With Christmas, New Year’s Day, and the Spring Festival approaching, outbound tourism markets across the country have quietly heated up. On December 11, reporters visiting some travel agencies in Beijing learned that many citizens have already started scrambling for spots on Spring Festival outbound tour groups. Statistics from the China Tourism Academy show that from January to October this year, the total number of outbound tourists in China was 72.11 million, a year-on-year increase of 14.2%. Experts pointed out that the booming outbound tourism not only reflects the diversifying consumption demands of an increasingly affluent population, but also highlights the imbalanced structure and relatively low service level of the domestic tourism market.
Outbound tourism continues to boom
This winter, Beijing has seen its lowest temperatures in recent years, dropping as low as minus 9 degrees Celsius. In stark contrast to the cold weather, Beijing’s outbound tourism market is booming. On December 11, when reporters visited several travel agency outlets in Beijing, they heard phones ringing non-stop with inquiries about outbound tours, and the number of people coming to sign up was constant.
Staff at a travel agency outlet near Hadian Bridge in Haidian District told reporters that due to the cold weather in the north, current outbound tourist routes are mainly focused on Hong Kong, Macau, Taiwan, Southeast Asia, Australia, the United States, and some South Pacific countries. Although it is winter and cold domestically, these destinations enjoy warm and comfortable weather, even hot in some cases. With the Spring Festival holiday approaching, outbound tour group bookings are relatively concentrated, and many routes have very few spots left. Similar situations were observed at travel agency outlets near Jimenqiao and Ganjiakou.
Data released by the U.S. Department of Commerce’s Office of Travel and Tourism Industries in late November showed that the total number of mainland Chinese tourists visiting the United States in June this year was 122,657, a year-on-year increase of 47%. Among the top ten source countries for the U.S., mainland China saw the fastest growth in tourist numbers, being the only country with an increase exceeding 40%. Dr. Jiang Yiyi, director of the International Tourism Research Institute at the China Tourism Academy, analyzed that this to some extent also reflects the current popularity of outbound tourism among Chinese tourists. The months of June, July, and August are the peak season for outbound tourism by mainland tourists. While the 47% monthly growth rate of mainland tourists traveling to the U.S. is not representative for the whole year, it does to some extent demonstrate the huge demand in China’s outbound tourism market.
According to statistics from the China Tourism Academy, over the past 10 years, the number of outbound tourists in China has grown at an average annual rate of 17%, and over the past 5 years, the rate has been 19.7%. In 2011, the number of outbound tourists in China reached 70.25 million. From January to October this year, the total number of outbound tourists was 72.11 million, a year-on-year increase of 14.2%, and it is expected that the number of outbound tourists this year will reach around 84 million.
Becoming a necessity for the affluent class
Data released by the National Bureau of Statistics shows that in the first half of this year, the per capita total income of urban residents in China was 13,679 yuan, of which the per capita disposable income of urban residents was 12,509 yuan. In 15 provinces, the growth rate of per capita disposable income exceeded the national level of 13.3%.
Jiang Yiyi analyzed that with the continuous improvement in people’s living standards in recent years, the consumption concepts of mainland residents are changing. Tourism has become an important part of the family life of increasingly affluent mainland residents, and outbound tourism has also become a necessity for some affluent families.
A survey report released by an organization in 2011 showed that 55.7% of urban families in the mainland planned to travel in 2012, with expected tourism spending exceeding 10,000 yuan. 61.7% of respondents chose to travel abroad, with France, the United States, Japan, the Maldives, and Switzerland being the most popular destinations.
Jiang Yiyi pointed out that according to statistics from the China Tourism Academy, over the past 10 years, about 60% of outbound tourists were traveling abroad for the first time, mostly for sightseeing, with very few for leisure and vacation. “Most tourists travel abroad mainly for sightseeing, and shopping is just a supplementary activity. The shopping power of mainland tourists has been greatly exaggerated by many media, especially foreign media,” said Jiang Yiyi.
Jiang Yiyi predicted that with the appreciation of the renminbi and the relaxation of tourism visa policies, the number of outbound tourists in China will maintain a high growth trend for at least the next 10 years.
Building internal strength to retain tourists
“The continued rise in outbound tourism in recent years reflects the imbalanced structure and relatively low service level of the domestic tourism market. Against this backdrop, more and more affluent people are beginning to look overseas for their travel destinations,” analyzed Dr. Ma Xiaolong, director of the Regional Planning Institute at the China Tourism Academy, who has long been engaged in tourism planning research.
Ma Xiaolong told reporters that to retain tourists domestically and even attract more international visitors, the domestic tourism market still has many issues to address.
Ma Xiaolong gave examples: in terms of travel time, domestic tourism is mainly concentrated during the two long holidays of National Day and the Spring Festival. Due to the overly concentrated travel period, scenic spots are often overcrowded, significantly reducing the quality of the travel experience. In terms of market structure, the biggest shortcoming of the domestic tourism market is insufficient hardware supply and incomplete infrastructure, which is particularly common in scenic areas in central and western regions. “The current state of domestic tourism is that most consumers do not have a relaxed experience—eating is not relaxing, sleeping is not relaxing, traveling by transportation is not relaxing, and sightseeing is not relaxing. In short, it’s just too tiring,” said Ma Xiaolong.
The report of the 18th National Congress of the Communist Party of China proposed, “Firmly grasp the strategic foundation of expanding domestic demand, accelerate the establishment of a long-term mechanism for expanding consumer demand, and unleash the consumption potential of residents.”
“Developing the tourism market, especially the domestic tourism market, is undoubtedly a good way to expand domestic demand and unleash consumption potential,” believes Ma Xiaolong. Domestic tourism actually has many attractive advantages, such as not requiring visas, fewer policy constraints, fewer currency constraints, and clear price advantages—“convenient and affordable.” He predicted that if the government reasonably sets up vacation systems and scenic areas actively improve public facilities, the current annual tourism demand of around 3 billion trips in China could see at least two to three times growth within 10 years.
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Outbound tourism visas become more convenient
Reporters recently learned from the National Tourism Administration that some countries have recently introduced a series of favorable visa policies, bringing great convenience to people’s outbound travel.
■ UK: New Policy Coming Soon
The UK government’s upcoming visa policy: Chinese tourists applying for a Schengen visa can use the same form to apply for a UK tourist visa. Upon successful approval, Chinese tourists can obtain both a Schengen visa and a UK tourist visa.
■ Australia: Online Applications to be Promoted Next Year and the Year After
The Australian federal government has decided to change the visa application process and will gradually introduce an online application system for tourist visas for all countries, including China, over the next two years. Currently, Chinese tourists have to wait 5–7 days to get a tourist visa to Australia. The new project will make the process of applying for an Australian tourist visa much simpler and faster for foreigners.
■ Russia: Visa-Free for Groups
Recently, the website of the Russian Embassy in China announced that China and Russia have signed a reciprocal visa-free agreement for group tourism. Chinese citizens can now travel to Russia visa-free as part of a group tour. Previously, Russia only offered visa-free policies for Chinese group tourists in a few areas in the Far East. Other countries that also offer visa-free group tourism to China include Vietnam, South Korea, and others.
■ Italy: Lifts Peak-Season Visa Limits
Currently, Italy has streamlined the process for issuing tourist visas to Chinese travelers. The quota restrictions on tourist visas for Chinese visitors during peak seasons have been lifted, and 5-year multiple-entry tourist visas can even be issued.