Economists say a shift is under way in Chinese tourism—from group tours and package hotels toward self-drive wilderness vacations packed with activities like abalone-diving and treetop walks. Many countries have been sharpening their pitch to cater to this emerging market, anticipating at least a doubling of Chinese overseas trips to 200 million by 2020. But few have been as successful as remote Tasmania, where icebreakers anchor on their way to Antarctica.
China recently overtook the U.K. as Tasmania's biggest international tourist source, giving the island a much-needed economic boost as Chinese overtake other nationalities to become the biggest vacation spenders. Overall, short-term visitor arrivals rose 14% to 7.4 million in 2015, ranking Tasmania as Australia's fastest-growing state for tourism, the country's statistics bureau said this month.
In a wildlife sanctuary near Hobart, the state capital, 36-year-old Lin Yi, a technology professional from Guangzhou, southern China, recently took photos of his wife and mother-in-law patting a koala.
"Tasmania is very natural, and there are not too many people," said Mr. Lin, who also planned a helicopter flight over the rain forest during his two-week stay.
Warren Hogan, chief economist at Australia and New Zealand Banking Group in Sydney, said the island has hit a sweet spot with the increasingly adventurous Chinese middle class. "The Chinese model of tourism is maturing," said Mr. Hogan. "It's about individual travel now. That is the future of Chinese tourism."
What's happening in Tasmania is encouraging for the whole country. The end of Australia's decadelong mining-investment boom has prompted concerns about its economic future. Prime Minister Malcolm Turnbull has talked up innovation as a new engine of growth, but that is years away from taking hold. In the near term, industries such as tourism, education and construction must bridge the gap.
So far, the signs are positive. Tourism is the country's fifth-biggest export and has been increasing in value as revenue from iron ore and coal—ranking first and second—has shrunk. In the 12 months through September, 6.7 million overseas visitors spent 34.8 billion Australian dollars ($24.7 billion) in the country. Asia accounted for more than 40% of total visitors, with China topping the list.
While Asia's travel avant-garde is still seen as less daring than the many Europeans who flock to Tasmania for abseiling or canyoning, the new tourists are rapidly adopting Western habits, said Luke Martin, who heads a local business lobby. "It's a dramatic shift from West to East."
Chinese President Xi Jinping's stopover in Tasmania in late 2014 gave the island's profile a major boost in Asia. Photos of the first lady cuddling a Tasmanian devil, a local marsupial, were shared on social media by tens of millions of Chinese.
A throng of visits by Chinese popstars and TV celebrities ensued, as the island quickly ramped up marketing targeted at Asia's middle class, promoting itself as an unspoiled paradise with clean air, pure water and fresh seafood.
The Australian dollar's fall of about 30% against both the Hong Kong dollar and the Chinese yuan in the past three years has made trips to the continent cheaper.
Tasmania had mostly been bypassed by Australia's mining boom and had long faced an uncertain future. Prospects for another key industry, logging, were damaged when plans for a A$2.3 billion pulp mill were abandoned. Unemployment was long the highest in the country.
Now, the state is doing better than the mainland in many ways, thanks to tourism and a focus on high-value food production, from fine whiskey to cheese, said Saul Eslake, a Tasmania-based economist.
The value of Tasmania's exports increased by nearly 5% last year, compared with a decline of nearly 6% nationwide, government data show. Business confidence and spending are among the highest in the country.
Still, not everyone is happy about the influx of Asian tourists. In Richmond, a historic township nestled between vineyards and orchards, some shop owners have put "no photo" stickers in windows and complain about Chinese who touch much and buy little. Others bemoan families ordering one meal to share among five.
Bob Priestley, a Mandarin-speaking consultant who helps locals get "China-ready," said many Australians have yet to learn how to interact with the new clientele. In workshops, he teaches businesses how to capitalize on the Chinese taste: offer antipasto platters instead of schnitzel, provide hands-on experiences instead of long drives, and—most important—allow photos.
Out at sea along an uninhabited coastline where sea eagles nest on craggy cliffs, Shanghai-based businessman Anson Chan recently paid A$685 for a snorkeling tour where he can hand-catch the prized Chinese delicacies of sea urchins and wild abalone. Larry Lee, who runs a wine retailer in Hong Kong, said he felt free on the boat, as he sent images home to his friends.
"Many of our customers are early adapters, they want to be the first to try it before all of their friends," said Olivia Grimsdale, the tour organizer's marketing manager.
Source: Wall Street Journal by Vera Sprothen
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