2023-11-22
In recent years, numerous factors affecting the development of the tourism industry have undergone profound changes. As we look towards the future and the transformation of the tourism industry, how should we understand and adapt to these changes? Let’s delve into the perspectives of our esteemed guests on the transformation and reshaping of the global tourism industrial chain.
Moderator: WANG Kan, Researcher of the Tourism Research Center at Capital University of Economics and Business
Panelists:
SATO Yasuyuki, Executive Director and General Representative of China of Japan Airlines
WANG Wei, President of Shanghai Spring International Travel Service (Group) Co., Ltd.
SONG Rui, Director of the Tourism Research Center at the Chinese Academy of Social Sciences
Michelle Meixiang ZHOU, Senior Social Development Specialist Consultant of the World Bank, Deputy Director General of Finance Center for South-South Cooperation
FANG Tengfei, Vice President of Tencent Cloud and General Manager of Tencent Culture and Tourism
Moderator: Today’s topic is “Transformation and Reshaping of Global Tourism Industrial Chain”. How should we approach this goal?
SONG Rui: To address this topic, we can look at it from two perspectives: why the transformation and reshaping of the tourism industry chain is necessary, and how to go about it.
Regarding the “why”, short-term factors primarily include the pandemic leading to disruptions, shortages, and weaknesses of various links in the industry chain. In conversations with European and African counterparts, we found that regardless of the level of tourism development, the challenges faced are similar, and we need to quickly move beyond this stage. Medium to long-term factors include the technological revolution and sustainable development, causing the industry’s structure to shift from linear chain-pattern to a more networked, circular model, with carbon peaking and carbon neutrality and ESG becoming requirements for industry adjustment.
As for how we go about this transformation, government support, industry consensus, and corporate innovation are three critical aspects. Various countries, including China, have introduced policies to support the development of the tourism industry during and after the pandemic, such as the “Several Measures to Release the Potential of Tourism Consumption and Promote High-Quality Development of the Tourism Industry”. Government guidance can accelerate the steps to move out of the downturn phase. Industry consensus can be fostered through platforms like World Tourism Alliance (WTA), facilitating communication, consensus building, and experience sharing. Corporate innovation is key, which should be driven by continuous application of technological innovation and organizational adjustments in the tourism industry.
Moderator: As a significant player in the global aviation industry, what are Japan Airlines’ focal points in the transformation and reshaping of the tourism industry chain? What measures are being taken to strengthen its influence on the China-Japan tourism industry chain?
SATO Yasuyuki: For Japan Airlines, “People-centric” has always been our guiding principle. Currently, our domestic capacity in Japan has almost returned to pre-pandemic levels, and international routes have recovered to around 80%. However, business travel has decreased by 30-40%, and there’s also a decline in travel demand among seniors. During the pandemic, we did not lay off employees or cut salaries; instead, we expanded their work scope, created a better working atmosphere, and encouraged cross-departmental education and training.
Looking at our tourism business in China, we have recovered to about 60-70% of pre-pandemic levels. Although Chinese tourists travel less often to Japan, their enthusiasm to visit Japan remain strong. We hope to attract more tourists to explore various parts of Japan, not just for shopping. We are repositioning ourselves, participating in the development of tourism products, and collaborating with travel agencies and associations to promote the diversified development of local tourism industries. As an “air bridge” between China and Japan, we are committed to strengthening cooperation between the two countries and hope to attract more Japanese tourists to China.
Moderator: As a tech and internet company, how does Tencent Culture and Tourism view the reshaping of the tourism industry chain, and where are your current efforts focused?
FANG Tengfei: First, I’d like to share my understanding of the industry chain. Its characteristics include the participation of multiple parties, the multi-end connection of industry chain value, and the multi-dimensional flow of industry chain elements. The role of technology is to connect and aggregate, aiming to reduce costs, increase efficiency, ensure quality, and increase revenue, thus achieving the iteration and evolution of the entire industry chain ecosystem.
Let me explain the role of technology in the industry chain through two specific cases we are involved in. The first is the Hangzhou-based company “SMART ORDER”, which grew against the trend during the pandemic and now has over 400 global clients. Their self-developed PMS system has been successful overseas. Thanks to the past 20 years’ golden period, Tencent have significant advantages in social media marketing automation, business security in the cultural and tourism industry chain, and other technical aspects. The second case is the application of WeChat digitalization in outbound travel services. The convenience brought up by social media and digitalization has become a key factor in choosing outbound destinations. WeChat, a Tencent product, has 1.3 billion users worldwide and its payment system covers over 70 countries and regions, becoming the preferred choice for overseas consumption. We cooperate with destinations like Helsinki and Seoul, using WeChat Mini Programs to provide localized services like smart translation and local food recommendations, scoring a big success. With continuous technological advancements in the industry chain, based on past practices, we will step up the efforts under the macro perspective of global industry chain development.
Moderator: As an important player in the aviation industry, could you share Spring Airlines’ current layout in the tourism industry chain and its differentiation from other airlines?
WANG Wei: Spring Group focuses on aviation and cultural tourism in the industry chain. Our goal was to enable more people to travel to distant places through low-cost aviation. Besides aviation, Spring Travel also provides personalized services to tourists, tapping into local demands for deeper cultural experiences and more spending. Data shows that in 2019, we provided over 200 flights per week on Japanese and Thai routes, offering 140,000 seats, accounting for about 10% of the entire industry.
Our difference lies in our origins as a travel company, giving us a deeper understanding of Chinese tourists. We cover destinations accessible by Spring Airlines, including Korea, Thailand, Taiwan, with a major focus on Japan. In Japan, we have travel companies, duty-free shops, bus companies, and hotels under entrusted operation. We operate Spring Airlines Japan in collaboration with Japan Airlines and opened domestic routes before the pandemic. We specifically organize Japanese tourists to travel to China and promote Chinese tourists to visit Japan, enhancing cultural exchanges between the people.
Moderator: What areas does the World Bank focus on in managing cooperation projects in China’s tourism sector? What are the areas for tourism organizations and investment entities to collaborate with the World Bank?
Michelle Meixiang ZHOU: In terms of hardware, our tourism projects in China focus on green and eco-friendly construction, biodiversity protection, and green infrastructure in scenic areas. We also emphasize smart and digital management systems. On the software side, we focus on the participation of surrounding communities and stakeholders of scenic areas, sharing development benefits, training locals, and paying special attention to vulnerable groups for inclusive growth. Adapting to climate change, complying with ESG development, and enhancing green, low-carbon, digital, and cultural awareness are also our focus.
For tourism organizations and investment entities seeking cooperation with the World Bank, first I recommend a strategy supporting tourism industry development should be adopted, especially in low-carbon, green areas. Secondly, the ecological tourism planning should consider human factors in addition to infrastructure, hardware, and roads, sharing the benefits and opportunities of tourism industry development. Thirdly, follow the irreversible trends of digitalization and technology, and promote international exchanges and cooperation, participating in global events to share experiences.