China’s Travel Growth Outpacing All Other Nations
Chinese tourists becoming the Key driver of global tourism
China’s travel industry is projected to grow at an average rate of 8% Y-Y annually from Y 2017 to Y 2027, outpacing other major economies like India and the US, according to the World Travel and Tourism Council.
The upcoming 1 to 8 October Golden Week national holidays will be a barometer on the booming industry, with China Tourism Academy projecting 710-M trips, up 10% from Y 2016.
As China’s travel market takes off, all eyes should be on the country’s roughly 400-M millennials, who will drive spending on airfare, hotels, theme parks, casinos and cruises world wide in the years to come.Chinese will take almost 70% more trips overseas in Y 2020 compared to Y 2015, fueling growth in tourism and aiding transportation and infrastructure, the tourism analysts said in a report last week.
In Y 2015 Chinese made 128-M trips abroad, government data show, with adults ages 18 to 34 accounting for about 60% of outbound travelers that year, according to the data.
Travel within the world’s most populous nation is booming, as consumers with more disposable income seek more exotic experiences and far-flung destinations than their parents. Industry growth is underpinning a broad range of domestic activity, from ski resorts and tropical hotels to high-end manufacturing of trains and planes. This change is accelerating the economy’s transition away from the old smokestack drivers of growth.
Travel accounted for 9% of China’s economy in Y 2016, according to the World Travel and Tourism Council, which projects the industry growth will average 8% annually from Y 2017 to Y 2027, outpacing all major economies including the United States.
Have a terrific weekend.