Secondary Chinese cities see spike in international incentive travel demand

Chengdu, China, is rising in popularity as an incentive destination

Incentive trips to China are making a comeback this year, buoyed by the relaxation of visa policies and the relative affordability of second-tier destinations.

Melvyn Nonis, director, MICE Matters, told TTGmice: “China was off the radar for a while, but it is back. Clients that have done South Korea and Japan, or those who find these countries relatively expensive, are opting for Tier Two Chinese cities such as Kunming, Chengdu, Xi’An, and Chongqing.”

Chengdu, China, is rising in popularity as an incentive destination

In January this year, MICE Matters led a group of 60 pax to Kunming. Over the next few months, the event firm will bring three batches of clients to Chengdu – 800 pax in July, and 350 pax and 250 pax in October. Programmes would run for four days and three nights, and comprise a team bonding session, as well as a themed gala dinner.

Nonis added: “Our R&D team started to focus on China earlier this year to design incentive tour programmes with our local partner. We believe China has much to offer, and it’s a value-for-money MICE destination. We want to be at the forefront of this movement, as I believe China will be in demand for the next three years or so.”

Theresa Lee, director of M+i Journeys, has also noticed a slight increase in enquiries for Tier Two Chinese cities, such as Chongqing, Sanya, Xi’an and Chengdu, after March.

However, she said these destinations are not definitely cheaper than other options, as “domestic demand is still high”. Furthermore, connectivity challenges exist.

Demand is also up for Greater China, with FCM Meetings & Events reporting a 30 per cent increase in requests among its incentive travel clients.

Jingwen Wong, FCM Meetings & Events leader, South-east Asia and Greater China, said: “In China, business meetings are still taking place primarily in Shanghai and Beijing, but incentive trips are moving to Tier Two cities due to them being more affordable.”

Hong Kong and Macau are also attracting interest due to improving seat capacity and heightened tourism marketing initiatives, according to Wong.

To make the most of cost savings, Wong advises companies to book their trips six to nine months ahead, which could earn them more than 20 per cent savings in airfares. She added that full-service airfares could be comparable to low-cost fares when booked in advance.

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