ASIAWEEK June 15, 2001
From the issue
Jun 15, 2001
ASIAWEEK
Storming the Beaches
China's burgeoning middle class, eager to see the world, is flooding Asia's tourist spots - from go-go shows in Thailand to casinos in Macau. Crystyl Mo joins a tour to Phuket and discovers from the inside how the region's newest travelers will change China

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By CRYSTYL MO
It is a typical Phuket scene: azure skies, turquoise sea, white-sand beach - and about 500 mainland Chinese. Among the crowd are Mr. Wu and Mr. Fan, members of our package tour group. They are strolling along the beach in long slacks, black loafers and dress shirts, Mr. Wu with his slicked-back Elvis Presley pompadour and Mr. Fan with the owlish glasses popularized by China's President Jiang Zemin. Near them stands one of their tour mates, Ms. Li, dressed in an inexpensive floral-patterned dress. The two men are government-trading company executives who make about $100,000 a year; Ms. Li, who works for a Chinese contractor to a foreign telecom company, earns just $240 a month. What they have in common - besides the fact that they all look comically out of place among the coconut trees - is that they are experienced travelers. Though this Phuket tour costs more than Ms. Li's monthly salary, it is already her second trip to Thailand - thanks to her work unit, which is paying for the vacation. "I love going abroad," she says. "When I was younger I never imagined I would get to travel abroad, but now I go every year."


Andrew Joyner
American, the old pro still on the go.

This is nothing short of an invasion. On the beaches of Phuket and Hong Kong, in the shops of Kuala Lumpur and Singapore, mainland tourists are sweeping across Asia. A dozen years ago, most Chinese had never traveled outside their hometowns, let alone gotten on a plane. In the 1980s, the only people who could travel were government officials like Mr. Wu and Mr. Fan. But in the past decade, relaxed regulations, rising income levels and increased leisure time have produced a booming Chinese travel industry. Now, millions of ordinary Chinese like Ms. Li go abroad every year. The numbers are set to explode, creating a phenomenon that will likely change the face of tourism in Asia and beyond. Some tour operators complain that the new Chinese travelers are crass and cheap; the new wave has churned up some ugly competition in the budget-travel market. But according to the World Tourism Organization, Chinese holidaying overseas will soar from the current 10 million a year to 50 million by 2010, and to 100 million by 2020. This will make China the leading source of tourists worldwide - and will provide an important boost for many Asian economies.

WHO STAYS, WHO PAYS
THAI TOURIST ARRIVALS AND EXPENDITURES
Country of Residence No. of Arrivals Length of Stay (Days) Per Capita Spending ($/Day) Tourism Receipts
($ mil.)
Hong Kong 467,151 5.14 118.03 295.54
U.S 473,285 8.86 110.20 462.08
Singapore 655,767 4.86 108.78 346.69
China 704,080 5.70 106.91 429.04
Malaysia 1,054,469 4.01 105.37 445.54
Taiwan 707,305 5.75 105.02 427.13
Japan 1,197,931 6.13 101.76 747.29
Australia 323,275 10.86 97.10 340.88
U.K. 476,387 12.68 69.69 542.98
Germany 378,562 13.25 69.61 349.15
         

The new tourism will have a historic impact on China. As tens of millions of Chinese see the world, they will bring back with them new understanding of other cultures, a heightened sense of confidence - and perhaps even new demands for more freedom. In the mid-1980s, Taiwan allowed its people, long restricted by decades of martial law, to travel overseas. That opening helped Taiwan build an understanding of world competition, trends, and politics, too.

Ultimately, the process helped usher in democracy there - and it could one day in mainland China contribute to challenges to the Communist Party. "Chinese traveling abroad in great numbers is of unprecedented importance," says Billy K.L. So, chairman of the Department of History at the Chinese University of Hong Kong. "The impact will be enormous in many dimensions, including the democratization process."

Beijing started letting its people out slowly, but today the exits are pretty wide open. Travel visas were first granted for Hong Kong and Macau in the mid-1980s, and they went mostly to the wealthy and well-connected. Then came Thailand, Singapore, Malaysia, the Philippines and North Korea. Last year, Australia and New Zealand were added, and Japan recently joined the list of approved countries. Getting a visa is much easier than it used to be. Now, a Chinese tourist can get a group visa in two weeks for around $24. A passport costs $18. As a result, Chinese with more modest incomes are lining up for their share of the great Asian holiday experience. "The only thing restricting travel is the number of airline tickets available," says Yu Weihua, deputy general manager at China Travel Service, one of Shanghai's largest outbound travel agencies. "There simply aren't enough seats to meet demand."

For the most part, Asia awaits with grateful, open arms. Contrary to rumors that the Chinese don't spend, last year the average Chinese tourist in Thailand outspent his counterpart from Malaysia, South Korea, Taiwan and, remarkably, even Japan. The Chinese also spent more per head than visitors from any European country. Altogether, the Chinese handed over a total of $429 million in Thailand last year, topped only by the Japanese and Malaysians. Americans, numbering about two-thirds the total of Chinese visitors, spent $462 million. "Many Chinese come in with a lot of money, usually in dollars," says Peter Wong, operations director of APT Travel in Bangkok. The reason? "Chinese people are having their first chance to go overseas," says Suparerk Soorangura, president of the Association of Thai Travel Agents. "They have a long shopping list, for themselves and for their friends and relatives."


Crystyl Mo for Asiaweek
On Phuket's 007 Island -- so named because the Bomd Flick Goldeneye was filmed there -- a tourist from Beijing helps support the local economy -- 45 cents to hold this bird of prey.

No wonder Thai tourism organizations are falling over themselves to court the Chinese market. China was the fifth-largest source of tourists to Thailand last year, with more than 704,000 visitors, after Malaysia, Japan, Singapore and Taiwan. They stay longer - an average of 5.7 days - than Singaporeans, Malaysians and Hong Kong citizens. "It's a significant total if you multiply it by the number of visitors," says Paisan Wangsai, a senior official at the Thai Tourism Authority. "We believe that in future they will stay longer and visit more new places." Thai Airways (TA), which already flies to Beijing, Shanghai, Guangzhou and Kunming, is seeking access to other destinations on the mainland. "We have about a 70% load factor on the daily flights to Beijing and Shanghai," says Vasing Kittikul, TA's vice president for sales and distribution. "All our China routes are profitable."

The weak baht makes Thailand an attractive proposition for many Chinese. But they are principally lured by the beaches, the nightlife and the shopping. "At some department stores, more than 10 buses call by each day," says travel agents association president Suparerk. "The Chinese tourists pour out and do a lot of shopping - they like the brand-name products." For some men, the attraction is the easy availability of sex.

The members of our tour group are no different from other mainland tourists: They love to spend money. They splurge on gifts ranging from pearls to silk shirts to stingray-leather wallets. But reflecting their modest backgrounds, they display parsimony in other respects. As is customary back home, they hand-wash their laundry in their rooms. When Ms. Li is late for breakfast for this reason, one of her tour mates exclaims: "She's doing her laundry now? We did ours last night!"



Some Thai tour operators grumble that the Chinese are too cheap. The source of their frustration is a bizarre economic contortion called "zero-dollar tourism" - in which holidays cost the Chinese tourists nothing, apart from their airfare (usually discounted) and what they spend on extras. The rest is picked up by Thai tour operators. Stiff competition has led the Thais to cut rates so low that many of them are losing money - and cursing the day they started building up their Chinese trade.

At first, the Chinese brought easy money. When the tourism boom from China began in the early 1990s, most visitors to Thailand were wealthy and gullible. Thai tour guides could make a living merely from commissions at the shops, restaurants and shows they shepherded their groups to. As competition increased, Thai travel agents began paying for the hotel, three meals a day and trips. Some even "bought" mainland tourists from Chinese travel agents at $120 a head. "It made sense," says Gel, a Pattaya tour guide, "because in five days you could make back three times your costs in commissions."

Times are tougher now. As China's masses fan out across the cities and beaches of Southeast Asia, the rich ones like Mr. Fan and Mr. Wu are moving on to other destinations. They are being replaced by Ms. Li and her workmates, who are well versed in the benefits of zero-dollar tourism. They also have been told by friends to beware of rip-offs. Some of the new tourists don't even look like holidaymakers. In April, a group of Chinese farmers was turned back at the Thai border because customs officials didn't think they were dressed like genuine vacationers.

Some tour guides complain that Chinese frugality could put them out of business. "If I only ever led mainland tour groups, I'd go bankrupt," says one. "I have lost money on nearly half the last 12 Chinese groups I have handled. I refuse to lead another mainland party." There are still ways to make money but the methods are causing friction between some Thai agents and Chinese travelers. They have also upset the Chinese government. These days, some unscrupulous agents are treating mainland visitors virtually like prisoners, browbeating them into accepting extras that are not part of the package and channeling them to overpriced establishments where the best commissions are paid. "The way they treat these people is really something," says APT Travel's Wong.

If tourists do not play along, bullying is used. "Some may not want to go shopping," says Wong. "So they say they'll just sit in the coach and wait. The operator replies, 'Okay, you can stay in the coach, but the driver is going to have to park about two or three kilometers away and he'll have to lock the coach and turn off the air-con.'" The result: The tourists go into the shop rather than sit in a hot, locked bus or stand around in the street. There have also been reports of coaches not leaving a store until enough people have bought a souvenir. "These are the tactics some operators use," says Wong.

The fear of getting ripped off is a recurring theme in our conversations. A member of our group tells stories she had heard in Shanghai about Thai guides cheating mainland tourists. "We heard there was a group last month that wanted to get their money back from a performance they never saw," she says. "The guide didn't want to return it, so they threatened to tell officials back in China. Then the guide got scared and gave the money back." Her boyfriend laughs, quipping: "Now the guides are frightened to cheat us." Unfortunately, we laugh too soon. Part of our itinerary is a Las Vegas-style variety show at a theme park. Our tour guide charges us $27 each for the tickets; later we discover they cost only $15 at the gate. Nobody, however, is willing to bring the matter up with the guide. "I'm not going to make a big deal about it," says one man. "We're on vacation, so let's just forget about it." So much for consumer rights.

By last year, the Chinese government had grown tired of the fleecing of its citizens and of the way they were being "polluted" by visits to massage parlors, sex shows and prostitutes. At a meeting in Kunming last August, officials from the Thai, Malaysian and Singapore tourist authorities, plus representatives of the Chinese travel-agency industry, signed a six-point memorandum designed to clean up the business. Among the provisions: no more visits to prostitutes and sex shows and an end to zero-dollar tourism.

Zero-dollar tourism continues, but the measures have had an impact. The number of Chinese visitors to Thailand fell by 10% last year, and dropped 23% compared with last year in the first three months of 2001. "If you talk to people in China who've had a chance to tour Thailand, probably nine out of 10 will speak badly about the place," says Wong. "When I go to China now and they ask me where I'm from, I feel uneasy saying I'm from Thailand. It's a problem."

The Phuket experience would not be complete without the sex shows. Only with us, they are called "qigong shows" - meaning displays of traditional Chinese breathing routines. Seven of us, including a married couple, pay about $13 each to enter a club at the heart of Phuket's tourist strip to watch three naked women cavort provocatively and insert razor blades and other objects into their vaginas. Afterwards, one of the men insists it was not actually a sex show. "It really was a qigong performance, because the women were highly trained in breathing techniques!" Without that training, he argues, they could not have performed such tricks.

Small-time travel agents may complain that business is tough. But plenty of hoteliers and tourist outfits are cashing in on the sheer volume of Chinese coming in. The master of low margins and huge volume is the monster-sized Ambassador City Jomtien hotel near Pattaya, where Chinese make up nearly half the guests. Thought to be the world's largest hotel, the Ambassador City has 5,100 rooms and a capacity for 12,000 guests. The 16-hectare complex doesn't advertise in travel magazines and there are no road signs to alert passing trade. The Ambassador City offers an enclosed and totally sanitized version of the Thai holiday experience.

Among the hotel's features is an outdoor Thai-style market, with a fleet of tuk-tuks waiting nearby to whisk shoppers back to their rooms. On the way, they pass ranks of tennis courts, four swimming-pool areas, a karaoke club and a gymnasium - but no vestige of what may have stood here before the hotel went up more than a decade ago. The only convenient way to leave the Ambassador City is by bus. Taxis are technically available, but guests must either pay an exorbitant 500 baht ($11) fee at the hotel's taxi counter (800 baht in a normal taxi will get you all the way back to Bangkok - a journey of more than two hours) or undertake a long and exhausting walk to the hotel gate. The hotel would not discuss occupancy rates or profits, but hotel spokeswoman Chawalit Thangsamphan complained about some Chinese guests. "They take down the curtains - we don't know why," she says, "and sometimes we find the sheets in the bathrooms. They don't know how to use the rooms."

The fact that mainland Chinese tourists don't inspire much respect hits us as we're sitting in a restaurant built on stilts just off the Phuket shore. The place is filled entirely with Chinese tour groups like ours. The women are wearing polyester suits and high heels. The men, most of whom chain-smoke, are in long slacks despite the oppressive heat. When the food arrives, dishes clatter noisily and some people spit bones unceremoniously onto the table and the floor. I ask our guide where the European, American and Taiwanese tourists are. He points to the building next door. "You can't take mainlanders to the same places," he says matter-of-factly. "They're too loud and impolite. Anyhow, the other tourists are willing to pay more to have a nicer meal."

Tourists from many countries start out their travels by isolating themselves in flag-waving groups. But well-to-do mainland Chinese are already starting to travel independently. Sure, as the Chinese meet the world for the first time, there are funny cultural clashes. But behind the travel-book clichEs is the fact that many Chinese touring Asia these days look just like any other middle-class sightseers. Given the chance to travel more frequently and freely, they will pick up more than an acquaintance with Western-style table manners. "Travel abroad is an opportunity for communication," says Xue Xingguo, director of the Shanghai China Travel Service Group. "It is an opportunity to open up and to gain knowledge. We hope this encourages cultural understanding and an understanding of other societies and world affairs." That's only half of it. Travel broadens the mind - and it can also change political systems.

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Commentary 2003-12-06
 
Coming soon to the commentary column--behind the scenes stories of the how the articles are really put together--the difficulty in getting anyone to accept an interview in China, the political sensitivities, the great stuff that got cut because of space, and much more about the joys and frustrations of writing in China
 
 
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