Euromonitor Reports Chinese Travelers Spent Record $102 Billion In 2012

　　At the World Travel Mart’s Vision Conference in Beijing, Euromonitor International is reporting that the number of outbound trips made by Chinese travelers is seeing double-digit growth, thanks to rising disposable incomes and web bookings. Boosted by an appreciating Chinese currency, Chinese travelers spent a record $102 billion in international tourism in 2012 (making it the first tourism source market in the world in terms of spending), a 40 percent jump from 2011 when it was $73 billion. The volume of international trips by Chinese travelers has grown from 10 million in 2000 to 83 million in 2012.

　　According to Euromonitor, outbound trips from China are expected to record a “sharp” 15 percent rise in CAGR (compound annual growth rate) from 2012 to 2017. Though short-haul visits to Hong Kong and Macau are the most popular destinations, non-Asian countries are rising in importance. Inbound tourism flows to China are forecast to grow at a 2.3 percent CAGR over the same period, according to 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 U.S. markets are expected to grow, said Ray Li, senior research analyst at Euromonitor. Rising disposable incomes are leading to a “sharp” rise in Chinese sales of such discretionary goods and services as travel, cars and fashion. In addition, the changing role of women is driving demand for clothing, cosmetics and travel.

　　Another major factor in the Chinese travel market is the intensifying competition among 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. 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.

　　Other source markets were also highlighted. Among the world’s top 10 source markets by expenditure, the Russian Federation saw an increase of 32 percent in 2012, to $43 billion, bringing it from seventh to fifth place in the ranking of international tourism spending. Beyond the top 10, Brazil, with an expenditure of $22 billion in 2012, moved to 12th place up from 29th place in 2005. Spending on travel abroad from Germany and the U.S. grew by 6 percent respectively. Spending from the U.K. grew by 4 percent and the country retained its fourth place in the list of major source markets. Expenditure by Canada grew by 7 percent, while both Australia and Japan grew by 3 percent. On the other hand, France (down 6 percent) and Italy (down 1 percent) were the only markets in the top 10 to record a decline in international tourism spending.