Opinion: Chinese outbound: Is this ‘a thing’?

Yunzi Zhang, mvariety.com

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THE Chinese outbound tourism market has grown substantially around the globe. Here, residents of Saipan have become very familiar with Chinese tourists walking, driving and shopping around. I think it would be great if we can all learn more about this market, as it does have a strong presence in this community.

Many ask the question whether the Chinese outbound market should be a research subject in itself. For example, Japanese tourists in the 1980s’-90’s also had a great impact on the world tourism industry. In the economic sense, it is true that both markets have contributed greatly to destinations’ local GDP. But the Chinese outbound market is different in several ways.

First, the market is gigantic. China now produces the world’s largest outbound market, and this is both in number of travelers and travel expenditure. The market accounted for about 21 percent of world international travel spending ($261 billion, 2016 UNWTO data), and this was about 10 times of 2006 ($24 billion, 3 percent). And, the trips were conducted by 8.7 percent of the Chinese population. If to be compared with the ranking of country GDP, their total spending would be on the Top 50 list, surpassing Finland, Portugal, Vietnam and Greece.

Second, we are in a digital revolution that has stimulated Chinese outbound’s growth in an unprecedented way. Internet- and mobile-oriented technologies have mushroomed in China. This is also the case for many other countries. It allows faster information-sharing about tourism products, and online word-of-mouth is powerful in changing people’s perceptions of a place. Social media almost was non-existence in the late 20th century. Therefore, the Chinese outbound market has emerged in a unique environment, and its impact is oftentimes magnified in the media. And this alone creates a lot of attention.

Lastly — perhaps the most important condition we need to recognize — the Chinese outbound market develops in the context of a rising China. Tourism development is a national strategy to reinforce China’s own economy and foreign diplomacy. In 2017, tourism contributed 11 percent of China’s GDP. Though still a small percentage compared with other industries, its function lies in boosting employment rate. Domestically, the concept of “integrated tourism” tries to make all regions, territories and terrains become of tourism interest for travelers. Tourism development, as an important policy, is rapidly spreading to provinces, towns and even villages. One interesting campaign now is the “toilet revolution.” City-level governments are busy building new and renovating old public restrooms. Many have developed mobile apps so that users can conveniently find those near them.

On the other hand, China sees tourism as a diplomacy tool. Public diplomacy [JB emphasis]can be strengthened when two cultures meet in a tourism setting. Research evidences attest to this, as human-to-human interactions foster mutual understanding. Culture is a necessary element of tourism, as we develop emotions in encounters with other people. Even in a completely natural environment, I believe that we react to the meaning of the place (given by people), rather than to the place itself. Because of this, China encourages its citizens to go abroad. Of course, this inevitably showcases the Chinese way of conduct, perceived both good and bad. In addition, the government advocates for visa-free or easier visa processing when negotiating with foreign entities. For example, a U.S. tourism visa for Chinese nationals is valid for 10 years, and the same for a tourism visa to Canada. Eligible people may also obtain a visa to Japan with 3- or 5-year validity. As for Europe, the visa application process has simplified. For example, the Italian Embassy in Beijing promises a processing time of 36 hours. Though allowing more Chinese to enjoy a leisure trip, the expansion of the market has made certain destinations dependent on Chinese tourists. In turn, this may become a leverage for China when it comes to foreign affairs. In 2017, we observed a decline of Chinese outbound travel to Korea because of the political dispute between the two governments. Therefore, to diversify the population of tourists at a destination is detrimental. However, this is easier said than done. After all, China has the biggest population on Earth — more people means more tourists. Statistically, it is difficult to keep a balance.

Thank you, and I welcome your views about the Chinese outbound market.

The writer is assistant professor, hospitality management, School of Business, Northern Marianas College