We’ve released a summary of our briefing note ‘China Touch-Point’ with our compliments.
Also, our Significant Investor Visa/ Chinese in Australia lunch 3 May has attracted strong interest with 7 tables already booked. Arowana International is the opening sponsor and a fourth panellist has been added – Ms Annie Guo who has gathered $200m from Chinese SOE and private capital to invest in Australian mining assets.
She joins our other first, second and third generation Chinese-Australian investment leaders who will share their insights on integration and investment in Australia. Please click here or the image below for information and to register.
‘China Touch-Point’ briefing note
- What we mean by China Touch-Point is the growing number of direct and personal interaction by millions of Chinese tourists, consumers, students with Australians and ‘brand Australia’.
- We expect Chinese tourist arrivals to climb 25% during 2017 due to the tailwind of government and airline/tourism sector marketing for the ‘China-Australia Year of Tourism 2017’, attractive AUS/CNY currency rate, China direct airline routes ramping up, 10-year multi travel visa trial implemented, ‘wealth effect’ from China’s property surge, a growing Chinese diaspora attracting friends and relatives, and the continuing power of ‘brand Australia’.
- With a ‘visibility and touch-point factor’ of 6x (assuming tourists spend 12 hours per day in public places such as city streets, beaches, malls, & restaurants, compared to 2 hours per day for a local, Monday-Friday), the Chinese tourist presence will be very visible.
- Combined with a 20% growth in 2016 and 25% expected in 2017, this means on a compounded basis, Chinese tourist numbers will show a 50% growth in just 2 years in Australia.
- What industries in Australia show such growth rates? It’s even faster growing than the current apartment and building construction boom in SydMelBris. It will impact on tourism accommodation construction, tourism businesses offering unique Australian ‘experiences’ and a range of down-line service providers.
- It will also have impact on Australia’s retail, food and dining sectors, especially for Aus grown, packaged and branded premium foods/wellness products, as they spend while here and buy for friends in China.
- Australia’s manufacturing sector has the opportunity to work with the local food/wellness/agri sector to create ‘value-added’ brands. The US ‘Blue Diamond’ Almond brand is an excellent case study for Australian agri-businesses to move up the value chain.
- Note that foods grown and processed in Australia is more attractive to the Chinese consumer that foods grown in Australia but processed in China from a food-safety reputation standpoint, hence the opportunity for Australian manufacturing and secondary processing.
- Chinese tourists become brand ambassadors for Australia (if they have a good time) in that their travel stories will encourage their networks to travel and consume Australian produce. ‘Sell to one, sell to many, repeat and recycle.’
- The number of Chinese visitors to Thailand is about 7 times more than Australia each year, so the growth potential for the Australian tourism industry is significant.
- Next week, our briefing note will discuss the China Touch-Point in the socially and politically sensitive Australian housing market