The Reemergence of Chinese Tourism

The Chinese tourism industry is reopening, but after being shut down for the past 3 years, it will take some time to recover. The second half of 2023 is expected to see the results of relaxed international travel restrictions in China. According to COTRI, Chinese outbound travel in 2023 is forecast to reach 110 million international tourists, accounting for 66% of 2019 travelers, and 2024 is expected to exceed 2019 travelers with 170 – 180 million international travelers. Now is the time to begin preparing for the return of the Chinese tourism market.

Considering it is going to take time to get back to pre-pandemic levels, time presents the opportunity to prepare and plan accordingly. This is not only an opportunity to pick up where you left off with the Chinese tourism market, but also presents an opportunity to reinvent your marketing strategy and improve efforts to attract more Chinese tourists.

China’s outbound tourism market is diverse and ranges from backpacking to ultra-luxury. With such a wide range of travelers, it is important for casinos and their hotels to understand who the traveler they are trying to attract is. Once they know who their target traveler is, they can build a plan and market to them. For example, if your casino is located near a large city with luxury attractions and you have five-star or four-diamond accommodations, your approach to attracting a specific clientele will differ from a casino located in a rural area close to a National Park. Each of these have unique offerings and will attract a different clientele, so the marketing approach needs to differ according to the type of traveler. How you market your property and who you market to must align with who you are in order to succeed.

If tourists do not know you exist, it will be difficult for them to spend their money at your casino or stay in your hotel. There are many ways to get noticed. You can reach them directly or indirectly. Here are a couple of methods to reach potential tourism customers. The direct approach could be utilizing SEM and targeted digital ads through DSPs to reach Chinese free independent travelers (FITs). You can also reach potential customers indirectly. Group travel is a great way to bring a large number of tourists to your casino and fill hotel rooms. This is particularly advantageous during mid-week when hotel occupancy is typically lower than on weekends. Travel and trade shows are effective ways to secure your casino a place on travel agency’s itinerary. If you are new to travel shows, local Convention Visitor Bureaus may be a good resource to start with. Travel agencies typically create tour itineraries up to twelve months in advance so begin planning now. As a provider, it is very important to be prepared for groups when they arrive and have a seamless process for check-in and promotional redemptions. This will help ensure repeat bookings.

According to US Travel Association, January and August are the two months of the year with the highest number of inbound international Chinese travelers. Capitalize on these seasonal trends. Plan promotions accordingly and make sure they coincide with seasonal peaks. For example, if your food & beverage department runs monthly specials, January and August are good months to run Chinese dining specials. Just make sure the special is as close to authentic Chinese food as possible.

Keep up on Chinese holidays and work them into your marketing promotional calendar. For Chinese New Year, which will fall on February 10th, 2024, consider working dragon dancers and lucky red envelopes into your marketing promotional plan. These are tried and true ways to appeal to the Chinese demographic. The Mid-Autumn Festival also known as the Moon Festival or Mooncake Festival falls on September 29th this year. During this festival, as the name implies, it is traditional to give out moon cakes to celebrate the gathering of family. This festival is considered to be parallel to the American Thanksgiving holiday where families come together. Show your Chinese demographic you are an extension of their family by celebrating this festival with them and giving out traditional moon cakes.

Pre-Pandemic Chinese tourists were considered to be high spenders by retailers and destinations, but with an emerging younger demographic and uncertainty around China’s economy, we may see a shift in past spending trends, and the Chinese tourist may become more frugal. Understanding this emerging trend creates opportunity. Casinos & hotels can plan accordingly by creating package deals with a high perceived value that will appeal to reemerging Chinese tourists on the hunt for the best deals.

It may be a difficult subject to broach, but it is important for your staff to understand the personal safety concerns of Chinese tourists. After Covid 19 was traced to Wuhan China, aggression toward Asians increased along with racial stereotypes. Make every effort to create a culturally inclusive and welcoming environment that will attract tourists of all nationalities and emphasize safety for all guests. Celebrating cultural diversity also provides opportunities to showcase local cultural diversity. Tribal casinos across the nation are rich with the different tribes’ traditional cultures. Tourists, including Chinese, are looking for cultural experiences including food, song, dance, and tradition. Celebrate the rich diversity travel provides because travel is the only thing that makes us richer.

For more information on creating strategic marketing plans to drive more international and domestic tourism to your casino and hotel, Catalyst Marketing Agency is here to help meet our client’s needs.