The Future of Chinese Travel - The Global Chinese Travel Market - A report by Oxford Economics for InterContinental Hotels Group (IHG)
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The Future of Chinese Travel The Global Chinese Travel Market A report by Oxford Economics for InterContinental® Hotels Group (IHG®)
1 Contents Executive Summary 2 Introduction 6 1 Background 8 2 Global destinations for Chinese travel 16 3 Chinese Traveller Spending 28 4 Additional Opportunities 38 5 Conclusion And Recommendations 46 Annex: Global City Travel Data Tables 50 – breakdown by country Annex: City Calculation Methodology 66
2 3 • Robust income growth and expansion of China’s • Leisure tourism comprises an increasing share middle class will make long-haul travel more of Chinese travel demand. Currently, leisure achievable for Chinese households. The number accounts for 59% of total Chinese travel and of Chinese households earning above $35,000 per tourism spending. By 2023, the leisure share of annum – a key income level at which international total Chinese outbound tourism will reach 62%. travel becomes more affordable – rose by 21 With the growing popularity of leisure travel to the million from 2003 to 2013. An additional 61 million US and Europe, these long-haul destinations will Executive Summary households will pass this threshold by 2023. experience greater travel flows from China. • Already, Chinese travellers are ranked among • Cities are the primary destinations of Chinese the top spenders on a per-trip and per-night travellers, with over 85% of Chinese outbound basis. Redistribution of Chinese households travel to major cities around the world. Excluding toward the middle and upper income classes SAR destinations, 70% of outbound travel from will raise the value of Chinese travellers to China is to major cities. As income growth drives international destinations as preferences continue up tourism demand, this preference will fuel robust their shift toward long-haul travel, higher-cost growth in Chinese travel to major city destinations, accommodations and upscale shopping. relative to non-urban destinations. • China is becoming the largest source market • Historically, low average household incomes, for international travel. Already the global leader a large lower income class, and travel restrictions in tourism departures, it is estimated that – both inbound and outbound – have tempered China overtook the US as the largest source Chinese demand for long-haul travel, weighting of international travel spending in 20141. In total, Chinese travel toward short-haul destinations. Chinese travellers made over 67.5 million trips The Special Administrative Regions (SARs) of Hong in 2014. Annual Chinese arrivals are expected Kong and Macao received a combined 28.4 million to total nearly 97 million by 2023 at an average tourist arrivals from China in 2014 – representing annual growth rate of 5.1% over the ten-year 42% of total Chinese outbound travel. Given the forecast horizon. ease of travel to the SARs, and their high popularity among Chinese travellers, these destinations will Chinese demand for long-haul travel will ramp up maintain their market share over the next ten years Total Chinese outbound travel spending by destination, billion US$ even as Chinese visits to other short- and long-haul markets become more frequent. Chinese household income Southeast Asia 2023 distribution Hong Kong, SAR 2013 Millions of households by earnings per annum Macao, SAR North America 400 364 up to $20,000 $20,000 to $35,000 Northeast Asia (ex SARs) 350 312 $35,000 to $70,000 $70,000 to $150,000 Western Europe 300 over $150,000 Emerging Europe 250 Africa 200 Annual arrivals Oceania 150 93 from China South America 63 will total nearly 100 South Asia 44 50 21 Middle East 0 5 1 21 4 97 million globally Caribbean 2013 2023 Source: National Statistical Offices, Tourism Economics by 2023 Central America 0 10 20 30 40 50 1 Chinese outbound spending is already larger than that for the US according to some sources and notably balance of payments data. However, once education related spending is removed from the total it is still lower than the US for 2013.
4 5 • Whereas the volume of arrivals from China to European cities, London enjoys the highest average Growth premium from travel facilitation global destinations varies considerably, average trip length for Chinese travellers, topping several Chinese Traveller Spending, billion US$ 2017 length of stay is a more meaningful measure for other leading long-haul destinations. comparing the value of Chinese tourists across • Nearly 92.5% of total Chinese outbound travel es global cities. Sydney and Melbourne enjoy the St at spending is received by major global cities – 44% d highest trip lengths among long-haul markets Un ite excluding Hong Kong and Macao. The largest city 20 in the Asia-Pacific region. While New York City, markets for Chinese travel spending are mostly Los Angeles, and Tokyo represent the top three found in the Asia-Pacific and the US. However, destinations for Chinese travellers in terms of Baseline spending growth over the next decade will see visits, they enjoy a somewhat lower length of stay more long-haul cities rise to the top. Incremental gain than Bangkok and Pattaya in Thailand. Among 15 aila nd from travel facilitation Th n iwa Ta 10 a re Ko h ut So n pa Ja 5 0 s d an rea n re lia sia ly da m y ce d a m ica ia s l a ain ia azi an e nd ssi tin an an pa Ita es Ind tna do po n tat a na w Afr lay Sp Ko Chinese traveller arrivals Chinese traveller hotel nights Br rm Fra str rla ail Ja erl en Ru on Tai ing ga Ca dS Vie Ma Th Ag Au Ge the uth itz uth Ind Sin dK ite Sw Ne So So to top city destinations in top city destinations Un ite Un Source: Tourism Economics Note: Hong Kong and Macao growth premiums excluded to improve scale Absolute growth in thousands, 2013 - 2023 Absolute growth in thousands, 2013 - 2023 • Destinations with easier access, including 800 2,500 simpler visa policies, are set to gain the most. Additional measures to improve visitor visa access present even greater opportunities for tourism Improving access to 600 2,000 growth to these destination countries. Analysis of historical travel facilitation reforms affecting travel for the Chinese Chinese nationals shows that these reforms yielded an average growth premium of 19.9 percentage yields a nearly 20% 1,500 points in Chinese arrivals above historical trend. This implies that destinations which adopt growth premium facilitative policies could see a substantial growth in arrivals 400 premium in Chinese arrivals over a three-year 1,000 forecast horizon. Examples of these reforms include extending visas on arrival (VoA) and visa waivers to Chinese nationals, as well as 200 the addition of destination countries to China’s 500 Approved Destination Status (ADS) scheme. 0 0 k a y s yo co C i P) ey et on lan ka ur am y s yo k ya co ur l C as e lan me ce Cit ele tay ko , Tu li ou ,D Cit ele nic ko uk ) (N ,D dn Tok mp cis sa a nd an tta Tok mp ren cis eg Mi ng B Mi Mi Se Ro t ng ton ng ork Ph b Sy O Pa ng Ve ton Lo ne ork ran sV Lu Pa ran Ba Lu Flo sA Ba ing sA sto wY ing wY La nF ala ran nF ala Lo sh low Lo Ne sh ma Sa Ku Ne Sa Ku Wa Wa Yel (Ji Source: Tourism Source: Tourism Economics Economics Source: Source:Tourism Economics Tourism Economics
6 7 Introduction This report examines trends in Chinese outbound and high-end shopping are also explored as drivers of travel in the context of economic and demographic the increasing value of Chinese travellers to these city developments and projects how Chinese travel demand destinations over the forecast horizon. will evolve over the coming decade. The research provides a unique perspective of which destinations - As countries globally look for new sources of income both cities and countries - are set to benefit most and job creation, the potential benefits from improved from this growth in Chinese travel demand. Modelling travel policies in terms of boosting visitor numbers has linked expected growth in income and spending are also explored, offering recommendations and to total tourism demand. The potential benefit for best practices for global destinations. Historical case different worldwide destinations has also been studies of travel-related reforms affecting Chinese identified in comparison to overall growth in Chinese travel provide the basis for an alternative scenario outbound travel. which addresses the potential impacts on Chinese tourist arrivals and travel spending within destination In particular, global city destinations are identified markets pursuing such reforms. as key growth markets for Chinese outbound tourism. Given that cities are the primary loci of growth in China’s mid- to upper-class households, global city destinations are expected to receive a greater share of additional Chinese outbound tourism relative to non-urban destinations. The increasing preference for long-haul leisure travel, higher-cost accommodations,
8 9 1. Background 1.1 Favourable economic and demographic trends China has experienced phenomenal economic China has experienced growth over the past decade with GDP per capita outperforming other large emerging markets. Growth phenomenal economic has exceeded that of the other BRIC economies which represent the largest emerging markets experiencing rapid growth. growth over the The size of the Chinese middle class has expanded past decade massively as average income has risen. GDP per capita has increased in real terms to close the gap on developed countries with growth of 148% over the past ten years. Between 2003 and 2013, GDP per capita grew at an average annual rate of 5.5% in the BRIC economies, dwarfing rates of 0.7% and 0.9% across the Eurozone and in the US, respectively. Growth in Chinese GDP per capita led that of both key emerging markets and developed economies over this period, and average incomes are expected to rise further as the economy continues to develop.
10 11 Real GDP per capita Real GDP per capita Middle class households % growth per annum % growth per annum Million households with income over $35k; able to 14 Eurozone 14 Brazil India afford long-haul travel 90 Shanghai will surpass Boston, Philadelphia United States Russia Brazil China China India 12 12 80 Russia China and San Francisco in 10 10 70 8 8 60 GDP by 2016 6 6 50 4 4 2 2 40 0 0 30 -2 -2 20 -4 -4 -6 -6 10 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -8 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003 2013 2023 Source: Census Bureau, Eurostat, National Statistical Offices, Tourism Economics Source: United Nations, Tourism Economics Source: Oxford Economics Chinese Cities: Select indicators Bubble size represents relative GDP per capita The proportion of households able to afford leisure majority of China’s middle- to upper-income classes – i ha travel, and international travel in particular, has encompassing households which are most likely GDP a ng Sh risen globally over the past decade, but especially in to engage in long-haul travel. Thus, rapid expansion 350 China. Previous analysis of income and travel spending of Chinese cities illustrates the substantial economic patterns by the World Travel & Tourism Council (WTTC) growth driving Chinese tourism demand. Looking ijin g Be and Oxford Economics for InterContinental® Hotels ahead, Chinese cities will become more important, 300 Gu Group (IHG®)2 identified household income of close rising in GDP rankings and overtaking some developed an gz to $20,000 as the threshold at which Chinese European and North American cities in terms of ho u, Gu an jin households can afford leisure travel. From there, size, supporting expectations for greater Chinese 250 Su zh Sh gd on Ti an ou it was determined that households making $35,000 international tourism. ,J ia en zh en g ng per annum find international travel more affordable, su in g taking more long-haul trips. Currently, there are over 150 Chinese cities with a ho ngq 200 C population over one million that can be considered an hu The number of Chinese households earning above significant origin markets for tourism, given Si c d u, $35,000 rose to an estimated 27 million in 2013 their rapid GDP and income growth over the past n gs u e ng 150 ia Ch from 6 million just ten years ago. The 21 million new decade. Several Chinese cities are set to overtake ux i,J W Chinese households now able to afford travel dwarfs some notable Western cities in terms of GDP size the household wealth accumulation in other emerging in the coming years. Shanghai will surpass Boston, 100 markets. In 2003 there were an estimated 11 million Philadelphia, and San Francisco by 2016, and Beijing Xiamen, Kunming, Yunnan households in Brazil, Russia and India with income is expected to do the same by 2021. These and other Fujian above the $35,000 level. By 2013, this value had grown rising Chinese cities are likely to become the most 50 to 23 million; fewer households than in China alone. important source markets for international tourism demand, especially as China’s increasingly urban Chinese cities are also rising in prominence as hubs population prefers travel to city destinations. Xianyang, Shaanxi of economic activity. Urban centres are host to the 0 5 10 15 20 25 30 Population million Population million 2 World Travel & Tourism Council and Oxford Economics (2014), The Economic Impact of Travel & Tourism 2014 (Online), available: http://www.wttc.org/focus/research-for-action/economic-impact-analysis/
12 13 Chinese household income distribution Chinese household income distribution China travel and tourism spending by purpose of trip Share of Chinese households by income class Share of Chinese households by income class Billion US$ % 2013 $70k to $150k 2023 $70k to $150k 300 80 1.1% Over $150k 4.3% $35k to $70k 0.2% Over $150k Forecast 4.9% 0.8% 70 250 60 $20k to $35k 200 10.1% $35k to $70k 12.8% 50 150 40 Business share of total T&T spending (R) $20k to $35k Business (L) Leisure (L) 30 18.8% 100 Up to $20k Up to $20k 20 83.7% 63.4% 50 10 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: National Statistical Offices, Tourism Economics Source: National Statistical Offices, Tourism Economics Source: IMF, UNWTO/ Ministry of Tourism, Tourism Economics 1.2 Demand for international travel Chinese – even those at lower income levels – spend Leisure travel has begun to represent a greater around 53% of their disposable income on travel – Top long-haul country arrivals, 2013-2023 share of total Chinese travel demand. Historically, will grow further excluding spending on necessities. outbound travel demand has been dominated by Chinese incomes are set to grow further over the business travel; less than ten years ago business The number of low-income households with high Absolute growth travel spending comprised over three-quarters of total coming decade and beyond, catching up further propensity for booking short-haul trips and low-cost with developed countries in terms of average income. Rank Market (‘000 arrivals) Chinese international travel spending. Business travel accommodations – those earning between $20,000 now accounts for less than half of Chinese demand Oxford Economics predicts that 61 million more to $35,000 per annum – will more than double by 2023 1 United States 3,431 households will be able to afford international travel and could fall further as household income and leisure to 92.6 million. The number of Chinese households 2 France 1,221 demand continue to mature. By 2023, leisure trips by 2023, cementing China’s place as the top origin earning between $35,000 and $70,000 – the income 3 Germany 909 are expected to account for 62% of total Chinese market. China is currently on par with the US as bracket where demand gravitates toward long-haul a source market and is set to become the largest 4 Russia 541 outbound travel. trips and higher-cost accommodations – will nearly long-haul source market, surpassing the UK, US, triple to 63 million. Most promising is the expected 5 Switzerland 474 Long-haul leisure travel destinations are set to benefit and Germany, by 2020. quadrupling in the number of Chinese households 6 Austria 377 the most from evolving demand. There is potential The countries with the greatest opportunities for making $70,000 to $150,000 by 2023 to 21.3 million. 7 Italy 359 for even stronger growth in some destinations growth in coming years are those that currently Travellers in the highest income bracket are most 8 Belgium 343 as further moves can be made to ease access or to represent smaller shares of outbound Chinese travel. likely to opt for luxury accommodations and tend to 9 Netherlands 322 attract Chinese tourists. The top long-haul destination The United States stands out as a destination which spend more while on long-haul trips. countries for Chinese travellers – namely the United 10 United Kingdom 299 receives a relatively low share of Chinese travel – States, France, and Germany – will likely remain the As Chinese tourism demand matures we expect most popular, but outbound volumes and spending about 3% in 2013 – but will experience strong growth, preferences to shift toward more expensive, longer- as a result of increasing efforts to boost inbound from China to these and other long-haul destinations haul experiences. Tourism demand by origin market are set for considerable growth. travel via improvements to visitor visas and marketing tends to evolve from domestic to short-haul to efforts. Similarly, the United Kingdom will see Chinese long-haul travel as growth in the proportion of middle arrivals more than double over the next decade – due, class households causes average incomes to rise. in part, to ongoing visa improvements. Rapid growth in the number of middle to upper Expected changes in China’s income distribution class households in China will fuel the transition suggest that Chinese travellers will become more toward long-haul travel and raise the average value valuable to foreign destination markets in the next of Chinese travellers to destinations markets. eight years. According to the World Travel Organization (UNWTO) and European Travel Commission (ETC)5, 5 European Travel Commission and World Tourism Organization (2013), The Chinese Outbound Travel Market– 2012 Update, UNWTO, Madrid.
14 15 Chinese guests in foreign and domestic hotels Thousands % 1.3 Domestic vs outbound tourism demand Domestic demand 1600 Forecast 95 Chinese tourism has largely remained within domestic for visitor 1400 Domestic hotel guests 94 borders to date, although outbound travel has grown strongly. Today, over 90% of Chinese travellers stay accommodation within China share of total resident travel* (R) 93 Outbound travel (L) at domestic hotels. Fewer than 15% of all trips made 1200 Domestic guests (L) by Chinese citizens are outbound, albeit a higher 92 1000 91 proportion than in previous years. Domestic tourism demand within China is five times hit 1.6bn room 800 90 larger than it was ten years ago. In the latest estimates by Tourism Economics, there were almost one billion nights in 2013 visitor arrivals at accommodation establishments 89 in 2013, generating 1.6 billion room nights. This is 600 equivalent to around 1.2 room nights per capita, 88 up from a ratio of 0.3 ten years ago. By comparison, 400 US domestic room demand per capita is around 87 4.3 room nights. 200 86 Domestic tourism demand will continue to grow despite some loss of market share to 0 85 international destinations. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: IMF, UNWTO/ Ministry of Tourism, Tourism Economics Domestic Chinese travel demand is highly concentrated * Resident travel = domestic hotel guests+ outbound travel within cities. We calculate that in 2013 around two- thirds of Chinese domestic travel was concentrated within the largest 30 cities in China, in terms of China travel spending by destination population. This proportion has remained relatively Billion US$ stable over the last ten years. % 1800 16 20 percent of domestic travel is currently located in the Tier 1 Chinese cities of Shanghai, Beijing, Guangzhou and Shenzhen6. As business and administrative 1600 Forecast 14 centres, these major cities are unsurprisingly significant destinations for both leisure and business 1400 tourism. They are also key gateways for foreign Outbound share of total 12 travel spending (R) tourism. Increased length of stay for major cities has Outbound (L) 1200 Domestic (L) been especially evident in Tier 1 cities as tourism has 10 evolved to include leisure visits. 1000 The strongest domestic tourism growth over the 8 past ten years has been within Tier 2 cities7, helped 800 by large scale supply-side developments – including 6 improvements to tourism facilities, hotels, 600 and infrastructure. 4 400 200 2 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: UNWTO/ Ministry of Tourism, Tourism Economics * Resident travel = domestic hotel guests+ outbound travel 6 Cities with 16 million households and $1 trillion in total household income – according to Nielsen 7 Cities with 38 million households and $2 trillion in total household income – according to Nielsen
16 17 2. Global destinations for Chinese travel 2.1 Cities are key destinations of travel is well suited to overnight city visits allowing major sights to be seen in close proximity to the hotel. Over 85% of Chinese international travel is to major city destinations, including travel to Hong Kong and Macao. Among the top destination countries, major cities alone Excluding these Greater China or SARs destinations, receive almost half of each country’s total Chinese the proportion falls to around 70%, but it is clear that visitors. For example, Bangkok accounts for over cities represent a large proportion of Chinese travel 40% of Chinese room demand in Thailand while Seoul demand.8 By comparison, total international travel to generates just below 50% of room demand in Korea. major cities from all origin markets represents around At the extremes, London accounts for over 60% of 45.1% of all travel demand. Identifying where Chinese all Chinese stays in the UK, and Auckland receives travellers go to within destination countries is essential a similar proportion of total Chinese travel to New to understanding this rapidly expanding origin market. Zealand, while Sao Paolo attracts over 70% of Chinese Chinese travel preference has been influenced in the visitors to Brazil.9 past by a high proportion of business travel, skewing The comparison of top global city destinations volumes towards cities as business centres. However, by arrival numbers provides some important insights business travel currently accounts for less than half of about the behaviour of Chinese travellers. For instance, all Chinese international travel demand. The proportion the fact that several Italian cities – namely Milan, of total Chinese travel to cities remains high, indicating Florence, and Venice – appear on the top for arrivals a preference for leisure travel to cities as well. while other popular European cities – such as London This fits with the key travel modes of Chinese tourists, and Paris – are absent does not necessarily who tend to travel as part of a package trip involving mean that these destinations are more popular group tours with multiple destination stops. This type among Chinese tourists.10 Over 85% of Chinese international travel is to major city destinations 8 Arrivals at all cities within a country can exceed the country total due to visits 10 The country-level arrivals data for Italy represent the sum of all arrivals at to multiple cities within the same trip. hotels at the city level – rather than arrivals at borders, as is the case with most European countries. Since Chinese visitors tend to stay in more than 9 Arrivals are measured within this study as travel involving at least one five Italian cities per country visit, their length of stay in a given Italian city is overnight in a hotel establishment or other paid accommodation. Visits to far lower than that in London or Paris – where visitors spend the bulk of their friends and relatives are not included in these trends. nights per country visit.
18 19 In terms of number of nights spent by tourists, the mix Top global city arrivals, 2013 Top city arrivals, Asia-Pacfic, 2013 Seoul is the most visited global city destination of top global city destinations is more diverse. Sydney by Chinese travellers outside of the SARs, but it only and Melbourne are added to the list, highlighting Rank Market Value (‘000 arrivals) Rank Market Value (‘000 arrivals) enjoys the fifth largest number of overnight stays, the tendency for Chinese visitors in Australia to stay 1 Seoul 2,009 1 Seoul 2,009 with very low reported average length of stay by longer than in most other Asia-Pacific locations, 2 Bangkok 1,758 2 Bangkok 1,758 Chinese visitors across Korea. given the lower number of Chinese arrivals to these 3 Pattaya 1,339 3 Pattaya 1,339 cities. Similarly, Dubai is among the top destinations 4 Taoyuan 734 4 Kuala Lumpur 579 Seoul essentially acts as a hub to other destinations - it 5 Kuala Lumpur 579 5 Phuket 544 in nights, despite the average number of Chinese 6 Taipei 566 6 Tokyo 528 is a very popular city for connecting flights to, from and arrivals to Middle Eastern cities falling behind that 7 Phuket 544 7 Busan 472 within the Asia-Pacific region. The fact that average of destinations in the other regions. 8 Tokyo 528 8 Jeju City 379 length of stay is just one night is partially due to Seoul 9 Busan 472 9 Bali (Jimaran, Tuban) 348 10 New York City 395 10 Chiang Mai 251 Incheon International Airport offering travellers with This raises an important distinction between the 11 Los Angeles 392 11 Banten 230 long-enough layovers between flights a complimentary volume and value of Chinese outbound travel. While 12 Jeju City 379 12 Incheon 217 overnight stay and city tour. Chinese tour groups can 13 Bali (Jimaran, Tuban) 348 13 Siem Reap 213 some cities receive a greater number of Chinese visits 14 Milan 325 14 Pahang 196 incorporate this into their itineraries on trips to other (volume), others experience a greater number of room 15 Firenze 283 15 Sydney 195 destinations within the region or indeed beyond. nights spent by Chinese visitors (value). Average length of stay represents the ratio of room nights spent per Destinations within Thailand are the next most- visit, providing a more meaningful comparison of the Top global city nights, 2013 Top city nights, Asia-Pacfic, 2013 visited global cities by Chinese travellers and enjoy relative value of Chinese tourists across global cities. a high average length of stay. The top three global Rank Market Value (‘000 nights) Rank Market Value (‘000 nights) destinations measured in terms of hotel rooms sold Discounting the Canadian provinces, which incorporate 1 Bangkok 10,251 1 Bangkok 5,374 to Chinese tourists are within Thailand. Bangkok is several city destinations, Fukuoka in Japan boasts 2 Pattaya 7,810 2 Pattaya 4,094 a key gateway to the country and also to the region 3 Taipei 6,385 3 Phuket 1,663 the greatest length of stay by Chinese visitors at 4 Taoyuan 6,222 4 Tokyo 1,177 as a whole, with short-haul leisure travel representing 12.6 nights per trip in 2013. By this measure, Medina 5 Phuket 3,173 5 Seoul 1,062 the bulk of international trips by Chinese travellers. and Mecca in Saudi Arabia are among the top city 6 Tokyo 2,145 6 Kuala Lumpur 841 destinations for Chinese tourists, highlighting the 7 Seoul 2,075 7 Chiang Mai 768 Kuala Lumpur also receives a large number of visitors 9 Chiang Mai 1,464 8 Sydney 663 significance of China’s expanding Islamic population. 10 New York City 1,307 9 Melbourne 534 as the fourth most visited city, similarly acting as a London – the top Chinese destination in the UK and a 11 Los Angeles 1,303 10 Ayutthaya 512 destination and business centre as well as a gateway major transportation hub – is one of the top long-haul 12 Sydney 1,240 11 Osaka 447 to the rest of the country. Travel to Malaysia – 13 Melbourne 998 12 Fukuoka 383 cities in terms of average stay at seven nights per trip. 14 Ayutthaya 976 13 Siem Reap 310 specifically to Kuala Lumpur – involves a higher Melbourne and Sydney post the next longest average 15 Dubai 895 14 Hanoi 289 proportion of Chinese business travel than travel stays at close to 6.5 nights. Other top long-haul city 15 Pahang 285 to Thai destinations. destinations ranking high in average stay by Chinese Tokyo is the top city destination within Japan, tourists include Istanbul (3.7 nights), several US cities Average length of stay, 2013 Average stay, Asia-Pacfic, 2013 accounting for nearly half of Chinese travel to the (3.3 nights) – including New York City, Los Angeles, Rank Market Value (nights per trip) Rank Market Value (nights) country. Tokyo is also the sixth most visited destination San Francisco, and Washington, DC. worldwide and is favoured with a high length of stay 1 British Columbia 17.3 1 Fukuoka 12.6 2 Ontario, Alberta 15.6 2 Melbourne 6.5 by Chinese visitors. In terms of room nights, the city 3 Fukuoka 12.6 3 Sydney 6.4 overtakes Kuala Lumpur, despite receiving fewer 4 Quebec 11.2 4 Pattaya 5.8 5 Medina 7.7 5 Ayutthaya 5.8 Chinese travellers. 6 London 7.0 6 Phuket 5.8 7 Melbourne 6.5 7 Bangkok 5.8 Travel to Indonesian cities is less favoured by the 8 Sydney 6.4 8 Chiang Mai 5.8 Chinese than other regional centres, with a majority 9 Sharjah 6.3 9 Osaka 5.0 10 Sao Paolo 6.1 10 Tokyo 4.1 of travel to that country involving leisure trips to Bali. 11 Bangkok, Pattaya, Phuket, 5.8 11 Hanoi 2.9 Nevertheless a relatively large proportion of travel to Chiang Mai, Ayuttha 12 Siem Reap 2.7 Indonesia involves business travel with low average 12 Mecca 5.7 13 Kuala Lumpur 2.6 13 Osaka 5.0 14 Pahang 2.6 length of stay. London– is one of the 14 15 16 Jeddah Riyadh Tokyo 5.0 4.5 4.1 15 Seoul 1.0 Australian destinations see high length of stay and a relatively low share of business travellers. Melbourne top long-haul cities 17 18 Istanbul New York City, Boston, 3.7 3.3 2.2 City destinations by region and Sydney have become the primary long-haul city destinations in the region as Chinese leisure in terms of average Los Angeles, Las Vegas, San Francisco, Chicago, Asia-Pacific travel has grown. Washington DC, Philadelphia, stay at seven nights In terms of arrivals, the top seven city destinations New Jersey, Seattle 19 Dubai 3.3 20 Hanoi 2.9 for Chinese travellers are all in the Asia-Pacific region, even excluding Hong Kong and Macao. per trip These cities comprise around one-third of total Chinese outbound travel.
20 21 Europe In fact, London is estimated to be the largest European Top city arrivals, Europe, 2013 market for Chinese room nights. This is due to a Seemingly, the top three most visited cities in Europe combination of a much longer average length of stay Rank Market Value (‘000 arrivals) by Chinese travellers are all within Italy, with Rome and also fewer people per room. Ironically, it appears 1 Milan 325 in 5th place. However, the counting of international that a factor holding London and UK visitor volumes 2 Florence 283 arrivals at Italian hotels rather than borders – as with back is actually increasing the value of each visit. 3 Venice 283 4 Paris 226 other European countries – skews the ranking for Sitting outside the Schengen visa zone, it is more 5 Lucern/Lake Lucern 219 the region. Italian cities are popular city destinations difficult for Chinese travellers to visit the UK as part 6 Rome 190 for the Chinese but show relatively low average trip of a multi-destination trip to Europe so when they do 7 Bernese Oberland 164 8 Tyrol 145 lengths compared to other European cities, as visits visit, they tend to stay longer than in other European 9 Frankfurt 143 tend to incorporate multiple city destinations. destinations. This could change as UK visa policies 10 Zürich Region 137 Further, Chinese travel is dispersed across a number affecting Chinese travellers become more facilitative. 11 Vienna 115 12 Munich 100 of centres within the country rather than a single UK travel also retains a higher concentration 13 Treviso 95 stand-out destination. Each of the top three cities of business travel, partially explaining the lower 14 Berlin 84 receives between 15% and 17% of Chinese travel guest-per-room ratio. 15 Padova 82 to Italy as a whole. The nature of travel demand to London is also an By contrast, France is the second most visited explanatory factor as many visitors prefer to be based Top city nights, Europe 2013 European country by Chinese travellers, but only Paris within the city to take day trips to other destinations ranks in the top 10 European cities. In fact, the second within the UK. This is unlikely to change significantly Rank Market Value (‘000 nights) most visited European city by global travellers is Lyon, while Chinese travellers continue to favour organised 1 Milan 560 ranked as only the 38th largest city within Europe for tours, as other UK cities cannot easily serve as stops 2 Florence 410 3 Venice 365 Chinese travel, as much of Chinese tourism in France on the way to other country destinations. This differs to 4 London 343 is concentrated around the Paris region. other smaller cities in Europe. 5 Paris 328 6 Rome 307 Travel to France from China is an unusual case, 7 Frankfurt 222 8 Munich 207 as visits and overnight stays are concentrated 9 Berlin 187 outside of major city areas. Overnight visits are 10 Lucern/Lake Lucern 148 heavily concentrated in the Ile de France region, 11 Bernese Oberland 117 12 Vienna 116 which includes Paris, but are most frequent in the 13 Zürich Region 112 departments adjoining the city rather than in 14 Istanbul 99 Paris itself. In 2013 there were two million Chinese 15 Tyrol 91 arrivals in France of which 1.2 million stayed in paid accommodation. Of these, around 900,000 stayed within the wider Ile de France region, but fewer than Average stay, Europe 2013 250,000 stayed within Paris itself. That is, Paris only Rank Market Value (nights) accounts for around a quarter of all Chinese overnight stays to the wider region. For other international origin 1 London 4.6 2 Berlin 2.2 markets, 60% of overnight travel to the Ile de France 3 Munich 2.1 region is centred in Paris itself. 4 Istanbul 2.0 5 Milan 1.7 Travel to the UK provides a clear contrast with a heavy 6 Rome 1.6 concentration of Chinese visitors (over 60%) staying 7 Frankfurt 1.6 8 Paris 1.5 within London. The UK capital appears to be used as 9 Florence 1.4 a base from which to explore the rest of the country, 10 Venice 1.3 with a large number of nights spent in the city. This 11 Vienna 1.0 concentration positions London as the 16th most visited European city by Chinese travellers in 2013, while the UK is only the 11th most visited country London is estimated in the region. to be the largest Comparisons of Chinese travel to Paris and London clearly show the distinction between traveller volume European market for and value. Paris receives three times more hotel guests from China than London, yet it is estimated that London Chinese room nights sells more hotel room nights to Chinese tourists than Paris.
22 23 Top city arrivals, Americas, 2013 Americas Middle East Top city arrivals, Middle East, 2013 Rank Market Value (‘000 arrivals) Travel to the US from China dwarves other destinations Middle East city destinations receive far fewer Chinese Rank Market Value (‘000 arrivals) 1 New York City 395 within the American continent – the top 12 city travellers on average relative to locations in other 1 Dubai 276 2 Los Angeles 392 destinations for travel in terms of arrival numbers regions of the world. The tendency for longer-than- 2 Abu Dhabi 44 3 San Francisco 253 within the region are in the US. Yet, the average length average lengths of stay raises the value 3 Doha 15 4 Washington, DC 202 4 Riyadh 7 5 Las Vegas 195 of stay by Chinese hotel guests in US cities is notably of Chinese visitors to the region however. 5 Mecca 4 6 Chicago 121 shorter than the average stay for the country as a 6 Jeddah 2 7 Boston 117 whole. This is largely due to the extensive US air travel A rising Muslim population in China has contributed 7 Medina 1 8 Philadelphia 47 network and universal visa access throughout the to an increase in family and religious related trips to 8 Sharjah 0.04 9 New Jersey 47 10 Seattle 46 country, which increase the ease of inter-city travel. the region. According to Pew Research11, the Muslim 11 San Diego 41 This makes it more appealing for Chinese travellers to population in China comprised 1.8% of the nation’s 12 Buffalo 40 total population in 2010, a 38.4% increase from two Top city nights, Middle East, 2013 13 British Columbia 37 visit multiple cities while in the US, especially as part of 14 Orlando 37 a tour group package. On average, Chinese travel to the decades prior. The rapid expansion of China’s Muslim Rank Market Value (‘000 nights) 15 Atlanta 35 US tends to involve visits to two or more cities per trip. population has resulted in inflated demand for travel from China to centres of the Islamic faith. 1 Dubai 895 2 Abu Dhabi 83 The US also has a more diverse city offering than many 3 Riyadh 32 Top city nights, Americas, 2013 other countries and lacks a single dominant city in Medina and Mecca have largely benefited from this 4 Doha 27 terms of arrivals. Three cities stand out as receiving trend. The travel, retail and entertainment centres 5 Mecca 23 Rank Market Value(‘000 nights) of Dubai and Abu Dhabi have led the region, 6 Medina 11 a notably larger than average proportion of Chinese 7 Jeddah 8 1 New York City 817 travel however: New York City, Los Angeles and San attracting an increasing number of Chinese tourists 8 Sharjah 0.27 2 Los Angeles 814 Francisco. Together these cities account for around on leisure trips and cruises. 3 San Francisco 525 4 British Columbia 456 half of the nights spent by Chinese travellers in the Chinese visitors to the Middle East tend to stay longer 5 Washington, DC 418 US. All three cities are ranked among the top 15 global Average stay, Middle East, 2013 6 Las Vegas 404 than in the average long-haul destination for two main markets in terms of Chinese arrivals and room nights 7 Ontario 374 reasons. First, religious visits tend to last longer than Rank Market Value (nights) 8 Chicago 251 and are expected to remain the most visited within the other leisure trips. For instance, a trip to the Islamic 9 Sao Paulo 246 wider region over the next ten years. 1 Medina 7.7 10 Boston 243 centres of the Middle East might incorporate sight- 2 Sharjah 6.3 11 Quebec 179 Some cities in Canada, and to a lesser extent, Brazil, seeing and participation in religious observations or 3 Mecca 5.7 12 Alberta 110 13 Philadelphia 98 see a relatively higher benefit measured in terms of events which can last for several days, as opposed to 4 Jeddah 5.0 5 Riyadh 4.5 14 New Jersey 98 overnight stays and rooms sold. These cities all enjoy sporting or entertainment events which might take 6 Dubai 3.2 15 Seattle 97 a higher average length of stay than US cities. Sao place on a single day. Second, cruises in the Middle 7 Abu Dhabi 1.9 Paulo – the largest city in the Americas – is favoured East – popular among Chinese leisure visitors – often 8 Doha 1.8 by a relatively high length of stay, given the presence involve one major coastal city as a base for overnight Average length of stay, 2013 lodging and departures for day excursions to other of the most heavily-used airport in Latin America with Rank Market Value (nights) regional service to key destinations in Brazil and much destinations in the region. 1 British Columbia 17.3 of South America. Similarly, Chinese travel to Canada 2 Alberta 15.6 tends to revolve around urban centres (e.g. Vancouver 3 Ontario 15.6 in British Columbia and Toronto in Ontario) with day 4 Quebec 11.2 5 Sao Paulo 6.1 trips throughout the rest of the province. 6 New York City 3.3 7 Los Angeles 3.3 Outside of Brazil, travel from China to Latin America is 8 San Francisco 3.3 relatively low compared to the rest of the region, with 9 Washington, DC 3.3 business taking up a greater proportion of trips than 10 11 12 Las Vegas Chicago Boston 3.3 3.3 3.3 leisure. Mexico is the next largest country destination for Chinese travellers, though Mexico City – the A rising Muslim 13 14 Philadelphia New Jersey 3.3 3.3 country’s top city destination – received fewer than 10,000 Chinese visitors in 2013. population in China has contributed to 15 Seattle 3.3 an increase in family and religious related trips to the region 11 Pew Research Center’s Forum on Religion & Public Life (2011), The Future of the Global Muslim Population (Online), available at: http://www.pewforum. org/2011/01/27/future-of-the-global-muslim-population-regional-asia/#ftn1
24 25 Top city arrivals, Asia-Pacfic, 2013-2023 Top city nights, Asia-Pacfic, 2013-2023 Top city arrivals, Americas, 2013-2023 Top city nights, Americas, 2013-2023 Rank Market Absolute growth Rank Market Absolute growth Rank Market Absolute growth Rank Market Absolute growth (‘000 arrivals) (‘000 nights) (‘000 arrivals) (‘000 nights) 1 Tokyo 701 1 Bangkok 2,112 1 New York City 772 1 New York City 1,600 2 Bangkok 691 2 Pattaya 1,609 2 Los Angeles 752 2 Los Angeles 1,566 3 Pattaya 527 3 Tokyo 1,531 3 San Francisco 471 3 San Francisco 981 4 Kuala Lumpur 410 4 Sydney 683 4 Washington, DC 382 4 Washington, DC 798 5 Seoul 399 5 Phuket 654 5 Las Vegas 364 5 Miami 791 6 Bali (Jimaran, Tuban) 335 6 Osaka 582 6 Boston 244 6 Yellowstone (NP) 756 7 Banten 221 7 Kuala Lumpur 579 7 Chicago 210 7 Boston 508 8 Osaka 218 8 Melbourne 516 8 Seattle 96 8 Chicago 437 9 Phuket 214 9 Fukuoka 498 9 New Jersey 92 9 Sao Paulo 281 10 Sydney 191 10 Chiang Mai 302 10 Philadelphia 87 10 British Columbia 250 11 Melbourne 166 11 Aichi (Nagoya) 275 11 Buffalo 83 11 Ontario 205 12 Pahang 146 12 Seoul 208 12 Sao Paulo 75 12 Seattle 200 13 Penang 140 13 Pahang 207 13 San Diego 75 13 New Jersey 191 14 Chiang Mai 99 14 Ayutthaya 201 14 Orlando 71 14 Philadelphia 180 15 Hokkaido 96 15 Penang 197 15 Atlanta 68 15 Buffalo 171 2.3 Growth opportunities for destinations which currently receive a smaller share Americas Rio will see the greatest increase in Chinese room of Chinese outbound arrivals will also experience nights in the region outside of the US, as 250,000 global cities considerable gains. Osaka in Japan and Banten, Some of the largest growth opportunities are evident new arrivals are expected by 2023 – nearly five times Given observed travel preferences of Chinese tourists, Indonesia, will each see close to 220,000 additional for US cities, with the major gateway cities of New York the 2013 value. Brazil’s hosting of the 2016 Summer growth to key city destinations will come at a premium Chinese visitors by 2023, and the number of new City and Los Angeles expected to benefit most from Olympics in Rio could further boost the number of over growth to countryside, beach, mountain, and Chinese visitors to Sydney will approach 200,000 over their popularity among Chinese travellers. Both arrivals as Chinese spectators are introduced to the other non-urban destinations. The incremental growth the same period. cities will see nearly triple the number of Chinese cultural offerings and tourism attractions of the city in number of visitors or room nights sold is a more visitors over the next eight years. San Francisco, and surrounding area. Several Canadian destinations Growth in Chinese room nights will be strongest in Washington DC, and Las Vegas will also see robust will see greater Chinese room demand as well with instructive measure than percentage growth. A small the Asian cities of Bangkok and Pattaya in Thailand, percentage growth from a large base still implies growth, given their diverse historical attractions and Alberta and Quebec each expected to receive close to cementing their status as the largest world markets entertainment offerings. Outside of the US, Sao Paolo 200,000 additional Chinese room nights by 2023. a large increase in relative volumes and value. Some for Chinese room demand. Tokyo will also experience very small city destinations will top the rankings of will receive more than double the 2013 number of robust growth in Chinese room nights, pushing the Chinese tourist arrivals by 2023 as travel to Brazil growth in percentage terms, though their market Japanese capital into third place in the Asia-Pacific shares will remain very small relative to the current becomes increasingly popular. region by 2023. Close proximity will continue to top city destinations. benefit these already-popular Asia-Pacific destination While New York City will see the greatest incremental markets. Sydney and Melbourne will also post robust increase in Chinese room demand in the Americas, Asia-Pacific growth in room nights – more than doubling their 2013 several smaller US cities are set for significant gains as values – maintaining their status as the top long-haul well. Miami will experience considerable room demand The larger destination cities in Asia will receive markets within the region. growth by 2023, as affluent Chinese tourists are a greater share of new Chinese visitors, relative attracted to its high-end shopping and entertainment to smaller cities. Yet, percentage growth rates appear offerings. However, relatively low average trip length to be low for these markets. In terms of volume, Tokyo will prevent Miami from becoming a top city destination and Bangkok will be the largest recipients of new within the Americas. Yellowstone National Park will Chinese visitors in the region over the next eight years also benefit from a rising number of Chinese room – each are expected to receive close to an additional nights, given its popularity among group tours to the 700,000 arrivals from China by 2023. Other Asia-Pacific American West.
26 27 Europe London will lead the top European cities in room Middle East demand growth from China over the next eight years, Large opportunities exist for long-haul European markets as well. London will receive the eighth largest given the longer average trip length associated with the city’s status as a travel hub for Chinese visitors to Opportunities for additional growth in Chinese travel to the Middle East are present for both leisure and Travel from China absolute increase in Chinese visitors by 2023, though its percentage growth will be weaker than other top the UK. The city operates as a base for night life and hotel accommodation for tourists who spend their days business purposes. China’s Muslim population is expected to reach 2.1% to Mecca and European cities. Still, London will account for almost half of Chinese national room demand, and an even higher proportion of visits. Visa improvements could exploring other destinations within the UK. In terms of room nights, key Italian city destinations of its total population by 2030, representing a 28% increase over 2010 levels12. This increase will drive Medina will rise by also boost growth above expectation. will receive the next strongest growth by 2023. The tendency of Chinese travellers to stay in multiple demand for travel to the primary Islamic city centres in the region. 50% by 2023 The top four markets in terms of expected growth cities while visiting Italy will keep their average trip in Chinese visitors by 2023 are all located in Italy. length under two nights however. In contrast, Paris Over the next decade, growth in arrivals to and nights However, the counting of arrivals at Italian hotels will receive 280,000 additional Chinese room nights by spent in Dubai and Abu Dhabi is expected to top that overstates the absolute gains in these cities. In relative 2023 – just over half of the expected average across of other major city destinations throughout the world, terms, London will see larger gains, receiving close Milan, Rome, Venice, and Florence – while maintaining such as London and Paris in Europe and Sydney in to double the 2013 number of Chinese arrivals by 2023, an average trip length of 2.5 nights or more. Similarly, the Asia Pacific region. Similarly, travel from China to while Milan and Florence will see about the same Istanbul will receive around 205,000 additional Chinese Mecca and Medina is forecast to rise by 50% by 2023. number of new Chinese arrivals over the next eight room nights while enjoying an average trip length years as their respective 2013 totals. of around 3.6 nights. Top city arrivals, Europe, 2013-2023 Top city nights, Europe, 2013-2023 Top city arrivals, Middle East, 2013-2023 Top city nights, Middle East, 2013-2023 Rank Market Absolute growth Rank Market Absolute growth Rank Market Absolute growth Rank Market Absolute growth (‘000 arrivals) (‘000 nights) (‘000 arrivals) (‘000 nights) 1 Venice 358 1 London 624 1 Dubai 270 1 Dubai 875 2 Milan 350 2 Milan 613 2 Abu Dhabi 133 2 Abu Dhabi 236 3 Rome 346 3 Rome 546 3 Doha 41 3 Doha 73 4 Florence 339 4 Venice 473 4 Riyadh 4 4 Riyadh 17 5 Paris 210 5 Florence 466 5 Mecca 2 5 Mecca 9 6 Lucern/Lake Lucern 188 6 Paris 280 6 Jeddah 1 6 Medina 6 7 Frankfurt 143 7 Istanbul 205 7 Medina 1 7 Jeddah 5 8 London 130 8 Munich 200 8 Sharjah 0.06 8 Sharjah 0.34 9 Vienna 119 9 Frankfurt 199 10 Istanbul 108 10 Berlin 169 11 Tyrol 107 11 Lucern/Lake Lucern 119 12 Munich 104 12 Vienna 115 13 Zürich Region 99 13 Zürich Region 77 14 Treviso 90 14 Tyrol 67 15 Padova 84 15 Koln 66 12 Pew Research Center’s Forum on Religion & Public Life (2011), The Future of the Global Muslim Population (Online), available at: http://www.pewforum. org/2011/01/27/future-of-the-global-muslim-population-regional-asia/#ftn1
28 29 3. Chinese Traveller Spending 3.1 Chinese traveller yield While assuming the role of the largest outbound travel market in the world in terms of volume, China has also Between 2007 and caught up with other major origin markets in terms of per-trip spending. Avoiding much of the drag from 2013, Chinese per- the global recession experienced in other outbound markets, China exhibited rapid growth in both outbound trip spending growth visits and spending over the past few years. averaged 15% Between 2007 and 2013, Chinese per-trip spending growth averaged 15% – compared to 7.5% over the previous ten years. In 2013, travellers from China spent just over $1,400 per visit on average falling just behind those from the UAE, Iran, Saudi Arabia, Brazil, Norway, and Australia – the top origin markets for per-trip spending.
30 31 Though per-trip spending by Chinese travellers is Outbound travel spending per trip average, $430 per night in 2013, with considerably The distribution of travel and tourism spending abroad relatively high, low average income and preference more spent per night while visiting short-haul than is a key determinant of the value of the Chinese for short-haul travel contribute to Chinese travellers’ by origin long-haul destinations. traveller to a destination market. The shares of per-trip tendency to spend less on a given trip than the top US$, 2013 spending by Chinese visitors attributable to airfare, outbound markets. While earnings in China have grown 3.1.1 Chinese market profile accommodation, local travel, dining, entertainment rapidly, average disposable income per household United Arab Emirates Iran and shopping tend to differ based on the purpose of the remains relatively low, limiting the capacity of the Saudi Arabia Identifying the preferences and characteristics visit. For instance, holidays or leisure trips for purposes Brazil average Chinese visitor to spend while abroad. Norway of Chinese travellers is crucial in understanding their of sightseeing, entertainment, and shopping tend to Australia China travel spending decisions. include costs for hotel accommodation and local travel Frequent, short trips to the SARs, as well as other Taiwan New Zealand via paid rental services and public transportation short-haul destinations in Asia Pacific, keep the Russia The preference of Chinese leisure travellers for Philippines while visits to family and relatives (VFR) may include average length of stay for Chinese travellers relatively Singapore packaged group trips is a key characteristic which United States nights spent at private residences and the use low. Chinese visitors spent, on average, 1.1 nights per Malaysia shapes their travel and spending behaviour while South Korea of private vehicles. trip in Macao and fewer than two nights per trip in Belgium abroad. Package trips are especially appealing to Canada Hong Kong last year. In 2013, the average trip length of Germany new travellers, as they provide the comfort of a guide As previously suggested, the increasing popularity Vietnam Chinese travellers to all country destinations was just Japan who speaks a familiar language and the company of and frequency of non-business travel is a key driver of France 3.3 nights (4.5 nights excluding SARs), while the world India fellow tourists. Further, package trips tend to include greater Chinese tourism spending. A 2013 joint study13 Italy average (excluding China) was 5.4 nights. By keeping World (ex China) reduced air fares, accommodation rates, and fees for by the ETC and World Tourism Organization (UNWTO) Portugal trip length relatively low, Chinese travellers can afford Spain entertainment offerings and attractions, offering showed that business travel – albeit shorter in average Austria to spend more per night. United Kingdom a more economical alternative to individual travel. trip length – tends to bear higher per-trip spending, Indonesia Netherlands While the lower costs of organised group trips may on average, as they “are paid for by organisations and As a result, whereas China ranks seventh highest Hong Kong, SAR South Africa provide a smaller benefit per traveller to destination require a higher level of customisation”. However, the in terms of per-trip spending among major long- Mexico Ukraine markets, they have been a primary driver of new sheer increase in non-business travel volumes from haul origin markets, it ranks fourth highest in Slovakia leisure tourism among China’s expanding middle-class. China and associated growth in leisure travel spending per-night spending. Chinese travellers spent, on 0 1000 2000 3000 4000 5000 6000 are filling the gap left by a declining business travel As the Chinese travel market evolves, the popularity of share of outbound trips. group leisure travel is unlikely to diminish, as a large Source: UNWTO, Tourism Economics proportion of the increase in Chinese outbound arrivals A relatively high propensity for consumption and will be made by first-time travellers. However, Chinese accommodation spending while abroad raises the travellers making their second international trip and value of Chinese travellers above those from other those in higher income brackets are more likely to leading global source markets. According to sales data opt for individual travel, which carries higher per- by Ctrip – a travel services provider which aggregates Average household personal disposable Average Chinese length of stay trip costs. Packaged group travel should therefore be data on travel, accommodations and tourism spending income by destination thought of by destination markets as a gateway – “shopping accounts for a much higher share of total Thousand of US$, 2013 # of nights per visit, 2013 to greater future individual Chinese leisure travel. spending abroad by Chinese travellers compared to any other market. 30% of the total trip price, excluding air United Arab Emirates Canada fares: the same percentage as for accommodation.” Australia United Kingdom Norway Brazil United States Italy Singapore Hong Kong, SAR United States Canada India Japan United Kingdom France 2013 Austria Taiwan New Zealand South Africa 2023 France Thailand Germany Austrialia Belgium Italy United Arab Emirates Outbound travel from China by purpose of tripa Spain Malaysia Netherlands 2000 2005 2010 Taiwan Vietnam Purpose of Trip Saudi Arabia Spain South Korea (000 trips) (% of total) (000 trips) (% of total) (000 trips) (% of total) Netherlands Portugal Mexico Germany Public 4,843 46.2 5,886 19.0 5,693 9.9 Malaysia Hong Kong, SAR Brazil Russia Singapore Private 5,631 53.8 25,140 81.0 51,697 90.1 South Africa Japan Iran Indonesia China Total 10,473 100.0 31,026 100.0 57,390 100.0 Indonesia Switzerland Philippines Russia Ukraine Macao, SAR India a) Passports for ‘public’ or offical and/or bussiness travel are issued to a wide range of categories, but Vietnam South Korea mostly non-holiday travellers. ‘Private’ passports are issued to VFR and some leisure travellers. In 0 50 100 150 200 0 5 10 15 20 25 30 effect, business travellers could travel abroad on either type of passport, although they are more likely to have ‘public’ passports. Source: National Statistical Offices, Tourism Economics Source: UNWTO, Tourism Economics Source: ChinaNews [China Tourism Research Institute] (2011), European Travel Commission European Travel Commission and World Tourism Organization (2013), The 13 Chinese Outbound Travel Market– 2012 Update, UNWTO, Madrid.
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