Rising incomes and Internet boost booming Chinese travel market

Increasing Chinese incomes plus growing Internet bookings equals an expected 15 percent growth of China outbound travelers from 2012-2017 in Compound Annual Growth Rate (CAGR). This exclusive research was unveiled on April 8 at the World Travel Market (WTM) Vision Conference – Beijing, with forecasts by Euromonitor International.

Hong Kong and Macau are the most popular destinations but non-Asian countries are rising in importance, delegates have heard.

Meanwhile, inbound tourism flows to China are forecast to grow at a 2.3% CAGR over the same period, reveals the Forecast Revisit for the Global Travel and Tourism Industry report.

Hong Kong is the largest source of arrivals, accounting for 27 million, but Western European and US markets are expected to grow, Ray Li Senior Research Analyst at Euromonitor International, states.

He will also reveal how rising disposable incomes are leading to a “sharp” rise in sales of discretionary goods and services, with travel – along with cars and fashion – especially favored.

Also, the changing role of women is driving demand for clothing, cosmetics, and travel, according to Euromonitor International.

Another major factor in the Chinese travel market is the intensifying competition between China’s online travel agencies, including Ctrip, Qunar, and eLong.

China is the world leader for number of Internet users and smartphones sold, and web giants such as Tencent and Baidu are making inroads in the online travel market, delegates at the WTM Vision Conference – Beijing heard.

Chinese hotels are performing strongly, and although China’s hotel industry is dominated by budget properties, the luxury segment is expected to achieve strongest growth between 2012 and 2017.

Reed Travel Exhibition Director, World Travel Market, Simon Press, who opened the conference today, said: “WTM is delighted to be returning to China for its second Vision conference in the country, following the success of last year’s inaugural event which took place in Shanghai.

“China’s influence on the global travel and tourism continues to grow. WTM has first-hand experience of this with more and more exhibitors and visitors attending the event from China, alongside a growing number of buyers targeting Chinese exhibitors.”

The conference, in association with China Business Network, was held in Beijing Marriott Hotel City Wall.

As well as the report from Euromonitor International, the event will feature high-caliber speakers sharing expert analysis, statistical assessment, and interpretations with the industry's senior leaders.

Delegates will receive the Euromonitor International report via email free of charge after the conference.

Sourced: TravelDailyNews