The changing face of Chinese tourism: value over volume

The return of Sichuan Airlines to New Zealand completes the final piece of the puzzle of restoring air links to China, but one tourism boss does not expect the large number of Chinese visitors to return.

Before Covid, China was New Zealand’s second largest market (after Australia) with more than 409,000 Chinese visitors in 2019 and contributing more than $1.7 billion to the New Zealand economy.

But it was the first major market to collapse completely when Covid-19 hit and, due to long-standing border restrictions, the last to recover.

Tourism NZ CEO Rene de Monchy said the return of Sichuan Airlines was a vote of confidence in the country as a tourism destination.

The 209-plane airline is based in Chengdu, which has a population of more than 16 million, and the Sichuan area has a population of 84 million.

Although it only offers one flight a week to Chengdu, an airline boss said it would assess demand with a view to increasing frequency.

De Monchy said the services gave New Zealand the opportunity to attract tourists from a much wider catchment area.

“It’s a different province, it means people in that region can also make the decision to come to New Zealand. It’s really good and it’s a vote of confidence.”

With Sichuan’s arrival last Wednesday, all five Chinese airlines that flew here before the pandemic are now back. The popular Chinese New Year travel month of February attracted 38,000 visitors from China, a recovery of 74 percent compared to the same month in 2019.

The now derailed Department of Business, Innovation and Employment forecasts from before the pandemic estimated that visitor numbers would reach almost 700,000 sometime in 2025.

De Monchy said that despite encouraging signs during the Chinese New Year, the Chinese market would now grow differently. The shift from high-volume to high-value tourism was already happening before the pandemic, but now happening more quickly.

“You’re starting to see an evolving travel style coming out of China, which I think is a good outcome for New Zealand as a destination.”

There was less emphasis on group travel, but on smaller groups with a higher value.

“You see customized trips that could be an extended family, maybe eight to 12 guests. These groups may have their own transportation, so it’s similar to group travel, but it acts a bit like free and independent travel, and it has a higher value.

“It’s about discovering more. You see a real growth in interest from China in things like campers and outdoor activities, and what you see is an interest in skiing.”

Interest in winter activities and skiing was stimulated by the 2022 Winter Olympics in Beijing. “China never stands still, so it will never go back to what it was in 2019 because consumer behavior has evolved.”

The real challenge and opportunity with China is to ensure we respond to emerging consumer trends, De Monchy said.

“New Zealand’s offering will be more attractive to a higher value Chinese visitor interested in outdoor activities and that fits in with what we want.”

Auckland Airport said independent travelers from China made up 85 percent of inbound visitors in the fourth quarter of 2023 (up from 71 percent in 2019), while 15 percent opted for group travel (up from 29 percent in 2019).

China Travel Service provides packages for incoming tourists from China and director Lisa Li said bookings for the country were strong and operators enjoyed a great April.

Her company also works with outbound tourists to China and a group of 70 people were on the first outbound flight last week to Chengdu, which despite its size has a reputation for being one of the more relaxed Chinese cities, home to pandas and a UNESCO World Heritage Site. -city of gastronomy. It also has a new airport, Chengdu International.

Chinese government-owned Sichuan Airlines began flying in 1988 and its all-Airbus fleet includes six widebody A350s and 11 A330s.

The airline offers competitive fares starting from $930 return for economy flights between Auckland and Tokyo. There is a four-hour layover in Chengdu. It advertises round-trip fares to Rome at a rate of $1300, with a transit time of 20 hours.

Before the pandemic, Sichuan Airlines flew to Auckland three times a week, general manager Zhao Feng told the newspaper Herald it would assess the market and increase frequency if there was enough demand.

“Currently it is once a week, but we will see how the market responds to this and we will adjust the frequency if necessary.”

Flights Auckland-China at a glance:

Grant Bradley has worked at the Herald since 1993. He is deputy editor of the Business Herald and covers aviation and tourism.