3. The Plain Facts
China:
• Is the worlds fastest growing economy
• Doubles in size approximately every seven years
• Will be the largest economy by 2020
• Is the largest country by population
• Is the worlds largest lender
India:
• Is the worlds forth largest economy
• Will be the third largest economy by 2020
• Has maintained growth over the past 20 years
• Is the second largest country by population
MARKETING FOR FUTURE BUSINESS GROWTH
4. The Future : The Worlds Largest Economies
2010
GDP PPP-adjusted
Values in Trillions of USD
European U.S.A Russia
Union China
Japan India
14.9 tr 14.7 tr 9.9 tr 4.3 tr 4.0 tr 2.2 tr
2020
GDP PPP-adjusted
Values in Trillions of USD
China Japan
European U.S.A Russia
Union
India
30 tr 29.6 tr 28.1 tr 13.4 tr 6.8 tr 4.3 tr
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank
5. Biggest Economies in 2020
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank
6. China & India
Worlds Fastest Growing
20
Economies
GDP GROWTH
15
PER YEAR
Real growth rate
Values expressed as a percentage
10
Australia
Canada
China
India
5
Russian Federation
United Kingdom
United States
European Union
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-5
-10
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank
7. The Largest Populations in the World
1600
1400 2010
1200 POPULATION
1000
IN MILLIONS
800
600
400
200
0
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MARKETING FOR FUTURE BUSINESS GROWTH Source: CIA World Fact Book
9. South Asia
The Most Resilient Economies
10
GDP GROWTH
8
PER YEAR
Real growth rate
6 Values expressed as a percentage
East Asia & Pacific
4
European Union
Latin Am erica & Caribbean
2 Middle East & North Africa
North Am erica
South Asia
0
Sub-Saharan Africa
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
-2
-4
-6
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank
10. Global Lenders Vs Global
Borrowers
}
United States
Spain
United Kingdom
Italy
Australia
Greece
BORROWERS
Turkey
France
Rom ania
South Africa
1
{
Singapore
Kuw ait
Norw ay
Netherlands
Sw itzerland
LENDERS Russia
Saudi Arabia
Germ any
Japan
China
-1,000 -800 -600 -400 -200 0 200 400 600
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Bank
12. Ja
0
50
100
150
200
250
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re
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MARKETING FOR FUTURE BUSINESS GROWTH
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Asian Travellers Have Less Debt
DEBT AS A
OF GDP
PERCENTAGE
GOVERNMENT
Source: Cia World Fact Book
14. Motivation & Needs
Chinese & Indian Travellers
Travel Motivation
• Rising Incomes
• Need to travel for business
• Travel (especially to Europe) as a status symbol
• Curiosity
Travel Needs
• Safety of a destination
• Ease of getting a visa
• Other factors:
– Natural Scenic Beauty
– Well-known landmarks
– Friendly local people
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15. Business Travellers
Official:
• Travel by people employed in government or public service
upon invitation of a related organisation in the destination
country
Business:
• Incentive travel, visiting exhibitions and inspections or technical
visits
Purpose of Travel
• Paid by company/bureau
• Predominantly company of male colleagues
• Convenience and time
• Concentrated shopping
• Appreciate flexibility and attention to time management
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16. Private Travellers
Group:
• First time visitors and travel in groups, given the
language barriers and unfamiliarity with the
destinations.
• They belong to the rising middle classes.
FITs:
• Has a high income and big purchasing power
• More likely to speak other languages
• Are experienced travellers
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17. Who Are The Travellers ?
• Well educated (with tertiary education)
• With higher income
• Top management of companies and
government bureaus
• Working professionals and semi-professionals
• Small groups on an incentive trip
• Tech-savvy and fashionable (interested in
cutting-edge gadgets and latest fashions)
• 4:2:1 (3 generations – grandparents, parents and
single child)
• Young (20-39 years old)
MARKETING FOR FUTURE BUSINESS GROWTH
18. Accommodation Preference
50
45
Chinese Indians
40
35
30
25
20
15
10
5
0
5 Star Hotels & 4-Star Hotel 3-Star Hotel 2-Star Hotel Others
Resorts
MARKETING FOR FUTURE BUSINESS GROWTH Source: World Travel Forum
19. China: Major Travel Generating
Regions
Northern China (Beijing and Northeast China)
– Most of the official travel is from Beijing
– Beijingers are engaged in politics and love socialising
– Work comes second to friends and family
Eastern China (Shanghai and the Coastal Provinces Zhejiang and Jiangsu)
– Regions with a history of overseas travel, resulting in relatives abroad
– Wealthiest in terms of average income
– Shanghainese are trendy and internationally oriented
– Very price-driven, shrewd business people who drive hard bargains
South China (Guangdong Province and Neighbouring Provinces)
– Guangdong benefits from its proximity to Hong Kong as the commercial
gateway into China
– Its capital city, Guangzhou, is a major trading and commercial centre
– Consumer spending is the highest among China’s provinces
– People in the south prefer higher standard of services to cheap prices
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20. When Do They Travel?
• Outbound mainly for business and official travel,
hence not reliant on peak seasons
• Private travel is mainly concentrated during the
public holidays and school vacations
– School vacations take place around Chinese New Year (4 weeks in
Jan/Feb) and in summer (July and August)
– Preferred destinations are domestic destinations and South East Asia
– October is chosen for long haul destinations
– 5 to 15 days paid holidays are available since 2008
MARKETING FOR FUTURE BUSINESS GROWTH
21. Travel Preferences
• Short Haul to Long Haul: Significant growing interest to ‘less discovered’
European destinations; trips to S.E. Asia, Japan, Korea and Oceania still
popular
• Group Tour to Independent Travel: More Chinese travellers are able to
apply for individual visas (as long as they showcase sound financial and
employment status)
• Multi-Country Packages to Hybrid Tours: Travellers are interested in in-
depth travel rather than multi-country packages. They are keen to return
to destinations enjoyed the first time.
• The Chinese ‘top priorities’ in life are keeping fit & healthy, professional
development and spending time with family & friends.
• In terms of holidays, taking domestic holidays is at least ‘quite important’
for 80% and ‘extremely important’ for 9%. Foreign holidays are regarded
as at least ‘quite important’ for a smaller proportion (61%) and ‘extremely
important’ for 10%.
MARKETING FOR FUTURE BUSINESS GROWTH
22. Chinese Travellers
Approved Destination Status (ADS)
• Approved Destination Status (ADS) Policy is a bilateral government
agreement defining the arrangement between the Chinese Government
and a foreign destination whereby Chinese tourists are permitted to
undertake leisure travel in groups to that destination. Business and official
travel to overseas destinations are not included.
• Was first introduced in the early nineties for destinations in Southeast Asia
such as Singapore, Thailand and Malaysia.
• Countries without an ADS agreement are not allowed to receive tourism
groups from China or to promote their destination in China for tourism
and are restricted to business and official travel groups only.
• More than135 different countries and territories have been granted ADS.
The EU Member States, Switzerland, Norway, Iceland, USA, Canada,
Australia and New Zealand are some of the major countries with ADS
agreement.
MARKETING FOR FUTURE BUSINESS GROWTH
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MARKETING FOR FUTURE BUSINESS GROWTH
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Travel Information Sources
Source: World Travel Forum