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China's senior tourists could be a silver lining for travel firms
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China's senior tourists could be a silver lining for travel firms
Aug 15, 2024 6:29 PM

HONG KONG/SHANGHAI Aug 16 (Reuters) - Travel companies

are betting that Chinese tourism could return to its

pre-pandemic boom days if they tweak tours to avoid steep hikes,

add nurses and healthcare professionals to their staff and offer

discounts for the seniors they're targeting.

As China's population rapidly ages, and many in the

middle-class face job uncertainty and a slowing economy,

so-called silver tourism is on the rise, with more retirees,

especially in affluent coastal cities, venturing out at home and

abroad.

Many of these elders have accumulated significant savings

during four decades of eye-watering economic growth, and they

are younger than other travelling retirees as they leave the

workforce as soon as 50 for women and 60 for men. Many have no

grandchildren, so they have more free time.

Now companies inside and outside of China, and local travel

authorities, are starting to tailor their services to the needs

specific to this growing cohort.

"We are starting to see an increasing segment of elder

Chinese consumers who are not only affluent but, more

importantly, willing to spend on quality lifestyle pursuits and

personal development," said Wee-Hoon Tan, senior vice-president

of product development and marketing at Viking Cruises China.

"This is a big consumption mindset shift," Tan said,

referring to a generation of Chinese who have been prudent with

spending throughout their working lives.

About 300 million people currently aged 50 to 60 - almost

equivalent to the entire U.S. population, are set to retire over

the next 10 years, and the National Committee on Aging estimates

silver travel will account for 50% of domestic travel by 2040.

In June, Swiss-based Viking Cruises and Shanghai's

University for the Elderly, which is dedicated to offering

courses to seniors, announced a partnership to combine history

and culture courses with itineraries around coastal areas in

Asia and on European rivers.

Viking's ships have barrier-free elevators, handrails in

corridors and showers, larger fonts on television remote

controls and toiletries to make it easier on elderly eyes. A

fresh noodle bar opens for early breakfast.

Shanghai Railway Bureau also began targeting older

travellers this year, introducing 10 long-distance tourist

trains on scenic routes aimed at passengers aged 50-70 who want

to experience "the diversity of local customs and national

resources."

The trains, which pass through the cliffs of the eastern

Huangshan mountains or through the terraced rice fields of

Lishui, are staffed with nurses and equipped to provide

healthcare services.

Traveller Tao Wen said having healthcare on hand gave her

"peace of mind". The 56-year-old retired last year and has since

travelled throughout China and Southeast Asia.

"Companies need to understand our spending habits differ

from those of young people," Tao said. "We value

cost-effectiveness."

In China, hotel chain Hilton offers a senior

discount of up to 6% for people aged over 65 and organises tea

tasting and wellness classes for them.

The elder boom is "clearly visible", said Wendy Huang,

senior vice president at Hilton in Greater China.

GREEN TEA AND SLIPPERS

China's tourism academy predicts the number of active

elderly travellers will surpass 100 million next year, when the

domestic silver tourism market will hit 1 trillion yuan ($139.9

billion) annually.

Still, a frail social safety net, meagre pensions and patchy

health and elderly care outside large cities may reduce

retirees' ability and willingness to spend their savings on

travel, analysts say.

The slowing economy may also exacerbate these issues, said

Herald van der Linde, head of Asia Equity strategy at HSBC.

"But this process of ageing and shifting consumption

patterns is taking place nonetheless," he said.

Silver travellers can choose off-peak periods in the

calendar to make the most of hotel discounts, said Jane Sun,

head of China's biggest online travel agency Trip.com ( TCOM ).

"We advise our partners around the world to have Chinese

food for breakfast, in the room," Sun said. "Having a tea pot

with green tea, or slippers, doesn't cost too much, but will

make the older generation feel more at home."

($1 = 7.1484 Chinese yuan renminbi)

(Additional reporting by the Shanghai newsroom; Writing by

Farah Master; Editing by Marius Zaharia and Miral Fahmy)

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