Tourism operators eye China

Tourism 26 May 2010 Modified: 11 July 2005 2 views

The growth in tourism is one of the most obvious results of globalisation. According to figures from the World Tourism Organisation, there was a 10% growth in international tourism in 2004. This was the fastest rate for 20 years. The rate was also more than twice the rate of world economic growth. Latin American tourism operators are eyeing China as a huge potential market. 

For Latin America, the biggest increase (in percentage terms) was in visitors to Central America. Their numbers were up by 17%, but still most countries in this region were visited by fewer than 1m tourists. The lucrative tourism area of the Caribbean saw a 6% increase in visitor numbers, while Mexico saw a 10% increase and South America a 16% increase. All in all, 6m more people visited Latin America in 2004 than in 2003. 

Impressive though these figures are, it is worth noting that Latin America and the Caribbean remains a marginal tourist destination. Only 8% of international tourism takes in the region. The growth in travel to the region is far lower than the growth in international tourism in either Asia or the Middle East. 

Mexico is the region's top tourist destination, ranking eighth in the world list with 19m tourists. France is top with 75m, followed by Spain with 53m, the US with 46m and China with 41m. 

What concerns regional tourism promoters is Latin America's lack of success compared with places such as South Africa or Egypt. South Africa attracted 7m tourists in 2004, Brazil attracted 4m, Argentina 3m and Chile 1m. Yet each of the Latin American countries has world class tourism assets.

Personal security worries may be one of the reasons why tourists shun Latin America, though South Africa's reputation for crime is now appalling. Another reason is high costs because of de facto airline monopolies. This is changing. Low cost airlines, notably Gol, have proved successful and are being rolled out across the region. This will put pressure on existing carriers to become more competitive. There are signs that this is already happening: according to figures from the International Air Transport Association (Iata) passenger numbers in Latin America in the first quarter increase by 13% in the first five months of the year: this is significantly above the international rate of 9%. 

The Asian connection
Mexico has been one of the first countries to come up with strategies to attract Chinese tourists. Mexicana de Aviación said at the end of May that it wants to strike regional alliances with airlines in China who are currently only flying to Canada and the US. The two main Chinese hubs are Shanghai and Hong Kong. The Mexicans note that 16m Chinese tourists took trips abroad in 2004. The Chinese expectation is that the number of Chinese tourists will double this year. Mexico is still not on the approved list of destinations for Chinese tourists. This means that groups of tourists cannot visit the country, though individual visits may be allowed.

The list of approved destinations is growing. From 15 July Chinese tourists will be able to travel to Chile and Jamaica. The Chinese government still regulates to which countries Chinese tourists can go. It started broadening the range of countries to which Chinese tourists can go in 1997 and by 2002 China was the seventh biggest source of international tourists. The problem for people marketing to the Chinese is that the Chinese are comparative low spenders: the daily average spend by a Chinese tourist is US$175. 

Chile is another country which is eying the Chinese market. In mid June it started to market the country as "The end of the world". The Chileans do not expect a flood of Chinese tourists but they do expect wildlife enthusiasts or wine buffs to be particularly interested in visiting the country. In 2004, 6,000 Chinese tourists visited the country. The Chilean target for this year is to get to 7,500. 

One problem the Chileans face is that there can be no direct flights form China to Chile. The distance from China to Chile is 19,000km which to too far for passenger jets to fly without stopping. The longest scheduled route in the world in Los Angeles to Sydney which is 12,000km. Currently Chinese tourists travelling to Chile have to go through either Frankfurt, Los Angeles or Sydney before going on to Chile. 

Airport services: A Mexican company, Aeropuertos y Servicios Auxiliares (ASA), is bidding to run airports in India. It is especially interested in the forthcoming concessions for Mumbai and New Delhi. Under the terms of the concession, a single operator cannot run both airports. ASA said that it will present its proposals for both airports on 27 July. ASA runs 26 of Mexico's 58 airports, including the busiest, Mexico City's international airport.

Taiwan: Taiwan is trying to boost Central America as a tourist destination for Taiwanese travellers. At the beginning of June, Taiwan organised a trade fair to promote travel to Guatemala, Costa Rica and Panama. 

Food: A Guatemalan fast food chain, Pollo Campero, said that it will open an outlet in Shanghai this December. It also has plans to open in Beijing and Wuhan. The chain has 195 outlets in Guatemala and 55 in El Salvador. It also has smaller chains across the rest of Central America and outlets in Ecuador, Mexico, Spain and the US. Pollo Campero started in 1971 and now serves 75m people a year. It plays up its Latin American origins.