The Chinese Outbound Market Looks to a Growing Future

According to Professor Wang Qiyan, director of the leisure economy research institute from Renmin University, a country will experience a travel boom once a country’s GDP exceeds $3,000. By the end of 2006, China has accorded Approved Destination Status (ADS) to 132 countries and regions.

It is no wonder then why China’s emergence as an economic powerhouse has led to more outbound tourists from China. “By 2006, Shanghai’s average GDP exceeded $7,490, enabling up to 2 million more Chinese to start traveling overseas,” Professor Qiyan said.

According to the Pacific Asia Travel Association, Asia remains the preferred destination for Chinese tourists going for holidays abroad due to proximity. In the first half 2005, out of a total 13 million Chinese who traveled overseas, up to 90 percent chose Asian destinations.

At the same time the UN World Travel Organization is predicting China to become the world’s fourth largest source of tourists by 2020. “Within 15 years up to 100 million Chinese tourists will be swarming the world.”

Official figures from the China National Tourism Administration (CNTA) revealed that in 2006, during the Golden Week in May, 34.5 million Chinese traveled overseas, and that a total of 19 foreign travel agencies have opened offices in China.

The organizer of an ongoing travel and tourism trade show dedicated to the Chinese outbound travel market said the Beijing event has attracted over 200 exhibitors from 40 different countries from around the world.

“China is definitely the place to be doing business for all those tourism destinations wishing to boost their activities, both short and long term,” said show organizer Matt Thompson.

Tourism product suppliers from Europe, the Middle East, Australasia, the U.S. and even some African countries have pushed interest in the Chinese outbound travel market by 50 percent since its last show in 2006.

“More Chinese are traveling overseas,” added Thompson. “There has been a 10 percent increase in outbound Chinese travelers in 2006, so it’s a trend that is set to continue.”