China Strategic Plan

1
China Strategic Plan
2
Country Overview

• Population 1.3 billion
• Major Centres
• Beijing 20 mn
• Shanghai 19 mn
• Guangdong 72 mn
• Language Mandarin
• Currency RMB-Yuan
• Exchange rate to US 8

3

• Public Holidays
• Jan/Feb Chinese New Year
• May Day
• October National Day
• Economic Outlook
• 10 Annual Growth
• Growing middle income group

4
Outbound Travel
5
Situation Analysis

• Fastest growing outbound market in the world
• Average of 20 increase
• In 2004, 29mn outbound trips overseas
• 2006 anticipated increase to 34mn
• 5.3mn to 30 Asia-Pacific destinations
• 108 destinations among ADS scheme
• Top destinations Thailand, Malaysia, Vietnam,
  Korea, Singapore, Japan

6
Chinese perception of Sri Lanka

• Lack of awareness of the destination
• Lack of understanding of what the country has to
  offer
  
• Cultural incompatibilities i.e. food, linguistic
  etc
  
• Infrastructure constraints
• Security concerns

7
Market Segmentation

• Shopping
• Entertainment nightlife, amusement parks,
  casinos, cruises etc
  
• Sightseeing cultural, natural scenery
• Beach tourism
• Religious (Buddhist tours)
• Eco Adventure tourism
• Wellness Health Spa
• MICE
• Multiple destination tours

8
Target Segments

• Short term
• Multiple destination travels (Maldives, South
  India, South East Asia)
  
• Casinos/Shopping Clothing, Tea, Gems
• Sightseeing day tours
• Long term
• Cultural/Natural Heritage tours
• Pilgrimages Buddhist tours
• Beach combined with the above

9
Aviation Situation

• Access to Sri Lanka
• Sri Lankan Airlines, Cathay Pacific, Singapore
  Airlines, Thai Airways, Malaysian Airlines
  

10
Opportunities

• Rapid growth in the Chinese outbound market
• Affluent middle income group
• Interest to travel to new destinations

11
Marketing Objectives

• To achieve a target of
• (based on the 2006 figure of 15000)
• 20000 visitors during 2007
• 25000 visitors during 2008
• 30000 visitors during 2009
• Increase spending to US 75 in the short term
• Increase spending to US100 by 2009

12
Short Term Strategy (1year)

• Airline options - Air China
• Multiple destination promotions i.e. Maldives,
  Southern India, South East Asia
  
• Tour operator in China to focus on SL
  Attractive/Competitive packages
  
• Special promotional activities in China/SL to
  coincide with the 50th anniversary of DPL
  relations use the political goodwill of China
  towards Sri Lanka
• To tie up with tourism related university/college
  - Chinese students to work in Sri Lanka on an
  assignment basis as interpreters ( to overcome in
  problem of shortage of guides)

13
Long Term Strategy

• Branding Culture,
• Beach (others such as precious stones, tea, eco,
  adventure tourism)
  
• Effective e-marketing promotional literature in
  Chinese
  
• Increasing number of nights yield
• Colombo to be an aviation hub
• Infrastructure related to tourism
• Roads/access, signage,
• Language training for related professions
• Food authentic Chinese cuisine
• To send Sri Lankans to China to study tourism
  related courses languages
  
• Extend the Srilankan Airlines Hong Kong flights
  to Guangzhou
  
• Theme related/niche market tourism
• Introduce daily flights to Beijing by of
  Srilankan Airlines
  
• introduce at least 3 direct flights to Shanghai
• Consulates in Shanghai, Guangzhou tourism
  representative in the main cities
  

14
Tactical Plan 2007

• 50th Anniversary of DPL relations
• special Sri Lanka 50 package
• Maldives/SL/South India
• combination packages focusing on shopping
  casinos/nightlife etc

15
Promotional Plan 2007/8

• Destination promotions food, culture, trade
  fairs in selected cities Beijing/Shanghai/Guangdon
  g
  
• Agents media FAM/Educational tours
• Film tourism

16
Promotions with the assistance of the Tourism
Ambassador