Research unveiled at WTM Vision Conference-Shanghai
Chinese economy’s strength will underpin travel sector growth
Shopping, Internet booking, and low-cost carriers will have the biggest influence on the Chinese travel market over the next 5 years, reveals exclusive research unveiled tomorrow (Thursday, May10 ) at the inaugural World Travel Market (WTM) Vision Conference-Shanghai.
Senior industry delegates at the event, in association with China Business Network, will be told the strength of the Chinese economy will underpin the travel sector’s growth until 2016.
The Travel Industry Global Overview report, by Euromonitor International, reveals the Chinese economy will be the world’s strongest over the next 5 years, with GDP growing at around 8 percent per annum.
For the outbound sector, shopping is named as the Chinese travelers’ activity of choice. The report states by 2016, the Chinese will spend around US$36 billion while shopping overseas - double the amount recorded in 2011.
The research also tips the Chinese to double spending on accommodation (to US$12 billion), excursions (to US$6 billion), and getting around within the destination (US$6 billion).
The most popular international destinations for Chinese travelers in 2011 were Hong Kong, Macau, and Taiwan.
Reed Travel Exhibition Director World Travel Market Simon Press, who will open the conference, said: “The Chinese outbound travel industry is growing at a phenomenal rate, making it one of, if not the, most important market in the world.
“This growth alongside the ever-increasing amount of money the Chinese spend when on holiday, on either shopping or excursions, make the Chinese tourism market one of the most lucrative for destinations.”
Furthermore, Euromonitor International China Analyst Ray Li will say online travel retailing would double in value between 2011 and 2016, driven by a compound annual growth rate over the period of more than 16 percent. These figures are for intermediaries only and do not include supplier direct bookings.
Low-cost carriers will also have a big say in how the market develops over the next 5 years. The value of low-cost carrier sales will double from 2011’s levels to around US$6 billion in 2016. This will put pressure on pricing and distribution across the travel sector.
“The growing importance of the Chinese travel industry is why World Travel Market has expanded its WTM Vision Series in to China with WTM Vision Conference-Shanghai,” Press added.
“The WTM Vision series is designed to bring the latest research, statistics, and opinion to senior industry leaders to help them run their businesses. The Chinese market is moving at such a fast pace that country’s travel and tourism industry will really benefit from what WTM Vision Conference-Shanghai will bring.”
The 2011 WTM Vision Conference series has taken place in Moscow, London, and Dubai (at fellow Reed Travel Exhibitions event Arabian Travel Market). The final event of this year’s series takes place in Florence on May 18.