China Tourism and Hotel Industry - Segmented by Nature of Tourism (Domestic, International), Hotel Type (High-end, Mid Scale, Budget), By Geography - Growth, Trends, and Forecast (2018 - 2023).

China Tourism and Hotel Industry

The total contribution of the Travel and Tourism sector in China to the nation's GDP stood at 11% in 2017, which is more than that of the world which stands at 10.4% in 2017. The Tourism industry in China is growing steadily, both domestically and internationally owing to the many driving factors, such as the growing population in the middle-class segment and rising disposable income of people, the initiatives and support from the government to promote the tourism sector, growing investments, good transport infrastructure, etc. The strong growth in the domestic and inbound tourism leads to the growth in the hotel industry in China. Any adverse changes in political and economic consequences may hinder the growth of the market.

Skyrocketing Middle-class Population

The strong growth in the middle-class population is one of the significant factors that drives the Tourism and Hotel Industry in China. China's middle-Class population is multiplying and is expected to burst in the future according to many estimates. The Middle-Class population of China is expected to reach 780 million by 2022 from the present 430 million. The increasing middle-class population and the change in the consumer behavior are leading to a rise in the leisure spending, thereby resulting in the growth of the tourism and hotel industry.

Boutique Hotels - Gaining Popularity

With the tourism in China booming, the hotel industry is also growing at a steady pace and witnessing growth in the occupancy rates. The growing investments and the mergers and acquisitions are expected to augment the growth of the hotel industry in China further. The establishment of boutique hotels that offer a unique experience and focusing on lifestyle is gaining momentum in the recent times. Also, the wellness tourism is gaining attention in China. The revenue per available room increased by 5.6% in 2017, when compared to that of 2016. The Chinese hotel industry has a huge pipeline for the hotel projects with ~2500 projects.

The hoteliers are adopting new strategies and concepts to gain a strong position in the market. Moreover, the hotels in the high-end segment are moving to the development of three and four star hotels in order to strengthen their market position.

World’s Largest Source of Outbound Tourists

China is the largest source of outbound tourism in the world. With an expenditure of USD 258 billion for abroad traveling in 2017, China stood as the biggest spender in the world. The factors driving the growth of outbound tourism are rising incomes, changing behavior of people, as they are focusing more on well-being and happiness, and fewer visa restrictions. Additionally, many countries are changing policies to attract the Chinese tourists. As of January 2018, 67 countries or regions allows the Chinese citizens with ordinary passports to enter without visa or with a visa on arrival (VOA). According to experts, six more countries and regions have allowed Chinese citizens without a visa or with a VOA which include Barbados, the Federation of Saint Kitts and Nevis, Serbia, Tunisia, Qatar, and Gabon in 2017.

In 2017, the number of the Chinese outbound trips increased by 5.7% from 122 million in 2016 to 129 million. Among the destinations, Thailand and Japan remained as the top destinations for the Chinese travelers in 2017, with 9.8 million tourists to Thailand and 7 million tourists to Japan from the Chinese mainland. Moreover, the number of citizens with passports are comparatively lesser in China. According to estimates, only 1 out of 10 holds a passport in China, when compared 4 out of 10 in the United States. This represents the huge potential for the growth of outbound tourism in China.

China Tourism and Hotel Industry Key Developments

• August 2018: The opening of a new route between Chengdu in China and Copenhagen, the capital city of Denmark was announced. The new route is opened to increase the tourism along with the trade between the countries. The operations are set to begin by Sichuan Airlines on 10th December 2018, and will operate twice a week.
• July 2018: Anantara Hotels and Resorts announced the launch of first luxury global hotel brand in the Qingyang District of Chengdu. The opening of Anantara Jinsha Chengdu Hotel is set to open in 2021, and will have 150 guest rooms and suites, along with many other facilities.

China Tourism and Hotel Industry Major Players

• Ctrip
• Tunia Corporation
• elong
• Qunar
• LY.COM
• Alitrip
• Emei Shan Tourism
• Huangshan Tourism Development
• Shanghai Jin Jiang International Hotels Development
• Huazhu Hotels Group Ltd
• Hna-caissa Travel Group

China Tourism and Hotel Industry Report Summary

Reasons to Purchase China Tourism and Hotel Industry Report

• To study current and future of the market, in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• Detailed analysis of the segment that is expected to dominate the market
• Regions that are expected to witness the fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players
• 3-month analyst support, along with the Market Estimate sheet (in Excel)

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