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Chinese Tourists’ $94bn Golden Week Defies the Gloom
More than half a billion Chinese tourists spent 478 billion yuan or $94 billion in a single week, up 13.5 per cent from the same period last year.
In the past week, 589 million ­Chinese tourists hit the road ­during the country’s so-called Golden Week celebrating China’s National Day. This figure included six million Chinese tourists who ventured outside the country.

More than half a billion Chinese tourists spent 478 billion yuan or $94 billion in a single week, up 13.5 per cent from the same period last year. The number of tourists also surged by 12 per cent, defying investors’ gloominess about the world’s second largest economy.

According to a joint report ­released by China Tourism Academy and one of China’s largest travel agencies, close to two thirds of Chinese tourists use their mobile phone to book tours and tickets. “Eighty per cent of spending happen online,” says the report.

This finding is consistent with the rapid development of China’s mobile app and payment market, which is leading the US. China has some of the world’s largest and most advanced e-commerce and mobile payment companies such as Alibaba and Tencent.

Due to the proliferation of online product offerings, Chinese tourists are increasingly more interested in unique travel experiences and shun past practices such as joining tour groups.

Traditionally, shopping has been a big part of Chinese tourist experience. However, recent surveys suggest more seasoned Chinese travellers prefer better experience over products.

This reflects a natural progression in buying habits. Newly affluent consumers like to buy branded goods to show off their status. Once they have bought all these tangible goods they want to have unique experiences.

Middle-class professionals aged between 23 and 55 make up 61 per cent of tourist population. People under 23 per cent account for 18 per cent and travellers aged 55 ­account for 18 per cent of the ­traveller population.

Women now make up the most important traveller group, and ­account for 59 per cent of the total tourist population. Family and young couples also represent ­significant segments of the ­market. This partially explains the popularity of destinations such as Disneyland in Hong Kong and Shanghai.

In China, workers only get two weeks paid holiday on average. So many professionals use the Golden Week holiday for their long-haul trips. In terms of consumption power, travellers from major urban centres such as Shanghai, Beijing, Guangzhou and Hangzhou are most willing to open their wallets.

During Golden Week, more Chinese tourists also choose to venture outside the country. The joint report between the Chinese Tourism Academy and the travel agency shows travellers are willing to spend more in exchange for better experiences. The country’s leading travel agency says more than 80 per cent of people using its platform opt for four- and five-diamond services.

This means travellers only want to stay at five-star hotels or boutique accommodation such chateaux in France. Close to 50 per cent of travellers choose five-diamond services, which means they only want the best. The ­report says people prefer better ­accommodation, better food as well as a more relaxed program.

“People are abandoning low-cost shopping package tour,” says the report. Traditionally, inexperienced Chinese travellers join low-cost shopping tours in places like Hong Kong. They often spend a long time at designated shops and are under pressure to buy goods in order to cover the costs of their tours.

As Chinese travellers get more experienced, they are increasingly planning their own routes online and travelling independently. The latest data shows 49 per cent of tourists travel independently and the rest still take part in tour groups.

The travel agency says more and more wealthy Chinese travellers want to have their own tailor-made routes. The number of boutique travellers rose 400 per cent during the recent Golden Week. More and more people seek to hire their own private tour guides.

There is furious competition for the legion of high-spending Chinese travellers. Fifty seven countries and regions have introduced visa-free or visa-upon-­arrival policies. During Golden Week, the most popular destinations were Korea, Thailand, Japan, Indonesia and the US. Australia is not among the top ten.

Morocco has also emerged as the red-hot favourite, the number of travellers going there has surged 3500 per cent. Mexico, Bhutan, Israel, Russia and New Zealand are among the top ten new attractions.

Only 65 million Chinese have passports and they only make up 5 per cent of the country’s 1.4 billion population. It is predicted that China will soon become the world’s most important outbound tourism market.
  Source: The Australian

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