Originally published by David Thomas on davidthomas.asia.
Consider the possibilities for you and your business to tap into the large numbers of Chinese middle class consumers who can now afford to roam the world looking for unique experiences, quality hotels, luxury shopping, fine dining, expensive gifts and even property, investment and business opportunities?
Here are some of the relevant facts and figures:
- Mainland Chinese tourists completed more than 71.3 million overseas trips in the first half of 2018; a 15% surge year on year. The total number for 2018 is predicted to be 162 million, exceeding the forecast of 154 million.
- Over 78 million trips (48% of the total) were made to ‘Greater China’ (i.e. Hong Kong, Macau and Taiwan). The top 6 overseas tourist destinations for the other 52% were (in order of preference) Thailand, Japan, Vietnam, South Korea, Singapore and USA.
- There are approx. 1.5m chinese tourists travelling to Australia in 2019, a number which is projected to increase to 3.327 million by 2026
- Chinese tourists accounted for 21% of Global Travel Spending in 2018. In 2017, the average spend for Chinese tourists averaged US$5,565 per person, with estimates for 2018 average spending expected to reach US$5,715.
- The top three categories of expenses by outbound Chinese tourists are shopping (25%),
- Hotel accommodation (19%) and dining (16%). 65% of Chinese tourists made use of mobile payment platforms during overseas travel.
- 12% of Chinese tourists have bought property in Australia (57% say they would like to).
- There are 120 million Chinese passport-holders, a number growing by 30 million per annum, still a relatively small percentage of the 400 million who are defined as ‘middle class’, not to mention the total population of over 1.3 billion.
Don’t think about this purely as an opportunity for the ‘tourism industry’ and therefore irrelevant to everyone else. There is very strong evidence to show that Chinese tourists, basically upper middle class to wealthy successful entrepreneurs, investors and corporate executives, regard travel as an opportunity to further their business and investment interests as much as take a holiday. Whilst travelling through our cities they meet up with local friends, family, business associates, universities and real estate agents to explore opportunities which go far beyond the usual tourism sites and retail experiences, and smart ‘China friendly’ businesses can take advantage of opportunities to start a long term relationship.
This is just the beginning of this tourism ‘tsunami’. Can you afford to ignore it? What are you doing to make your business a ‘beacon of opportunity’ for Chinese visitors?
About the author: David Thomas
Keynote Speaker, Thought Leader and Business Futurist, David Thomas is well known throughout the Asia Pacific for his experience, credibility and deep understanding of China and Asia. David inspires, motivates and educates global business leaders, entrepreneurs and investors about the massive potential offered by the new China. He takes them on a journey to identify, build and facilitate long-term business and investment relationships.