• Chinese travelers spend more on new experiences , but shop less

    Ramesh Tiwari
    July 13, 2017
    Chinese travelers spend more on new experiences , but shop less

    TravelBizNews Online —

    Hong Kong : The number of trips by outbound Chinese Traveler is expected to reach 150 million this year, but while average trip spend is on the rise (up 3.5 percent 2015-2016), surprisingly shopping spend declined both in absolute and relative terms, to 33 percent of trip spend in the same period, according to a report released by Oliver Wyman, a global consulting firm.

    The findings of the report, ‘Prepare for Turbulence: The Chinese Traveler of Today and Tomorrow,’  reveals that shopping dropped from second biggest motivation for traveling to third, behind sightseeing, recreation and entertainment. The decline was mainly driven by decreased shopping for resale – ‘daigou’ – which fell from 8 percent to 3 percent year-over-year.

    “Chinese Traveler continue to shift their spending towards more meaningful experiences such as exquisite dining, extraordinary cultural journeys and even adventurous sports,” said Hunter Williams, Oliver Wyman partner and author of the report.

    “At the same time, cross-border e-commerce has grown rapidly, overseas travel has democratized, and there is greater availability of products at home, meaning there is less need to for buying overseas for resale”

    Travelers who rank shopping as the main reason to travel are generally from lower income brackets than those who rank shopping as the second and third motivations to travel. Therefore, the most “intent shoppers” are not the biggest spenders in either shopping or total travel spending.

    For example retail spend as proportion of overall trip spend in the United Kingdom went down from 42 percent to 33 percent despite the weakness of the pound following Brexit. A particular fall was seen in daigou spend, which dropped from RMB1,800 to RMB1,000 per person from 2015-2016.

    Similarly, retail spend in the United States dropped from 41 percent to 28 percent with only 5 percent of respondents ranking shopping as number one reason to go to the country.

    The report reveals the major shifts in the tastes of Chinese Traveler, who are becoming more independent as they become more sophisticated. “Cookie cutter” holidays have greatly declined in popularity as a result – fewer than 1 in 40 holidays were mostly planned by travel agents in 2016 vs. more than 1 in 7 in 2015. They are also staying longer in distant locations, traveling more with their families and even spending less on shopping. They now travel more with immediate family and especially children, resulting in growth in average group size from 2.9 to 3.1 travelers per group.

    In terms of travel duration, Chinese travelers are making shorter trips to Asia and significantly longer trips to long-haul destinations. Hong Kong remains the most popular destination .

    South Korea has slipped from its position as the top destination. Japan has continued to rise, again being the fastest growing destination  to visit in 2017.

    The report also reveals that twice as many trips were made domestically last year compared to 2015, with over 90 percent of respondents making at least one domestic tourism trip in the past 12 months. On the consumption front, they are much less interested in shopping when traveling domestically and also more price conscious, with 47 percent of respondents seeking value/price compared with 40 percent for overseas destinations.

    With long-haul destinations becoming more popular among Chinese tourists, Oliver Wyman expects that a greater proportion of spend will be allocated to accommodation, dining and entertainment, while shopping spend as a percentage of overall travel spend is likely to continue to decline moving forward.

    July 12, 2017

    • Connecting you with the world of travel and tourism

      What they say

      Tourism is a people’s sector. One in 10 people in the world are directly or indirectly employed by tourism. Ours is the responsibility to ensure that tourism benefits each and every community, leaving no one behind.
      Tourism’s sustained growth brings immense opportunities for economic welfare and development. Yet, it also brings in many challenges. Adapting our sector to the challenges of safety and security, to constant market changes, to digitalization and the limits of our natural resources should be priorities in our common action.
      As we move towards a future guided by the universal 17 Sustainable Development Goals (SDGs), I take upon me to lead UNWTO with a strong focus on building partnerships with public and private sector, fostering jobs and opportunities for all, mastering technology and innovation and advancing sustainability and the fight against climate change.
      I trust that, together with our Member States and our partners from around the world, we can build a more competitive and responsible tourism sector for the benefit of all. I wish you a very happy 2018.
      Zurab Pololikashvili
      UNWTO Secretary-General

      Beautiful China – Year of Integrated Tourism 2018

      China has declared the year 2018 as “Beautiful China-Year of Integrated Tourism”. The slogans are “New Era, New Tourism, New Achievements”; “Region-based Tourism, Brand New Pursuit” according to CNTA.
      http://travelbiznews.com/china-to-observe-2018-as-beautiful-china-year-of-integrated-tourism/

      Travel Fairs ( Jan.- April 2018 )

       *Vakantiebeurs  -Tourism and Recreation Fair
      Utrecht, Netherlands, January 10-14 ,2018

      *Ferien-Messe Wien Int’l Tourism Fair Vienna Vienna, Austria, Jan 11-14

      * CMT / CMT – Die Urlaubsmesse Holiday, Caravanning, Motoring and Tourism , Stuttgart, Germany Jan. 13-21

      *FITUR – Int’l Tourism Trade Fair , Madrid, Spain Jan. 17-21

      *GO Int’l Travel Trade Fair                                          Brno, Czech Republic, Jan. 18-21

      *OTM Outbound Travel Mart ,Mumbai, India, Jan. 18-20

      *Adventure Travel Show , London  20-21 January

      *ASEAN Tourism Forum ( ATF) , Chiang Mai , Thailnd January 22-26

      *EMITT-  East Mediterranean Int’l Tourism and Travel Exhibition ,Istanbul, Turkey, Jan. 25-28

      *SATTE Travel Mart , New Delhi , India            Jan. 31- Feb. 2

      *IMTM – Int’l Mediterranean Tourism Market   Tel Aviv, Israel  , Feb. 6-7

      *India Travel Mart ITM , Ahmedabad, India          Feb. 9-11

      *Travel and Tourism Fair ( TTF) , Chennai , India Feb. 16-18

      *PATA ATRT Conference and Mart , Abu Dhabi , UAE , Feb 21-23

      *Travel and Tourism Fair(TTF) , Bengaluru, India ,Feb. 23-25

      *World Spa and Wellness 2018 , London , UK Feb. 25-26

      *Guangzhou International Travel Fair Guangzhou , China  March 1-3

      *ITB Berlin Berlin , Germany March 7-11

      *Moscow Int. Tourism and Travel Exhibition ( MITT) ,Moscow , Russia March 13-15

      *IT& CM China 2018 , Shanghai , China          March 20 – 22

      *GBTA Conference Mexico City, March 21-23

      *UNWTO World Conference on Snow and Mt. Tourism ,Andorra , March 21-23

      *Arabian Travel Mart –ATM   Dubai , 22-25 April

      Wildlife in Chitawan , Nepal

      Window of Nepal Tourism

      http://www.nepaltournews.com/