TRAVEL IN CHINA

Euromonitor International
September 2017
TRAVEL IN CHINA Passport I

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Leisure Tourism Continues With Growth and Outbound Tourism Posts the Highest Volume
Sales Increase .......................................................................................................................... 1
the Popularity of Smartphones Boosts Surging Growth of Online Travel .................................. 1
Competition Within Short-term Lodging Rentals Intensifies ...................................................... 1
New Business Model Emerges Within Intermediaries .............................................................. 1
Growing Demand for Travel in China Over the Forecast Period ............................................... 1
SWOT........................................................................................................................................... 2
Summary 1 Destination China: SWOT ............................................................................ 2
Market Data .................................................................................................................................. 2
Table 1 Annual Leave: Volume 2012-2017 ............................................................... 2
Table 2 Travellers by Age: Number of People 2012-2017 ........................................ 3
Table 3 Seasonality: Number of People 2012-2017 .................................................. 3
Table 4 Leisure Outbound Demographics: Number of Trips 2012-2017 ................... 3
Table 5 Other Transport Sales: Value 2012-2017 ..................................................... 4
Table 6 Other Transport Online Sales: Value 2012-2017 ......................................... 4
Table 7 Forecast Other Transport Sales: Value 2017-2022 ...................................... 4
Table 8 Forecast Other Transport Online Sales: Value 2017-2022........................... 4
Table 9 Activities: Value 2012-2017 .......................................................................... 5
Table 10 Forecast Activities: Value 2017-2022 ........................................................... 5
Sources ........................................................................................................................................ 6
Summary 2 Research Sources ........................................................................................ 6

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TRAVEL IN CHINA
EXECUTIVE SUMMARY

Leisure Tourism Continues With Growth and Outbound Tourism Posts

the Highest Volume Sales Increase
The growing spending power of Chinese residents and an upgraded tourist industry structure
led to steady growth of domestic and outbound tourism. In addition to steady growth of inbound
tourism, outbound tourism posted the highest volume sales increase in 2017, which reflected
the positive outcome of the Chinese government’s efforts to improve international cooperation
and partnerships to encourage both inbound and outbound tourism.

the Popularity of Smartphones Boosts Surging Growth of Online Travel

Leading intermediaries and direct suppliers provide various travel products and services that
allow customers to search websites or mobile devices for information. The online platform also
enables customers to track their order status and provides other location-based services to
allow users to quickly locate a variety of nearby scenic spots. The popularity of smartphones in
China also encourages users to search for travel products and services and easily complete a
transaction within minutes. To enhance mobile user engagement and increase monetisation,
suppliers and intermediaries offer discounted products that are exclusive to mobile users.

Competition Within Short-term Lodging Rentals Intensifies

The emergence of short-term rentals in China resulted in robust growth of lodging. As a result,
hotels posted slower growth and there was a further squeeze on development, especially for
budget hotels. Short-term rental players such as Tujia and Xiaozhu are working on expanding
their outlets at a quick pace, and are meanwhile focusing on diversifying services and
customisation.

New Business Model Emerges Within Intermediaries

A new business called an OTP (Online Travel Platform) was operated by Fliggy.com, a brand
from Alibaba Group. This new model operates differently using an OTA (Online Travel Agency),
through which travel companies and suppliers are directly connected to consumers to offer them
various travel products. Traditional OTAs used to separate consumers from suppliers, resulting
in consumers losing control over prices and product quality, while the OTP model enables
customers to select suppliers or companies with strong reputations by referring to other
customers’ reviews and comments. A number of foreign airline companies have set up their
official flagship store on Fliggy.com to provide prices and increase their bargaining power.

Growing Demand for Travel in China Over the Forecast Period

Domestic tourism is expected to grow steadily with strong demand for leisure services from
Chinese residents. Rural tourism and short-distance city breaks are increasing in popularity
among families, couples and seniors. There is a positive outlook for inbound arrivals, supported
by the Chinese government’s strong efforts to build relationships with other countries.
International tourism links with various countries have strengthened connections over a number
of years and encouraged more inbound visitors. The range of outbound destinations has
widened and has even been extended to less-popular regions, such as Belarus and Mongolia.

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SWOT
 China is competitive in terms of covering its extensive territory, within which there is a large
variety of destinations with attractive views and scenery that offer a wide range of choices for
experiencing local culture. China is also one of the origins of civilisation in the world, with its
profound history and splendid culture forming valuable sources of tourism.
 A lack of standardisation among attractions has become the key issue that may deter tourism.
It is reported that in some hot destinations, such as Qingdao and Yunnan, visitors
encountered serious problems such as a threat to personal safety and extremely high meal
prices. In addition, the limited range of travel products catering to foreign visitors and the low
level of service quality are also concerns for travellers.
 Supportive regulations have been issued to strengthen China’s inbound and outbound
tourism. The Road and Belt Initiative shows China’s commitment to and progress on
establishing continuing cooperation with countries along the ancient trade route. Infrastructure
and the transportation system have been improved, with more connections with other
countries supporting greater tourism.
 Nearby destinations may be strong competitors to China and pose some threat to
development of the country’s tourism industry. Many visitors from Europe and the US who are
not familiar with Chinese culture may choose Japan, South Korea or countries in Southeast
Asia that have more-favourable visa policies to experience a taste of Asian culture.

Summary 1 Destination China: SWOT

Strengths Enriched national resources and profound
heritage and culture
Extensive high-speed railway system
Enriched travel products catering to foreign
visitors
Weaknesses Lack of standardisation among some tourist
attractions
Sub-standard service quality
Opportunities Supportive regulations issued
International cooperation established
Enhanced infrastructure and travel products
Threats Competition from other Asian countries
Economic slowdown in some regions
Political issues and terrorism negatively affect
tourism on a global basis
Source: Euromonitor International

MARKET DATA
Table 1 Annual Leave: Volume 2012-2017

days

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2012 2013 2014 2015 2016 2017

Paid Holiday 10.0 10.0 10.0 10.0 10.0 10.0

Public Holidays 11.0 11.0 11.0 12.0 11.0 11.0
Annual Leave 21.0 21.0 21.0 22.0 21.0 21.0
Source: Euromonitor International from official statistics
Note: Refers to country residents

Table 2 Travellers by Age: Number of People 2012-2017

'000 persons
2012 2013 2014 2015 2016 2017

0-14 64,940.5 64,810.6 64,875.4 65,005.2 65,330.2 65,787.5

15-24 206,369.2 200,409.5 193,907.0 187,393.9 182,241.8 178,104.1
25-34 186,631.7 193,519.1 200,131.2 206,234.8 209,229.4 209,588.2
35-49 159,728.6 167,235.8 173,758.0 180,187.1 186,673.8 193,207.4
50-64 121,426.3 127,740.5 133,233.3 137,630.0 141,070.8 143,892.2
Over 65 36,916.6 36,217.3 35,967.4 35,854.0 35,818.2 35,889.8
Total 776,012.9 789,932.8 801,872.4 812,305.0 820,364.1 826,469.2
Source: Euromonitor International from official statistics, trade associations, trade press, trade interviews
Note: Refers to country residents

Table 3 Seasonality: Number of People 2012-2017

'000 persons
2012 2013 2014 2015 2016 2017

January 65,961.1 70,304.0 72,970.4 73,919.8 75,473.5 76,861.6

February 91,569.5 95,581.9 97,828.4 99,101.2 100,904.8 101,821.0
March 72,169.2 75,833.5 78,583.5 78,631.1 78,755.0 78,514.6
April 55,872.9 54,505.4 54,527.3 54,424.4 54,144.0 53,720.5
May 71,393.2 67,934.2 68,159.2 69,045.9 68,910.6 69,423.4
June 45,008.8 43,446.3 41,697.4 41,427.6 41,674.5 41,488.8
July 55,096.9 56,875.2 59,338.6 61,735.2 63,168.0 64,464.6
August 61,305.0 63,984.6 66,555.4 68,233.6 69,731.0 71,076.4
September 65,961.1 68,724.1 68,961.0 71,482.8 73,012.4 74,216.9
October 76,825.3 77,413.4 77,781.6 78,793.6 80,641.8 81,655.2
November 50,440.8 50,555.7 50,518.0 50,362.9 50,042.2 49,588.2
December 64,409.1 64,774.5 64,951.7 65,146.9 63,906.4 63,638.1
Total 776,012.9 789,932.8 801,872.4 812,305.0 820,364.1 826,469.2
Source: Euromonitor International from official statistics, trade associations, trade press, trade interviews
Note: Refers to country residents

Table 4 Leisure Outbound Demographics: Number of Trips 2012-2017

'000 trips
2012 2013 2014 2015 2016 2017

Couples 7,982.6 9,633.7 11,136.9 12,825.2 14,434.2 15,023.2

Families 7,177.6 8,545.4 9,843.0 11,300.9 12,622.7 13,040.1
Groups 8,318.0 9,875.6 11,090.7 12,404.7 13,908.3 14,362.2
Singles 2,884.5 3,708.4 4,390.1 5,098.5 5,610.1 5,708.8
Other 7,177.6 8,545.4 9,750.5 10,932.9 11,863.0 11,958.5
Total 33,540.2 40,308.5 46,211.1 52,562.1 58,438.2 60,092.8

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Source: UNWTO, Euromonitor International from official statistics, trade associations, trade press, company
research, trade interviews, trade sources

Table 5 Other Transport Sales: Value 2012-2017

CNY million
2012 2013 2014 2015 2016 2017

Cruise 38,369.3 43,664.3 47,201.1 50,741.1 53,937.8 57,066.2

Bus 362,852.0 385,348.9 408,469.8 431,344.1 442,559.0 448,754.9
Ferry 10,039.3 9,477.1 9,022.2 8,841.8 8,461.6 8,190.8
Rail 361,502.3 407,774.6 450,998.7 503,314.6 557,672.6 611,766.8
Other Transport Types - - - - - -
Other Transport Offline 660,013.9 673,719.3 697,054.3 689,652.8 640,310.2 603,418.1
Other Transport Online 112,749.0 172,545.5 218,637.5 304,588.7 422,320.8 522,360.6
Other Transport 772,762.9 846,264.8 915,691.8 994,241.6 1,062,63 1,125,77
1.0 8.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Other transport is the sum of cruise, bus, ferry, rail and other transport types or the sum of online and
offline sales

Table 6 Other Transport Online Sales: Value 2012-2017

CNY million
2012 2013 2014 2015 2016 2017

Other Transport Direct 94,946.1 142,729.7 173,263.9 211,283.7 260,168.0 299,067.5

Other Transport 17,803.0 29,815.9 45,373.6 93,305.0 162,152.8 223,293.0
Intermediaries
Other Transport Online 112,749.0 172,545.5 218,637.5 304,588.7 422,320.8 522,360.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 7 Forecast Other Transport Sales: Value 2017-2022

CNY million
2017 2018 2019 2020 2021 2022

Cruise 57,066.2 60,033.7 62,915.3 65,369.0 67,787.6 70,160.2

Bus 448,754.9 454,139.9 458,681.3 462,350.8 467,899.0 474,449.6
Ferry 8,190.8 7,912.3 7,653.6 7,439.3 7,260.7 7,101.0
Rail 611,766.8 663,767.0 710,894.4 755,680.8 798,452.3 835,979.6
Other Transport Types - - - - - -
Other Transport Offline 603,418.1 594,222.6 577,261.4 580,721.5 597,218.1 600,669.7
Other Transport Online 522,360.6 591,630.3 662,883.2 710,118.3 744,181.6 787,020.6
Other Transport 1,125,77 1,185,85 1,240,14 1,290,83 1,341,39 1,387,69
8.7 2.9 4.6 9.8 9.6 0.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Other transport is the sum of cruise, bus, ferry, rail and other transport types or the sum of online and
offline sales

Table 8 Forecast Other Transport Online Sales: Value 2017-2022

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CNY million
2017 2018 2019 2020 2021 2022

Other Transport Direct 299,067.5 334,564.8 365,979.2 379,191.5 385,429.7 397,719.0

Other Transport 223,293.0 257,065.5 296,903.9 330,926.8 358,751.9 389,301.6
Intermediaries
Other Transport Online 522,360.6 591,630.3 662,883.2 710,118.3 744,181.6 787,020.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 9 Activities: Value 2012-2017

CNY million
2012 2013 2014 2015 2016 2017

Attractions 87,990.6 95,760.2 113,264.5 133,267.8 152,843.5 172,878.8

- Culture, Heritage and 35,483.3 37,673.4 47,934.9 58,003.1 67,063.2 75,781.4
Museums
- Casinos - - - - - -
- National Parks 12,872.4 14,005.1 15,363.6 18,282.7 21,573.6 25,241.1
- Theme Parks 20,918.4 23,114.8 25,773.0 28,891.5 32,127.4 35,500.8
- Other Attractions 18,716.6 20,966.9 24,193.0 28,090.5 32,079.4 36,355.6
- Attractions Offline 86,661.9 93,845.0 109,413.5 121,673.5 136,489.3 152,133.3
- Attractions Online 1,328.7 1,915.2 3,851.0 11,594.3 16,354.3 20,745.5
Medical Tourism - - - - - -
Shopping by 76,383.3 75,200.5 69,573.2 68,983.7 68,421.9 72,537.5
International Tourists
Spas 14,298.9 16,017.6 17,902.7 20,068.9 21,714.6 23,919.4
Activities 178,672.7 186,978.3 200,740.5 222,320.5 242,980.0 269,335.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Attractions is the sum of culture, heritage and museums, casinos, national parks, theme parks and other
attractions or the sum of online and offline sales

Table 10 Forecast Activities: Value 2017-2022

CNY million
2017 2018 2019 2020 2021 2022

Attractions 172,878.8 194,115.8 216,903.7 240,547.4 265,875.7 293,024.2

- Culture, Heritage and 75,781.4 84,875.2 94,882.0 105,005.9 115,748.0 127,322.8
Museums
- Casinos - - - - - -
- National Parks 25,241.1 29,405.9 33,816.7 38,720.2 44,218.4 50,320.6
- Theme Parks 35,500.8 39,040.2 42,596.7 46,196.2 49,938.1 53,773.3
- Other Attractions 36,355.6 40,794.6 45,608.3 50,625.2 55,971.3 61,607.6
- Attractions Offline 152,133.3 166,939.6 182,199.1 197,248.9 212,700.6 228,558.9
- Attractions Online 20,745.5 27,176.2 34,704.6 43,298.5 53,175.1 64,465.3
Medical Tourism - - - - - -
Shopping by 72,537.5 73,999.2 75,107.6 76,760.7 77,121.6 78,390.6
International Tourists
Spas 23,919.4 25,474.1 27,028.0 28,649.7 30,311.4 31,978.5
Activities 269,335.6 293,589.1 319,039.3 345,957.9 373,308.7 403,393.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Note: Attractions is the sum of culture, heritage and museums, casinos, national parks, theme parks and other
attractions or the sum of online and offline sales

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SOURCES
Sources used during the research included the following:

Summary 2 Research Sources

Official Sources Bureau of Exit & Entry Administration of
Ministry of Public Security
China National Statistics
China National Tourism Administration
CNTA
The Ministry of China Public Security
Xinhua News Agency
Trade Associations 5yue.com
China Air Information Net
CHINA ASSOCIATION OF AMUSEMENT
PARKS & ATTRACTIONS
China Road Transport Associates
China Taxicab & Livery Association
China Tourism Association
China Tourist Hotels Association (CTH)
China Travel News Net
Civil Aviation Resource Net of China
Cjljob.com
Shanghai Car Rental Association
Shanghai Taxicab & Livery Association
Shenzhen Car Rental Assocaition
World Tourism Organisation UNWTO
Zhejiang Car Rental Association
Zhejiang Provincial Tourist Bureau
Trade Press China Business Network Magazine
China Civil Aviation Magazine
Hotel Expert Net
Source: Euromonitor International

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