Export of Shopping Tourists

By+Wang+Jun

Chinese tourists rank first in the world in terms of overseas trips taken and the amount of money they spend， according to the latest figures from the China National Tourism Administration （CNTA）. In 2015， Chinese people made 120 million overseas trips and spent $104.5 billion， up 12 percent and 16.7 percent， respectively， year on year.

“Among the worlds top source markets， China， with double-digit growth in expenditure every year since 2004， continues to lead global outbound travel， benefitting Asian destinations such as Japan and Thailand， as well as the United States and various European destinations，” said a report by the World Tourism Organization.

A dynamic market

Data from the U.S. Travel Association showed that 3 million tourists from the Chinese mainland visited the United States in 2015， up 16 percent year on year. Chinese visitors spent an average of $6，000-7，000 per trip， much higher than visitors from other regions. By 2021， Chinese tourists are expected to spend $80 billion per year in the United States， according to the U.S. Department of Commerce.

China Central Television reported that the number of Chinese visitors to South Korea reached 6.11 million last year. These tourists spent $2，200 on average， twice that of all foreign visitors， according to data from the Korea Tourism Organization. Chinese visitors generated $22 billion of revenue in accommodation， transport， retail and other sectors， contributing 1.6 percent to South Koreas GDP in 2015.

More than 1 million Chinese tourists arrived in Australia during 2015， setting a record， according to the Australian Bureau of Statistics （ABS）. Visitors from China rose three times faster than the overall increase last year， and their spending grew by 43 percent， doubling the rate of the previous year. The ABS figures showed that Chinese visitors spent more than $5.4 billion in 2015. The $900 million they spent on shopping accounted for 37 percent of all spending on shopping by international visitors to Australia. Chinese visitors have helped Australia fulfill its 10-year tourism target in only five years.

Chinese tourists have even prompted a new word in Japan—bakugai， which means“explosive buying.” Bakugai has been declared the joint winner of the U-Can New Words and Buzzwords Awards of 2015 by Tokyo-based Jiyukokuminsha Publishing House. According to the Japan Tourism Agency， 19.74 million foreign visitors came to Japan last year， of which 5 million were from the Chinese mainland， double the figure of 2014. The Chinese visitors spent 1.41 trillion yen （$11.84 billion） in Japan， accounting for 41 percent of the spending by all foreign visitors to the country in the same period. Chinese tourists each spent on average about 283，800 yen （$2，384） in 2015， which was 100，000 yen （$840） higher than the average spending by all foreign visitors.

A report by the Global Business Travel Association forecasted that China will surpass the United States in business travel spending by 2016.

A recent survey by the China Tourism Academy （CTA） found that shopping accounts for 60 percent of the total spending by Chinese tourists. Chinese tourists used to spend mostly on luxury items but now spend more on daily necessities at supermarkets， said Dai Bin， President of the academy.

Independent travel is becoming increasingly popular too. In 2015， Chinese independent travelers with self-booked itineraries made 80 million outbound trips， according to the Global Independent Travel Report 2015 jointly issued by the CTA and traveling user-generated website Mafengwo.cn. Each independent traveler spent on average 11，625 yuan （$1，768）， 24.1 percent more than in 2014.

Li Jinzao， Director of the CNTA， told Xinhua News Agency that Chinese tourists still have enormous potential. He explained that it is commonly known in the international tourism industry that when a countrys per-capita GDP reaches $5，000， holiday-making will become popular， with the leisure demand and spending power both being remarkably increased. In 2015， Chinas per-capita GDP stood at 52，000 yuan （$7，910）， but each Chinese person only made 2.98 trips per year on average， much lower than the average of eight trips made by people in developed countries.

“The per-capita GDP in China is likely to exceed $10，000 by 2020， when the demand for tourism will show an explosive growth，” Li said.“It will better contribute to the development of tourism.”

Lowered threshold

During the weeklong Chinese Lunar New Year（Spring Festival） holiday on February 7-13， a record number of 6 million Chinese were expected to travel abroad， Ctrip.com， the largest online travel agency in China， estimated in a report in January.

The report attributed the fast growth in outbound Chinese visitors to simplified visa processes， increased flights， more direct air routes， and a more friendly consuming environment. These favorable factors have stimulated the desire to travel among Chinese people， who have more time and money for leisure.

“Many countries have recently simplified the visa processes for Chinese visitors，” said Ma Yutao， head of the Data Research Center of Mafengwo.cn. For example， Nepal grants free visas to Chinese visitors； Italy， Spain， France and Germany have already started to offer express visa processing for Chinese applicants； the United Kingdom started a pilot program on January 11 issuing two-year multiple-entry visas for Chinese travelers and its mobile fingerprinting service has been extended to 50 Chinese cities.

The strong value of the Chinese currency yuan against certain currencies is also a stimulus for Chinese people to travel abroad.

A report released by the CTA said that when the effective exchange rate of the yuan rises 1 percent， the number of Chinese tourists travel- ing abroad increases by 3 percent. Assuming no changes in other factors， the appreciation of the yuan since 2005 has pushed up the growth of Chinese outbound travelers by 110.61 percentage points， which is the most important reason for the sustained fast growth of overseas trips by Chinese people. In addition， factors such as low taxes， quality consumer products， good services and diversified sales strategies in foreign countries all stimulate spending by Chinese tourists.

“Though the yuans recent depreciation against the U.S. dollar and euro may increase the costs of traveling in the United States and Europe， it is still appreciating against currencies such as the Australian dollar， New Zealand dollar and Russian ruble，” Ma said.

Mafengwo.cn offered flight and hotel packages from Beijing to Japan and South Korea during this years Spring Festival holiday that were more competitive in price than packages to tourist destinations in China. It is natural that many Chinese tourists chose to go abroad， according to Ma.

The explosive growth of Chinas outbound travel market may， however， subside in the face of the yuans depreciation against the U.S. dollar. BOC International （China） Ltd.， the investment arm of Bank of China， released a report in January， which concluded that the market will reach a turning point in three to four years. When the number of outbound tourists reaches 180 million to 220 million， the market will enter a stage of stable growth， according to the report.