Category Archives: California

Chinese tourists spend more than $1Billion in Los Angeles last year.

Shanghai Travelers Club magazine - March 2016 coverChinese tourists have been making their presence felt around the world but one place they can’t seem to get enough of is Los Angeles, California.

780,000 Chinese tourists visited L.A. last year, spending more than $1.1 billion. Last year also marked the first year that China overtook Canada as the city’s second-largest source of international tourists.

Los Angeles has long promoted itself as a tourist destination in China, and was the first city in the world to open a tourism office in the country in 2006. At the time, China was not even in the top 10 of international visitors to Los Angeles.

“Chinese visitors are spending more money than others, and they are staying longer,” said Ernest Wooden Jr, president and CEO of the Los Angeles Tourism and Convention Board. “They are one of our best visitors, and that’s why we have such a focus on our marketing efforts in China.”

To that end, aggressive marketing efforts called “China Ready” and “Nihao China” are currently targeting cities like Beijing, Shanghai, and Guangzhou in order to boost numbers even more.

Lisa Pisaturo, director of international and domestic tourism sales at Universal Studios Hollywood, said she expects the number of Chinese tourists to continue to grow.

“We experienced double-digit growth over the last year, so that’s an indication to us that it hasn’t really affected the groups that are traveling,” she said. “The middle class and affluent Chinese families may spend less on shopping, but it sounds like, from everything we hear, that there are still big groups that will be traveling.”

In 2014, about 7,000 Chinese tourists visited Orange County in an eight day trip, breaking records at the time. The event was estimated to have earned $85 million for the Anaheim area in which the 7,000 attendees had filled 13,000 to 14,000 hotel room at some 30 area hotels.

Even Los Angeles fashion brands like Sharpe have now Chinese fans: The Cover of the prestigious Shanghai Travelers’ Club magazine of this month’s issue (March 2016) is about Sharpe and features a full story about this brand created by Leon Wu in Los Angeles.

Source: Charles Liu, The Nanfang & China Daily / Chinese tourists blog

Gervois rating banner 02

Leave a comment

Filed under California, Uncategorized

More Chinese buyers for California Real Estate

Chinese family invest in US real estateIn January 2015, President Obama announced a new plan to further open the American door to the Chinese and predicted that this new visa agreement could inject billions of dollars into the U.S. economy. “Under the current arrangement, visas between our two countries last for only one year. Under the new arrangement, student and exchange visas will be extended to five years; business and tourist visas will be extended to ten years,” said President Obama at the Asia-Pacific Economic Cooperation summit in Beijing.
Prior to this agreement, Chinese citizens had to renew their American business, tourist, and student visas annually. This visa regulation for travel from China to the U.S. was “one of the biggest stumbling blocks” for Chinese buyers of U.S. real estate, said Simon Henry, co-chief executive of www. juwai.com, China’s largest international real estate website. According to the White House, 1.8 million Chinese tourists visited the U.S. in 2013, generating $21.1 billion to the U.S. economy, and with this new visa law, up to 7.3 million Chinese visitors are projected to visit America in 2021, contributing roughly $85 billion per year to the U.S. economy, predicts U.S. Secretary of Commerce Penny Pritzker.
But what impact will this new visa law have on the real estate market here in Silicon Valley? We predict the local real estate market will receive a further boost as a result of the new U.S./China visa agreement. The new business and tourist visas will encourage more Chinese to travel to the U.S. and stay for longer periods of time. Likewise, with the extension of student visas, more Chinese parents will consider sending their children to U.S. schools. For these Chinese, having a permanent place to live while working or studying will be important.
GERVOIS magazine Advertising and sponsored content opportunitiesFor years, many affluent Chinese looked to U.S. real estate due to its stability and diversification. The new visa agreement will encourage those on the fence to consider taking the plunge and investing in U.S. properties. Not only will it be easier for them to come to the U.S., but it will also be easier for their friends and family to make frequent visits. Given our thriving local economy, appreciating real estate market, excellent schools, and great weather, Silicon Valley properties will be serious considerations for these folks. Moreover, Silicon Valley properties are considered reasonable compared to those in Shanghai or Beijing. “International buyers…are often surprised at how reasonable our prices appear,” says Ken DeLeon, founder of DeLeon Realty.
While the new visa agreement will likely contribute greater investment into the U.S. market, China’s strict currency regulations remain in effect, and we have seen enhanced enforcement by the Chinese central government over the past six months. These regulations prevent large amounts of currency from moving out of China. For example, Chinese nationals are allowed to transfer the equivalent of U.S. $50,000 per year into a foreign bank account. Given the hot, all-cash, non-contingent real estate market in Silicon Valley, buyers from China looking to purchase properties in this area should plan ahead and care should be given to ensure compliance with all U.S. and foreign laws. Additionally, these buyers should be prepared to provide proof to sellers that the funds are available. Along the same vein, sellers and agents should request for proof of funds with the offer letter to ensure that the buyers have the ability to close on time. Furthermore, when verifying funds, listing agents must understand the significant differences between the rules that apply to mainland China and to Hong Kong, which is classified separately as a special administrative region.
Gervois magazine - Marriott Hotels“California Realtors must also be aware that most of Mainland Chinese investors interested to buy U.S. properties over $5M will use funds coming from Caribbean banks or Switzerland banks, to avoid the Chinese regulations on currency control”, said Pierre Gervois, CEO of China Elite Focus Magazines LLC, the publishing company of the Shanghai Travelers’ Club magazine, a publication for the wealthy Chinese.
The market for Chinese investors in the U.S. is therefore much bigger than “official” forecasts. It’s time for Realtors to be proactive with Chinese buyers and increase their presence in Chinese media.

References:
1. Kenneth Rapoza, “Obama’s New Visa Law Seen Helping Chinese Buy U.S. Real Estate,” http://www.forbes.com, November 14, 2014.
2. E. Scott Reckard, Andrew Khouri, Hugo Martin, “New Visa Rules Expected To Boost U.S.-China Tourism, Investment,” http://www.latimes. com, November 13, 2014.
3. Ken DeLeon, “Worldwide Real Estate Impact On Silicon Valley,” DeLeon Insight, September 2014.
4. Pierre Gervois, “How U.S. Retail, Travel, and Hospitality Industries Can Attract Affluent Chinese Tourists” , June 2012, China Elite Focus Editions. ASIN: B008L98Q3U

Leave a comment

Filed under California

Average Chinese Tourist Spends $6,000 per California Visit

wealthy Chinese - Shanghai Travelers ClubAccording to the California Travel and Tourism Commission, Chinese tourists’ average spending of $6,000 per person during a trip to the US is the highest in the world. Wide selections of designer’s bags and shoes drive Chinese to California on shopping sprees. A 7,000-member Chinese tour group traveled to California last summer, and each member spent $10,000 on average during their one-week stay.
The biggest driver of this growth appears to have been the visa policy approved by Chinese President Xi Jinping and U.S. President Barack Obama in 2009. At the Asia-Pacific Economic Cooperation meeting in November 2014, the two leaders agreed to extend tourist visas to 10 years and student visas to five years.
Following the November agreement, U.S. consulates in China have recorded a 68 percent increase in visa issuance, indicating a spectacular increase in the plans for Chinese to visit the U.S. in the future, with most coming at least initially to California.
At the fall 2014 “Visit California Outlook Forum” attended by over 500 California tourism industry professionals at La Quinta Resort in Palm Springs, experts predicted that Chinese visitors will spend $2.2 billion in California in 2015 and 2016.
The China Daily reported that Kathryn Smits of International Tourism at the Los Angeles Tourism and Convention Board told the Forum that airline service between China and California major gateways of Los Angeles and San Francisco has increased 44 percent.
Chinese airlines have added new direct flights from Los Angeles to cities in China or plan to add flights due to the availability of Chinese-language services to assist travelers. In July, Air China will add a third daily direct flight from Los-Angeles and Beijing and China Eastern Airlines will start direct service to Hefei, in southeast China. Both airlines credit the relaxed visa policy for accelerating growth. Famous Chinese luxury travel magazines, such as the Shanghai Travelers’ Club magazine, publish more content about California as it’s seen as a U.S. “premium” destination for wealthy Chinese.
Gervois magazine - The new travel magazine for millennials travelers in the United StatesThe Beverly Hills Visitor Center commented that more than half of the premier stores in Beverly Hills now employ Mandarin Chinese-speaking salespersons. Most stores in Beverly Hills stores accept China’s Union Pay credit card. Five-star Beverly Hills hotels now feature Chinese-style breakfasts and house slippers year round. The Visitor Center also provides shopping maps and discount coupons printed in Chinese.
Well-heeled Chinese tourists seem to like what they have seen on their visits to the Golden State. Southern California real estate agent Le Yuan told the China Daily that he had seen a double-digit increase in clients this January. Many Chinese clients can fly here to see the houses and neighborhood,” Le said. “Travel is just so easy.”

Source: Breitbart

Leave a comment

Filed under California

Beverly Hills rolls out red carpet for Chinese tourists

Julie Wagner -Beverly Hills - Shanghai Travelers Club

Chinese New Year is coming to Tinseltown, again. But this time in an even bigger way.

The Beverly Hills Conference & Visitors Bureau (BHCVB) announced Thursday that the city is going to stage a month-long celebration of Chinese New Year starting Feb 1.

It will be the fourth annual Chinese New Year celebration in Beverly Hills. This year, through a partnership with China International Culture Association, Beverly Hills will feature internationally acclaimed entertainment from Beijing in a special one-night event on Feb 1 at Saban Theatre, which will serve as a kick-off of Happy Chinese New Year – Beijing Culture Month.

The program will feature notable acts from the Beijing Performance & Arts Group, including acrobats from the China National Acrobatic Troupe and a Peking Opera piece performed by renowned artist Chen Junhua.

Musical acts will include a pipa solo by Zhou Hui, an erhu performance by Song Fei, known as China’s “Queen of the Erhu”, and a performance by China’s violin master Lu Siqing, among others.

Che Zhaohe, culture consul of China’s Consulate General in Los Angeles, announced that a photography exhibition entitled Charming Beijing, Passionate Winter Olympics will be on display at the same time at the Saban Theatre, featuring 60 images captured in Beijing by world-renowned photographers, including American photographer Joe McNally.

Che also said that China’s intangible cultural heritage will be represented by Tu’er Ye figures, Zhang clay sculptures, Yu family kites, cloth paste paintings and ancient Chinese toys such as the Mao Hou, a tiny monkey shaped toy made with plants and cicada shells.

“It is an honor to have such remarkable talent travel all the way from Beijing to share their inspiring performances and art as we celebrate Chinese New Year 2015 and the Year of the Sheep,” said Julie Wagner, CEO of BHCVB.

GERVOIS magazine Advertising and sponsored content opportunitiesAs the new visa policy applies, Wagner expects to host more tourists from China during this Chinese New Year holiday. She said participating hotels in Beverly Hills will offer special packages to Chinese guests throughout the month of February. The packages will welcome guests with popular Chinese amenities such as in-room hot water kettles with Chinese tea, Chinese newspapers, slippers and Chinese breakfasts.

In addition, most Beverly Hills hotels and stores will have Mandarin-speaking staff on-site and the visitors’ center will provide walking maps and directories in Chinese. The city’s website has a Chinese version and most stores accept Union Pay.

“We want Chinese tourists and local Chinese residents to feel at home during this family-oriented and most important holiday of the year,” said Wagner. “This is just one of the ways to show our appreciation to the Chinese people who bring business to Beverly Hills. We also want to take this opportunity to enhance our friendship with China as always.”

“The new visa policy will help to promote cultural exchange,” she said.

Leave a comment

Filed under California

California expecting more affluent Chinese shoppers

Chinese shoppers - Luxury Hotels of AmericaCalifornia’s No. 1 market for overseas visitors is China, said Caroline Beteta, president and CEO of Visit California, a non-profit geared toward maintaining and developing tourism marketing programs in the state.  She said Chinese tourists spent more than $1.6 billion in 2012, and spending levels are expected to increase, with China’s growing middle class and the easier access to visas for U.S. travel.
“We’re seeing a trajectory on China that is once in a career or lifetime,” Beteta said.
And it’s that growth that many tourist attractions and venues want to capture in sales.
Beteta’s non-profit hosted a forum at the Langham Huntington hotel in Pasadena on Wednesday, where more than 460 people gathered to discuss tourism issues, including how to better cater to Chinese travelers.
The tourists are coming from large metropolitan Chinese cities like Shanghai and Beijing, as well as second-tier cities like Qingdao, Hangzhou or Chengdu.
Reports  show a growing interest from affluent Chinese nationals to invest in American real estate, business and send their children to the U.S. for study. Additionally, Chinese millionaires tend to be on the younger side. The average age of a millionaire in China is around 37, compared to 57 in the U.S.
One key factor is also how much money tourists from China spend – an average $170 a day in L.A., which compares with tourists from other locales spending an average $163 in L.A.

But how to convince affluent Chinese tourists to choose a U.S. destination versus another? Chinese travelers have their secret weapon in their iPad. Several digital travel magazines entirely in Chinese mandarin are now published for the famous Apple tablet, and have a tremendous impact on how Chinese tourists plan their trip to America. Publications like Luxury Hotels of America, Niuyue Mag, or the Shanghai Travelers’ Club have gained tens of thousands of new readers over the last year. According to Sam Wang, a Shanghai businessman traveling three to four times a year to the U.S. “I read Luxury Hotels of America before choosing a hotel because they have a high quality editorial content about hotels that I can’t find in regular travel websites or booking engines in China.” He also said ” I want the top hotels where American famous people go, not the hotels for tourists that are advertised by cheap travel agencies”.
Businesses are hoping to give tourists more reasons to come to their attractions by pulling out all the stops. Hotels like the Hilton are offering Chinese breakfast, with dishes that include rice porridge. And stores like Macy’s are offering a 10 percent discount that can be used on some luxury brands.
Gervois magazine - The new travel magazine for millennials travelers in the United States“We’ve done a number of promotions to make it very easy and appealing for the consumers to shop at Macy’s,” said Brian Chuan, director of tourism marketing and development at Macy’s. “We have the products that they want. We carry all the American designer brands that they are looking for.”
He said Chinese tourists spend the most money at Macy’s compared to any other international group. Macy’s tracks the sales by how much the tourists spend on their international credit cards. He said it’s cheaper for Chinese tourists to buy the American brands here, because in some cases it might cost three times more in China.
“We see them leaving with an extra luggage filled with things they want to bring home,” Chuan said.
Chuan also said Macy’s accepts the China UnionPay card, which is a payment card associated with network of banks in China. That makes it convenient for shoppers who don’t want to pay in all cash.

Spending from international visitors make up just 3 percent of Macy’s overall sales at its 800 stores nationwide, Chuan said. But he pointed out that at some locations, spending from international tourists could make up 20 to 50 percent of a store’s total sales, he said.
Chuan travels to China to market Macy’s to groups such as tour operators and banks. Macy’s doesn’t have any locations in China, but Chuan said people there are familiar with the brand.
Macy’s has 13 stores with visitor centers, that allows customers to check in their bags. Centers in Southern California include one in San Diego and Downtown L.A., for its close proximity to the convention center and Staples Center. At key stores, Macy’s may have Mandarin speaking staff.
It appears to be working. Just one day last week in New York, buses dropped off about 1,500 Chinese travelers at the Macy’s, he said.

Source: Southern California Public Radio / W. Lee

Leave a comment

Filed under California

Chinese tourists have become the highest-spending overseas visitors to the U.S. and valued customers for U.S. shopping centers and travel industries

Chinese tourists - Chanel store- China Elite FocusMinutes after arriving by bus at an outlet mall in Cabazon, a dozen or so Chinese tourists hustled out to buy luggage that they planned to stuff with high-end clothes, shoes and bags.
But not Guoshing Cui, a Samsung supervisor from Guangzhou. He made a beeline for the Coach store, where he picked out three expensive handbags. He paid more than $800 from a wad of $100 bills.
The bags were gifts for family and friends in China, where Coach goods sell for two to three times the price in the U.S. “It’s a smart move,” he said of his purchases.
That kind of power shopping has made the Chinese tourist the highest-spending overseas visitor to the U.S. and one of the most valued customers for U.S. outlet malls, shopping centers and tour bus operators.
Chinese tourists spend an average of $2,932 per visit to California, compared with $1,883 for other overseas visitors, according to the latest statistics by the U.S. Office of Travel and Tourism Industries. A big chunk of their spending — about 33% — goes for gifts and souvenirs.
“What we know about Chinese visitors is they don’t like to lay on the beaches,” said Ernest Wooden Jr., president of the Los Angeles Tourism and Convention Board. “What they do like is shopping.”
The outpouring of Chinese money helped set a record for spending by foreign visitors to the U.S. — $168.1 billion in 2012, according to federal officials. Los Angeles is getting its share of the Chinese spending: Nearly 1 in 3 Chinese travelers to the U.S. makes a stop in the City of Angels.
“The Chinese middle class is growing and their No. 1 destination is L.A.,” said Los Angeles Mayor Antonio Villaraigosa, who has made two trips to China and will be in Beijing this week to promote trade and travel with L.A.

“Our magazine has featured many articles about California in 2013, due to the high demand from our readers, very affluent independent Chinese travelers who carefully plan their trip to the U.S. and don’t trust much the official group tours travel agencies” said Pierre Gervois, Publisher of Luxury Hotels of America, a mandarin-only luxury travel publication about the United States. Pierre Gervois added “There is often this misconception that Chinese travelers are interested only in cheap hotels: It might have been true five years ago, but the new generation of Chinese travelers are perfectly aware of the quality of U.S. hotels and shopping malls. The South Coast Plaza (Orange County), for instance, has perfectly understood how to welcome Chinese shoppers. It’s an example to be followed by the entire luxury retail industry”
China’s relatively strong economy and its growing middle class means more Chinese citizens have money to travel and spend, according to tourism experts. The middle class in China numbered 247 million people in 2011, or 18% of the population, and is projected to grow to more than 600 million by 2020.
Visitors to California from China are typically professionals, executives or managers, with an average annual income of $66,900 — compared with an annual per capita income of about $5,000 for all Chinese residents, according to statistics from the U.S. and Chinese governments.
To draw in more Chinese spending, store owners, hotel managers and tour guides in Southern California are going out of their way to welcome Chinese tourists.
At the Desert Hills Premium Outlets in Cabazon, 20 of the 130 stores employ Mandarin-speaking salesclerks such as Jeffrey Hsu, who works at the mall’s Ugg Australia store.

“I think we understand their customs,” Hsu said. “When someone comes to a foreign country they want to bring back gifts for their family and friends.”
Spending by Chinese travelers has grown so fast in the last few years that it has surpassed the per capita outlays of other high-spending visitors, including travelers from Japan, Australia, Brazil and South Korea.
The customs and unique characteristics of the local economy shape how foreign visitors spend their time and money when visiting the U.S.
Australians, for example, share a similar culture with the U.S. and are more likely than other overseas travelers to visit museums, art galleries and historical sites.
“We are fascinated by peoples of different cultures,” said James McKay, an engineer from Melbourne, whose recent visit to the U.S. included tours of Alcatraz island in San Francisco, the Pearl Harbor memorial in Hawaii and ground zero in New York. He also took a historic tour of Disneyland with his wife, Karen.
Japanese tourists, according to travel surveys, spend heavily at restaurants because certain foods, particularly red meat, are much more expensive in the island nation.
That may explain why Morton’s steakhouse in Beverly Hills has become hugely popular among Japanese tourists.
“Don’t even put fish or chicken in front of them,” Joanna Sanchez, a spokeswoman for the restaurant, said of Japanese visitors. “They come for steak.”
But Chinese tourists tend not to shop for themselves. Most of their purchases — usually high-end clothes and accessories featured in American movies and magazines — are gifts for friends and family.
Chinese tourists in the U.S. target brands such as Coach, Ugg, Polo, Nike, Tommy Hilfiger, Neiman Marcus and L’Occitane. Steep Chinese taxes make such brands two to three times more expensive in China, said Helen Koo, president of America Asia tours in Monterey Park.
“Many tourists feel that the savings more than pay for the entire trip,” she said.

Source: Los Angeles Times / Hugo Martin

Leave a comment

Filed under California

Orange County buffs image for tourists

Luxury Hotels of America Summer 2013 CoverAlthough some found it hard to distinguish between a traditional lion dance and Shaolin kung fu, representatives of California’s tourism hotbed of Orange County gathered for the common purpose of tackling China’s lucrative travel market.
Many Chinese might be equally unfamiliar with Southern California’s geography, it was noted at the fifth annual countywide tourism conference in Anaheim on Wednesday.
“Chinese people always think Disneyland and South Coast Plaza are in Los Angeles,” said Cherrie Yang, travel trade marketing manager in the Shanghai office of the Orange County Visitors Association.
The office, which opened in January, is the product of the China Tourism Initiative, which involves tourism officials in the cities of Orange County as well as representatives of tourist draws like the upscale South Coast Plaza – California’s biggest shopping mall.
“China is the single best opportunity for us,” said Gary Sherwin, chairman of the Orange County Visitors Association.
Pointing out that popular attractions such as Universal Studios and San Diego’s Sea World are, respectively, an hour north and two hours’ south of Los Angeles International Airport, Orange County represents a nice midpoint for travelers to Southern California, said Ann Gallaugher, vice-president of tourism development for the Anaheim/Orange County Visitors and Convention Bureau.
Its fledgling effort to target Chinese tourists will enable the county to tap state and federal resources in tourism promotion.
In 2007, the United States received approved destination status from China upon completion of a bilateral tourism agreement. Three years later, President Barack Obama signed the Travel Promotion Act, establishing Brand USA, a public-private partnership to promote international tourism to the US.
Caroline Beteta, president and CEO of the statewide promotion agency Visit California and chairwoman of Brand USA, said 42 million people from outside the US visited California last year. The goal is to welcome 100 million international visitors annually by 2021.
“California is a very popular destination for the very affluent Chinese travelers. They want not only to stay in five star hotels, but also have an appointment with their realtor and visit properties for investment”, said Pierre Gervois, CEO of China Elite Focus Magazines and publisher of the magazine Luxury Hotels of America, a publication in Chinese language for affluent Chinese travelers planning their leisure trip to the United States.  Gervois added “We feature a growing part of our content about California, and our readers ask for more”.
The travel industry is an engine of US economic growth. It employs 7.7 million people nationwide and 917,000 in California.
This year, Beteta said, the number of foreign tourists is expected to increase by 2.2 percent from 2012 while their spending rises 5.1 percent.
For the US, growth in tourism from China is up nearly 900 percent over the past decade. The country is sixth on the list of countries from which US-bound tourists arrive.
“But China will quickly move up with its exponential growth,” said Beteta, who recently accompanied Governor Jerry Brown on a trip to China to promote California businesses.
“The Chinese media no longer asked visa questions anymore,” she said, indicating that US efforts to increase access to foreign tourists are paying off.
During Brown’s trip, Chinese actress Gao Yuanyuan was chosen be California’s travel ambassador to her home country. Gao has 20 million followers on her Sina Weibo microblogging account. Officials hope she can help the state reach its goal of attracting 1.1 million Chinese visitors by 2015.

Leave a comment

Filed under California