Market Profile: CHINA
RATING: Emerging
STRENGTHS:
The inbound potential from China to Seattle and Washington State is very strong. Outbound travel from China continues to grow at a rate of approximately 10% each year. Although global tourism demand might be slowing, Chinese outbound tourism remains robust and forecasts by CNTA predicts continued strong growth through 2009. Additionally, since the establishment in 2008 of the tourism treaty between China and the United States, the USA remains an exciting and new destination for affluent outbound Chinese travelers. The opportunity remains strong in the foreseeable 24 months for Seattle and Washington State to continue to capture a fair share of the outbound market to the USA.
CHALLENGES:
The greatest challenges in capturing an adequate share of the market remain in developing a strong and competitive tourism package to Seattle and Washington State. Chinese outbound tourists will not travel exclusively to Seattle and Washington State, but instead will use the destination as a gateway or exit point during which the destination can capture adequate revenue and time spent. Being able to entice tour groups to utilize the destination in this way, coupled with traveling to other USA or Canadian destinations, remains the biggest challenge to continued growth and development of the destination for the Chinese. Additional challenges include continued marketing and communications, making sure that the outbound travel agents and tour operators are adequately updated and familiar with the tourism opportunities available in Seattle and Washington State, as well as news and information that will be useful to them in planning packages and offering the most exciting travel experiences.
AIRLINES:
A primary goal in 2009 is to continue to support the existing air service presently offered between Beijing and Seattle by Hainan Airlines. Our communication with Hainan Airlines indicates that they are pleased with sales of the service during the next several months and plan to expand service to daily once additional equipment is available for the route. Seattle is their only North American service and USA remains an important strategic marketplace for their future growth and expansion, therefore it is unlikely they will drop the service unless overall economic conditions become prohibitive. Additionally, we will work more extensively in 2009 with other carriers that offer connecting services to Seattle, including: Northwest Airlines, United Airlines, Korean air lines, Japan Airlines, ANA Airlines, Asiana and others.