It is “boom time” for China’s outbound market, with “dynamic” growth of 16% forecast for 2014, delegates at WTM Vision Conference – Shanghai will hear today (Thursday 8 May).
Exclusive research from Euromonitor International will also show that outbound expenditure has reached a record level of US$120 billion and predictions for the coming five years reveal bumper growth rates.
Fangting Sun, Senior Research Analyst at Euromonitor International, said: “Hong Kong and Macau are beneficiaries of this outbound buoyancy, but the highest growth rates are seen further afield.
“Looking at the compound annual growth rates to outbound destinations for Chinese travellers, Thailand tops the table with CAGR of more than 25% from 2013 to 2018.
“South Africa is second with more than 24%, and New Zealand is third, with 22%. The UK is in sixth place with 19%.”
However, her presentation will also show that China is suffering from weak inbound demand.
“China’s inbound market witnessed a decline in arrivals of 4% in 2013, but arrivals are predicted to show a recovery in 2014,” she said.
Other statistics in the report – Travel Industry Forecast Review – also give cause for optimism.
The value of hotel sales is forecast to rise from US$61 billion to US$91 billion between 2013 and 2018.
International chains are focusing their expansion on China, but oversupply concerns remain – and occupancy at luxury hotels has fallen because of the economic slowdown and anti-corruption policies.
China’s online travel market also shows “dynamic” growth, according to the report, with more than 600 million Chinese having access to the internet.
This is forecast to reach more than 800 million by 2018, and online travel retailers are launching promotions to gain market share because of this rising competition.
The report outlines research about how Chinese consumers find out information about travel, with recommendations from friends, family and colleagues being the most popular source (cited by more than 70% of respondents).
Travel websites such as TripAdvisor are second (62%); internet searches are third (58%); and travel agents come fourth (53%), ahead of social media (35%).
Sun’s presentation will also cover the latest research about worldwide travel and tourism trends.
This shows that global tourism remains vibrant, with record numbers in 2013, and strong growth predicted for sectors such as cruises and budget airlines.
Many new travellers come from emerging markets and Chinese outbound tourists in particular are being wooed by destinations around the world.
Furthermore, she will discuss trends such as social media, the sharing economy, luxury travel and technological developments such as holograms and Google Glass.
World Travel Market, Senior Director, Simon Press, who will open the WTM Vision Conference – Shanghai, said: “Double-digit growth rates for annual departures are exciting, but delegates will also hear about challenges too, such as increased competition and high pollution levels.
“The conference will also examine China’s unique online marketplace – and delegates will be able to network with experts from across the globe.”
Organised in association with China Business Network, WTM Vision – Shanghai takes place on 8 May and is the fifth in a series of six WTM Vision Conferences taking place across the globe in 2014.
Delegates will receive the Euromonitor report (worth £1,000) free of charge.
The WTM Vision Conference Series started in Moscow on April 9, before moving to Sao Paulo (24 April), Cape Town (2 May) and Dubai (6 May). The series concludes in Rimini on 9 Oct.
