Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Friday, August 23, 2013

THE TWO DRAGONS - HOW TOURISM IN WALES CAN MAKE THE MOST OF CHINA

With the sun coming out more often than in recent summers, the tourism industry in North Wales must be feeling more optimistic than in previous years. 

However, is it doing enough to attract the new growth sectors in tourism globally? 

For example, a recent report from the UN World Tourism Organisation showed that visitors from China have become the biggest global source of tourism income in 2012, spending £67 billion whilst travelling abroad. This is 40 per cent higher than in 2011 and well ahead of both the Germans and Americans. With a growing middle class, a strong exchange rate and the lifting of travel restrictions, this trend is set to continue. 

However, it would seem that the UK tourism sector may miss out on this bonanza. According to the Tourism Alliance, the number of Chinese visitors was only 179,000 in 2012, an increase of only 20 per cent and well short of the target of 201,000. This means that the aim of attracting half a million Chinese visitors to the UK by 2015 is likely to fall short by around 200,000. Indeed, if we compare the UK performance to that of other European nations, this is a worrying trend. 

For example, France now receives almost eight times more visitors from China than the UK. Tourism specialists have suggested that the high costs of Air Passenger Duty and visas have been factors in disincentiving overseas tourists from coming to the UK. Indeed, in order to gain competitive advantage, the Spanish Government is now considering facilitating visa formalities for Chinese visitors to attract more in the future. 

Yet, the question is whether we are doing as much as other countries to attract this growing market to our shores? 

For example, the Australian tourism authority has established a network of dedicated travel agents in thirteen of China’s major cities, all of whom have had specialist training to sell Australia to potential Chinese tourists. There are also greater efforts being made within Australia to increase Chinese language and cultural awareness with tourism providers across the country.  
In the USA, organisations such as Attract China help to market and promote destinations by helping tourist businesses to build an online presence that understands and embraces the Chinese lifestyle. However, Wales could be in a prime position to take advantage of this visitor boom from China for a number of reasons. 

First of all, the Chinese have a very high appreciation of British culture and history, all of which are in abundance in Wales if marketed properly. In addition, outdoor pursuits such as hiking, camping and walking are favoured by many Chinese tourists, which should make North Wales a major attraction if marketed properly. The Chinese are also keen on shopping and bring home a lot of high quality souvenirs for relatives and friends when they travel abroad, thus adding value to all visits that they make. And for a Welsh tourism industry that is dependent on a period from April to September for its main income generation period, the peculiarities of the Chinese holiday regulations means that the two periods that are most favoured for travel are October and February. 

In addition, they normally take a fortnight off for travel as compared to the one week favoured by American tourists. Given this, you can just imagine what a boost this could give to the Welsh tourism industry at a time of the year when our hotels and B&Bs are largely empty. 

Therefore, the boom in Chinese visitors globally is something that Wales cannot ignore and it should not be beyond the imagination of those marketing our nation as a destination to link the dragons of China and Wales and thus bring a real bonanza to our tourism industry at a time when it needs it the most.

Wednesday, November 16, 2011

WALES AND CHINA - SHOULD WE BE FOCUSING OUR EFFORTS ON THE SMALLER INNOVATIVE CITIES?

The First Minister of Wales recently visited China to sign an agreement with Chongqing, a major city in the west of the country.

This commits Wales to furthering economic development links and continuing to work together with this municipality in the fields of science, technology, culture, health, education, agriculture, forestry management, environment, governance and tourism.

Whilst a visit by the First Minister to China to develop further links is to be welcomed, this is hardly groundbreaking progress.

In fact, this latest relationship merely builds on an earlier memorandum of understanding (MOU) between the Chongqing Municipal Government and the Welsh Assembly Government, signed by Rhodri Morgan in 2006 in which they agreed to collaborate and co-operate in a number of areas.

As regular readers of this blog will know, I am an avid supporter of Wales going out to the World  to not only trade with different nations, but to form important relationships that can help change the way we work and live.

However, I find it disappointing that in twelve years of devolution, the Welsh Government has made little progress beyond reaffirming an existing arrangement with a single Chinese City.

One would have thought that as a small trading nation, we would be choosing our partnerships carefully, especially as much of the focus of the recent trade missions was in building links between universities and businesses in both countries.

In fact, it is worth noting that according to the influential business periodical, Forbes China, Chongqing was not rated as one of the twenty five most innovative cities on the Chinese mainland this year.


Ranking
City
Administrative Levels
Province
Innovation Index
1
Shenzhen
City with separate budgets
Guangdong
1
2
Suzhou
Prefecture-level
Jiangsu
0.998
3
Shanghai
Municipality
-
0.992
4
Beijing
Municipality
-
0.978
5
Wujiang
County-level
Jiangsu
0.950
6
Wuxi
Prefecture-level
Jiangsu
0.949
7
Hangzhou
Provincial capital
Zhejiang
0.945
8
Kunshan
County-level
Jiangsu
0.922
9
Changshu
County-level
Jiangsu
0.920
10
Zhangjiagang
County-level
Jiangsu
0.919
11
Dalian
City with separate budgets
Liaoning
0.892
12
Dongguan
Prefecture-level
Guangdong
0.889
13
Nantong
Prefecture-level
Jiangsu
0.879
14
Ningbo
City with separate budgets
Zhejiang
0.876
14
Shaoxing
Prefecture-level
Zhejiang
0.876
16
Yixing
County-level
Jiangsu
0.864
17
Zhongshan
Prefecture-level
Guangdong
0.861
18
Wuhu
Prefecture-level
Anhui
0.847
19
Guangzhou
Provincial capital
Guangdong
0.838
19
Hefei
Provincial capital
Anhui
0.838
21
Taicang
County-level
Jiangsu
0.814
22
Tianjin
Municipality
-
0.803
22
Foshan
Prefecture-level
Guangdong
0.803
24
Yangzhou
Prefecture-level
Jiangsu
0.784
25
Changzhou
Prefecture-level
Jiangsu
0.781


Not surprisingly, the number one city on the list was Shenzen in South East China (across from Hong Kong) where the total output value of high-technology products reached 1 trillion yuan (£100 billion) in 2010.

Therefore, if Wales is to build international links that benefit our universities and the technological capacity of our business community, then surely policymakers should consider innovation hotspots like Shenzen.

But given the size of Wales, perhaps it should not be large cities like Shenzen or Chongqing that should be the focus of the Welsh Government, especially as they would also be developing partnerships with other economies looking for trade links with the most populous areas of China.

For example, businesses from Sheffield have also recently taken part in a trade mission to Chongqing as they seek out international trade opportunities. And in the same week that Carwyn Jones was signing his new MOU, the Belgian port of Antwerp was entering into agreements with the city for training purposes and to create trade partnerships.

So where should Wales focus its effort on building stronger links with China?

It is worth noting that more than half of cities on the list of the most innovative in China are far smaller than Chongqing.

Indeed, of the top ten, four have a population of less than two million and are located less than two hours’ drive from the business giant that is Shanghai.

Given their small size, perhaps these are the cities that Wales has more in common with and, more importantly, would be more willing to have a closer relationship than the one we currently enjoy with Chongqing.

The Welsh Government remains determined to focus all of its efforts on one Chinese city, but surely we should start to build links with some of the smaller innovative cities in China?

At the very least, it would enable  universities and businesses to identify new opportunities and establish a more direct and less competitive route into one of the World’s fastest growing economies.