A few weeks ago news articles were released stating that Chinese travel to the U.S. has dropped for the first time in 15 years. Some of my readers ( thank you Christy, Greg, Mia and John) sent me links to make sure I was aware of the information. As someone who makes my living helping destinations and attractions become China ready, am I concerned? No. And let me tell you why.
Change is constant
If you have been in tourism for more than a few years, you have seen some groups of customers increase, and some decrease. For any destinations near the Canadian border, the changing exchange rate caused visitation to the U.S. to drop severely a few years ago. It has slowly been creeping back up as the exchange rate has risen back in favor to our Canadian friends. The German and U.K. market to the U.S. have dipped before. Travelers choices for activities and destinations evolve. So don’t panic. The China visitor market is not going to disappear, but it is not going to stay the same.
We see what we seek.
One year at the ABA Marketplace, Branson Missouri sponsored lunch and the comedian Yakov Smirnov took to the stage and told some wonderful stories about coming to the U.S. and realizing his dreams. One line he said has always stuck with me: ” We see what we seek”. If we want to see good in this world, we will. If we want confirmation that the world is going to hell in a handbag, we will see that reinforced daily.
So my suggestion is to see the China market as a great market to be in for the long term. China has the largest population in the world – 1.3 BILLION people. And the rising middle class wants to travel. And the U.S. is near the top of the list for places to visit.
Slow growth is still growth
From 2010-2016, visitors from China to the U.S, grew by double digits every year. 2016 was called the end of the Golden decade for that reason. But let’s do some math. According to the National Travel and Tourism Office ( part of the Department of Commerce) in 2005, 270,000 Chinese visited the U.S. which was a 33% growth from 2004.
In 2017, 3,174,000 Chinese came to the U.S, which was only a 4% gain from 2016. 33% growth vs 4% growth is a big drop, I know. But 4% growth is 124,000 new visitors in one year. That is almost half of all the total Chinese visitors in 2005! And their spending habits stayed the same so spending increased by 4% as well.
Visitor numbers dropped in 2018 to 2.9 million visitors. I don’t know about you, but I think any market that sends almost 3 million visitors a year to our country is one still worth pursuing!
What does our U.S. Travel office say about this?
Our country’s national tourism office is U.S. Travel. Last week was their annual trade show called IPW. At the lunch one day, Roger Dow spoke about using Travel as a Weapon in the trade war dispute with China. U.S Travel has to walk a fine line and be politically correct, but this article shows they understand that they need to support their tourism industry partners- many of whom depend heavily on this key market.
Chinese are still coming – are you getting your fair share?
Chinese travel to the U.S. is still a big market. Is your destination or attractions already welcoming Chinese visitors? If so, what small changes can you make that will make more tour operators want to work with you?
Or are you seeing these visitors coming through your state and want to learn how to get them to come through your doors?
You can read through my blog for posts tagged “China ready” or you can set up a consulting call with me. If you are a destination, I would love to provide a live webinar to your partners on becoming China ready. My website has more information, or you can contact me directly to schedule a free 15-minute consulting call.
Those who are best prepared will reap the benefits!
Action Steps you can take today
Call your Congresswoman – or man. Let them know that international tourism is important to your revenue. They understand everything when it is framed in terms of jobs and taxes generated. Let them know if the drop in visitation has reduced revenues ( and thereby taxes collected) or hiring. Send them articles like this. Keep them informed of your challenges. If they know an issue directly affects their district, they are much more likely to take action.
Check out the Office of Travel and Tourism industries Website. The more informed you are, the better you can educate others. The information on this site is free to access, and always helpful. I suggest subscribing to their email newsletter as well. For those of us working in international travel to the U.S., this is a great resource.
Help your destination become China ready. In my 8+ years as the Global Sales Manager at a NY museum, I learned everything I know about welcoming Chinese guests. Now I help destinations and attractions become China ready, and teach them how to take steps that will increase revenue and visitation. Can I help your destination or attraction next? I can travel to you, or offer virtual training. There is no one else that that has experience working frontline jobs in tourism, management positions and is considered a China market expert. I understand the challenges and can see the potential! Contact me today! Just hit reply and I will look forward to hearing from you.
Do you have 2 minutes to answer 8 questions?
I am always looking for ways to serve my readers, and help tourism industry pros such as yourself become more knowledgable and confident.
I developed a short questionnaire that should only take a few minutes to answer. As a bribe/bonus- I will send a $25 Starbucks card to one of you who takes the time to fill this out. Thanks in advance!