1. Powered by China Outbound Tourism Research Institute Berenice Aceves, MBA COTRI China Outbound Tourism Research Institute, Heide / Beijing China Outbound Tourism 2011: Arrival of the New Chinese Tourist Exhibitors Workshop April 12, 2011

2. Powered by China Outbound Tourism Research Institute COTRI China Outbound Tourism Research Institute is the worldwide leading independent research institute for analysis, consulting and quality assessment relating to the Chinese Outbound Tourism market. Headquarter in Heide/Germany, China office in Beijing. Director: Prof. Dr. Wolfgang Georg Arlt FRGS Active in P.R. of China since 1978 Former owner of Inbound Tour Operator China->Europe COTRI founder and director since 2004 Professor at West Coast University of Applied Sciences Exhibitors Workshop April 12, 2011

3. Powered by China Outbound Tourism Research Institute Global Tourism 2010: 6.7% increase of international tourism arrivals Exhibitors Workshop April 12, 2011 Asia –Pacific region 20% increase year by year Forecast for global tourism: From 930 million to 1.6 billion travels by 2020

4. Powered by China Outbound Tourism Research Institute China´s Major Targets of the 12 th Five-Year Plan for 2011-2015 Annual average GDP growth: 7% GDP in 2015 (based on 2010 prices): 55 trillion Yuan (US$ 8.37 trillion) Proportion of service industry's output in GDP: up by 4 percentage points Release of major pollutants: down by 8%-10% Jobs created: 45 million Average growth of residents´ income: more than 7%

5. Powered by China Outbound Tourism Research Institute 2010: 57.4 million outbound trips China is the No. 1 source market in Asia even without taking into account trips to Hong Kong / Macao For the second time in China: Outbound tourism spending higher than inbound tourism income

6. Powered by China Outbound Tourism Research Institute 2000: Global market share 1.5% 2010: Global market share 5.8% 2000: One out of 67 international travellers originates in Mainland China 2010: One out of 16 international travellers originates in Mainland China

7. Powered by China Outbound Tourism Research Institute Share of Chinese outbound travels during three quinquenniums 1995-2009 (Source: CNTA / COTRI, no reliable data available before 1995) More than 60% of all travels happening in last quinquennium 2005-2009

8. Powered by China Outbound Tourism Research Institute Chinese outbound travels projection for current quinquennium 2010-2014 a) projected increase according to State Council planning b) projected increase if growth rate equals 2000-04/2005-09

9. Powered by China Outbound Tourism Research Institute Market Segments Segmentation of market in - low price/bad quality mass market For the Europe-from-the-Coach-Window mass market there is still a queue of at least 100 million Chinese waiting for their turn to get their photo in front of the Eiffel tower. and - FIT / Semi-FIT, MICE high-end market "We didn't want to go on a group tour since these can be very rushed, taking in too many countries over a short period of time. We think we handle independent travel quite well since we were all in Singapore last Spring Festival when we also went to Thailand. We think we will be able to get around Italy by ourselves. (China Daily 28- 01-2011) January 2011: 456 million Internet users 32% Internet penetration rate.

10. Powered by China Outbound Tourism Research Institute China Outbound Tourism 2011: Good news – not only because of quantitative growth but also because of qualitative developments: 1.Political support for outbound tourism 2.Greater interest in in-depth travels 3.Easy access to passports and hard currency Exhibitors Workshop April 12, 2011

11. Powered by China Outbound Tourism Research Institute China Outbound Tourism 2011: 1. Political support for outbound tourism by Chinese Central Government: On November 25th 2009, a State Council executive meeting chaired by Chinese Premier Wen Jiabao adopted the Statement on Accelerating the Tourism Industry Development which declared a planned annual increase of 9% for outbound tourism. In the 12 th Five-Year Plan for the first time the development of outbound tourism is actively promoted instead of being hindered by the Chinese government. Exhibitors Workshop April 12, 2011

12. Powered by China Outbound Tourism Research Institute China Outbound Tourism 2011: 2. Greater interest in in-depth travels: … one of the remarkable characteristics of China tourism in 2010 was the detailed market segmentation. When the normal tourism market was still the main component of tourism section, special interest groups were forming as well. Some special attractive long-distance and niche market focused tourism products which were offered by tour operators both inside and outside China turned out to be very successful. Prof. Zhang Guangrui Development of China's Outbound Tourism 2010 in: Green Book of China's Tourism 2011 Niche market and special interest products offer opportunities to attract Chinese visitors

13. Powered by China Outbound Tourism Research Institute China Outbound Tourism 2011: 3. Less bureaucratic problems from the Chinese side: 140 ADS agreements with all important destinations signed Access to passports and hard currency relatively easy Individual tourist visa agreements with Asian and some European countries More choice of destinations and tours than ever Exhibitors Workshop April 12, 2011

14. Powered by China Outbound Tourism Research Institute China Outbound Tourism 2011: But complaints about many destinations: Visa problems still existing (Perceived) Safety problems given extensive media attention in China Quality level often not according to Chinese expectations Not enough visible dedication to Chinese market Exhibitors Workshop April 12, 2011

15. Powered by China Outbound Tourism Research Institute Chinese Outbound Mass and New Tourists will continue to travel all over the world in growing numbers, but with specific demands and growing expectations. Are you ready? www.patastore.com

16. Powered by China Outbound Tourism Research Institute Thanks We are here to answer all your questions: - Now - COTTM 2011 COTRI Stand 2000 - www.china-outbound.com and - www.chinatraveltrends.com

17. Powered by China Outbound Tourism Research Institute COTRI Events during COTTM 2011 1) CTW Award 2011 Ceremony Thursday April 14, 10.00 to 12.00 h COTTM 2011 Theatre Language: English 2) Book Presentation Green Book of Chinas Tourism 2011 Chinas Tourism Development Analysis and Forecast Thursday April 14, 13.30 to 14.15 h COTTM 2011 Theatre Language: English and Chinese 3) Exhibitors Debrief Workshop Friday April 15, 10.00 to 12.00 h COTTM 2011 VIP Room Language: English