Via South China Morning Post, an article on African tour operators’ efforts to lure more Chinese tourists:
After three years cut off from China’s sprawling pool of cash-strapped travellers, tourism operators in countries such as Tanzania are moving fast to lure them back
However, Africa remains a niche travel destination, and there are abundant challenges to welcoming an influx of Chinese visitors
As the manager of a Tanzanian travel agency, when Lucy Minde made her first business trip to China in 2018, she did her homework – calculating how to best tap into the vast potential of a market full of middle-class families willing to spend big bucks abroad.
Her agency, Laitolya Tours and Safaris, had started catering to Chinese tourists a year earlier, arranging trips to the East African country known for its vast and scenic wilderness areas, including the plains of the Serengeti and Mount Kilimanjaro.
Many came for African safaris and to see the largest mammal migration on Earth, featuring millions of wildebeests, zebras and gazelles.
But when the pandemic struck, Chinese borders closed for three years, not reopening until earlier this year.
And Minde did not waste any time, again fixing her gaze on China.
“China’s large population and potential customer base mean there is a vast pool of potential tourists to tap into,” she said.
Minde is one of the countless tourism operators looking to cash in on China’s outbound travel frenzy and offset years of Covid losses.
Her home country of Tanzania is also among dozens that are expected to draw more revenue from China’s 400-million-strong middle class, equivalent to the combined populations of the United States and the United Kingdom.
The reopening of China’s borders represents “the moment the world has been waiting for”, according to a statement in February by Zurab Pololikashvili, secretary general of the United Nations’ World Tourism Organization (UNWTO).
In 2019, Chinese tourists made 166 million overseas trips and spent US$255 billion on international travel, accounting for nearly a fifth of total outbound travel spending globally and close to the gross domestic product (GDP) of Vietnam, according to the UNWTO.
The organisation said the pandemic cost worldwide destinations a combined US$270 billion in Chinese tourist spending from 2020-21.
On February 6, Egypt, Kenya and South Africa became the first African countries to receive Chinese tour groups in three years.However, Africa remains a niche travel destination, and local officials, along with travel agents, face numerous challenges to welcoming a significant influx of Chinese visitors.
Despite Africa’s growing popularity in China – bookings of Africa trips rose by more than 70 per cent on Trip.com in the first seven months of 2018 – only 0.6 per cent of outbound Chinese travellers visited Africa that year, according to the World Tourism Cities Federation.
“In terms of tourism resources, Tanzania is very attractive to Chinese tourists, with its unique offerings; but taking price into consideration, it has yet to become a mainstream tourist destination,” said Li Zhijie, a Guangzhou-based travel agent.
Last month, Li participated in a business tour jointly organised by the Tanzanian embassy in China and the Tanzania Association of Tour Operators.
Tourism is one of the major economic pillars in Tanzania. However, the lion’s share of its foreign tourists come from the United States, Europe and other African countries. Asia is not nearly as well represented.
Chinese tourists account for only about 2 per cent of Tanzania’s foreign visitors – in 2019, the country recorded about 1.5 million foreign tourists, but only about 35,000 were from China, and they were mostly business travellers, according to the Tanzania Tourist Board.
The tourism value chain comprises a crucial component of Tanzania’s economy, accounting for an estimated 17 per cent of the country’s US$75.5 billion GDP and being its third-largest source of jobs by directly employing more than 850,000 workers, according to the World Tourism Organization.
This includes jobs in hotels, restaurants, travel agencies, tour operators, transport, and various other sectors related to tourism.
Tourism-related services are especially important in the semi-autonomous Zanzibar archipelago, contributing 55.5 per cent of all services output, and more than half of Zanzibar’s GDP, while generating the largest share of private-sector employment.
Chinese agents hail Tanzania’s diverse and unique tourism resources, but they also admit that, at least for now, developing countries in Africa remain marginal destinations among their fellow countrymen.
They say Chinese travellers often prefer destinations with more evolved tourism infrastructures, where hotels and accommodation services are more abundant, including neighbouring countries such as Japan, South Korea and Thailand, along with places in western Europe and North America. Thanks to their more developed industrial chain, those destinations also tend to be cheaper to visit.
During the five-day Labour Day holiday in May, nearly 70 per cent of China’s outbound trips were made to Southeast Asia, including Thailand, Singapore and Malaysia, according to Trip.com. Most of those who travelled abroad preferred countries and regions closer to home, including Japan, Hong Kong, Macau and South Korea.
The current outbound travel sector is also casting a shadow over tours to Africa, including Tanzania, according to Chinese travel agents.
“Many guests are now taking a wait-and-see approach and hoping the recovery can continue,” Li said, noting how some “still have reservations about travelling”, including from coronavirus and safety concerns in destination countries.
And among those Chinese tourists who do travel to Africa, many prefer more well-known countries such as Egypt, South Africa and Morocco, according to Li.
Meanwhile, despite China’s reopening and the resumption of overseas travel, the tourism industry hasn’t completely bounced back.
The waiting time for visa applications could stretch into months, and the number of outbound flights in early April recovered to less than 30 per cent of what was seen before the pandemic, according to the Civil Aviation Administration Of China.
Ren Jing, the founder of Beijing-based Saga Travel International, said Chinese tourists won’t be flocking to destinations such as Tanzania in the short term.
“Chinese tourists travel in order – from low price to high price, from near to far, from developed countries to developing countries,” Ren said.
High entry fees and overnight costs of national parks in Africa, as well as scarce hotel options, are among the reasons she does not expect Chinese travellers to visit the continent’s countries in large numbers.
Ren, however, is confident that the number of Chinese tourists visiting Africa will continue to rise over time.
Currently, outbound travel has recovered to 20 per cent of the levels seen before the pandemic, while Africa is leading the race with about 30 per cent of the recovery, she added.
“Due to the increasing difficulty of obtaining visas in Europe and the United States, this is also an opportunity for Africa to develop the Chinese market,” Ren said. “In addition, the high-value groups in China have not been damaged much, and they are waiting for policies to stabilise. For young people, the end of a turbulent three-year period, and the beginning of the year of freedom, should mean a busy year for work.
“In the future, if flights and policies stabilise, the number of travellers will increase steadily. Tanzania will also gain more recognition if the publicity is used well.”
As part of efforts to promote trade between the two countries and bring in more tourists directly from China, Air Tanzania also now offers six direct flights a week between Guangzhou and Tanzania.
In November, leaders of the two countries also strengthened strategic ties, vowing to deepen collaborations while facilitating cultural exchanges and tourism.For her part, Minde plans to offer more products and services that cater to the needs and preferences of Chinese travellers.
Her agency will provide Mandarin language support, facilitate the acceptance of Chinese mobile payment methods such as Alipay and WeChat Pay through local banks, offer Chinese cuisine options, and provide culturally sensitive experiences that resonate with Chinese tourists.
“By attracting Chinese tourists, our business can potentially increase its chances of generating revenue,” she said in high hopes.