PATA China Outbound 14 11 2007

The Changing Face of Chinese Outbound Travel

Driving Change in Travel & Tourism

Peter de JongPresident and CEOPacific Asia Travel Association

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China over the last 10 years…..

1997• Population 1.24 billion• Urbanized 32%• GDP growth 9.3%• GDP/capita US$767• Travel

-Inbound 57.6 million -Outbound 5.3 million -Domestic 644 million

2007==> 1.33 billion==> 42%==> 11.5%==> US$2,420

==> 132 million==> 37.5 million==> 1.4 billion

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The total China travel equation

1,394.0

125.034.5

Domestic Inbound Outbound

Measure (millions)

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• On Monday November 5, 2007 made its stock market debut in Shanghai….

• …and that same day became the first company in the World to be valued at more than US$1,000bn

• Second largest company in the world, ExxonMobil is valued at just under half that!

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Hong Kong and Macau remain favourite destinations…

12.0

13.6

Macau SARHong Kong SARDestination (arrivals in millions)

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…with other Asian destinations also popular

0.0 0.2 0.4 0.6 0.8 1.0 1.2

Singapore

Thailand

Korea (ROK)

Japan

Vietnam

Malaysia

USA

Australia

Mongolia

Indonesia

Des

tinat

ion

Arrivals (millions)

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New destinations are making waves

0% 20% 40% 60% 80% 100% 120% 140%

Maldives

PNG

Sri Lanka

Bhutan

Cambodia

Guam

Indonesia

Lao PDR

Hawaii

Myanmar

Des

tinat

ion

Year-on-year change

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Scheduled air seat capacity from China has grown exponentially

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

4Q00 4Q01 4Q02 4Q03 4Q04 4Q05 4Q06 4Q0712 months ended

Seat

s pe

r wee

k

10

China routes to Europe in 2000

11

China routes to Europe in 2007

12

Dynamic growth is forecast

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‘Established’ destinations will have mixed results…

0 2 4 6 8 10 12 14 16 18

Hong Kong SAR

Macau SAR

Singapore

Korea (ROK)

Japan

Thailand

Des

tinat

ion

Arrivals in 2009 (mns)

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…while ‘emerging’ destinations will drive growth

0% 20% 40% 60% 80% 100% 120%

Sri Lanka

NZ

PNG

Cambodia

Maldives

Guam

Korea (ROK)

Canada

Philippines

Pakistan

Des

tinat

ion

% change

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Business travel is heavily influenced by leisure activities

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Europe is growing as both a business and leisure destination

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Relieving stress has become one of the main motives for taking vacations

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Online information sources are vital

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Booking online is becoming more and more important

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The use of premium accommodation suggests, higher yield visitors

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Working with Industry to Lead an Effective Response to Climate Change

• PATA CEO Challenge• 29-30 April 2008, Bangkok• Leaders of private & public

sector• Challenge: commit to on-

going action plan • www.pata.org/ceochallenge