Mainland China

Market Profile
A Vietnam Tourism Advisory Board Research Paper

Hannah Goodbrand Hoàng Nhân Chính

December 2019
Research Advisor Secretariat Director
Table of Contents
EXECUTIVE SUMMARY ........................................................................................................... 3
MAINLAND CHINA TOURIST CHARACTERISTICS ................................................................ 4
General Overview ................................................................................................................. 4
Urban Hierarchy .................................................................................................................. 5
Mainland Chinese Travel Trends and Marketing ................................................................ 7
General Marketing Trends .................................................................................................. 8
Travel Needs and Preferences............................................................................................10
Travel Duration and Planning .............................................................................................11
TRAVEL TRENDS: OUTBOUND MAINLAND CHINESE TRAVELLERS IN VIETNAM ...........12
Current Statistics of Vietnam Travel ..................................................................................12
Reasons for Visiting Vietnam .............................................................................................14
Air connectivity ...................................................................................................................14
Barriers for Chinese travellers ...........................................................................................15
Low-Cost Tours..................................................................................................................16
Most Popular Tourist Destinations and Activities .............................................................17
ASEAN Efforts to Attract the Mainland Chinese Market ...................................................18
FINDINGS & IMPLICATIONS ...................................................................................................19
Appendix ...................................................................................................................................21
References ...............................................................................................................................22

List of Abbreviations & Acronyms

CCTV China Central Television
CIA Central Intelligence Agency
Expedia Expedia Group Media Solutions
GSO Vietnam General Statistics Office
MCST Ministry of Culture, Sport and Tourism
STB Singapore Tourism Board
TAB Vietnam Tourism Advisory Board
VNAT Vietnam National Administration of Tourism
WTCF World Tourism Cities Federation
UNWTO World Tourism Organization

2
EXECUTIVE SUMMARY

Vietnam is the 4th most visited destination for visitors from the Chinese mainland, who
make up 32% of the inbound tourist market in Vietnam. In 2018, 4,996,468 visitors from
mainland China visited Vietnam, a 24% increase from 2017.
As Chinese tourists are the largest inbound market for Vietnam, they do not face
significant barriers for travelling to the country in general. However, there are barriers for
a higher spending demographic in choosing Vietnam. There is a lack of awareness of the
variety of tourism products in Vietnam, especially luxury and theme products. Safety and
infrastructure improvements could also help attract a higher spending Chinese
demographic.
Vietnam has great potential with the mainland Chinese market. Due to the geographic
proximity, affordability and similar culture, Vietnam is a convenient destination for Chinese
tourists and there are opportunities to diversify the market to increase stability. Only the
coastal cities of Nha Trang and Da Nang are well developed in the Chinese tourism
industry; there are many other locations that could be promoted as relaxation destinations.
More targeted marketing to Tier 2 regions in China could reach a higher spending
demographic that is looking for short-haul trips. Many of the products in Vietnam align
with the mainland Chinese preference for natural attractions, theme tours, and beaches.
Chinese tourists typically travel with family, in couples, or in small groups; both group
tours and independent travel is common. Their primary goal when traveling is to relax and
de-stress. There is a high level of digital integration in Chinese society and this is reflected
in the most popular planning and booking methods for travel. Online travel agents, social
media, blogs, and online applications are common sources of information.
An emotional connection is needed to entice mainland Chinese tourists to consider a
destination or product. Stunning video, reliable advice from friends or Chinese experts,
and user generated content can all influence the decision-making process. At a
destination, Chinese travellers are looking for convenience and will seek to preserve
group harmony; mobile payment options, easy transportation options, and Chinese
language signage can make it easier for them to enjoy their trip.

3
MAINLAND CHINA TOURIST CHARACTERISTICS

General Overview

In 2018, the population of mainland China was 1,384,688,986, the largest in the world.
China has the second largest economy, after the United States and ahead of Japan, with
a GDP at purchasing power parity of US$23.21 trillion in 2017. Despite this, China has a
lower than average per capita GDP of US$16,700 (Central Intelligence Agency, 2019).
China has had one of the world’s fastest growing economies after implementing market
reforms, although the rate of growth slowed to its lowest rate in 30 years in 2018 (The
World Bank, 2019; Singapore Tourism Board, 2019).
The geography and population distribution of mainland China is diverse with most people
concentrated in the eastern coastal regions.1 The western regions are sparsely populated
with rough, desert and mountainous terrain. China’s population is predominantly urban
with 59% living in large cities and an urbanization rate of 2.4% per year. The largest cities
by population are Shanghai (26.3 million), Beijing (20.0 million), Chongqing (15.3 million),
Tianjin (13.4 million), Guangzhou (13.0 million), and Shenzhen (12.1 million) (CIA, 2019).
While the population of China is still increasing, growth has slowed and is forecasted to
begin decreasing by 2030 (STB, 2019). The policy restraint on childbirth was changed
from a one-child policy to a two-child policy in 2015. The repercussions of this policy mean
that the Chinese population is rapidly aging. In 2018, the distribution of the population by
age was:
• Younger than 15 years: 17%
• 15 to 24 years: 12%
• 25 to 54 years: 48%
• 55 to 64 years: 11%
• 65 years and over: 11%
In 2014, China became the largest outbound travel market globally, outpacing the US.
Chinese tourists also generate the most total travel expenditure (Croce, 2016). Many
factors including rising incomes, population size, relaxed visa regulations, and increased
air connectivity have factored into China’s global position. International accessibility for
Chinese passport holders is growing, presenting a global opportunity. In 2019, the
Chinese passport was ranked 74th by the Henley Passport Index with visa free access to
70 countries; this is up 56% from 45 countries five years previous.2

1
The special administrative areas of Macau and Hong Kong were not included in this report as outbound travellers
from these regions have different characteristics.
2
To learn more about China’s passport strength visit Henley and Partners, “Passport Index 2019”. Retrieved from
https://www.henleypassportindex.com/passport
4
About 27% of all trips taken by Chinese tourists are international, with the average trip
length being 6.3 days (Expedia Group Media Solutions, 2017). The majority of outbound
Chinese trips are independent or semi-independent with less than 40% of travellers
choosing package or all-inclusive travel (Neilson, 2017). Millennial travellers are having
a large influence on travel trends. This generation is earning a significant amount of
money and they are more comfortable using their annual leave to explore independent
travel (Amato, 2018). Financially independent young people are also supporting the
emerging empty nester segment of the market as older generations have more
opportunities to travel (Menegaki & Agiomirgianakis, 2019). China is home to the fourth
highest number of High Net Worth Individuals after the US, Japan, and Germany. Most
of China’s high net worth individuals are relatively young and contribute to the luxury
travel segment (CIA, 2019).
Most Chinese outbound travel is within Asia. In 2017, most mainland Chinese travellers
chose Hong Kong (44.4 million) or Macau (22.2 million) (The Nordics, 2018). The top
international destination for Chinese travellers was Thailand (see Table 1).
Table 1: Top International Destinations for Outbound Chinese Travellers (2017)

Thailand 9.8 million

Japan 7.4 million
South Korea 4.2 million
Vietnam 4.0 million
Singapore 3.2 million
USA 2.9 million
Taiwan 2.8 million
Malaysia 2.3 million
Italy 2.1 million
Indonesia 2.1 million

Urban Hierarchy
Chinese cities and regions are often categorized into semi-official tiers based on their
population, economy, and regional status. Figure 1 illustrates three tiers of tourist
generating regions. Regional differences have a strong impact on the travel habits and
preferences of outbound mainland Chinese tourists. When working with this market, it is
important to recognize the diversity of needs and cater to each segment.
Tier 1 cities and regions can be seen in Table 2. The strongest demand for outbound
travel comes from Beijing, Shanghai, Guangzhou, and Shenzhen, however, demand is
quickly growing in smaller cities and Tier 2 regions (Tourism Development International,
2014). The cities in Tier 1 are recognizable for their tremendous size and geographic
situation in highly developed regions on the eastern coast. Outbound travellers from these
regions are typically experienced with an interest in high-end and luxury products. They
are more likely to choose long-haul destinations when they travel. Tier 1 regions are home
to over half of all mainland China’s tour operators and travel agencies (World Tourism
5
Organization, 2017). While this segment enjoys travelling independently, they also enjoy
customized and theme tours that cater to their individual interests and help them truly
experience a destination. International from Tier 1 regions spend more per visit than
those from other regions, and are interested in products like golf and beach destinations
(Australia China Business Council, 2017).
Tier 2 cities and regions have promising tourism markets showing significant growth.
Recently, Xi’an, Changsha, Wuxi, and Guiyang have surpassed Tier 1 cities in terms of
annual growth of outbound travellers (Ctrip, 2017). Geographically, most of these regions
are located in the western and central provinces of mainland China. Tier 2 regions are
home to about 38% of tour operators and travel agencies on the Chinese mainland (WTO,
2017). While traditional sightseeing packages are still popular, there is an emerging
segment of experienced travellers in these regions who are seeking quality products and
new experiences. Emerging destinations are an excellent product to attract this segment,
as they are still predominantly interested in short-haul travel (WTO, 2017).
Tier 3 regions are economically underdeveloped and geographically remote in Western
China. Outbound travellers from these regions are generally inexperienced and may
prefer the convenience of all-inclusive packages to relieve the anxieties around
international trips. For a first travel experience, Chinese tourists want to see many things
in one trip, to take pictures and buy products that show off their international travel
experience to their friends and family back home (Tourism Development International,
2014). While these first-time travellers want to demonstrate their confidence and
individualism, they are also concerned with their safety, convenience, and tend to seek
out familiar foods. Many Chinese travellers enjoy full-service restaurants and menus with
Chinese options in or nearby their hotels. Tier 3 travellers are the most likely to choose
short-haul destinations. This segment is still very small with only about 2% of tour
operators and travel agencies on the Chinese mainland (WTO, 2017).

6
Figure 1: Tourism Generating Regions of Mainland China3

Table 2: Chinese Regions by Tier4

Tier 1 Beijing, Shanghai, Guangdong, Tianjin, Zhejiang, Jiangsu, Fujian

Tier 2 Shandong, Henan, Sichuan, Hubei, Hunan, Anhui, Liaoning, Shaanxi, Inner
Mongolia, Jiangxi, Guangxi, Chongqing, Heilongjiang, Jilin, Shanxi, Hainan
Tier 3 Yunnan, Guizhou, Xinjiang, Gansu, Ningxia, Qinghai

Mainland Chinese Travel Trends and Marketing

There are several considerations for successfully marketing to mainland Chinese

travellers. Many destinations are competing to attract higher numbers of high-spending
tourists from mainland China (Han & Cheer, 2018). Not only have economic and policy
changes impacted Chinese travellers, but the rise of a digitally connected society has had
a significant impact. In 2016, 53.2% of the Chinese population were internet users (CIA,

3
Grey region in the south west is the Tibet Autonomous Region, the two grey circles on the south east coast are
Macao and Hong Kong.
4
This is one of many ways that regions are divided into tiers, this one based on levels of outbound travel.
Generally, all unofficial tier systems separate the wealthy eastern coastal cities, from the central developed
regions, and the western remote and more inaccessible regions.
7
2019). Technology has been fully integrated into Chinese society, in addition to flourishing
online networks, many Chinese consumers are accustomed to mobile and QR code
linked payments. Key technologies that facilitate these transactions are Alipay and
WeChat pay (Tourism Ireland, 2017). Many countries that seek to attract more Chinese
tourists have made these payment methods available at key travel destinations (STB,
2019).

Internet Connectivity in Mainland China

Marketing to the Chinese mainland requires a strong understanding of
the unique challenges and opportunities of the market. Foreign
companies marketing their products in China can encounter censorship
and blocked access. Many popular global websites are inaccessible from
within China due to the Great Firewall, including:
• Facebook • Google
• Twitter • Pinterest
• Snapchat • Tumblr

Even if an international website is not blocked, access may be

unreliable because the Chinese mainland has some of the slowest
average broadband connection speeds in the world (VisitBritain, 2018).

General Marketing Trends

Because of the high integration of social media in Chinese daily life, marketing strategies
for China should prioritize digital marketing (Ministry of Culture, Sports, and Tourism &
Vietnam National Administration of Tourism, 2019; Tourism Development International,
2014). In order to reach the Chinese audience, travel websites must be in the Chinese
language and provide useful information on destinations and tourism products.
Marketing content should focus on the emotional connection and experiential aspects of
tourism products, especially for the millennial segment (Luo, et al., 2018). Chinese
travellers are most attracted by advertising with appealing imagery and informative
content, especially in video format (Expedia, 2017). Content should recognize the growing
proportion of independent tourists who are looking for interesting experiences and
authentic products, in a China-friendly environment. Leveraging user-generated content
can also reflect well on destination brands (Han & Cheer, 2018). Marketing targets should
balance emerging and established segments of the Chinese market, with a thought-out
approach for each segment.
There are four major online companies involved in the travel and tourism process serving
the mainland Chinese outbound market, Baidu, Alibaba, Tencent, and Ctrip (Dichter,
Chen, Saxon, Yu, & Suo, 2018; VisitBritain, 2018). Baidu is China’s leading search engine,
8
similar to Google; Alibaba is a large e-commerce platform; Tencent hosts the WeChat
instant messaging platform; Ctrip is the leading online tour operator that distributes
packages and services directly to customers. These platforms are also some of the
largest advertising platforms for the travel and tourism industry in China, especially Baidu
and Weibo.
Because many of the top global social media platforms are blocked in China, the
landscape is unique and can be confusing for international actors looking to market to this
audience. Social media and online messaging platforms are very popular in China with
over 90% of the population using online instant messaging services (VisitBritain, 2018).
Top social media platforms native to China include WeChat (over 1 billion active users),
Weibo (over 400 million active users), and Tencent QQ (over 800 million active users)
(Didadee, 2019).
Social media has an influence on travel decisions and the ease of access to information
has empowered more tourists to travel independently (Ge & Gretzel, 2018). On social
media, Chinese travellers are most influenced by travel pictures posted by experts, travel
pictures and videos posted by friends, and by the hashtags they follow of destinations
they are interested in (Expedia, 2017). More than 80% of all Chinese travellers reported
being influenced or inspired by WeChat when they were booking their trips, with another
58% and 46% citing Sina Weibo and QQ respectively. Only 7% of all Chinese travellers,
including all generations reported that they were not influenced by social media (Expedia,
2017).
WeChat is a popular messaging app, owned by the technology giant Tencent. This app
is primarily a private social media platform that can also be used as a payment app with
the addition of WeChat Pay. WeChat official accounts allow organizations to promote
their brand to WeChat users and can be used as a customer service platform (Didadee,
2019).
Weibo is a popular blogging platform which allows companies and organizations to create
enterprise accounts in order to engage their audience and clients. Weibo is seen as a
good first access point for international companies to reach a Chinese audience through
digital marketing and advertising (Didadee, 2019). Enterprise accounts allow
organizations to brand their Weibo page and include business information that is
searchable on Baidu, as well as a discussion widget to allow direct communication.
Emerging social media platforms that are popular in China include TikTok, a trendy social
media video application and Dianping, a review site similar to TripAdvisor.
Examples of traditional mainland media channels include China Central Television
(CCTV), People’s Daily, China Daily, Xinhua News Agency, The Traveller magazine,
Netease (www.163.com), Phoenix Television. B2B media such as Travel Weekly China
and China Travel News spread tourism news within the travel industry (Tourism Ireland,
2017). Almost all broadcast media is owned or affiliated with the Chinese government,

9
with the direction of reporting being determined or approved by the central government
(CIA, 2019).
Travel Needs and Preferences

Travellers from mainland China have a strong preference for relaxing, spending time with
friends and family, and sightseeing (Destination Canada, 2019; Dichter et al., 2018; World
Tourism Cities Federation, 2018). They are looking to discover the beauty and
uniqueness of tourist attractions. They are more likely than other travellers to allocate a
larger share of their budget for shopping and attractions rather than food and
accommodation (Expedia, 2017). Convenience of location and group harmony are
priorities, especially for those travelling with family (Amato, 2018). Some travellers also
travel to say they have been somewhere or to show off to their friends and family at home
(Destination Canada, 2019).
While travelling, seeing nature and natural attractions are mainland Chinese tourists’
favourite activities. They like to sightsee, experience local cultures and try local food and
drink. Visiting historic sights, nature parks, or amusement parks (especially for families)
can also be a highlight of their trip (WTCF, 2018; Destination Canada, 2017; Ctrip, 2017).
For those tourists coming from the less temperate regions of China, seasonality can have
a significant impact on the activities and products tourists are seeking (WTO, 2017).
Emerging trends include cruises, and red tourism or visits to historical international sites
linked to the communist and socialist political movements (ITB Academy, 2017). Chinese
tourists strongly dislike visiting cemeteries and prisons when they travel as this is seen
as a negative experience (Ma, Ooi, & Hardy, 2018).
Chinese travellers are looking for an interesting experience when they are outside of their
country, but they also want service that is China-friendly. Having Chinese language signs,
service staff, and tour guides would help make the travel experience more welcoming.
They also appreciate convenient services like local currency exchanges and payment
options that accept mobile payment through Chinese mobile applications (Croce, 2016).
In a survey conducted by Neilson (2017), about 65% of all Chinese tourists reported using
mobile payments on their outbound trips and over 90% stated they would be more willing
to spend more if mobile payment options were available.
Chinese tourists are worried about their personal safety and concerned about their
belongings when travelling. Before they leave mainland China, they can be concerned
about language barriers and booking transportation at the destination. Some of these
concerns can be alleviated through Chinese signage, or widespread use of internationally
recognized symbols (WTCF, 2018). As more Chinese travel overseas, there has been an
increase in travel insurance products, to counter fears of natural disasters and theft (Ctrip
& Mastercard, 2018). When deciding on outbound destinations, concerns about ease of
visa procedures and friendliness of local people will also have an impact.

10
Regarding accommodation, convenience and value are important for mainland Chinese
tourists. There is a preference for mid-range hotels in close proximity to transportation
options and attractions (Destination Canada, 2017; Menegaki & Agiomirgianakis, 2019;
WTO, 2017). Good accommodation is expected to offer free Wi-Fi services. In order to
feel comfortable, Chinese tourists would like to see slippers, tea kettles, Chinese teas
and similar amenities available in their rooms (WTO, 2017).
While the historical trend of Chinese travellers seeking out Chinese restaurants while
travelling abroad is still valid, some are becoming more interested in seeking out popular
local restaurants. Food preferences among mainland Chinese travellers have long been
influenced by a desire for familiar flavours and group harmony (Suntikul, Pratt, & Chong,
2019). New technologies, such as DianPing, which hosts reviews by fellow Chinese
travellers, may support more variety in eating habits amongst travellers (Didadee, 2019).
Trustworthy reviews can assure travellers that restaurants are suitable for Chinese taste
preferences and present a common source of information for independent travellers.
Shopping has become less of a focal point of travel for high-spending demographics of
mainland Chinese tourists, but it is still something that most like to include in their trips
(Dichter et al., 2018). They are drawn by the availability of high-quality products at lower
prices than are available in China, where luxury goods have high levels of added tax.
Most tourists also buy local specialties as souvenirs of their travels (WTCF, 2018).
Female travellers have been found to spend more than their male counterparts (Ctrip &
Mastercard, 2018).
When travelling, Chinese tourists want to explore the outdoors. Chinese travellers may
interpret natural attractions in a different way than other tourists, particularly those from
North America and Europe. Chinese tourists tend to seek an emotional connection with
nature, rather than an educational encounter. For this reason, traditional interpretation
translated into Chinese will not be sufficient for Chinese tourists to enjoy natural
attractions. Rather than a historical, geological, and geographic perspective, tours for
Chinese tourists should focus on the spiritual and emotional perspective. This can involve
the integration of stories, local legends, art, or poetry and intangible cultural heritage in
the interpretation. Sharing information about how the landscape is protected and
maintained will also be appreciated by Chinese tourists (Gao, Zhang, & Huang, 2017).
Travel Duration and Planning

Most Chinese tourists make their travel plans between one and three months in advance,
although younger tourists have shorter planning cycles than most (WTCF, 2018; IClick
Interactive, 2017). Online advice from fellow Chinese travellers is seen as a credible,
comparable and interesting source of information that reflects the opinions of peers (Ge
& Gretzel, 2018). This is especially true for younger travellers who will plan their trips with
the support of social media, online blogs, and recommendations from influencers and
celebrities (Croce, 2016). However, the majority of overall travel preparations are still
conducted through online travel agencies and with insights drawn from travel review sites
11
(Expedia, 2017). These websites can be used to book accommodation, transportation
and plan itineraries while looking for deals and discounts.
Social media use varies by period of planning. To plan before the trip, travellers will use
Weibo, Mafengwo, Ctrip, and Baidu, while during the trip, they are more likely to rely on
Dianping, Google Maps, and WeChat to help them get around (Didadee, 2019). Chinese
travellers are more likely than travellers of other nationalities to use their smartphones at
all stages of their trip, through the inspiration, research, booking, and experience phases
(Expedia, 2017). While Google is blocked in China, many young people it on their
international travels. Google maps and reviews are particularly useful during their trips.
The Chinese government has recognized the importance of leisure activities in recent
years and has implemented two holiday periods per year to encourage travel (ITB
Academy, 2017). Chinese travellers generally travel during these official holiday periods,
especially in May and October (WTCF, 2018; Tourism Development International, 2014).
Public holidays include New Year (January 1), Chinese New Year (three days in late
January/early February), Tomb-Sweeping Day (early April), Labour Day (May 1), Dragon
Boat Festival (late May/June), Mid-Autumn Festival (September/early October), and
National Day (October 1 to 3). Chinese employees earn annual leave days as they gain
seniority, starting with five days for less than 5 years to 15 days for employees who have
worked for over 20 years (VisitBritain, 2018). Traditional peak travel periods are
becoming less concentrated as more Chinese travellers use annual leave for holidays.

TRAVEL TRENDS: OUTBOUND MAINLAND CHINESE TRAVELLERS IN VIETNAM

Current Statistics of Vietnam Travel

Vietnam received 15,497,791 international visitors in

2018.5 Mainland China is Vietnam’s largest tourism Arrivals from China,
by Region
market, ahead of South Korea and Japan, making
up 32% of the overall inbound market (VNAT, 2019).
Mainland Chinese travellers had an average spend
per day of US $92.2 in 2017, this is lower than for
visitors from South Korea (US $115.2) and Japan
(US $132.6) (Vietnam General Statistics Office,
2019). Vietnam ranked as the fourth most popular
destination for mainland Chinese tourists in 2017, Mainland China Taiwan Hong Kong
after Thailand, Japan and South Korea (The Figure 2: Breakdown of Chinese visitors to
Nordics, 2018). This does not consider tourism to Vietnam (2018)
Hong Kong and Macau, which see by far the highest

5
For a monthly breakdown see the Vietnam National Administration of Tourism (VNAT) tourism statistics for
international visitors, available at http://vietnamtourism.gov.vn/english/index.php/cat/1501
12
volume. From 2017 to 2018, the number of mainland Chinese visitors to Vietnam has
grown 24%, from 4,008,253 to 4,966,468 (VNAT, 2019).

Outbound Mainland Chinese Visitors to Vietnam

600000

500000

400000

300000 2016

200000 2017
2018
100000

Figure 3: Outbound mainland Chinese visitors to Vietnam over a period of three years

Peak periods of travel to Vietnam are less well defined for the mainland Chinese market
than for other inbound markets. This may be a result of the geographic proximity of the
two countries and the sheer scale of outbound travel from China. There has been a clear
increase in the number of mainland Chinese travellers choosing Vietnam since 2016, with
the growth slowing down somewhat from 2017 to 2018. This slow down matches the
global trend in Chinese outbound tourism and economy which is experiencing the lowest
levels of growth in 30 years (STB, 2019). Subtle peak periods may be seen in February
and August, but there is no strong overall trend year-over-year (VNAT, 2019). Mainland
Chinese travellers generally take between 4 and 8 days to visit Vietnam.6
Experts on tourism from mainland China to Vietnam have indicated that the typical
Chinese tourist is equally likely to be male or female and between 30 to 60 years of age.
Many Chinese tourists who visit Southeast Asia come from 2nd and 3rd tier cities, because
it is seen as a nearby and accessible destination (Didadee, 2019). Many tourists also
come from centrally governed cities like Beijing and Shanghai, where Vietnam is seen as
a good destination for tourists looking for a quick trip. Chinese often travel with family
members, couples or small groups. Experienced tour operators in Vietnam have both
budget and luxury tour types for the Chinese market, with a stronger focus on economical
tours.
The average tourist spends between US$200 to US$1,000 on tours, accommodation,
food and activities in Vietnam. This illustrates the diversity of Chinese tourists with both

6
As indicated by tour operators and travel agents in response to a TAB questionnaire on the Mainland Chinese
Outbound Tourism Market
13
price conscious and mid-range travellers choosing Vietnam. More could be done to attract
the luxury segment.
Reasons for Visiting Vietnam

Experts reported that many mainland Chinese travellers consider Vietnam to be an

affordable destination and a place with many similarities to their own culture. The
availability of coastal cities, access to the sea, theme parks, and beaches also aligns with
Chinese travel preferences. These destinations in China may be overcrowded and
expensive compared to what is available in Vietnam. The weather in many parts of China
does not allow year-round enjoyment of the coastal areas due to heavy rains and cold
temperatures. Compared to Singapore, Malaysia, and Thailand, Vietnam presents a
nearby destination that many Chinese travellers may not have explored before.
Air connectivity
There are currently several charter flights which
Why Vietnam?
connect famous Vietnamese destinations to key
outbound travel hubs in China. There are also at least • Geographic proximity
17 airlines which provide direct connections between • Air connectivity
Vietnamese and Chinese cities, five of which offer five • Affordability
or more flights per week.7 Vietjet and Vietnam Airlines • Attractive and familiar
offer the most connections. These flights provide culture
access to Ho Chi Minh City, Hanoi, Nha Trang, Da • Beaches and costal cities
Nang and Phu Quoc. 8 This ease of air connectivity
makes it very convenient for mainland Chinese
travellers to visit Vietnam. This is also true of connections to Vietnam from secondary
cities in China. As travellers from these regions begin to take international trips, the ease
of air travel will facilitate their arrival in Vietnam. There are approximately 400 direct flights
between China and Vietnam every week, with a maximum passenger capacity of over
70,000, or over 3.8 million each year.9 About 48% of all flights come from the big four
Tier 1 cities, with 52% coming from secondary cities. 10 However, there has been a
decrease in charter flights from China as Vietnamese airports become overcrowded
(MCST & VNAT, 2019). Infrastructure improvements would be necessary to see further
growth. This is important as direct flights and travel regulations are among the most
significant destination decision-making factors (WTO, 2017).
When travellers from mainland China visit Vietnam today, they generally stay in the
country for their whole trip. However, some tour operators and independent tourists
choose to combine Vietnam with other destinations in Southeast Asia, most commonly

7
Airlines include Vietjet, Vietnam Airlines, China Southern, Sichuan Airlines, and China Eastern.
8
Chinese cities with direct connections to Vietnam include Shanghai, Beijing, Guangzhou, Shenzhen, Xiamen,
Hangzhou, Chongqing, Wuhan, Zhengzhou, Nanning, and Kunming.
9
Based on flight availability between December 15 and 21. See Appendix for approximate flight times.
10
These Tier 1 cities are Beijing, Shanghai, Guangzhou, and Shenzhen.
14
with Cambodia. Within Southeast Asia, Thailand is the most popular destination for
mainland Chinese tourists, but they also enjoy Vietnam, Singapore, Malaysia, and
Indonesia (TAB, 2019).
Barriers for Chinese travellers

Outbound Chinese tourists are required to apply for a visa before they can visit Vietnam.
This can create a barrier for tourists who want to plan last minute trips or who are debating
multiple tourism destinations (MCST & VNAT, 2019). Indonesia requires no visa for visits
from Chinese tourists up to 30 days. Nearby countries, such as Thailand, Laos, and
Cambodia also permit Chinese travellers to apply for a visa on arrival at many ports of
entry. This makes Vietnam’s visa process less competitive. In addition to immigration
regulations, several tour operators mentioned poor airport infrastructure and long wait
times for baggage as a barrier for Chinese tourists. Inconveniences at the beginning of a
trip can leave a negative impression on travellers (TAB, 2019).
There are also security concerns surrounding theft and price scams that could be
countered by more awareness surrounding the safety of Vietnam. In general, people in
mainland China have little awareness of what to expect in Vietnam. More targeted
promotion campaigns, especially to the high-spending demographic in second tier cities,
could help support Vietnam tourism for mainland Chinese travellers (TAB, 2019).

China – Vietnam Relations

Tour operators are concerned that the political relationship between China
and Vietnam and currency fluctuations due to the trade war between the US
and China could impact tourism arrivals. China and Vietnam share a long
history, with several issues impacting their relationship today.

China occupies the Paracel and Spratly Islands which are claimed by
Vietnam. In 2014, this culminated in the China-Vietnam oil rig crisis where
the two nations faced a maritime standoff in the East Sea. In the wake of this
incident, the government of China advised Chinese citizens not to visit
Vietnam. In the following year, Vietnam experienced an 8.5% drop in arrivals
from China. Any aggravation of these issues could result in a sharp decrease
in arrivals from China and their ongoing nature contributes to the instability
of the outbound Chinese tourism market (VNAT, 2019; CIA, 2019).

More general barriers for travellers from mainland China include concerns about security
and low levels of service standards. Many Chinese tourists are frustrated by language
barriers when travelling. To address this concern, signage and support services could be
made available for Chinese tourists; Mandarin is the most widely spoken language in
China and simplified Chinese is the most widely read (VisitBritain, 2018).
15
To achieve Vietnam tourism’s target of attracting a higher spending demographic, tour
operators feel that it is important to improve tourism infrastructure and service standards.
Some tour operators specifically directed their comments to secondary and emerging
destinations that would benefit in infrastructure improvements to their airports,
transportation, high-end stock of accommodation, and attractions to facilitate more
tourists (TAB, 2019).
Low-Cost Tours
Many tour operators were concerned that a poor reputation of Chinese travellers in
Vietnam may cause them to face discrimination when they travel. This reputation is
partially the result of zero-đồng tours which have a negative image and contribute little to
the Vietnamese economy. Zero-đồng tours are heavily scheduled budget tours which take
tourists to mainly Chinese-owned facilities and force them to purchase souvenirs.
Recently, Vietnamese authorities have strengthened regulations to prevent tour operators
from running these type of tours as they are not positive experiences for the tourists or
the Vietnamese community.11
Nearby countries like Thailand are also affected by low cost or “zero-dollar” tours.12 There
are regular news articles describing incidents with Chinese tourists. However, this low-
spending segment is offset by luxury Chinese travellers in Thailand. Since 2016, the Thai
government has put in place some regulations for low-cost tours and unregistered travel
agents and closed a few zero-dollar businesses, with limited success. Vietnam has put in
place similar regulations to ensure that revenue from tourism contributes to the Vietnam
economy, however, enforcement has been sporadic and challenging.
Many outbound Chinese travellers are aware of their global image and are concerned
about their behaviour. Some of the conflict is the result of poor awareness of local
customs, inadequate research of the destination, pressures due to short travel time, value,
and annual leave restrictions, and language barriers. Increased enforcement of
regulations for tourism businesses, clarity of information related to proper behaviour for
Chinese tourists and advice for the local community, especially when there could be
cultural differences would be beneficial to address these anxieties (Ma et al., 2018; Zhang,
Pearce, & Chen, 2019).

11
To read more about enforcement of these tour regulations, see: Viet Nam News. (2018, July 13). Tourism sector
aims to stop Chinese zero-đồng tours. Retrieved from Viet Nam News Travel:
https://vietnamnews.vn/travel/451447/tourism-sector-aims-to-stop-chinese-zero-dong
tours.html#V0CFh8ocTJ3bIsuQ.97
12
For more information on zero-dollar tours in Thailand, see: https://theaseanpost.com/article/zero-dollar-
tourists-not-welcome
16
Most Popular Tourist Destinations and Activities

A scan of ten popular Chinese tour companies offering packages in Vietnam revealed
several popular trends. 13 Tours ranged from budget to high end, with most of the
connecting flights arriving in Vietnam from Tier 1 cities, particularly Shanghai and Beijing.
Notably, higher end tours gave travellers more time in one destination, including single
location tours over four or five days. Comparatively, more general tours would combine
several destinations over the same time period, with one or two nights in each stop.
Findings from tour company websites were reinforced through interviews with experts on
the mainland Chinese market in Vietnam. Coastal cities were identified by experts as the
top destinations in Vietnam for Chinese travellers, with the most popular being Nha Trang
and Da Nang, aside from Hanoi and Ho Chi Minh City. Secondary destinations include
Da Lat and Mui Ne, with emerging interest in Phan Thiet, Phu Quoc, Mong Cai, and Hue.
The only destination outside of Vietnam that was combined with these tours was Siem
Reap, where mainland Chinese tourists can experience the temples of Angkor (TAB,
2019).
Some common multi-destination trips include:
• Ho Chi Minh City, Mui Ne, Nha Trang, and Hanoi
• Nha Trang, Mui Ne, and Da Lat
• Da Nang, Bana Hills, and Hoi An
• Ha Long Bay and Hanoi
• Ho Chi Minh City and Can Tho
Nha Trang and Da Nang are the most established destinations for outbound mainland
Chinese tourists, with almost all itineraries including time in one of these destinations.
Access to cities with beaches while in Vietnam is a priority for both independent and
package tourists. When looking for accommodation in Vietnam, Chinese tourists seek
resorts or hotels with nice views near the sea with good quality and reasonable prices.
Tourists like to entertain themselves at amusement parks and water play activities (TAB,
2019).
Vietnam is not seen as a luxury brand shopping destination like Thailand, where tourists
can purchase brand name goods at duty free stores and luxury shopping malls. Instead,
in Vietnam, Chinese tourists are looking for opportunities to shop for Vietnamese jewelry,
cosmetics, handicrafts and local products like customized Ao Dai, lacquerware, agarwood,
natural rubber, and coffee. Chinese tourists are interested in experiencing famous
Vietnamese cuisine, like pho and spring rolls and trying products like fresh fruit and
seafood. The preferred payment method for this market is electronic payments through

13
Tour companies included: Mafengwo, Qyer, Qunar, Tiniu, Uzai, Ctrip, HHTravel, Baicheng, China Comfort Travel
Agency, and Fliggy.
17
their phones, such as WeChat Pay and AliPay. When in Vietnam, most Chinese tourists
use cash as their preferred method is not widely available (TAB, 2019).
Interestingly, as travellers from mainland China become wealthier, they are less likely to
choose Vietnam as a tourist destination. This may be because they look to travel to more
luxury and longer-haul destinations as their incomes grow (Wang & Anhiuyen, 2017). This
makes it more difficult for Vietnam to reach its goal of attracting a high-spending
demographic. Showcasing Vietnam’s luxury experiences, such as resorts in spectacular
landscapes, VIP treatment, golf courses and premium food and drink may help attract this
market (VisitBritain, 2018).
ASEAN Efforts to Attract the Mainland Chinese Market

Vietnam competes with other countries in Southeast Asia to attract a high-spending

demographic from mainland China. The size of this market means that it can make a big
contribution to a country’s tourism industry. Vietnam is already at a disadvantage because
of the low priority the government places on the tourism industry and the small budget
allocated to promote Vietnam globally (World Economic Forum, 2019).
Chinese tourists are Malaysia’s third largest inbound tourism market after Singapore and
Indonesia, making up 11.4% (2,944,133) of all tourists. Tourism Malaysia works with
airlines to increase air connectivity between China and Malaysia. They also benefit from
the seasonality of some Chinese regions to promote activities specific to the summer and
winter seasons. This includes raising awareness of family packages, island escapes, and
fresh fruit in the summer season, and sports and warm weather escapes in the winter
season. To reach potential mainland Chinese tourists, Tourism Malaysia invites Chinese
tour operators and media on familiarization trips so they can experience Malaysia’s
tourism products on offer and more effectively promote Malaysian destinations (WTO,
2017).
Chinese tourists are Thailand’s largest inbound tourism market ahead of Malaysia and
India, making up 27.5% (10,535,955) of all tourists. The Tourism Authority of Thailand
has taken further steps to attract tourists from mainland China by opening five overseas
tourism promotion offices in Beijing, Shanghai, Guangzhou, Chengdu and Kunming. 14
These offices connect with potential travellers through individual Weibo and WeChat
accounts which serve to raise awareness of Thailand’s tourism products and inspire with
beautiful pictures and travel tips. Thailand also does its best to accommodate Chinese
travellers in country with Chinese language signage in airports and shop assistants
trained to serve Chinese customers (WTO, 2017). They have also integrated Chinese
digital services, with widespread acceptance of WeChat pay and a Chinese language
enabled ‘Visit Thailand’ app.

14
For more information on the overseas offices see https://portal.tourismthailand.org/About-Thailand/About-
TAT/TAT-Overseas-offices
18
Chinese tourists are Singapore’s largest inbound tourism market ahead of Malaysia and
India, making up 18.5% (3,416,475) of all tourists. The STB has four offices in mainland
China, in Beijing, Shanghai, Guangzhou, and Chengdu. This tourism board regularly
considers improving marketing for China and has held several discussions on maximizing
benefit at conferences focused on the tourism industry. Singapore actively targets the
customer segments of families with young children, early careers/post 90s, and incentive
travel. To reach these stable and medium- to high-spending segments, they host a
number of on and offline promotion campaigns in mainland China. They are currently
focused on investing in Tier 1 cities and growing their impact in Tier 2 cities. Through their
own research into this market, the STB has found that Chinese tourists seek convenience
at their fingertips, localization of language services and availability of mobile payment
facilities (STB, 2019).
Vietnam could consider accessing potential tourists more directly by participating in trade
shows in different provinces in mainland China, especially those from emerging outbound
tourism regions (MCST & VNAT, 2019). Educating the Chinese travel trade for the luxury
and mid-range segments through fam trips could help to influence the demographic of
inbound tourists to Vietnam’s benefit.

FINDINGS & IMPLICATIONS

Finding #1: China has many different regions with different travel preferences
Regions in China vary by geography, economy and social factors, which is ordered into
a semi-official tier system. Tourists from these tiers tend to have different travel
experiences, needs and preferences when travelling. Marketing for each segment can be
an opportunity to attract a higher-spending demographic. The emerging segment of
wealthy travellers in Tier 2 cities present the biggest opportunity for Vietnam.
Finding #2: Chinese tourists prefer beaches and coastal cities for relaxation
The primary demand of Chinese tourism is for relaxation and to un-wind from stressful
life. In Vietnam, this is reflected by an interest in beaches and coastal cities with
convenient transportation and nice, affordable accommodation.
Finding #3: Recognize China’s unique social media landscape
China’s online landscape is unique and homegrown. The banning of Facebook, Instagram,
Pinterest, and YouTube require any social media marketing to go through local platforms
like WeChat and Weibo. Social media strategies will need to be adapted to maximize the
response on these platforms.
Finding #4: Chinese tourists expect mobile payment methods
Mobile payments through applications like Alipay and WeChat pay are some of the most
common payment methods in mainland China. When travelling, Chinese tourists

19
appreciate having this option to pay for shopping, accommodation, and food. If this option
is not available, they are more likely to pay with cash than credit cards.
Finding #5: Highlight emotional and visual experiences in Marketing
Potential tourists from the Chinese mainland can be inspired by stunning visuals,
recommendations from experts or influencers online, and from an emotional connection.
The most effective medium for this market is video.
Finding #6: Chinese tourist language barrier impedes ability to experience Vietnam
Chinese language signage and Chinese-speaking guides would make tourists more
comfortable when visiting attractions. Minimizing the language barrier would address
concerns about booking transportation and planning in-country and relieve anxieties
among Chinese travellers seeking relaxation and convenience. Localization of the official
tourism website into Chinese language with mobile optimization would be beneficial.
Finding #7: Chinese tourists interpret natural attractions through emotional connections
Chinese tourists have a different perspective on natural attractions than Western tourists.
They prioritize finding an emotional connection rather than education or information
focused interpretation.
Finding #8: Mainland China may be an unstable tourism market
The mainland Chinese market currently represents over 30% of Vietnam’s total annual
tourist arrivals. An over-reliance on this market is unsustainable, especially when the
decisions of Chinese travellers can be impacted by government decisions. Vietnam’s key
markets should be diversified seeking to attract a more varied set of tourists from China
itself, with a focus on developing awareness in Tier 2 cities.
Finding #9: Low cost and zero-đồng tours must be regulated
The presence of zero-đồng tours in Vietnam has given some Chinese tourists a poor
reputation that decreases the experience of tourists and locals in the country. The
government must be urged to continue and expand regulations on these low-cost tours
to ensure the revenue goes into the Vietnamese economy. A higher-spending
demographic should also be targeted to offset the low revenue from low-cost tours. To
achieve this, luxury products and experiences in Vietnam should be promoted.
Finding #10: Open overseas tourism promotion offices in China
As Vietnam’s largest inbound tourism market, China would be a smart choice to open
overseas tourism promotion offices. This would help Vietnam compete with countries
like Thailand and Singapore which already have offices in China. Local offices could
help change the perspective of Vietnam as a tourism destination in China and attract
more high-value tours.

20
APPENDIX
Table 3: Approximate Flight Times from China to Destinations in Vietnam

FLIGHT TIME HANOI DA NANG NHA TRANG HO CHI MINH CITY

NANNING 1h10 1h50 2h20 2h20
GUANGZHOU 2h10 2h15 3h45 2h50
KUNMING 1h30 2h55 3h
XIAMEN 3h15
WUHAN 3h25
SHENZHEN 2h10 1h55 2h10 3h35
CHENGDU 2h10 3h15 3h30 3h35
SHANGHAI 3h55 4h05 3h50
CHONGQING 3h25 3h50
XI'AN 4h25 4h05
BEIJING 4h05 4h40 5h25 5h45
CHANGSHA 2h05 2h40 2h55
ZHENGZHOU 3h20 4h10
HANGZHOU 3h30 3h40
ZHANJIANG 1h45
JINJIANG 3h15
GUIYANG 3h30
NANJING 4h
HEFEI 4h05
CHANGZHOU 4h10
WUXI 4h10
XINING 4h25
HOHHOT 5h05
BAOTOU 5h10
SHIJIASHUANG 5h15
DONGSHENG 5h20
SHENYANG 5h50
CHANGCHUN 6h10
HARBIN 6h15
TIANJIN 5h15

21
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