Chinese Tourists and Tourism: Worth Looking Into

Chinese Tourists and Tourism

Economic Miracle Translated Into Enormous Tourist Base

Profiling Chinese tourists would be an impossible task, yet one thing is for sure - they are a powerful force on the global tourism scene. More than 30 years of super-high growth has produced a bunch of rich and sophisticated globetrotters and an expanding middle class ready to spend on leisure and pleasure. The number is mind-boggling: Chinese people made over 5.5 billion trips within China, and nearly 150 million outbound trips in 2018. The most recent Chinese New Year in early 2019 witnessed 400 million domestic trips and 6.3 million overseas trips.

<Chinese tourists visit the British museum>

China’s GDP grew by 6.6% in 2018, slower than the double-digit rates the country is used to, but still considerable. The International Monetary Fund estimates the figure for 2019 to be 6.2%, compared to 3.6% globally. Continued economic growth is likely to translate into a wealthier population and hence more spending power and a bigger tourist market. A huge population base of nearly 1.4 billion is another reason for the scale and potential of the Chinese tourist market.

Demographic Patterns: Post-90s & Post-95s Spending Most on Tourism

Demographics are indeed important to understand the market. According to data from Fliggy, a popular online travel platform in China, together, the ‘Post-90s’ generation and ‘Post-95s’ (people born after 1990 and 1995 respectively) have replaced the ‘Post-80s’ as the largest contributor to Chinese tourist spending; and the Post-95s’ in particular, are set to become the most powerful spenders. 

Different age groups are demonstrating distinct preferences, as indicated by an online poll by CBN Data, a data provider. During overseas trips, the ‘Post-70s’ would prefer traditional tourist activities such as visiting natural and cultural sites and tasting local food, while their younger compatriots tend to get immersed deeper in the local lifestyle, such as participating in celebrations and going to bazaars. 

Prosperous City Dwellers Contributing the Most, Others Catching Up 

Geographical patterns are also identified. There has always been a huge social and economic divide between China’s coastal east and the less developed west and between major cities, or first-and second-tier cities and third-and fourth-tier cities. Fliggy’s data shows, over 80% of the ‘Post-90s’ and ‘Post-95s’ generations who made bookings for self-guided tours abroad in 2018 are from first-and second-tier cities. But as the benefits of decades of rapid growth have filtered through to the more remote areas, people from towns and small cities are catching up. For instance, air-ticket bookings for overseas trips grew faster in third-and fourth-tier cities than major cities. 

Media Catapulting Anonymous Locations Into Hotspots 

There are other trends worth noticing. The impact of social media is certainly one. In addition to specialized travel apps which provide bookings and recommendations and allow for reviews and interactions, short-video sharing platforms such as TikTok and Kuaishou, lifestyle apps such as Little Red Book and the multi-purpose messaging and social networking app Wechat are catapulting previously little known locations into tourist hotspots. 

Reality shows are also influencing Chinese tourists’ choice of destinations. According to a joint research by Mafengwo, a Chinese travel website and the China Tourism Academy, 24.5% of Chinese tourists say they have been attracted to some destination because it had appeared in an entertainment program.

Nature or Culture: Something for Everyone 

China, with a landscape as diverse as its inhabitants and a long, mesmerising history, is also active on the supply side. Apart from a vast domestic base, China is attracting large numbers of international tourists, ranked fourth globally. Established first-tier cities - Beijing, Shanghai, Guangzhou, and Shenzhen - are popular with international tourists; Hangzhou, Chengdu, Suzhou, Xi’an - the so-called “new first-tier cities” - are also among the top 10 destinations, each with its distinct appeal: a storied history as in the case of Beijing and Xi’an, a vibrant local culture represented by unique cuisines as in the case of Chengdu and Guangzhou, waterfront views in Hangzhou and Shenzhen, rock gardens in Suzhou and the cosmopolitanism of Shanghai.

<The Forbidden City in Beijing>

Yet China has much more to offer: ski resorts in the northeast, the idyllic beauty of Daocheng County in the southwest, known as “the last pure land on the blue planet, and areas scattered across the country with high ethnic minority concentration and therefore distinct folk culture, to name a few. 

With improved infrastructure and tourist facilities, and greater visibility thanks to social media and the entertainment industry, locations in remote areas have begun to enjoy a tourist boom. An example is the Lugu Lake in the northwest of the Yunnan plateau. Secluded from the outside world until fairly recently, the place has been known as “the last quaint Realm of Matriarchy”. It began to develop tourism in 2004, became much more accessible with a highway linking Ya’an and Xichang of Sichuan Province in 2012 and an airport in 2015, and got a boost from The Inn, a popular reality show in 2017. No longer off the beaten track, the scenic site attracted over two million tourists in 2017.

<A scene from the Inn, shot on Lugu Lake>

Or Rather, Combining the Two 

Actually, with fewer and fewer scenic spots remaining underdeveloped or anonymous, China is viewing a fusion of tourism and culture as the path to the future. The former Ministry of Culture and National Tourism Administration have been combined to form a new government body - the Ministry of Culture and Tourism in March, 2018. According to plan, there will be 1200 ‘cultural and tourist towns’ nationwide by 2020. The idea is to leverage cultural and natural resources to develop tourism, benefiting local industries and communities along the way with funding from the public sector, real estate, entertainment, and tourism industries and venture capital. It is estimated that 70% of the top 100 real estate developers in China have been exploring the cultural and tourist market. 

Whether you are looking for opportunities to tap into the tourist market or planning a trip, China, with its scale, diversity, and potential, is well worth consideration. And we are here to serve you.

What We Can Offer

√  Local insights

√  Language and logistical support 

√  Boutique tour services. 

About Nihao Global

Nihao Global (www.nihaoglobal.com) can assist companies entering the Chinese market through the provision of bilingual professional services including translation, interpreting, market research, bilingual contractors and recruitment as well as local business knowledge and experience. Nihao Global is presently represented in 20+ major cities throughout China with an extensive network of 300+ bilingual talents, who have various degrees of specialty and industry experience that can assist with both business and individual requirements.