Report welcomes improvements already made to the Visa service with 40% growth seen year on year in visit visa grants (2012 v 2013). Government has been listening to and working with the UK China Visa Alliance to make further improvements to the visa service to support their aims of attracting more visitors to the UK.
Retail, leisure and hospitality industries across the UK will continue to lose out to France and Germany in the quest to attract high spending Chinese tourists unless the UK government simplifies the visa application process.
A new report released by the UK China Visa Alliance (UKCVA) revealed 90% of Chinese tour groups to Europe each year are currently missing out the UK. By comparison, over 80% said their trips focused on itineraries for France and Germany. In the first research of its kind, 71% of tour operators surveyed said they would put the UK on European itineraries on the condition that the UK visa application process is simplified or indeed merged with the Schengen visa.
Andrew Murphy, Chairman of the UK China Visa Alliance and retail director of John Lewis says, “We welcome the improvements to date, but urge the Government to consider our recommendations to ensure that the UK performs as well as our European neighbours. It is frustrating that only around 15% of the 1.6 million Chinese visitors to Europe each year have a UK visitor visa. This means that 1.3 million Chinese people are travelling half way around the world to Europe but do not make the short trip across the Channel to spend their money in Britain because they don’t have a UK visa. There is a huge prize waiting to be claimed, but over a billion pounds a year is slipping through our fingers and fuelling the economies of France and Germany instead.”
Findings in the report detailing the views of Chinese tour operators support the UKCVA’s call for the government to alleviate the main obstacle standing in the way of the UK attracting more Chinese visitors, namely the need for travellers to go through the application process twice – once for a Schengen (allowing access to 26 countries across Europe) and again for the UK. The report reveals other important contributing factors to the UK not being included on European itineraries were demand and cost.
The UKCVA strongly recommends the government considers extending the existing pilot, launched by the Chancellor in October 2013, allowing tour operators to use a Schengen form to apply for a UK visa, making it easier to apply for both visas at the same time.
The opportunity: Building on Progress
The new report reveals mounting interest from Chinese consumers in ‘Brand Britain’ with the UK now overtaking France as the most searched for location on Chinese social media[5], with 30% of travellers naming London as their destination of choice.
The UKCVA believes the UK could set for an additional £1.2bn in Chinese spend per year if visa restrictions were loosened, with these visitors currently spending on average £741 per transaction in UK shops. Indeed, Chinese visitors currently spend 64% more across retail and leisure industries in London than any other nationality.
With more Chinese students currently studying at UK universities than any other foreign nationality, and only set to rise due to the increasing popularity of British educational system, easing the visa application process could also unlock the spending power of their visiting high-net-worth family and friends. Current figures show the contribution to the UK economy from Chinese students stands at £10.2bn, and is set to top £17bn by 2025.
UKCVA Recommendations
The report reveals three central potential improvement areas the UKCVA believes will make a significant impact on application numbers by streamlining the UK and Schengen visa application processes:
1. Continue and expand current initiatives to streamline the application processes for a UK and Schengen visa
- Extend the pilot launched by the Chancellor in October 2013 permitting a select group of tour operators to use a Schengen form when applying for a UK visa
- Create a web based version of the tour operator pilot allowing the use of a Schengen form to apply for a UK visitor visa
- Extend the pilot to all ADS, smaller tour operators and independent travellers, the fastest growing traveller group
2. Continue to streamline necessary supporting materials so that they closely march those required by Schengen countries
3. Launch the ‘UK and Schengen Visa’ package with VSF Global
- Allow VSF to act as an agent for Schengen so visitors to a UK Visa Application Centre (VAC) can submit their Schengen application at the same time
- Promote this as a ‘UK and Schengen Visa’ package.
Patricia Yates, Director of Strategy and Communications at VisitBritain said: “Chinese tourists are already coming to Britain in record numbers and staying here longer than our European neighbours. Today’s welcome changes build on the already significant improvements introduced previously by the Home Office.
“Recent streamlining of the visa processing has made a big difference, with Chinese visitor spending up a record 64% to nearly half a billion pounds. VisitBritain has also recently launched a ‘GREAT China Welcome Charter’ – to make Britain the most welcoming destination in Europe – which has received huge support from the industry.”
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
