Blogs

China Tourism – Set for grand new year celebration


  • Overview of China tourism market
  • Journey of becoming top spender in international tourism
  • China is set to lead in tourism market

 

China, the world’s most populous country and second largest economy, is expected to gear up global travel boom for the upcoming years despite broader weak macro economic prospects worldwide. China tourism industry has been thriving over the past decade and has become one of the world’s top tourist markets, for both inbound and outbound tourism.  China is now the world’s largest spender, accounting for approximately one fifth share in total international tourism spending (source: World Tourism Organization (UNWTO)). Moreover, China ranked second in the world in terms of contribution from tourism, contributing about 11% to GDP with total contribution of CNY 9.98 trillion (USD 1.5 trillion) in 2018. As per the World Travel & Tourism Council, China’s economy is expected to have a whopping USD 2.7 trillion from travel and tourism contribution by 2028, more than any other country in the world.  

China’s tourism has highly benefited from a large and growing domestic market. The country recorded a total of 5.54 bn domestic tourist trips at a 12.5% CAGR during 2010 to 2018, with year-on-year increase of 10.76% in 2018, as per Ministry of Culture and Tourism of China. This humongous number of domestic travelling brought a total of CNY 5.13 trillion in revenue to the tourism sector in 2018, registering a 12.3% increase as compared with 2017. According to Travel China Guide, domestic tourism is expected to attain 6.06 bn trips generating domestic tourism revenue of CNY 5.60 trillion in 2019.

China has a rich cultural and historical heritage. With a recorded history of over 5,000 years, the nation has the greatest number of UNESCO Natural World Heritage sites in the world as well as impressive wildlife. The transportation infrastructure is now highly developed and efficient in China. The country has an extensive list of air carriers which have second largest airline capacity in the world, connecting more than 60 countries and regions. Most cities in China are well connected to others via high speed rail which is part of one of the world’s longest railway network.

China’s enormous tourism market is also gaining attention from the world. In the past recent years, the industry has seen unprecedented development and sustainable growth. According to the World Travel and Tourism Competitiveness Index 2019, China is the largest travel and tourism economy in Asia-Pacific and ranked 13th worldwide With regards to the Competitiveness Index, the country’s ranking is significantly up from 47th rank in 2009, a decade ago. The continuous upgrade in ranking is led by its exceptional natural & cultural resources along with its price competitiveness in terms of hotel prices and ticket prices which makes travelling in China economical.

The country’s inbound tourism reached to 141 trips in 2018, which is further expected to reach 143 mn trips as per Travel China Guide. Most of the tourists (33.5%) travel to China for sightseeing and leisure while 12.8% come here for Meeting/ Business, making it the world's largest business travel market.

Apart from ever increasing domestic tourism and inbound tourism, the demand for China’s outbound tourism is also increasing continuously. Increasing middle class with rising personal disposable income and urbanization has led improve livelihood in the country and people are now spending more on the travel.  China’s outbound tourism has now reached to 162 mn trips, increasing at more than 13% CAGR during 2010 to 2018. It is further expected to attain 174 mn trips in coming year. Its growing outbound tourism is providing immense opportunity to other countries. Currently around just 10% of China’s population base (1.4 bn) travel internationally and as per China Outbound Tourism Research Institute, the number of passport holders is expected to reach 300 mn or 20% of the Chinese population by 2027, indicating a huge potential market for the world. ‘China Outbound Tourists Visit and Spending Report 2019’ predicts that outbound tourism market of China will reach USD 365 Bn by 2025.

Rapid development in tourism sector has enabled China to provide advance tourism services to tourists, both domestic and around the world. However, China’s exceptional economic growth over the past decades has come at a cost to its environment. Concern like high pollution, safety and hygiene and visa restrictions for some countries are limiting tourism market’s potential growth in China. To overcome this, the country further needs to improve environmental sustainability and safety & security along with improvement in infrastructure, although significant progress has been made by the country in the government's 13th Five-Year Plan (2016-2020) to develop infrastructure and tourism. Televisory believes that the tourism industry in China remains lucrative and promising; and is set to reach a new high in the coming years with leading position in world tourism market.

Your Rating

Slack set out to kill E-mail

Started as a side project for internal use in a gaming company High revenue growth with recurring revenues Went Public by offering shares through the Direct Public Offering ...

Will the Big Bang merger drive, of Indian Public Sector banks, provide the required impetus to the slowing economy?

India’s Government announces plans to merge 10 of the country’s public sector banks Probable impact of the mergers   India’s Finance Minister, Nirmala Sitharaman,...

Is Mothercare on the verge of collapse?

History of Mothercare What went wrong? Company moved into administration   Mothercare, an iconic brand for babies, children and parents to be, went into...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...

An analysis of Malaysian rubber glove industry

How big is the international rubber gloves market? Reasons behind the healthy and steady growth Malaysia’s role in the industry Why are companies struggling for stable...

Failure of Amazon in China, an analysis

E-commerce market in China Online consumer product retailers in China Performance of Amazon in China   Amazon is a global e-commerce player selling a wide...

Can lithium-ion anode demand for needle coke reduce availability for electrode players?

What is needle coke? Uses of needle coke Lithium-ion battery manufacturers demand needle coke   Needle coke? Needle coke is a specialised form of petroleum coke...

Indian wood panel industry, growth drivers and present trends

Current market scenario in the Indian plywood industry Growth in the housing sector and rapid urbanisation to provide the boost GST rationalization to reduce price difference...

Is the radio broadcasting industry in the U.S. dying? An analysis

Radio, the most powerful medium of reach in the U.S. Why the industry is moving at a slow pace? Radio’s health is still sound, will it continue in the long-term?   ...

Housing finance market in India. Is affordable housing driving the growth?

Overview of the housing finance sector in India Key players dominating the segment and their dynamics Factors driving aggressive demand for housing   The housing...

Carbon black industry, strong potential for supernormal profitability?

What is carbon black? Its uses Impact of the environmental curbs in China   What is carbon black? Carbon black is a fine carbon powder and it is a disorderly...

Malaysian rubber glove industry, an update

Rising global demand for gloves Impact of USP 800’s implementation and the US-China trade war on Malaysia’s rubber gloves industry Key challenges for the Malaysian rubber...

Rice industry outlook 2018

Major rice producers and consumers Global rice trade Factors dominating the trade   Rice is the 3 rd largest produced agricultural commodity in the world, after...

Education industry in India, an overview

Growth of private universities in the nation Future potential of the education industry in India   The education sector in India is estimated to be worth USD 91.7 billion...

Battle for the textile and apparel industry in Southeast Asia

The reasons for China’s decreasing presence in the industry Initiatives by the governments in Southeast Asia to boost the textile trade Vietnam and Bangladesh’s quest to conquer...

Rise of Ant Financial, will the success story continue?

What is Ant Financial? Journey to become king of unicorn Will regulatory curbs hinder its success journey?    Ant Financial, an affiliate and integral part...

Blockchain, an emerging concept, a disruptive technology (Part 1)

What is blockchain? How is blockchain revolutionary? Cryptocurrency, the new money ICOs, the new way of raising money Summary Blockchain is a software architecture...

Unnoticed growth of the media and entertainment industry in India

Overall industry brief Growth of the M&E industry and its segments Major supporting elements of this growth   Media and Entertainment (M&E) is a very wide industry...

Sri Lankan economic and political crisis

Sri Lanka’s latest political crisis, who governs the nation? Poor economic indicators adding to the nation’s woes   Sri Lanka is currently embroiled in a political crisis,...