Roy Graff gave a speech on 19 September at a CBBC-Beijing Investment Promotion Bureau special conference for the Financial services and Creative industries sectors:

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Opportunities for creative industries to cross geographic and cultural divides lie in raising awareness. In our respective countries we need to be aware to the creative forces and cultural diversity of each other. I want to focus in this talk on the tourism sector, where I see a strong link with cultural exchange, new media and sports development.

In 2005 I returned to London after 3 years of work in China within the tourism sector to start ChinaContact, a consultancy specialising in China’s tourism sector. I saw a vacuum that existed between China’s new tourism sector and the international travel community. This is a gap in communication, culture and expectations.

We work with clients in the West and in China in a number of ways:

-          assisting destinations and travel companies to benefit from the growth in China outbound tourism through training and consulting;

-          representing for marketing and sales in China trough the travel trade and media;

-          helping negotiations and brokering deals in tourism investment projects;

-          providing Chinese destinations with tools to attract international tourists through marketing and public relations;

-          advice on sustainable tourism development and management in China.

Britain has a very long established tourism sector and, being an island, a long tradition of outbound tourism traffic to all corners of the world. The maturity and experience of this sector here is something that China now aspires to with its relatively recent boom in tourism and the many challenges this brings. Primarily the pressure comes from domestic tourism, with Chinese outbound tourism now starting to impact upon South East Asian economies, and soon more destinations. In 2006, more than 34 million Chinese travelled abroad but about a billion travelled inside China.

By 2014, we estimate that 100 million people will travel to China annually and the same number of Chinese will visit other countries by 2020, according to United Nations World Tourism Organisation projections. One of the key issues facing our sector in the 21^st century is how to make tourism a long term profitable venture without harming the very resources that tourists pay to see – natural and cultural attractions. Often modernisation can seem in contrast with tourism development, and many example in China attest to this.

In the UK, with its limited land resources and lack of ‘wonders of the world’ type attractions, the balance of tourism growth and resource conservation has been achieved through experience and non governmental organisation involvement. It is achieved through a combination of legislation and trade cooperation (National and English Heritage, UKinbound are some examples). Britain has managed to protect and conserve its historical sights while at the same time to create new attractions through investment in creative industries and cultural projects, which is important when trying to attract repeat visitors and a varied audience.

It would be a shame if cultural attractions and scenic spots in China were destroyed because of over development and pressure from tourism growth. The experience of British companies and agencies can be extremely useful for China as it struggles to cope with growing numbers of domestic and inbound visitors. As tourists go to experience its rich cultural heritage and magnificent scenery, their sheer numbers are proving a strain on the infrastructure while businesses pursue short term profits. British experts in tourism planning and management are on hand to advise and collaborate with Chinese colleagues. Letting Chinese planners and developers witness mature projects and their sustainable management in the UK, and working with them on the ground in China, could help to ensure China’s cultural and natural treasures will remain intact for future generations.

A range specialist consultants and planners are happy to work with Chinese counterparts to ensure that China does not repeat the mistakes of many destinations and attractions in the West, and that it learns the best practice available.

To add to China’s benefit, British tourists can be persuaded to go to China in greater numbers and visit many more places there. But they require more information about activities and assistance with the language barrier. Ahead of the 2008 Olympics the Beijing authorities have made a tremendous effort to improve signage in the city and improve its image. This should be matched by professional marketing campaigns abroad. I believe that increasing tourism to China is desirable if tourism is managed correctly and its benefits passed to a greater part of society. We should also be aware of the implications to global warming from international travel.

In tourism there is a huge space to be creative – from new media and online travel to community based travel and eco-tourism. China now lacks the benefit of a mature and ordered tourism industry so it is natural to have more regulation than in other countries. An honest and open dialogue on increasing tourism in both directions and learning from each other is something that can take place at the national government level, at city level and between companies.

The topic of China as a source market for tourists has been discussed across the media in recent years, and the numbers mentioned are truly impressive. While most go to Hong Kong, Macau and Southeast Asia, the growth trend in tourism to Europe and North America is 14% and more. This is not evenly distributed with Europe experiencing a recent slowdown, mainly due to increase competition and strict visa regulations.

It has been reported last week that Britain’s traditional source market for visitors, the US, is declining due to the weak dollar. My comment to this is, look for new markets. China is an obvious choice with its booming middle class, growing disposable income and a strong desire to explore the world. Bringing Chinese to the UK in their thousands is easier said then done. We have many challenges including visa procedures, cost, and distance. To counter these we need extremely savvy marketing and public relations that take into account the Chinese travelling preferences and tastes. To market to the Chinese, we need to first know and understand them. And we need to allow them to understand and want to know us.

This is where cultural exchange becomes extremely important. The British Council has been doing a lot of work in China to promote British culture, but still there is much ignorance across China about modern Britain. British interests in culture, arts, architecture, sports, media etc. should be much more prevalent across China, not just in the major cities. 

Chinese are great believers in win-win cooperation. More British tourists going to China and more British companies involved in the creative industries investing in China will mean more Chinese visiting the UK for leisure and business. With this in mind, the timing of this meeting is perfect.

This November in London, Europe’s premier travel exhibition World Travel Market is hosting a full day forum on China’s tourism sector on 14^th November. This event organised by ChinaContact will provide advice and knowledge about the Chinese tourism market. By providing case studies and practical advice, the experts will help new entrants understand how this market is different and what are the opportunities for profit. A delegation of Chinese travel agents will be hosted by the organisers to tour destinations across Britain and meet with travel suppliers at WTM.

From February of 2008 a year-long celebration of Chinese culture will kick off across the UK – China Now. It is vital that both here and in China, people learn about our respective cultures as they are set in modern reality, and not just as in a Kung Fu movie or a Charles Dickens novel.

Roy Graff

Managing Director - ChinaContact