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
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Chinese traveller arrivals Chinese traveller hotel nights
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to top city destinations in top city destinations
Un
ite
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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.
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Source: Tourism
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Economics Source:
Source:Tourism Economics
Tourism Economics6 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 Nielsen16 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/#ftn124 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/#ftn128 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.You can also read
