this year, with numbers predicted to increase 15 per cent to 54 million.
The CNTA estimates that by 2015, there will be 100 million visits overseas each year by Chinese. The UN World Tourism Organisation had previously predicted the 100 million figure would not be reached until 2020. "The GDP increase is about 8 per cent or 9 per cent a year and, for sure, outbound travel by Chinese people will [increase] more than this rate," says Rao Tin, the America and Africa director for China International Travel Service. The sector was given a shot in the arm last week when the CNTA's head, Shao Qiwei, announced plans to allow foreign tour operators to take Chinese overseas.
Up to now, overseas companies have been allowed only to bring in foreign visitors and operate domestic trips for Chinese holidaymakers. Ben Cavender, the associate principal of China Market Research Group in Shanghai, says giving foreign tour operators access to Chinese tourists will "ultimately help to grow the market". "It will increase competition in the marketplace, give consumers more choice and will push the industry as a whole to become more professional," he says.
This is just the latest in a series of moves by Chinese authorities to deregulate the market and expand outbound travel by the Chinese. Many more countries have gained "approved destination status" (ADS), from the government, which makes obtaining a visa much simpler and allows tour operators to arrange group visits. A decade ago, just a handful of countries or districts had ADS, among them Hong Kong, Malaysia, South Korea and the Philippines. Now, more than 100 locations are listed.
Although for some locations the status applies only to travellers from certain parts of China, usually ADS applies to travel groups from anywhere in the country. As a result, what is really fuelling the development of overseas travel, according to Mr Cavender, is the wanderlust of people in China's second and third-tier cities, not just the biggest conurbations such as Shanghai, Beijing and Guangzhou.
"It's people getting into entry-level, mid-level white-collar jobs. Because it's getting easier, you're seeing the market opening up," he says. It used to be especially difficult, he says, for people in provincial cities to secure visas. The logistics are also much simpler now. "It's a lot easier going to Hong Kong or Thailand than three or four years ago in terms of visas, [getting] a passport and flights that connect early and cheaply. There are more options," he says. "China has done a lot to build up its network of airports. There are more flights, and by switching to e-tickets it's demystified the process."
Mr Cavender has identified patterns in how Chinese travel. Typically, the first trip is to Hong Kong, then perhaps Korea, Thailand, Japan or Malaysia, all countries that are relatively close and to varying degrees have cultural ties to China, he says. Once the Chinese traveller has a trip or two in the region under their belt, they like to venture further afield. The emigration of many Chinese to Australia and New Zealand has made those countries popular, Mr Cavender says, while the US and Europe attract the more intrepid.
While many Chinese tourists do enjoy pottering about Roman ruins or marvelling at the splendour of ancient Greece, according to Ivy Gao, a senior executive at the Beijing office of Dubai Department of Tourism and Commerce Marketing (DTCM), "culture is not the number one reason" why Chinese people travel abroad. "Chinese people like shopping, so they choose a destination where they can buy cheap luxury things," she says.
Mr Cavender agrees that "luxury purchases abroad are a big part of consumer spending". There is status associated with being able to travel overseas and come back with suitcases full of luxury goods, he says. "It's popular for people to go in groups to Italy or France to buy luxury products." With shopping so popular among Chinese tourists, it is no surprise that the UAE, with its massive malls full of high-end stores, is attracting increasing numbers of them.
There has been a significant increase since September, when the UAE gained approved status, Ms Gao says. Dubai is particularly popular because of the Dubai Summer Surprises shopping festival, she says. "The UAE recently has been one of the hottest destinations for Chinese people. The price is not very high for Chinese people right now," Ms Gao says. A five-day, three-night trip to the UAE from China costs about 5,000 yuan (Dh2,688) with airfare, she says.
Ms Gao estimates 150,000 Chinese visited the emirate last year, up from the 96,300 Chinese who stayed in Dubai hotels in 2008. In keeping with the growing interest in overseas travel among residents of China's second-tier cities, the DTCM is organising promotional events in 10 such locations including Tianjin and Shenyang, at which tour operators can meet hotel groups and airlines to arrange deals.
Eric Li, a Beijing-based tour operator with the travel wholesaler Uniway, says he has seen strong demand for trips to Abu Dhabi and Dubai this year. "We only focus on the Middle East and Africa and we can see 2010 is a very good year. From our agency, we have increased 30 per cent outbound," he says. In response to the growing number of Chinese visitors, local businesses are planning a warm welcome. Some top-end stores in the Emirates have recruited Chinese staff, while hotels have added Chinese dishes to their menus.
James Hogan, the chief executive of Etihad Airways, based in Abu Dhabi, said during a visit to Beijing this month that the UAE capital would become a major attraction for Chinese holidaymakers. "Abu Dhabi has a huge opportunity to bring tourists. Our presence in this market is key," he said. @Email:business@thenational.ae
