The land of 200,000 millionaires

China has not only 200,000 millionaires, but also a rapidly growing middle class with an unsatisfied desire for luxury and premium goods. China is also set to become the single largest source of holidaymakers for many of the world's top tourism destinations. Between 1995 and 2005, the number of outbound visitors from China increased from four million to 31 million, and this number is expected to continue to rise.

A World Tourism Organisation (UN-WTO) report estimated that Chinese tourists visiting foreign destinations will number 100 million by 2020. Chinese tourist spending abroad rose to $21.8 billion in 2005. UN-WTO figures show that in recent years 71% of Chinese tourists travelled only as far as Hong Kong and Macao, with a further 17% staying within Asia; 12% of Chinese tourists ventured on long-haul trips to other parts of the world.

However, WTO forecasts that Chinese visitors to Europe will treble to at least five million by 2020. The WTO has called on European tourist authorities to study the impact of Chinese demand, calling China one of the "great hopes" for the sector in the coming years.

The past three years have seen Chinese tourist arrivals increasing dramatically in several European countries since Beijing signed an Authorised Destination Status (ADS) agreement with the European Union allowing Chinese nationals to travel to 22 EU states on a visa.

Malta prided itself on being the first country in Europe to be granted ADS. That agreement was signed in Valletta on July 24, 2001. More than six years have passed. Since then millions of Chinese tourists have poured into top destinations of every continent, from Australia to Cuba. But we are seeing only a trickle over here.

Six years ago Tourism Minister Michael Refalo told Gulf News: "Malta is one of two European countries given destination approval status by the Chinese authorities for their citizens to travel to. So we expect not only students who come here to study English but tourists as well. So far we have concentrated on our core markets but we will have to focus on new markets."

Dr Refalo's words were not translated into action. In the last six years the Maltese government failed to put together and implement an action plan to attract Chinese tourists to Malta. Other countries in Europe and the Mediterranean are managing to attract thousands of Chinese tourists and are continuing to prepare better for their arrival.

A Global Trends Report published in London last year said many European countries were unprepared for the influx with too few shops accepting international credit cards or, for example, too few documents translated into Chinese and said visitors might choose to go elsewhere. The report urged European tourism authorities to address these shortcomings not to lose Chinese tourists, who are expected to generate about $94 billion in revenues by 2020.

We are celebrating 35 years of relations between Malta and China but we are failing to make the best of the new opportunities opening up in tourism. Many European, Mediterranean and Middle East airlines are now operating directly to and from China, bringing that lucrative market within our reach, provided that we manage to insert ourselves in attractive holiday packages offered by joint destinations.

We are only a few hours' flight from most of the European cities that many Chinese are now visiting. For the years ahead Chinese tourism will be a 'multi-destination' package with trips to three or four European countries in eight to 10 days, France and Italy being the top spots. So Maltese tourism key players, from Government to hotels, airlines and tour operators will have to team up with their European counterparts to attract Chinese tourists. The government is not taking any serious initiatives in this area. Other countries are leaving us behind.

Wasting an opportunity

There are also other Mediterranean countries we can team up with to offer competitive and attractive holiday packages to Chinese tourists. Egypt was granted ADS status by China in 2002, a year after Malta. That opened the door for a large inflow of Chinese tourists into Egypt - 35,000 went there in 2005. In 2006 some 65,000 Chinese tourists visited the land of the Pharaohs. These figures are still considered quite low and the Egyptian tourism authorities are working hard hand in hand with the private sector to increase this number.

The Greek tourism minister is happy that a survey conducted in China in 2004 named Greece as top preference for Chinese tourists. The Greek government is working on a programme to attract more visitors from that country. It includes the opening of offices of the Greek National Tourism Organisation in Beijing and Shanghai, efforts to secure a direct air route between Athens and Beijing, and closer ties between Greek and Chinese sector businesses.

Last year the number of Chinese tourists visiting Greece and Turkey was only about 40,000. Lack of advertising, high costs along with the lack of transportation and Chinese-speaking guides, and other countries giving them attractive prices so as not to lose their market share were among the reasons for this.

Spanish tourism authorities are designing special cultural sightseeing products for Chinese visitors and are training more Chinese-speaking tour guides. Tunisia is also working hard to lure Chinese tourists by promoting its 3,000 year-old history and its oases in the desert.

France is working to get a million Chinese tourists by 2010 when they will become the biggest arrivals to France, ahead of the British, the Americans and the Japanese. Knowing that things do not happen on their own, seven years ago the French Tourism Ministry formed a China Committee bringing together managers from top stores, restaurants and tourist attractions in order to devise ways to best serve the Chinese clientele.

So when the first Chinese tourists arrived in Paris two years ago they found that the top attractions - from the Louvre to the Galeries Lafayette department store - had already printed floor maps in Mandarin and taught personnel a few Chinese phrases to welcome the huge influx of visitors. The Accor and InterContinental hotel chains have also jumped on the Beijing bandwagon, offering tea sets, Chinese newspapers and Asian-style breakfasts to customers craving the comforts of home.

Three years ago I wrote in this column that we simply cannot afford to ignore China, the top growing tourism market for the future. I again urge the Maltese government to show the necessary leadership, drive and initiative to mobilise and embark on an action plan together with the private sector and stop wasting such a good opportunity to attract more and higher spending tourists to Malta and Gozo.

evaristbartolo@hotmail.com