Fast on our item yesterday regarding the strategic importance of the intra-regional tourist market and who it affected Thailand in particular, Malaysia's Star newspaper reported today on the Malaysian government's spin to Chinese tourists -

Last year, 10 million Chinese travelled overseas and Malaysia has been aggressively promoting itself as a tourist spot to the increasingly affluent Chinese (Star)

Malaysia has a population of more than 40% Chinese, and in capital city Kuala Lumpur itself, the proportion is even higher. That makes Chinese tourists feel more comfortable and secure - almost a home away from home...

We reported yesterday on research that found intra regional tourists often have different motivations for travel than ex-Asian tourists. Very generally, while Western and international tourists tend to look for "something different", adventure and eco travel, and new experiences, Chinese and Indian travellers were looking for safety, modernity, cleanliness, and most importantly "comfort". Of course this varies according to demographics such as social class, and other key factors, yet it was significant finding.

Possibly Malaysia's closest competitor for the Chinese tourist remimbi is Singapore, which offers better transfers in terms of flight availability, airport location, and the key South East Asian air travel hub. Malaysia is a much bigger place, however and a variety of non-city attractions are available. With KL looking more like Singapore each day, it can still offer the modern and safe feel, (though there is no reason to spin that it is any safer than Bangkok), at a lower price. However the low accomodation prices that oversaw a Malaysian inbound intra-regional tourist recovery last year, are a thing of the past, as prices rise steadily. In the creation of a "modern and safe image" however, Malaysia can no longer compete on the "exotica", and "raw culture" edge of Thailand and Indo China.

Like Singapore, Malaysia has cast their once colorful street stalls inside aircon Western supermarkets, and taken the Katoeys, snake charmers and street musicians off the streets, and moved the once delightful Malaysian dance performances in small venues into the "bus them in, crowd them in, feed them with crappy food, seat them 100 metres from the stage with 300 other punters" venues.

That's fine for the Chinese upper-middle class however, where safety, security and modernity is king. After all they have more than enough local "color" where they come from anyway. But being waited in hand and foot in a Manadarin, Hilton, or spiffy US hotel chain for a reasonable price has great appeal, where such comforts at a higher price in China.

The Star Report focuses on an interesting spin of the Malaysian Deputy Culture, Arts and Tourism Minister Dr Ng Yen Yen -

Dr Ng said the Chinese believed that this year, the Year of the Water Horse, would bring many obstacles and difficulties as the horse must sometimes ride against the current.

“The Chinese will want to visit the ‘Horse Country,’ which is led by ‘Mr Horse’ – it will definitely bring good luck,’’ said Dr Ng.

Mr Ed, the Talking Horse notwithstanding however, there are several problems. Firstly is the lack of direct flights from China, - last year, the total number of seats in direct flights from China to Singapore was 1.3 million, and from China to Thailand one million. In comparison, total seats in China-Malaysia flights were only 400,000.

Interesting confirmation of the China Strategy 101 lesson too - “...The key to doing business in China is contacts and relations. With its people getting richer, the tourism market in China is today the biggest..."

It seems a good opportunity for Malaysia, if they get their brand positioning and targeting right...