Scottish Government

CHAPTER FIVE: ATTRACTING CHINESE TOURISM TO SCOTLAND

5.1 Attracting increased Chinese tourism to Scotland is the sixth objective of the China strategy. The specific target for this objective is to attract at least 30,000 Chinese visitors per annum to Scotland by 2010, generating revenue of £11 million per annum. The growth in numbers will be achieved in part through stronger marketing of Scotland as a tourism destination in the target areas of China.

5.2 To provide information to inform objective 6, several of the research audiences in China - the public, business people, students, travel agents and tour operators, were asked about travel behaviour generally and about their perceptions of Scotland as a tourist destination specifically. The findings are discussed below under 3 main headings: travel behaviour in China, perceptions of Scotland as a tourist destination, and experience and likelihood of visiting Scotland.

Travel behaviour in China

5.3 Questions put to the research audiences about their travel behaviour generally, focused on their level of overseas travel, reasons for travelling overseas, countries visited, sources of information on overseas travel, and key considerations in selecting a destination.

Level of overseas travel in China

5.4 Of the members of the public who were surveyed, less than half (43%) had ever been on long haul travel. However, the figure varied significantly across the seven target provinces, rising to 82% in Hong Kong and falling to 24% in Taiyuan (see Table 6.1 below).

5.5 There was further variation by key socio-demographic variables. As Table 5.1 illustrates, younger respondents were significantly less likely to have been on long haul travel than older groups, and those with a higher income were more likely to have done so than lower income groups. Finally, experience of long haul travel increases with level of education.

Table 5.1: Experience of long haul travel, by province, age, income and education

Have you ever been on long haul travel?

Source: Ipsos MORI

5.6 According to the travel agents and tour operators, the proportion of the Chinese public going on long haul travel is increasing steadily over time, as China's wealth increases and the cost of trips comes down.

5.7 Turning to the other research audiences, the business people had more experience of long haul travel than the public, with 56% of those interviewed by telephone having been on long haul travel. In contrast, few of the students had any experience of overseas travel. They saw it very much as a luxury pursuit and certainly not something that they could afford to do whilst studying.

I feel very uncomfortable if I spend my parents' money in such a luxury way.
(Student)

I will travel overseas only when I can earn my own living.
(Student)

Types of trip taken

5.8 Among the public, travel as part of an organised tour remains more common than independent travel. Thus, of those who had been on long haul travel in the last two years, two-thirds (64%) had travelled as part of a group, while just under half (49%) travelled independently. In Hong Kong and Shanghai, however, this balance is reversed, with independent travel being a little more popular than organised tour groups (75% in Hong Kong and 61% in Shanghai had travelled independently, compared with 53% and 51% respectively who had travelled as part of a tour group). Findings from the research among the travel agents and tour operators suggest this pattern may eventually spread to other parts of China, with independent travel becoming increasingly popular across the board.

5.9 Business travellers were more likely to have travelled independently (73%) than as part of a group (33%). In part this seems to be a matter of expediency - those interviewed face-to-face commented that business trips tend to allow fairly short time for travel and thus it is difficult to combine them with organised tours. Independent travel in contrast allows for flexibility in terms of both the length of time spent touring and the choices of sights visited.

5.10 Of those members of the public who had travelled independently, the vast majority (79%) considered their trip to be 'budget' as opposed to 'luxury'. However, and consistent with other findings, the proportion who had been on luxury trips, increases with income (but only in mainland China) and age as Table 5.2 (below) shows.

Table 5.2 - Budget and luxury travel by age, income and education

Would you say your trip was a luxury trip or a budget trip?

Source: Ipsos MORI

5.11 Among the business audience the number having been on luxury trips was just slightly higher than that of the general public with 27% considering their trip to be 'luxury' and 73% describing it as budget.

Reasons for travelling abroad

5.12 Both the public and business audiences who had been on long haul travel were asked about their reasons for going abroad. Among the public, the most common reason by far was to go on holiday, mentioned by three-quarters. The next most common reasons, each mentioned by around one in ten, were work and visiting friends and family (see Figure 5.1 below).

5.13 As Figure 5.1 shows, the pattern changed among the business people, with work (76%) being the most common reason for travelling abroad. Holiday was the second most common reason (59%), followed by visiting friends and relatives (8%).

Figure 5.1: Reasons for travelling abroad

Q What was the purpose of these visits?

Base: All general public who have been on long haul travel (461) and all business people who have been abroad in the last two years (120). Fieldwork dates: General public - September 21 - October 22, 2006, Business people - October 23 - November 7, 2006.
Source: Ipsos MORI

5.14 These findings were reflected in the interviews with travel agents and tour operators who reported that around half of their overseas travel business comes from business people combining work with travel, while 20-30% is pure business travel and 20-30% comprises the holiday market.

Countries visited

5.15 As Figure 5.2 shows, the most popular travel destinations among the public in China are in Southeast Asia. Thus, of those who have travelled out of China in the last two years, a third (32%) had visited Thailand, while 22% had been to Singapore, 18% to Japan, 16% to Malaysia and 14% to Korea. Smaller proportions had visited countries outside of Asia, with the most common destinations being the USA (11%), Australia (9%), France (8%), Britain (6%) and Germany (5%). Small sample sizes preclude analysis of these findings at the sub-group level.

5.16 Although the students had not been to many places, they did discuss their future aspirations. This provides a taste of what the future market desires. The kinds of places they would like to visit are:

• Advanced/well-developed countries ( USA, UK, Germany, Holland, France, Spain, Japan and Singapore)
• Countries rich in natural beauty (Australia, Thailand, Malaysia and Hawaii)
• Countries with a long history ( UK, Egypt, Spain, France, Thailand, United Arab Emirates, Greece and India)
• Countries which are fashion leaders (Japan, Korea, Italy and France)
• Countries which host events such as the Olympic Games and the World Cup

Figure 5.2: Main countries visited by the Chinese general public

In the last two years, which countries outside China have you visited?

Base: All who have visited a country outside of China (461), Fieldwork dates: September 21 - October 22, 2006
Source: Ipsos MORI

5.17 The business people who were interviewed by telephone were more likely than the general public to have visited countries outside Asia. The countries in which this difference is most apparent are the USA (23%) and the UK (15%). However, Asian destinations were still the most popular.

We would have the holiday in Asia. Thailand is the hottest place for holiday and relaxes.
(Business person)

5.18 The interviews with tour operators and travel agents provided some insight into issues underpinning Chinese travellers' choices of destinations. They pointed out that the popularity of Southeast Asia can be explained by two main factors, aside from the proximity of this region to China. First, Southeast Asian countries are very well promoted as tourist destinations in China compared with other places. Second, there is a growing demand among the Chinese for relaxing beach holidays and Southeast Asia is seen to offer a particularly suitable location for this type of break.

In general, they will choose the place having beach for holiday. The landscape and the travel arrangements should make them relaxed.
(Travel agent/tour operator)

Korea is the hottest destination at present, it has many promotion. The tour agents in Korea are keeping close touch with us, we feel they are very close, not like the distance between the European agents.
(Travel agent/tour operator)

5.19 Still, they also noted that more and more people in China are choosing to travel to Europe as the cost of holidays here comes down.

Sources of information on overseas travel destinations

5.20 The research audiences were asked about their main sources of information on overseas travel destinations. Among the public, the most common sources were the internet (42%), and word of mouth recommendations from friends/family/colleagues (39%), each mentioned by around two in five respondents. The next most common sources were newspapers/magazines (23%), information on the television (23%) and advice from travel agents (22%) (Figure 5.3).

Figure 5.3 Main sources of information on overseas travel destinations

Q When you are planning a holiday, which of the following sources of information are most important in helping you decide where to go?

Base: All respondents (1102), Fieldwork dates: September 21 - October 22, 2006
Source: Ipsos MORI

5.21 These findings were generally replicated among the business people and students, although business people were more likely to mention the internet (58%) and word of mouth recommendations (53%). Furthermore, among the students there was a notable cynicism towards information provided by travel agents and tour operators. They took the view that agents and operators often try to lead people to go on holidays where shopping will be a key activity as they receive commission from shops for doing so.

5.22 The travel agents and tour operators said they obtained their information about destinations from 4 main sources: overseas tourist boards, the internet, travel exhibitions and brochures. Some agents and operators especially those in Hong Kong also said that they will go on personal visits to destinations to gain first had experience of those places.

We will go there to have the experience first, such as Southeast Asia, Japan, some countries in Europe.
(Travel agent/tour operator)

There is much information from the website of the tourist boards, but it is hard to say which website is better.
(Travel agent/tour operator)

Key considerations in selecting a travel destination

5.23 As Figure 5.4 illustrates, the most important considerations in selecting a travel destination for the general public were the price of the trip (38%), safety (24%), famous tourist attractions (23%) and the scenery (18%). These were followed by climate (10%), having enough time to do things (10%) ease of getting around (9%) and the food (7%). Perhaps surprisingly, lesser considerations included ease of getting a visa (2%), availability of materials in Chinese (1%) and the language spoken (3%).

Figure 5.4: The most important considerations when deciding where to go on holiday

Q What two or three things are usually most important to you when you decide on where to go on long haul holidays?

Base: All respondents (1102), Fieldwork dates: September 21 - October 22, 2006
Source: Ipsos MORI

5.24 Again, these findings were replicated among the other audiences, although practical issues such as weather and food and ease of getting a visa, appeared to be of lesser concern for students who felt these things were part and parcel of the travel experience. That said, several of the female students said that they would feel more comfortable going somewhere where they had friends or family.

To travel is to experience. These problems are not real problems if I have such a good chance.
(Student)

5.25 To provide another perspective on Chinese travellers concerns and priorities, the tour operators and travel agents were asked which questions they are most commonly asked about destinations. The most common responses they gave were:

• What the local food is like
• The quality and choices of airline
• What type of accommodation is available and the quality of this
• Whether there are opportunities for shopping
• What sights there are
• What the exchange rate is
• Whether a credit card can be used
• How safe it is

Activities undertaken overseas

5.26 In terms of what the audiences do when they travel overseas a wide range of activities were mentioned. Figure 5.5 shows the most popular activities among the general public. The most common activity was sightseeing, with half (50%) mentioning 'general sightseeing' two-thirds (36%) reporting that they visited famous attractions, 8% going on organised tours and visits and 7% visiting historic sights such as castles. Shopping (38%) was also popular especially among certain groups of people; females (43%), those aged 18-30 (42%), those aged 31-40 (43%), and those earning more than 9,000 RMB (39%). Cultural activities such as enjoying the food (11%), visiting cities (6%) and watching cultural traditional performances (6%) were also popular. Finally, 13% relaxed while they were on holiday and 7% visited friends and family.

Figure 5.5: Most common activities undertaken when travelling abroad

Q When you visited these countries, what did you do while you were there?

Base: All who have travelled outside China (461), Fieldwork dates: September 21 - October 22, 2006
Source: Ipsos MORI

5.27 Among the businesses and students, similar activities were mentioned, although students referred again to attending events such as the Olympics Games or the World Cup. Those business people who were interviewed by telephone tended to be more interested than the general public in 'meeting the people '(14% versus 2%) and in' learning about the history and culture '(19% versus 10%). Business travellers also emphasised again that when travelling for work they have very little time for tourism and so tend to focus on seeing particularly famous sights.

Normally we would not have much time for travelling, we can just visit the famous attractions, and learn the history and culture there quickly.
(Business person)

Spending

5.28 The general public were asked how much they normally spend when travelling overseas.In mainland China the average amount spent on foreign holidays is 31019.30 RMB (around £2,000), although in Guangdong the figure is significantly lower at 19414.5 RMB. In Hong Kong, the average amount mentioned was 15,634 HKD (around £1,000). Table 5.3 shows the full variation by province.

5.29 There was further variation by key socio-demographic variables. As Table 5.3 illustrates, those with a university degree or above spent more, on average, on a holiday than did those with a high school qualification or below. Additionally, and perhaps not surprisingly, the amount spent on holidays increased with income.

Table 5.3: Average amount spent on a foreign holiday by province, education and income

How much would you normally spend on a foreign holiday?

Source: Ipsos MORI

Overseas conferences

5.30 To help assess the events market in China, the business audience were asked whether their company holds conferences abroad. Two in five said that they do, while the remainder (59%) do not.

5.31 Overseas conferences are more common among businesses in developed cities and provinces including Beijing, Shanghai and Guangdong than in places such as Shandong and Taiyuan.

5.32 In terms of where conferences are held, the most popular destinations are the USA (30%), Japan (17%), Singapore (15%) and the UK (14%). Furthermore, there was a perception that the UK is becoming an increasingly popular choice.

Scotland as a tourist destination

Perceptions of Scotland as a tourist destination

5.33 Among the various audiences awareness of Scotland as a tourist destination was fairly low.

5.34 Members of the public who said they know at least something about Scotland were asked what makes the country unique as a destination, almost half of this group (45%) were unable to give a response. Consistent with findings from Chapter 3, the remainder tended to mention features such as classic architecture (13%) the national character (12%), the landscape (7%), famous sights such as castles and churches (5%), kilts (5%), traditional culture (5%) and history (4%).

5.35 Reflecting these findings, when asked what they might do on a trip to Scotland, sightseeing was the most common. Forty-one percent of respondents mentioned general sightseeing, 38% said they would visit famous attractions and 20% would visit historic sites such as castles. Additionally, 28% would shop, 14% would watch traditional cultural performances and the same number would experience the culture (see Figure 5.6 below).

Figure 5.6: Things people would expect to do on a trip to Scotland

Q What do you imagine you would do on a journey/trip to Scotland?

Base: All who are likely to visit Scotland in the future (322), Fieldwork dates: September 21 - October 22, 2006
Source: Ipsos MORI

5.36 Business people's conception of Scotland as a tourist destination was in line with that of the public. However, around a quarter thought they might visit for business reasons and some of those who were interviewed face-to-face also tended to mention the country's reputation as a centre for golf.

The Scottish golf is famous in the world
(Business person)

5.37 Surprisingly travel agents and tour operators awareness of Scotland as a tourist destination was little more developed that that of the other audiences, despite them appearing to have a fairly good knowledge of England. Thus, when asked to consider specific attractions of the country they tended to guess, mentioning the landscape, the history and the climate (in the sense that it would be very different from that of China). Perceived weaknesses of Scotland included the cost and the difficulty of obtaining a visa to travel to the UK. Few felt able to mention specific activities that might be associated with a trip to Scotland, although there was some mention of Scotland's whisky heritage and associated activities. Golf was also mentioned but it was not felt to be a major attraction for mainstream Chinese travellers due to it being an expensive sport.

Experience and likelihood of visiting Scotland

Experience of visiting Scotland

5.38 The public and business audiences who had been on long haul travel were asked whether they had visited a) the UK and b) Scotland. Among the public, just 15% had visited the UK. There was some subgroup variation with higher than average numbers being from Hong Kong (38%), aged 41-50 (22%) and men (19%). Twenty-three percent of those who had visited the UK (n = 16) had visited Scotland, with the main reason for this visit was for a holiday.

5.39 Similar findings emerged in the business group with 21% having visited the UK and 24% of these (n = 11) having visited Scotland. Once more, holiday was the most common reason for this visit.

5.40 The agents and operators suggested that the minority of Chinese people who visit Scotland can be divided into two main groups: business people on luxury trips and members of the public taking part in organised tours of the UK or Europe. Discussing the latter group they noted that often organised tours of Europe bypass Scotland as it is not a "hot" destination.

Few of the tourist groups will go to Scotland, most of them will choose 5 countries in Europe.
(Agent)

People who go to Scotland would have high income, such as businessmen.
(Agent)

Likelihood of visiting Scotland in the future

5.41 Half (51%) of those who know something about Scotland would be likely to consider visiting Scotland in the future. Those in Hong Kong, however would be significantly less likely to consider this (22%).

5.42 Those who are likely to visit Scotland in the future would tend to do this as part of a trip to Europe (49%) or the UK (45%). Just five percent would do it as a trip to Scotland only.

5.43 The business people had very similar views to the general public on their likelihood of visiting Scotland and the way in which they would do this.

5.44 Reinforcing these findings, agents predicted that the number of people visiting Scotland is likely to increase in the future as the number of people travelling to the UK, both for holidays and to study, increases.

I think it will become popular because it is in the UK. In these years more and more parents want to send their children to the UK for studying there. Scotland is a part of the UK, they may use the opportunity to go round the UK, including Scotland.
(Agent)

Promoting Scotland as a tourist destination

5.45 Almost all of those asked (84%) had not seen anything promoting Scotland in the last year or so.

I feel that awareness of Scotland is too low in China. It would be better after popularizing by their tourist board.
(Agent)