NTA New Orleans China Fam Trip Creates Model for Future Projects
MAKES THE WORLD BETTER FOR HUMAN EXISTEN.
PHOTO: Haybina Hao, director of international development for NTA. (Photo by David Cogswell)
After conducting a familiarization tour of New Orleans for China
inbound tour operators during the days leading into the National Tour
Association’s annual conference last week, Haybina Hao, director of
international development for NTA, says the association’s China inbound
tourism program is booming.
Tour operator members of the National Tour Association (NTA) are
handling 40 percent of China's inbound tourism. The high percentage is
not surprising, since any operator working in the China inbound market
has to get approval from the Chinese government, and that process is
handled through the NTA.
Through a memorandum of understanding signed by NTA and the Chinese
government in late 2007, the travel association set up a Visit USA
office in Shanghai to help facilitate inbound tourism from China. The
office operated for three years, funded by a grant from the U.S.
Department of Commerce.
After the Brand USA act was passed by Congress in 2010, Brand USA set
up an office and a presence in China, which effectively takes the place
of NTA’s Visit USA office in creating a presence for U.S. inbound
tourism in China. And after that NTA moved its China inbound program
back to the U.S.
Meanwhile, of all of NTA’s programs, that one single program, the
China inbound tourism program, has spurred growth in NTA membership to
such a degree that a China inbound operators now account for a quarter
of the association’s approximately 700 tour operator membership.
NTA also has members that are not tour operators, including hotel
companies and other travel suppliers and destination marketing
organizations. The China inbound tourism market is of enormous
significance and potential for all of them.
The market is growing rapidly and its potential is at a scale that is
almost incomprehensible. China’s nearly 1.4 billion people were allowed
to travel internationally only in recent years, and to the U.S. only
since 2008. Before 2008, when the U.S. was given Approved Destination
Status by the Chinese government, the only Chinese people who could
travel to the U.S. were government sponsored groups of government
officials or business elites.
But now, with the doors open and a rising middle class that is
gaining the economic means to travel abroad, the numbers are
accelerating rapidly. From 2006 through 2013 the visitor numbers
quadrupled, from 320,000 to 1.8 million.
Last October U.S. visa regulations were relaxed, allowing Chinese
visitors to get visas that last 10 years instead of only one, as before.
And that is having an additional effect, driving the growth even more.
The trend is gathering momentum rapidly and it has only begun.
Introducing New Orleans
NTA, in coordination with the New Orleans Convention and Visitors
Bureau, brought 19 people representing 13 China inbound tour operators
to the Crescent City to look at what is available to their clients. Most
of the tour operators that participated in the fam trip are based in
the U.S. Two were based in China.
NTA’s Haybina Hao, who is in charge of NTA’s China inbound program,
told TravelPulse that the fam trip was a success and accomplished its
objectives.
“The New Orleans CVB presented several key elements of what New
Orleans has to offer,” said Hao, “Really the best ones, including a
plantation, a swamp tour, a jazz club and the food of course. They
presented it as a nice package and at a nice pace in two days plus an
evening.
“I think they sold the city quite successfully because I spoke to
several operators and they said this is very sellable and ‘We are going
to work on this.’”
The trip gave the participating operators a chance to become
acquainted with local receptive tour operators that they may be able to
do business with in the future.
Learning the Ropes of a New Market
NTA is tackling two issues that have emerged as the China inbound
tourism program has evolved. One was that the tour operators who wanted
to sell U.S. inbound travel had limited knowledge of the destinatioins.
“Our operators knew about the gateway cities,” said Hao, “but very little about rest of country.”
A second issue was that the destination marketing organizations were trying to promote themselves to travel companies in China.
“They didn’t think about the folks who are right here,” said Hao. One
of the ways NTA could help promote the growth of the market was to put
those destination marketing organizations in contact with tour operators
who are operating in that market but are U.S. based. “We could educate
those folks about the tour operators that are right under their noses."
Structure of the Market
There are three categories of tour operators that are working in the
China inbound market, said Hao. One is traditional, mainstream tour
operators who have been in place for a long time and are owned by
mainstream American companies. An example is Star Destinations.
A second category contains new companies that are owned by Chinese
immigrants, who came to U.S. and started a company to focus on the
inbound China market.
A third category is companies that are operations within larger
companies, such as Shanghai Spring Tours, which is a division of
Shanghai Airlines.
“They established a branch in California,” said Hao. “It looks like a small operation but it’s connected with a giant company.”
Floodgates Opening Wider
Tourism companies that want to cater to the China inbound market are
now bracing for an increased flow since the U.S. visa regulations were
relaxed last October, allowing Chinese visitors to get visas for 10
years instead of one.
“The expansion of the visa makes it easier,” said Hao. “It makes it
possible to focus on one region and have a little more fun, and to be
able to come back again in another year for a different region rather
than having to rush to travel to both coasts in two weeks. The change in
the visa is huge. It’s going to really change the market.”
Only the Beginning
It’s not the first familiarization trip NTA organized for China
inbound tour operators. Last October the association conducted a
shopping themed trip in coordinations with Tanger Outlets. It visited
Arizona, Texas and Utah, stopping at Tanger Outlet stores along the way.
“It wasn’t just about shopping,” said Hao. “We told Tanger that if it
had been only about shopping, it would not have worked. But shopping is
a hook. It was used as a draw. It combined shopping with learning the
destinations.”
Now that NTA has the procedure down, it will organize more in other destinations.
“From NTA’s standpoint it is manageable,” said Hao. “The New Orleans
CVB did much of the work. All I did was approach them with the idea. We
requested an itinerary for discussion. We reviewed it, discussed it and
put out a promotional notice to out China inbound network to recruit
operators. It worked beautifully on our side and on the New Orleans
side.”