InterContinental Hotels Group has partnered with
Oxford Economics to publish one of the most comprehensive studies
into the Chinese travel market ever undertaken.
The report reveals the scale of the
opportunity for global travel destinations to benefit from
shifting patterns in Chinese travel, with London, New York, Los
Angeles, Sydney and Tokyo expected to benefit most.
Published on Tuesday, The Future of
Chinese Travel report shows that favourable economic and
demographic trends shaping the Chinese travel market are set to
fuel huge increases in demand for international travel over the
next decade. It also reveals the opportunities this growth will
present, as Chinese traveller preferences evolve towards
long-haul, leisure-driven travel. The study reports that increases
in leisure and retail spend will contribute to significant
increases in the value of Chinese travellers to local economies.
Richard Solomons, Chief Executive Officer of
IHG, said, “This is a ground-breaking piece of research, which
demonstrates the sheer scale of the ‘China outbound’ opportunity
for cities and local economies worldwide. With the shift towards
leisure travel, coupled with the 90 million Chinese households
able to take long-haul trips by 2023, the country’s growing
importance in the global travel market cannot be underestimated.
With 30 years of experience in China, the recent launch of our new
Chinese brand, HUALUXE Hotels and Restaurants, and the roll-out of
our China Ready programme, IHG is well-placed to meet this growing
Adam Sacks, President, Oxford Economics, said, “The Future of Chinese Travel Report provides a
comprehensive view of Chinese travel and shows that overseas trips
will become possible for tens of millions of new Chinese
households within the next 10 years. History shows that
destinations which improve access for Chinese travellers,
experience a significant growth premium in the number of arrivals.
This represents a clear opportunity for both countries and
international cities to benefit from the huge future increases in
Chinese outbound travel.”
The Future of Chinese Travel Report: Key
Scale of the opportunity:
• Annual arrivals from China will total nearly
97 million by 2023 (an increase of 5% per year);
• 88 million
Chinese households will be able to travel overseas by 2023;
Increase in family income is the key driver behind this change;
• In the next decade, over 60 million Chinese households will
cross the annual income threshold of $35,000, at which point
international travel becomes more affordable.
Three key trends in Chinese travel will emerge
over the next 10 years.
Chinese demand for long-haul travel will
experience huge levels of growth:
• China will overtake the US, UK and Germany to
become the largest source market for long-haul travellers by 2020;
• As Chinese tourism demand matures, preferences will shift toward
more expensive, longer-haul trips.
Chinese travellers will mix business with
• By 2023, nearly two thirds (62%) of total
Chinese outbound travel will be leisure-driven – a major shift in
the purpose of travel for outbound Chinese away from business.
Chinese travellers will spend more during overseas
• Per-trip spending by Chinese travellers is
expected to grow nearly 75% in nominal terms by 2023;
Continuing shift in preferences towards higher-cost accommodation
and upscale shopping.
International cities set to
• Cities are the primary destinations for
Chinese outbound travellers, with over 85% heading for major
cities around the world;
• Nearly 95% of total Chinese
outbound travel spending is received by major global cities;
• Among top destination countries, major cities alone receive
almost half of each country’s total Chinese visitors;
Access is key to attracting Chinese tourists:
Destinations with easier access, including simpler visa policies
will gain most;
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• Reforms affecting Chinese travel show
levels of arrivals to be 20%pts above historical trends.