1. According to OECD (2010) “over the coming decades Asia’s emerging middle class will be large enough to become one of the main drivers of the global economy”.
a. Discuss the opportunities that Chinese growing demand will bring to the tourism industry in Europe in general and UK in particular b. Provide suggestions of how the authorities can make UK more appealing to your chosen market.
In recent years Asia has the fastest growing economy around the globe and with China being the biggest emerging Asian market. For the past sixty years, the world tourism industry development has been flourishing with growing economy and national income; therefore people have the ability to afford expenses such as travelling cost. For a long time Europe and North America have been the world's most popular two big tourist destinations. And Before the 1980s, the western developed countries is almost a monopoly of international tourism market, the number of reception and tourism income accounted for about 90% of the world total. But since 1990 all of that was to change. For example, in 2010, over 940 million tourists from 47% of newly industrialized countries. Especially China for representing this trend. It is predicted by the year 2015, China will be the largest tourist resources throughout. In April 2010, the United Nations and the world tourism organization says, since 2000, the number of Chinese travel abroad increased by about 22% every year; and 2008 Chinese tourists overseas consumption amount is $36.2 billion, ranking the world's fifth; In 2009, China more than France as the world's fourth largest international tourism consumer, Chinese tourists overseas tourism consumption in a total of 43.7 billion US dollars, the world tourism organization predicts that by 2020, China will have 100 million people travel abroad. According to the investigation of the McKinsey Global Institute’s research shows in China, annual income between 13,500 to 53,900 dollars can be seen as middle class and with Boston Consulting Company’s research shows by 2020, there will be more than four hundred million middle classes and above. China used to be far away, the country at the bottom of the world but now has been the fastest growing country with the strongest buying power had challenged the tradition and makes it ‘The Chinese Century’. (TC Fishman, 2004)
a. Discuss the opportunities that Chinese growing demand will bring to the tourism industry in Europe in general and UK in particular
In addition to its culture, history and attractions, Europe is considered a prestigious place to visit, and a trip to the region is regarded as status enhancing. Many Chinese travellers to the region will try to visit as many countries as possible, which increases the prestige. Trips to Europe usually lasts between ten to fourteen days and yet it is not unusual for travellers to squeeze in ten countries in ten days, although many tour groups only offer five to six country stops. Despite its allure, the high cost of European travel and language barriers are the two significant obstacles for the Chinese travellers to travel.
The reason for Europe being a prestigious place to visit is that Chinese citizens only need one visa for the Schengen area to travel to the 25 Schengen countries, which is almost everywhere a Chinese traveller desire to visit excluding the UK. Chinese tourists need to obtain a second visa for the UK, with both visas, Chinese travellers can visit Europe freely, and in Chinese consumer’s mind two visas can get you to travel nearly a whole continent is something worth doing for.
Chinese travellers to Europe can be summarised into five categories: 1. Tour groups: tour groups are usually a big group of Chinese tourists and often organised by a tour operating group in China. The tour operating company usually offers a range of all-inclusive facilities such as all the visas required, pre booking inexpensive hotels, coach...
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