The Great Wall of China and The Petronas Towers

University Degree Business and Administrative studies

The Great Wall of China meets The Petronas Towers

LT3005N Visitor Attraction Management

As Asia in the recent past has opened itself up economically to the world through trade and business, so too has it opened up to tourism and the benefits that come with this new and ever-changing industry. More specifically, the variety of visitor attractions on offer around the world has developed significantly in the past twenty years (Stevens, 2000), especially in Asia, and is influenced by a variety of factors. This essay will examine two distinctly different yet similar visitor attractions in China and Malaysia, namely the Great Wall of China and the Petronas Towers, and appropriately analyse issues such as product development, market segmentation, transportation, and the overall business environment. By comparing and contrasting these attractions, it can be seen that they overlap continuously to give a dynamic representation of the visitor attraction market as a whole.

Before delving into the history of these attractions, the term visitor attraction as it relates to the management and organisation of attractions in general must be defined. A complete definition, given by the English Tourism Council, states that "A permanently established excursion destination, a primary purpose of which is to allow public access for entertainment, interest or education; rather than being principally a retail outlet or venue for sporting, theatrical or film performances. It must be open to the public without prior booking, for published periods each year, and should be capable of attracting tourists or day visitors as well as local residents. In addition, the attraction must be a single business, under a single management... and must be receiving revenue directly from visitors.”(English Tourism Council, 2000b:24)

This is relevant for both destinations, with the Great Wall allowing public access for education, open without prior booking, attracting all different visitors as well as local residents, and is receiving revenue from these tourists and The Petronas Towers, which is open without prior booking, attracting international visitors as well as locals especially for shopping interests, and is owned under a single management. Defining these two attractions in depth, it is found that both attractions fall under the category of “Human made buildings, structures and sites that were designed for a purpose other than attracting visitors.” (Swarbrooke, 2001:5) As well, since both attractions are owned by the public sector, their main priorities are "conservation, education, public access, and increased leisure opportunities for the community." (Swarbrooke, 2001:10)

In order to fully understand these two visitor attractions, it is imperative to go back to their beginnings and uncover the rich historical development that each attraction possesses. The Great Wall is by far the most famous fortification in the world, stretching more than 8,850 kilometres across China. (BBC, 2009) Its early origins can be seen from the 5th century through to 1644 when Beijing was taken by the Mongols from the North at the Shanhaiguan entrance of the Great Wall. (Turnbull, 2007:6) Most of the ancient walls have eroded since then, and the Great Wall that most tourists witness today is that from the Ming Dynasty. It should be noted that the costs of the wall were great, with a possible one million people losing their lives building the wall throughout history, it has been given the title of “the longest cemetery on earth.” (Noll, 2010)

Tourism can be said to have been developed from the 17th-20th century along with The Great Wall’s fame and popularity, reaching attraction status in 1957 with the opening of Badaling. (Visit CHN, 2009) Restoration and rebuilding took place throughout the 20th century for tourism development and benefits, and in 1987 was named a UNESCO World Heritage Site. (UNESCO World Heritage Centre, 2010) With the opening up of trade with the West and it’s induction into the World Trade Organisation in 2001, China has developed adequate tourism facilities and attractions centred on the Great Wall for the new, large influx of visitors including museums, restaurants, hotels, chair lifts, and souvenir stalls to name a few. (Pillai, 2010)

Contrasting the extensive historical development of The Great Wall going back centuries, The Petronas Twin Towers are a relatively new attraction. The Petronas gas and oil company began in 1974, and is still today owned by the Malaysian government. As of 2009, Petronas has risen to 80th largest company in the world according to Fortune 500 as well as being Asia’s most profitable company. (Fortune Magazine, 2009) In 1990, a competition was held to find the best architect and design group to develop a world renowned symbol for Malaysia. (Pelli & Crosby, 2005:7) Developing on the 100 acre site that formerly belonged to the Selangor Turf Club, the winning architects Cesar Pelli and Djay Cerico under the direction of Julius Gold, began work in 1991 on what was to be the Petronas Towers. (Pelli & Crosby, 2005:8)

After 7 years, $1.6 billion dollars, 10,000 workers, and eight million square feet of shopping and entertainment facilities later, the Petronas Towers were complete. From 1998-2004, the Petronas Towers held the position as tallest building in the world, which ended when it was surpassed by Taipei 101. The Skybridge, which is the main tourist attraction, is the highest two story bridge in the world, and only 1700 tickets are given out per day. (Petronas Twin Towers, 2010)

As the historical context has been put into place, it is now relevant to examine the provisions at both visitor attractions to gain better insight into their respective operations. The Great Wall of China operates at several different sites along the Wall, although for a detailed analysis, focus will be placed on the site of Badaling which is the most popular entry since it is the nearest to Beijing.

The entry to the Badaling section of the Great Wall is located 200 meters to the North of the pass, where there is a Tourism Information Centre with an information desk offering guide maps, routes, and services all in one spot. (badaling.gov.cn, 2009) As well, “the increasing need to generate alternative revenue streams has led to an expansion of the core activities in many new and existing attractions, with very few now opening without some element of retail or catering.” (Fyall, Garrod, Leask, & Wanhill, 2008:5) This can be seen through the entry, where the tourist will find souvenir shops, handicraft artists, and paintings, some of which are prize winning works by the Beijing Tourist Commodity Design Competition. (badaling.gov.cn, 2009) South of the pass, is the Badaling Hotel and International Dining Room that was built in 1986 by the Beijing Municipal Government and has received since then, more than 100 foreign heads of states, including U.S. presidents and the Queen, as well as nearly two million tourists. (badaling.gov.cn, 2009)

Some of the more recent provisions have been controversial, in that they may be changing the feel of the Great Wall from a heritage and cultural site, to a theme park style attraction. These provisions include bear pits, where tourists can feed the local sun bears, as well as the Biconvex Pulley which lifts tourists to the fourth tower (of eight) for a round trip price of 60 yuan (approximately £5.50). (Travel China Guide, 2010) At other sites, such as Mutianyu, toboggan rides down are a popular new attraction. This could be due to current trends indicating “an increasing need for ...

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There are also cultural offerings on display, including the Circle Cinema and the China Great Wall Museum. The Circle Cinema is the largest 360 degree circle cinema in the country. (badaling.gov.cn, 2009) The Great Wall movie is presented on the seamless screen using the latest technology and 10 projectors. Next door is the China Great Wall Museum, which looks at the Great Wall in its entirety from its history, military achievements, architecture, culture, and art. Its main purpose is for education, with interim exhibitions and academic seminars. (badaling.gov.cn, 2009)

Comparing the Great Wall attractions to the Petronas Towers, it can be seen that the latter is more focused on commercialism than history and therefore offers a different array of provisions for tourists and locals alike. Until recently, the main attraction was the Skybridge at the Petronas Towers which connects the two buildings on the 41st floor. A total of 1700 tickets were given out for free at 9:00am every morning and groups of 15 are taken up to the bridge. Afterwards, the visitor could then go shopping in the adjoined Suria Kuala Lumpur City Centre (KLCC) Shopping Complex. However, recently, many new changes have taken place to expand the attractions offered. (Petronas Twin Towers, 2010)

Visit packages are now be offered that not only include a visit to the famous Skybridge, but also “a visit to an observation deck on a top floor of Tower 2 and a meal at the Malaysian Petroleum Club (MPC) within Tower 2 of the building.” (Petronas Twin Towers, 2010) These packages will be priced from as low as RM3 for the Skybridge only up to RM350. Sometimes destinations only develop because of one specific visitor attraction, which is the case of the Petronas Twin Towers. Thus it is said, “The marketing of these destinations tends to focus on these attractions so that they are often the symbol of the destination in the minds of tourists.” (Swarbrooke, 2001:22)

At the Suria KLCC, there are a range of luxury shops including Marks and Spencer, Louis Vuitton, and Tiffany and Co. as well as restaurants, a cinema, the Philharmonic Orchestra and Concert Hall, an art gallery, and a Science Discovery Centre. (Suria KLCC, 2010) The shopping and attractions bring economic benefits to Kuala Lumpur, and broaden the appeal of the Petronas Towers within the destination as it is designed with a seamless flow and user-friendly experience. This is significant, since “visitors want attractions which are easy to use and where as little of their precious leisure time as possible is wasted on mundane tasks such as queuing.” (Swarbrooke, 2001: 166)

Before focusing on the market potential for the Great Wall, it is important to understand its catchment area. World famous attractions such as the Great Wall have a large, international catchment area with visitors from all over the world coming to the attraction. Identifying the catchment area is “crucial because its population size determines likely visitor numbers and because it helps marketers to decide where to place advertisements for the attraction.“ (Swarbrooke, 2001:77) As well, the importance of catchment areas is pertinent as “unlike commodities, the product offer has to be consumed at the place of production.” (Fyall, Garrod, Leask, Wanhill 2008:349)

However, while the international market is important, it is crucial to understand that domestic market potential is far greater than the international inbound market. This is due to the introduction of Golden Weeks, an improving economy, and a rise in the middle class- mainly “higher income urbanites.” (Mintel, 2010) To demonstrate this increase, the tourism sector has risen by 9% in revenue in 2009, and is looking to achieve an increase of 14% in 2010. (International Herald Tribune, 2010) Although leisure travel is a fairly new concept to the Chinese, as the economy grew in the 1990’s, domestic trips grew 54% from 1996-2006. (IHT, 2010) The year 1999 saw the introduction of the Golden Weeks holidays aimed to increase domestic tourism. These weeks included the Lunar New Year (January-February), the National Holiday (October), and the government is looking to reinstate Labour Day Holiday (May). (Mintel, 2010)

FIGURE 1: Domestic Arrivals in China, 2003-08

(Mintel, 2010)

International tourists have done the opposite, as they declined in arrival numbers by 3.1% between 2007 and 2008. This was due to strict visa regulations during the Olympic Games and also the start of the economic crisis in the larger Western countries. It is vital to understand that the majority of international tourists hail from Asia, with 59.9% represented in 2008. With the liberalisation of air transport between South Korea and China, South Korea has overtaken Japan as the most important market in 2008. 53% visit for sightseeing and leisure attractions such as the Great Wall, and in 2009, plans for visa free travel between countries could see this number greatly increase. The Japanese are especially interested in cultural attractions such as the Great Wall, with 34% visiting for this reason. (Mintel, 2010) With a largely Eurocentric industry, it is important to note the large and growing number of Asian tourists and their spending potential since they represent 30 times the international market.

The demographics of travellers, can be seen to be highly mixed since the Great Wall is such a popular cultural attraction in China. Segmenting the market based on demographics, “divides the population into groups on the basis of their demographic characteristics such as age, sex, and race.” (Swarbrooke, 2001:75) The data found that 90% of tourists travel in groups, which is one reason why “Great Wall” packages and tour groups are so important to the sector. The majority of international tourists coming to China are in the 25-44 age group, except for the Americas which have a larger number of older tourists within the 45-64 age group. (Mintel, 2010) This is due to the fact that China is not yet a popular destination for younger visitors from the United States due to the travel distance and associated costs.

FIGURE 2: Foreign arrivals to China, by age, gender and region, 2008

(Mintel, 2010)

Along with China and the growth of tourism both internationally and domestically, so too has Malaysia opened up to different tourism markets. In 2007, Malaysia celebrated 50 years of independence and wanted the world to join in the celebration. Visit Malaysia Year 2007 was the latest event to draw all markets to Malaysia to come see their new improvements. Of those improvements, was the city of Kuala Lumpur, which had grown into a huge metropolis with the building of the Petronas Twin Towers and the Kuala Lumpur City Centre (KLCC). With the growth and acknowledgement of Kuala Lumpur as a modern metropolis, came a strong market from the ASEAN (Association of South East Asian Nations), transport connections both regionally and internationally, and the development of resources to meet the future needs. (Mintel, 2010) One example of this change was the introduction of a successful flight connection by Emirates which connects North Africa-Middle East-Malaysia. (Mintel, 2010)

With Malaysia moving up as one of the most popular long-haul destinations for 2010, there is a new, large market with international inbound tourists. (Mintel, 2010) In general, the international visitor to Malaysia is male, married, and in the professional/technical jobs category. (Mintel, 2010) Affecting their choices were diversity of tourism product, as seen by the Suria and KLCC, as sightseeing accounted for 35.5% of visitors. Shopping is seen to be the fastest growing market currently, revealed by spending patterns showing a 40.3% growth from 2005 to 2006 to total 9.321RM million. (Mintel, 2010) By psychographically segmenting the market, it is seen that foreign and local visitors come to The Petronas Towers based on their “lifestyle.” Grouping by lifestyle, “results from the combination of many factors including education, occupation, income and social contacts.” (Swarbrooke, 2001: 79) This impact causes and is caused by the growth of the Suria KLCC, as visitors are coming because of the variety of international shops available and the Suria KLCC is growing because of increased demand.

The demographics of domestic tourists, demonstrates a spike in 21-30 year olds and 31-40 year olds, but then a drop off in 41-50 year olds. As well, the popular type of holiday for domestic tourists, are short two-day holidays which could be linked to the shopping statistics, as most domestic tourists will go for a weekend shopping getaway, which is affordable and convenient. (Mintel, 2010) While there are no statistics specifically for the Petronas Towers visitors, it can be seen that international visitors are a large market for the Skybridge and Twin Towers attractions, while more local, younger tourists will be spending their time in the Suria KLCC, shopping.

Compared to the seasonality of the Great Wall, with fewer visitors in the winter months and an increase in the summers, Malaysia and the Petronas Towers maintain a steady flow of tourists year round. There are instances of high seasons peaking around Easter, the Northern Summer, and Christmas-New Years, however Singaporeans and Thais maintain the evenness of tourism arrivals. (Mintel, 2010) Other arrivals are influenced by religious holidays, such as with Saudis arriving between July and September ahead of Ramadan. Domestically, peak periods correlate with religious holidays as well, with Ramadan, Deepavali, and Christmas holidays posing centre stage.

Tourism and transportation are intertwined as tourism cannot exist without the placement of a surrounding transport network. It can be said that “It is largely due to the improvement of transportation that tourism has expanded.” (Sorupia, 2005) With this is mind, the Great Wall and the Petronas Towers can be contrasted in that the Petronas Towers being centrally located in Kuala Lumpur are extremely accessible to tourists, while the Great Wall proves to be quite a challenge for international visitors and slightly more accessible for domestic visitors travelling by car.

With the rise of the middle class in China, came an increase in the sales of private cars. From 2003-2007, the National Bureau of Statistics in China stated that travel on highways had grown by 40%. Being the now biggest car market in the world, due partly to tax incentives put in place in 2009, travel on highways continued to soar 48% from 2008-2009. (Mintel, 2010) As well, “as most people travel to attractions by car or bus, road links are by far the most important element of the transport network for attractions.” (Swarbrooke, 2001:23)

This important issue has been taken into account by the Chinese government who has focused a large amount of money on organising the flow of road transport to the Badaling section of the Great Wall. Fan Xuexin, section chief of the Yanqing Culture and Heritage Commission, told the Global Times, “The new road is expected to replace part of the S216 expressway that passes by the two gates of the ancient Guancheng pass.” (China Travel, 2010)

With regards to international visitors, there are over 70 domestic and international carriers flying into Beijing, arriving from over 106 different destinations. (Mintel, 2010) With 65 million passengers, there has been an 18.2% increase from 2008-2009. However as was mentioned before, the domestic market is approximately 30 times larger than the international market, so it makes sense financially to spend the funds towards improving the areas most used by domestic tourists; i.e.: the roads.

With the H1N1 virus and volatile fuel prices, Malaysia has seen a 12% decrease in air travel, while low cost airlines have had the strongest positive performance, up 30% in current value terms. (Mintel, 2010) In effect, refurbishments have taken place on the SkyPark Subang Terminal, located 20 km from Kuala Lumpur which is specific to low cost carriers. The Low Cost Carrier Terminal at KL International Airport will also be completed in 2011, to meet the needs of these airlines and the visitors they bring to the area. It is one of the biggest landmarks in the city, and country for that matter, therefore accessibility is of the utmost convenience.

As seen in both locations, transport is a significant issue in creating a positive visitor experience and also playing a key role in attracting future visitors. The challenges faced are fuel cost rises, and in places within Beijing, tour group hagglers and language barriers. This issue is therefore crucial in managing both visitor attractions effectively.

The business environment within which these attractions are placed, is an important issue in the overall visitor management of both the Great Wall and the Petronas Towers. Looking more specifically at the macro-environment, the political, economic, and technological factors will be examined.

Transport, economic, and social tourism policies are all political factors that can influence visitor attractions. As seen before, transport policies can be beneficial as they meet the needs of certain problems such as congestion, pollution, and parking facilities to name a few. Hu Yaogang, Yanqing County’s executive vice-governor, discusses one scheme where “visitors will park their cars in five lots located three to five km from the entrance. Shuttle buses will pick them up and transport them to the destinations.” (China Travel, 2010) This would ease congestion and pollution at the entrance, while still providing the necessary provisions for tourists.

While some policies have been successful additions to the visitor attraction, others have not. In his book, “The Great Wall Revisited,” Lindesay believes that consistent government neglect, intentional destruction and plans to Disneyfy the Great Wall, have led to its crumbling. (SAWF, 2007) Though there is a new national law in place to protect the Great Wall, Lindesay says the first penalties have been mild. (SAWF, 2007) These policies and laws are difficult to balance, as China’s government aims to expand tourism for economic benefit, while at the same time keeping the heritage and cultural importance of the site relevant.

Economic factors should also be taken into account when looking at the business environment, as “the attractions success depends on people having disposable income which they are willing to spend, and leisure time.” (Swarbrooke, 2007: 105) This is seen with domestic tourists visiting the Great Wall increasing due to a rise in the middle class in China. As well, the government put policies into place to introduce the Golden Week holidays, specifically aimed to increase domestic tourism and tourism spend to boost the economy. The attraction product is also influenced by economic factors such as interest rates, recessions, and inflation. The recession in the Western countries is seen to affect both the Petronas Towers and the Great Wall, as both have had to rely more heavily on domestic tourism in the recent past. The Malaysian government is reacting to the slow in tourism to Kuala Lumpur, by beginning planning ideas for a new mega-tower. This has proved controversial however, as the Prime Minister, Najib Razak says the new skyscraper is a long-term project and is aimed at spurring economic activity, while the society at large believes the money could be best spent towards education and healthcare. (Channel News Asia, 2010)

It is interesting to observe how both the Great Wall and the Petronas Towers have embraced technology as their respective attractions gain an international presence. The Great Wall, once simply a heritage site with no technology, now have their own website, , as well as a Biconvex Pulley system lifting tourists to the Wall, and toboggan rides down. Especially for international tourists, the website is informative and gives tourists a more visual idea of the attraction. The Petronas Towers, with their own website , have embraced technology as well, with the introduction of more efficient ticketing facilities, the outdoor fountain with light shows, shuttle lifts taking visitors directly to the 41/42 floors, and the many technologically advanced buildings and attractions surrounding it. All these factors make up the business environment at both attractions, and are constantly being altered along with the political, economic, and technological changes in their environment.

Future trends in the tourism industry within China and Malaysia are seen to be progressing towards the domestic tourist with more commercialised needs. According to Swarbrooke, “Attractions must be constantly evolving if they are to continue to satisfy customers, stay ahead of competitors and achieve their objectives.” (Swarbrooke, 2007:340) It is shown that the Great Wall, with the addition of cultural information presented through museums, an online presence, Pulley systems, and toboggan rides has continued to satisfy the needs of the general visitor. However, this satisfaction of needs comes at a price, since the government’s on-going objectives to maintain and preserve the cultural heritage of this UNESCO World Heritage site have quickly vanished.

Before the Chinese government continues to build year after year further attractions surrounding the Great Wall, they must constantly be aware that the Great Wall is firstly a heritage site and funding and development should reflect that fact. This has already been brought to the Chinese government’s attention with the closing of Simatai for renovations and the development of further attractions. The negative impacts on the local businesses and cultures have been great, which has drawn attention to the government of their responsibilities to locals and the social impacts of tourism attractions. (Lu, 2010)

Since the Petronas Twin Towers have always been located in the heart of the city of Kuala Lumpur, they satisfy their customers with their accessibility, price point, and variety of offers within the Towers as well as in the surrounding area. Their challenge in the future will be attracting international arrivals to Kuala Lumpur, since currently with the economic crisis in the Western nations, international arrivals have dropped off. As well, the Petronas Towers must continue to better suit the needs of the domestic tourist, which has already been shown through the variety of offers including meals atop the Towers, as well as linking with other attractions nearby such as the Suria KLCC.

After delving into the respective products, markets, transport and business environment of these two attractions, a trend can be seen towards focusing on and improving the infrastructure for domestic tourism, as it is becoming the leading market in both countries. As well, it should be noted that both the Great Wall and the Petronas Twin Towers must continue to evolve to suit the needs of their visitors while maintaining the integrity of their respective attractions, which has shown more difficult than first imagined with commercialism taking its toll. As well, with a new focus on sustainability and the natural environment, both attractions need to balance these issues with economic growth and development. Until then, hopefully both countries can float on their domestic tourist markets until the economic crisis in the West has been resolved.

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The Great Wall of China and The Petronas Towers

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