China Tourism Academy: 2017 China Outbound Tourism Development Annual Report

On October 13, 2017, the "China Outbound Tourism Development Annual Report 2017" was released in Beijing. Dr. Jiang Yiyi, Director of the International Studies Institute of our institute, shared the core ideas and main data of the report on behalf of the research team.

The report was compiled by a team of experts organized by the China Tourism Academy and is the 13th outbound tourism research report published continuously since 2003. Based on long-term tracking and in-depth research, the report clearly and intuitively presents the overall situation of the outbound tourism market in 2016, the characteristics of the source regions, the consumption behavior and satisfaction of the destinations, and puts forward suggestions on the development trend in 2017. At the same time, it analyzes the characteristics of the Chinese tourism market to the countries along the “Belt and Road” and Europe.

The report points out that the comprehensive effect of outbound tourism makes it not only a soft power in building a country's image, but also a hard foundation for major power strategies such as the "Belt and Road" initiative .

The report shows that in terms of total volume, the growth trend of China's outbound tourism market and consumption has slowed down, in terms of structure, the proportion of outbound travel has increased significantly, and the number of tourists to countries along the "Belt and Road" has increased significantly. In terms of source output, economic growth is the main driving factor for outbound tourism, and the activity of the western region and the "new first-tier" markets has further increased. Consumer behavior in destinations shows signs of a shift from "buy, buy, buy" to "travel, travel, travel", and in terms of satisfaction, Chinese tourists have a high evaluation of the overall quality of each destination and the quality of tourism services.

In terms of total volume, the total volume and consumption growth of China's outbound tourism market showed a slowing trend in 2016. China's outbound tourism market reached 122 million person-times, and outbound tourism expenditure was US$109.8 billion, up 4.3% and 5.07% year-on-year.

Source: National Tourism Administration Data Center

From a structural perspective, the significant increase in the proportion of outbound travel shows that Chinese tourists are traveling further and further, and the rapid growth in the number of tourists to countries along the Belt and Road has promoted direct communication and exchanges between people . In 2016, the top 10 destinations for Chinese tourists were Hong Kong, Macao, Thailand, South Korea, Japan, Vietnam, Taiwan, the United States, Singapore, and Malaysia, and the main destinations were still mostly neighboring countries and regions. It is worth noting that the proportion of outbound travel has increased significantly, accounting for 31.24% of the total number of outbound travel in 2016, an increase of nearly 5 percentage points compared with 26.72% in 2015. According to incomplete statistics, the number of tourists to countries along the Belt and Road has also increased significantly, reaching about 50 million in 2016.

Source: National Tourism Administration Data Center

Source: National Tourism Administration Data Center

From the perspective of tourist output, economic growth is the main driving factor for outbound tourism, and the activity of the western region and the "new first-tier" market has further increased . In addition to the influence of factors such as visa convenience, changes in the national income level of the source of tourists have a great impact on the willingness and form of travel. Studies have shown that the per capita disposable income has the highest correlation with the number of outbound trips. Although the travel power of each province (region, city) still shows a decreasing form of "6:2:1" from east to west, the western region has exploded with strong tourism consumption potential, and tourism consumption in Yunnan, Sichuan, Qinghai, Inner Mongolia, Xinjiang and other provinces has grown rapidly. With the addition of international flights and visa centers, the growth rate of outbound tourists in "new first-tier" cities such as Hangzhou, Chengdu, Nanjing, Tianjin, Wuhan, Chongqing, and Xiamen is relatively fast, and their consumption capacity is also comparable to first-tier cities such as Shanghai, Beijing, Guangzhou, and Shenzhen.

From the perspective of destination consumption behavior, Chinese tourists' consumption patterns are undergoing a rational transformation from "buy, buy, buy" to "travel, travel, travel" . The survey results show that most tourists are traveling abroad for the first time, and sightseeing and leisure vacation are the main purposes of outbound tourism. The survey results on travel frequency and decision-making importance show that outbound tourism is still a major consumption choice that people generally find difficult to make. The female market is significantly higher than the male market. Most outbound tourists travel with family or friends, and pay attention to the attractiveness of scenic spots/tourist destinations when choosing overseas travel destinations. Most tourists are willing to arrange overseas travel activities through travel agencies, and pay attention to popularity and integrity when choosing travel agencies. The proportion of tourists who choose semi-self-guided tours and private tours is increasing, indicating that Chinese tourists are no longer satisfied with fixed routes and itineraries, and their requirements for flexible time are increasing. Most outbound tourists who do not join tours complete flight, hotel and travel route reservations online. The middle and high-end groups dominate, and tourists who spend between 5,000 and 20,000 yuan account for about 75%. Tourists prefer to choose mid-priced hotels and economy hotels. The main items of outbound travel expenses are shopping, tour group fees, catering and attraction tickets, etc. Although shopping is still the most expensive item, the shrinking proportion of shopping reflects the sign of a rational shift in consumer behavior from "buy, buy, buy" to "travel, travel, travel".

Source: National Tourism Administration Data Center

Source: National Tourism Administration Data Center

Source: National Tourism Administration Data Center

Source: National Tourism Administration Data Center

Source: National Tourism Administration Data Center

From the perspective of tourist satisfaction, Chinese tourists have a high level of satisfaction with both the quality of tourism services and the overall satisfaction with the destination countries. The satisfaction of outbound tourists has remained stable at the "basic satisfaction" level in each quarter . In 2016, the tourist satisfaction of sample countries from high to low is: Singapore, New Zealand, the United States, Japan, South Korea, Australia, Indonesia, Vietnam, Canada, France, Cambodia, Germany, South Africa, Italy, Thailand, the United Kingdom, Malaysia, Spain, Russia, the Philippines, Argentina, India, Brazil, Mongolia. In 2016, the tourist satisfaction index of each sample country has improved overall, among which the tourist satisfaction of Singapore, New Zealand, the United States, Japan and other countries has remained stable in the forefront, and the tourist satisfaction index of Vietnam, Cambodia, South Africa and other countries has increased significantly.

The report believes that the Chinese market, which has made great contributions to the economic and social development of destinations, is increasingly valued. With the continuous improvement of the internal development environment such as macroeconomics, infrastructure, and market policies, the demand for outbound tourism by Chinese citizens will be further released. As the market matures, the trend of diversified tourism demand will become more obvious . New technologies and policies such as sharing economy and payment methods will effectively expand tourism supply. It is recommended that the national level further promote the connection between outbound tourism and the "Belt and Road" initiative, and that destinations further enhance their attractiveness with the goal of improving the satisfaction of Chinese tourists, and that Chinese companies' "going out" be combined with the development of the outbound tourism market.

As one of the "1+8+X" annual report series of the China Tourism Academy, the "Annual Report on the Development of China's Outbound Tourism" adheres to the combination of forward-looking policy guidance, solid market research, rigorous data analysis, and in-depth hot spot perspectives. It is currently the most authoritative and information-rich annual research report on China's outbound tourism market. It has long been highly concerned by international organizations, tourism administrative departments, related companies, and scientific research institutions.