Travel in Asia is a two-way street, or more accurately speaking, a multi-channel super highway that crosses paths around the world. On one side we have inbound touristsflocking to popular destinations in Southeast Asia or China — but we also have the ever-surging phenomenon of newly wealthy tourists from Asia taking trips abroad. To learn more about the rise of elite Chinese travelers, AsianTalks turned to Pierre Gervois, President and CEO of China Elite Focus in Shanghai, a marketing and PR agency specializing in the luxury tourism industry. As we suspected, China represents a dynamic and growing demographic of travelers who now spend an average of $6,000 when visiting the United States, versus the $4,000 visitors from other countries spend on average. More importantly, they are eager to explore the world outside their borders, and are not shy about their desire to obtain the very best.
AsianTalks: Pierre, you’re originally from France. What brought you to China?
I studied political law and philosophy in Paris. When I finished my studies, I wanted to discover something new. I wanted to leave France, leave Europe, around 1998. And I chose — pretty randomly!
In China I discovered a new continent, a new country, with a completely different culture than the old European culture. I came to Beijing with absolutely no idea about what I could do here. I was quickly recruited and offered a position as a foreign expert by the Chinese Ministry of Industry to organize a series of conferences with Chinese CEOs who wanted to expand their business abroad — in Europe and the United States. My job was to teach them how to do business with Westerners.
AsianTalks: You have extensive experience in both the public and private sectors. Tell us how you arrived where you are now.
Around 1999, 2000, I asked M. Laurent Fabius at the then-French Ministry of Finance and Industry if I could be in charge — specifically — of relations between European countries and China. So I opened a Chinese desk in 2000 at the French Ministry of Finance and Industry. That was a pretty exciting challenge, because at that time nearly nothing was done to help French and European companies to do business in China. And I stayed for five years but left because I wanted to do something more exciting.
That’s why in 2005 I resigned from the French administration and jumped into the private sector — originally to help a French company invest in China. I did that for three years. Then, in 2008, I came to Shanghai to create China Elite Focus — which is the company I am running now, a marketing and PR agency specializing in the luxury tourism industry.
AsianTalks: Certainly your timing couldn’t have been better! We hear quite a bit about elite Chinese travelers these days. Are there any new or interesting trends within this demographic?
With regards to elite Chinese tourists, we have witnessed a huge change in trends. A couple of years ago, maybe five years ago, most Chinese travelers traveling to the United States or Europe used to travel in group tours because they had no choice. And when these Chinese tourists returned to China — I joke a lot with them — because they have told me that those group tours are a horrific experience! Often times they were staying in bad hotels, with bad food, bad service. And they really did not enjoy their experience at all. They all tell me the same thing: next time we want to travel to the United States or Europe as independent travelers. We want to plan our own itinerary. And we don’t want a one-star hotel, we want a five-star hotel and a presidential suite.
AsianTalks: What was a crucial oversight on the part of travel agencies when it came to Chinese tourists?
What the travel industry didn’t realize then was Chinese travelers had a lot of disposable income and wanted to enjoy life. And they want the very best. And that is the trend.
The new generation of Chinese travelers doesn’t want to hear about these travel agencies or group tours. They want to find their dream itinerary, and money is not the issue. Rather, they want the best quality and the best service.
AsianTalks: And as a marketing and PR agency, what role does China Elite Focus play in delivering that best quality and best service?
Our clients are hotels, luxury travel agencies, and luxury retailers, all over the world. We have clients in more than 20 countries now — in North America, Western Europe and Asia-Pacific. We advise hotel chains or luxury hotels about their marketing strategy in China, so those affluent Chinese tourists will choose their hotels or shop in specific stores on Fifth Avenue or on the Champs-Elysées.
Our clients are hotels, luxury travel agencies, and luxury retailers, all over the world. We have clients in more than 20 countries now — in North America, Western Europe and Asia-Pacific. We advise hotel chains or luxury hotels about their marketing strategy in China, so those affluent Chinese tourists will choose their hotels or shop in specific stores on Fifth Avenue or on the Champs-Elysées.
AsianTalks: What are some popular destinations with Chinese tourists?
A couple of years ago most Chinese travelers wanted to travel to France, Italy or the UK. The fact is in their mind they always wanted to travel to the United States, but it was considered a difficult destination for which to obtain an independent, travel visa. But the US hospitality and retail industry in the meanwhile conducted some fantastic lobbying in Washington. They explained something needed to be done to bring in more affluent Chinese tourists.
AsianTalks: What was the outcome of their efforts to bring in well-heeled Chinese?
At the beginning of this year, President Obama issued an executive order instructing US consulate generals to give tourist visas with a turnaround of three weeks, instead of the usual four months. The Chinese are now eligible for multiple entry visas, valid for up to four, even five years. So with this change, the United States is the number one destination for Chinese travelers abroad. It will help to create jobs in the American travel and hospitality industry.
AsianTalks: Lastly how important is it for a businessperson as yourself to speak Mandarin in China?
I’m not sure speaking Chinese allows you to deeply understand China. Personally my level of Chinese is minimal. I may be wrong, but my recommendation to newly arrived expatriates in Shanghai, is that — of course it’s fantastic to be fluent in Chinese, you will learn a lot of things about culture, history — but on a strict, business point-of-view it’s not necessary to spend hours to be fluent Mandarin, because at the end of the day, you won’t earn a dollar more.
By: Elizabeth Shim
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