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Business Bits: How About Looking At A China Bubble?

There’s been much noise and hope about Australian and New Zealand “Bubbles” resuscitating our tourism. That isn’t going to happen soon, it seems, and Australia and New Zealand won’t be rushing to the rescue of our tourism and in turn economy. But, strangely, no one seems to be talking about a “China bubble”. Yet the Chinese have been big in world tourism, big in numbers and big in tourism spend.
29 Aug 2020 12:20
Business Bits: How About Looking At A China Bubble?
A China Southern Airlines Airbus A380-841 .

Speaking this week of planes and passengers.

There’s been much noise and hope about Australian and New Zealand “Bubbles” resuscitating our tourism.

That isn’t going to happen soon, it seems, and Australia and New Zealand won’t be rushing to the rescue of our tourism and in turn economy.

But, strangely, no one seems to be talking about a “China bubble”. Yet the Chinese have been big in world tourism, big in numbers and big in tourism spend.

Renee Hartmann, co-founder at global consultancy firm China Luxury Advisors, said recently: “China has long provided the world’s most lucrative travelling consumers, having eclipsed Americans, Japanese and Germans years ago in terms of global tourism spending.”China Luxury Advisors surveyed 5000 potential Chinese travellers.

Here’s excerpts from what they found:

When will Chinese tourists return to international travel?  

This one is hard to predict and will ultimately depend on the global progression of COVID-19. Currently, Chinese tourists are travelling within China. We expect that destinations in Asia will rebound first, in lockstep with government policies regarding post-travel quarantine.

Where do Chinese tourists want to travel? 

Asian destinations topped the list, with Oceania and Western Europe following close behind.

In what ways have Chinese tourists altered their travel plans for 2020? 

A majority have simply delayed their trip until later this year or after 2020, while others have opted to adjust their plans to visit a domestic destination this year to hot spots in China such as Hainan Island, Sichuan and even to Wuhan where Chinese citizens can support the city that was hardest hit by COVID-19.

How will Chinese travellers adapt their travel choices once they travel again? 

A majority of respondents will seek to avoid crowded destinations – both during travel and at the destination.

So, readers, could this be the time to reach out to our Chinese friends?

For friends the Chinese have remained, even when others deserted us. Could it be time to start lessening our opposition to Chinese airlines operating direct services from cities like Shanghai,, Guangdong and Beijing. Bringing Chinese tourists into Nadi International Airport and filling our hotels and resorts.

The Australians and New Zealanders have thrived on Chinese tourism. Maybe we should start talking more about a “Chinese Bubble” as we look for ways to recovery.

Maybe an approach for discussions with China’s well connected Ambassador in Suva, Qian Bo, would be timely.

 

A new view on Qantas attack on Fiji Airways

What was the Qantas motive in their attack on our national carrier, Fiji Airways? Interesting insights are emerging.

They include a suggestion Qantas was deliberately weakening Fiji Airways to promote a possible takeover.

For attack it was by the Aussie giant and their highly competitive and ambitious Irish chief executive officer Alan Joyce. They launched direct competition against an airline in which they are 46 per cent shareholders. As well they also had a comfortable code share agreement on the lucrative Australia-Fiji routes.

In other words Qantas had seats of its own on the daily Fiji Airways services. It was making money from Fiji Airways, as a shareholder and code share partner.

Its attack over the past year in launching head to head competition out of Australia has directly contributed to the weakening of Fiji Airways.

Now an influential and well connected Australian aviation news service has suggested Qantas may have been out to undermine Fiji Airways Then get back the control and influence it had for decades in the affairs of our national carrier, when it was Air Pacific.

Come in Nicholas Cummins, an aviation marketing specialist and one of the leading writers for the Simple Flying news service.He wrote this week: “Qantas has always been aggressive against its competitors.

“While competition between airlines is nothing new (and Qantas has proven to be a competitive master when it comes to Australian air traffic), it is a bit of a red flag considering that Qantas owns 46 per cent of Fiji Airways.

“Why the Australian airline would make moves to financially rock the flag carrier of the island paradise doesn’t make much sense, especially when it may have made more profit deploying its aircraft on other routes (and taking a dividend of its investment).

“Perhaps Qantas is making overtures towards a Pacific acquisition (much like Jetstar – a Qantas subsidiary- does in Asia) and is sizing up the local competition.”

Adding to the conjecture is the presence of Narendra Kumar, a former Air Pacific executive who joined Qantas. He has risen to the most senior levels at Qantas. He is now one of Mr Joyce’s key management team.

 

Executive move

Word around is that an executive that recently completed her contract is now in an advisory capacity in a financial institution, probably learning the ropes. Especially when a senior staff of that financial institution is leaving soon.

Feedback:   maraia.vula@fijisun.com.fj

 

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