Chinese outbound tourism: Opportunity for Nepal

Published in The Kathmandu Post in February 2007

Closed to outside world until early fifties, China’s outbound tourism has now become envy for many countries which are now belabouring to make their economy thrive from tourism revenue. Since the initiation of the policies of reform and opening to the outside world in 1978, China's tourism has entered a stage of rapid development. With the improvement of Chinese people's living standards, Chinese citizens have an increasingly strong interest in traveling abroad. The number of outbound travelers from the Chinese mainland reached 34.52 million in 2006, up 11.27 percent over the previous year

China’s outbound tourism started 1980 after the economic reform taking shape in China. Earlier, China’s outbound tourism was limited to only Hong Kong and Macau on the basis that all expenses to be paid by relatives and friends who invited them to visit; and this period that spanned between 1983 to 1993 was coined as Experimental Period. Between 1997 and 2000 was named as Readjustment Period because interim procedure was made for self paid trip to only certain countries with limited foreign currency. But China opened its door for its people to travel outside in 2001 making procedure easy for outbound travel to the countries it signed Approved Destination Status(ADS). This period is now termed as Rapid Growth Period. Nepal has become one of earliest beneficiaries of ADS as China signed ADS with Nepalin 2001. So far China signed ADS with around 100.countries.

In 2000, outbound departure from China to other countries was just 10,472,600. But within five years, the number of people departing from China to travel abroad soared to 31,000,000. And, in 2004 top five destination to have received maximum number of Chinese tourists were Hong Kong, Macau, Japan, Russia and Vietnam. The main reasons to increase outbound tourists from China are: liberalization of foreign currency, change in holiday pattern and consumption concept. In the initial period, only US$ 1000 was allowed to take while traveling abroad but it later increased to US$ 5000. Now the limit is being extended to US$ 20,000. Now Chinese enjoy 5 working days a week and 8-days public holidays. Their consumption concept has been slowly changing from saving to spending; from saving for others to enjoying themselves; and from buying goods to buying expensive things. Three week long holidays have also positively affected the traveling pattern of Chinese people. In early February, they celebrate Spring Festival heralding the Chinese Lunar New Year. Spring Holiday( the Labor Holiday) starts from May 1 to 7. National Day holidays are from October 1 to 7.

The spending of Chinese people is guided by Chinese Philosophy: Being poor at home and rich en-route. They have long-standing tradition of gift giving on different occasion. Unlike Europeans, they are collective spenders. Per day spending of a Chinese visitor is now US $175. According to a survey, the spending of Chinese abroad on shopping is amounted to US$ 1000 per person.

Like travelers of many countries, Chinese visitors also like to visit famous sites, monuments and other attractions. But they are attracted to places related with famous personalities or film stars. Like Europeans, they prefer to travel more than one country in one trip because their limited holidays.

Unlike Europeans, they prefer to stay in downtown hotels with modern facilities. But hotels should be star-studded with telephone, internet, and of course full of hot water and Chinese tea.

Nepal is among one of few countries which signed ADS with China as early as in 2001. But Nepalese tourism entrepreneurs are yet to reap the benefit of Chinese outbound tourism boom. Apart from historic ties with China, Nepal’s advantages of religion, culture, Casinos and soft adventure could surely attract the potential travelers from China. Buddhist pilgrim centre like Lumbini, jungle safari and world heritage sites could be popular choices for Chinese tourists. It is important for Nepalese tourism industry to devise a strategic marketing plan to penetrate Chinese market. Till recently the bottleneck problem of airseat from China to Nepal has now been eased to some extend with the operation of China Southern Airlines. What is big hindrance that we still have is exorbitant fares from China to Nepal. Other neighboring destinations like Hong Kong, Thailand, Vietnam float from time to time special package for Chinese visitors. Offer like Visit Hong Kong at 1,000 yuan(US $ 125) from Beijing for four days and three nights, including round trip plane tickets and three or four-star hotel accommodation for three nights seems to be more attractive for mainland Chinese than paying more US$ 500 only for airfare to Kathmandu. Visa is free for Chinese visitors, and yuan can be exchanged easily. Is this enough to attract them in Nepal? Let me recall what the Chinese Tourism Minister who visited Nepal after signing of ADS with Nepal in 2001 said about the prospect of Chinese tourists in Nepal. He said the most important thing that Nepal should give priority is its tourism infrastructure. It is true in many senses. In China, rest rooms and toilets in heritage and tourist areas are as good as that we have in our five star hotels. Roads are so wide that you’ll hardly have any traffic jam. Even the smaller airport like the one in Haiku is cleaner and bigger than Tribhuvan International Airport. Airport’s toilet in China is so clean that our face burns with shame when we compare it with Tribhuvan InternationalAirport’s toilet, let alone the domestic airports outside Kathmandu.

As saying goes every cloud has a sliver lining, Nepal can expect more Chinese tourists to visit Nepal from China. From March 29 to June 30, 2007 Air China will operate four flight a week to Kathmandu from Chendu. Similarly from July 1 to October 29, 2007, it will operate daily flight to this sector. China Southern Airlines may increase its flight frequency once situation stabilize in the country. Cathay and Dragon Air of Hong Kong are now in wait and see situation, looking for conducive atmosphere to operate Nepal sector.