SA Chinese arrivals outlook

Source: Tourism Update, 20/11/2017

2016 was a bumper year for Chinese arrivals for various reasons, not
the least of which was the very low selling price of some of the
bottom-end packages offered.
While Chinese arrivals in South Africa saw a dip in the first few
months of this year, the industry reports that the market has now
stabilised and is forecast for growth.
Terry Fenton-Wells, MD of SA Magic Tours, says: “2016 was a bumper
year for Chinese arrivals for various reasons, not the least of which
was the very low selling price of some of the bottom-end packages offered.
“The dip in Chinese arrivals to South Africa in the first few months
of 2017 was as a result of a correction in the pricing of this
product, which was instituted by a number of large operators at the
beginning of this year. I am happy to report that the arrivals have
now stabilised and are forecast to increase. The market is in good
shape and there is no cause for concern.”
News that a RN65 (€8,3) charge will be added to Chinese visa
applications for the provision of a courier service, has concerned
members of the trade, though. Fenton-Wells says: “This is standard
procedure for most embassies worldwide and is now an option available
to Chinese travellers [visiting South Africa]. I do not believe this
will have a negative impact on the market.”
The trade has also raised concerns that the recent publicity
surrounding follow-home crime could be deterring the safety-sensitive
Chinese market. However, a source points out that South Africa is
fortunate not to be affected by acts of terrorism and could be viewed
as a safer travel option. “While crime exists, the crime rate
affecting tourists is not as high as many are led to believe. South
Africa’s top priority remains the safety and security of visitors,
citizens and businesses.” Fenton-Wells agrees: “Safety is always our
number-one priority with guests.”
To combat concerns, Chinese visitors are advised to always adhere to
safety guidelines from guides and local South Africans.
The source suggested that visas might be a larger barrier to entry for
the Chinese market, saying that Chinese travellers book 14 to 10 days
before they want to leave. “As a result, they cannot afford to
experience a delay in visa applications.” However, Fenton-Wells feels
that this is not a major factor. “Chinese travellers have displayed
this consumer behaviour for the last 20 years. I do not believe that
this had a big impact in 2017.”
However, the source added that Morocco had been South Africa’s biggest
competing African destination this year because they relaxed their
visa regulations. “They now allow Chinese travellers in with no
requirement for a visa and, as a result, their arrivals grew by over
350%.”
Fenton-Wells acknowledged that it might have had an impact on
arrivals, as Chinese travellers were always looking for new
destinations. “However, this has not impacted our numbers picking up
again as the South African market stabilises, and forward bookings are
looking very strong.”
Bradley Brouwer, President of Asia Pacific for SA Tourism, said the
government, SAT, and the trade had collaborated on a number of
initiatives to increase Chinese arrivals.
“Our tour companies have introduced Mandarin-speaking guides, along
with promotional materials in Mandarin. Tourism operators and
department stores are beefing up their Chinese language service for
shopping guides. For ease of shopping, shopping malls are increasingly
catering for Chinese visitors by adopting Alipay.”
He said credit card discounts were also offered with the launch of a
new Bank of China ‘BOC Inspirational South Africa FIT Credit Card’ in
partnership with SAT, along with another new card called ‘I Go South
Africa’, being launched by the Industrial and Commercial Bank of China
ICBC in partnership with Standard Bank of South Africa.
“In China, a robust calendar of travel trade events includes
promotions and exhibitions in major cities, familiarisation tours,
travel trade learning programmes and trade and media roadshows.
Marketing initiatives extend to showcasing South Africa as a
world-class MICE destination, and building strong relationships with
leading Chinese travel agencies and tour operators, including online
courses equipping trade partners to better promote South Africa as a
tourist destination.”
He added that, in response to a boom in ‘education tourism’ from
China, SAT was also partnering with popular travel website,
TripAdvisor, on a project called ‘Little Marine Ranger’. A package
offering eco-adventure trips designed specifically for young children
in China. These take the form of 10-day study trips, where
participants learn about South Africa’s marine environment. “South
African Tourism is also focusing on strengthening relationships with
key airline partners,” Brouwer concluded.