Millions of Chinese to target Europe travel

Report by hotel giant IHG unveils scale of opportunity
The sheer scale of the China outbound travel opportunity is revealed in a new report. Annual arrivals around the world from China will total nearly 97 million by 2023, an increase of 5% per year, and by the same year 88 million Chinese households will be able to travel overseas.
The report, published by hotel giant InterContinental Hotels Group in partnership with the global research company Oxford Economics, says that increases in family income are the key driving force behind this change. In the next decade, over 60 million Chinese households will cross the annual income threshold of $35,000, at which point international travel becomes more affordable.
Three key trends in Chinese travel will emerge over the next 10 years, the report stresses. First, Chinese demand for long-haul travel will experience huge levels of growth, as China overtakes the US, the UK and Germany to become the biggest source market for long-haul travellers by 2020. Preferences will shift toward more expensive, longer-haul trips.
Second, Chinese travellers will mix business with leisure, so that by 2023 nearly two thirds of total Chinese outbound travel will be leisure-driven – a major shift in the purpose of travel for outbound Chinese away from business.
Third, Chinese travellers will spend more during overseas trips. Per-trip spending by Chinese travellers is expected to grow by nearly 75% in nominal terms by 2023. There will be a continuing shift towards higher-cost accommodation and upscale shopping.
International cities will benefit the most. Cities are the primary destinations for Chinese travellers, with over 85% heading for major cities around the world. Nearly 95% of total Chinese outbound travel spending is taken by major global cities. Destinations with easier access, including simpler visa policies, will gain the most.
TTG Nordic
[pictured: Ready to fly; Window of the World Park, Changsha, China]

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