Hilton Hotels and Resorts has released a new report outlining how the UK is missing out on tens of millions of pounds of spending from Chinese visitors.
The report from the University of London’s School of Oriental and African Studies (SOAS) identified necessary UK actions needed to attract a bigger share of the lucrative in-bound Chinese tourism market.
Of an estimated 3 million Chinese visitor trips to Europe in 2010, only around 127,000 came to the UK, despite the country enjoying good publicity from the Royal Wedding and the pending Summer Olympic and Paralympic Games.
With numbers predicted to rise to 240,000 by 2014, the UK is lagging behind its European neighbours Italy, France and Germany, which are currently attracting between 500,000 and 700,000 Chinese visitors each per year.
Three main reasons for the UK falling behind were identified:
- The UK is not part of the Schengen agreement and therefore Chinese visitors currently have to apply for a separate visa to enter the UK, whereas one visa for any country within the Schengen area allows free entry to all the other treaty area countries. This remains an important factor for Chinese tourists visiting Europe, many of whom come on package tours looking to visit four, five or even more European countries in one trip. In 2010, the 25 Schengen countries also simplified visa application procedures for Chinese visitors in a move that is likely to further enhance the attractiveness of Europe as a tourist destination in general and also with respect to the UK. In addition Spain announced plans in the summer of 2011 to boost inbound tourism from China by easing visa requirements, encouraging more direct flights between the countries and opening more tourist offices in China.
- The UK has not embraced payments from China Union Pay (only Harrods & Selfridges have terminals).
- A lack of direct flights.
- 20 per cent VAT
The report’s author Kevin Latham, senior lecturer at SOAS estimated that without the Schengen restriction alone, the UK would probably exceed the 500,000-700,000 visits of France, Germany and Italy. The report estimated that Chinese travellers will spend £34.8 billion in Europe in 2011, a rise of 14.6 percent over the previous year and on track to reach more than £60 billion in total by 2015.
The report was released to highlight Hilton Huanying, a programme taking its name from the Chinese word for welcome and tailored to meet the needs of Chinese travellers. Any hotel within Hilton Worldwide’s 10 brands can participate in the program that includes front desk team members fluent in Mandarin, traditional Chinese breakfast items, and in room items such as a welcome letter in Chinese, a selection of Chinese teas, slippers and Chinese television programming. Hilton also recently launched a Chinese version of its Hilton Global Media Center, an online pressroom to engage traditional media across China.
One hotel already participating in the UK is the London Hilton Park Lane where the event was held. General Manager Michael Shepherd pointed out that his hotel had lost hundreds of thousands of pounds in potential business because of the time taken to issue visas to Chinese visitors and because of price competitiveness being eroded because of high VAT.
Sandie Dawe, chief executive, VisitBritain said: "Chinese visitor numbers to the UK have been steadily rising over the last few years, but we can clearly do more to attract an even greater number. China has a rich cultural heritage of its own and according to the latest Nations Brand Index, now has a far better understanding of British culture, our people and what they can experience when they are here. We must build on this and ensure the industry develops products that meet the needs, tastes and desires of Chinese travellers.”
The report estimated that Chinese visitors to the UK spend an average total spend of £202 per night, and can spend more than £600 in one shopping trip, which is on average more than Russian, Arab or Japanese travellers. British luxury fashion house Burberry has reported that 30 percent of the sales in its UK stores were to Chinese customers and a recent report from London Luxury stated that Chinese shoppers spent £200 million in the Bond Street area alone in 2010, an increase of 155 percent on 2009.
"If we could increase the appeal of Britain - in line with where our European competitors are right now - this would help generate nearly £1 billion from Chinese visitors every year." Dawe continued.
The report, entitled ‘How the Rise in Chinese Tourism will Change the Face of the European Travel Industry’ is available at www.hiltonglobalmediacenter.com.
Tom Otley
