Chinese tourism expected to boom in 2020

Chinese tourists’ overseas spending could hit US$429b.

Outbound trips by the Chinese are bound to reach 200 million in 2020 as the country's tourism growth remains on track, according to a survey by Hong Kong brokerage firm CLSA.

Whilst the terrorist attacks in Europe and weaker spending in the US were the top challenges in 2016, factors like extra holidays, easing travel destinations, and affinity towards other cultures drove Chinese people to travel.

Here's more from CLSA:

Chinese international tourism spend has more than tripled since the US$73 billion recorded in 2011, reaching US$261 billion in 2016. CLSA anticipates Chinese tourists will continue spending overseas to reach US$429 billion in 2021. Yuan depreciation and stricter customs checks are among factors weighing on overseas shopping, but as Chinese travellers become more sophisticated, shopping continues to be a less important tourism driver than in the past. Some survey participants commented that shopping for others while on holiday has lost its appeal, with many international goods now available on the mainland due to the rise of cross-border e-commerce.

While Chinese tourists express a stronger desire for new experiences, safety remains a key concern. CLSA’s 2017 survey findings indicate that 70% of respondents claim safety as the most important factor influencing destination choices, followed by travel costs and sightseeing. Events such as the terrorist attacks in Europe and political instability on the Korean Peninsula greatly impacted travel decisions, with Korea especially suffering the loss in visitor numbers to other regional destinations such as Vietnam.

CLSA expects gaming, cosmetics, luxury and online sectors to benefit most from the multi-decade Chinese tourism theme. Luxury sales to Chinese tourists are estimated to reach 35% of global sales by 2020. CLSA’s longtime view that online travel remains a direct play of the Chinese tourism theme is supported by a very high 80% share of Chinese outbound travellers making their travel bookings online.