Mailman X Business Weekly | September 14th
Here are China’s top tourism business news that you need to know from this week:
US remains favorite long haul destination for Chinese Travelers
In a just released report that touts record outbound travel from China for the first half of 2018, the China Outbound Research Institute (COTRI) tells us that the USA remains the favorite long-haul destination for Chinese travelers (See table below). While the United States was No. 10 in COTRI’s top ten international destinations visited by travelers from China during the first six months of the year, all of the other countries listed were close-in regional or short-haul destinations. Read here for more (English).
- Mailman X’s Take: While this may just be raw data without the actual numbers reported by the NTTO, this is still significant based on the US being the only long haul destination on the list. The 10-year visa is plus the rising digital investment from DMOs across the US looks to be slowly paying off as the US looks to still rebound and reach travel visitor expectations.
1.4 Million Spend 10.9 Billion in the Past 12 months
Chinese visitor numbers to Australia have grown by 13% in the past 12 months to 1.4 million tourists who spent AU$10.9 billion, according to Tourism Australia. Chinese tourists are big spenders too, spending more than USD 8,000 on a trip to Australia compared to an average of USD 5,000 by international visitors. Additionally, what makes Australia so attractive is the level of safety the city provides. Read the details here (English).
- Mailman X’s Take: While other parts of have reports of less spending (see below), Australia seems to be doing it right with better catering to the habits of Chinese spending. Acceptance of mobile payment methods and Chinese banks has helped welcome Chinese better into the city and can be attributed to the higher spend across the entire country
Also this week:
US-China Tensions Are Posing a Threat to the Valuable Student Tourism Market
In 2017, 32.5 percent of international students studying in the United States–350,000 students in total–were from China. The U.S. higher education system’s appeal in China is best illustrated by the fact that 90 percent of the Chinese students studying in the United States covered their costs out-of-pocket. In total, these students contributed $12 billion to the U.S. economy—an important source of revenue for the United States, even before the students entered their college programs.
Click here for more (English).
China’s Big 5 OTAs Have 96% of The Hotel Market
Trustdata, a mobile internet big data monitoring company in China, found that Ctrip, Meituan, Qunar, Tongcheng-eLong and Fliggy accounted for 96.4% of online hotel bookings in the second quarter. The big five were also the fast-growing platforms for the quarter, suggesting that their dominance is getting stronger.
Click here to find out more (English).
Chinese Tourists Traveling Globally Much More—But Spending Less
A joint report from Ctrip, China’s largest online travel agency (OTA), and the China Tourism Academy (CTA), an official Chinese research institute, have released their findings on the spending and destinations of Chinese tourists. One important piece of new information is on the average spending of Chinese tourists, which once again dropped. Average spending by Chinese tourists per outbound trip fell by 14.2 percent in dollar terms to around $758 (5200 yuan), down from $883 for the whole of 2017. However, overall trips were up.
Read here for more (English).
Alibaba’s Jack Ma to Step Down in 2019
Jack Ma who founded the company in 1999 grown to have 66,000 full-time employees and a market value of $420 billion, will be stepping down from Alibaba on September 10th 2019. His predecessor is Daniel Zhang, the current COO, credited for creating Single’s Day, the November 11th event that has become the world’s largest shopping event. Ma plans to concentrate on philanthropy and promoting Alibaba internationally.
Read here for more (English)