CHINA Market & Trade Profile - Tourisminsights.info

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CHINA Market & Trade Profile - Tourisminsights.info

4) Market Size / Share

Current & Forecast Market Size

Global Insight estimates that there were almost 16 million outbound

overnight visits from China in 2004. By 2010, this is forecast to be almost

31 million – a growth of 93%.

The WTO forecast that outbound travel could reach 100 million visits by

2020.

UK currently accounts for 0.6% of all outbound trips from China – and

this percentage is likely to be the same in 2010.

Current Volume and Value Statistics / Trends

IPS 2003 2004 Change

year on year

Total Visits 68,000 95,000 +41%

Visits Rank

(League Table No. Outside top 30 rankings

Visitors to UK)

Total Spend £127m £131m +3%

Spend Rank 22 24 Down 2 places

(League Table

£ Spend in UK)

Average Spend £1,876 £1,371 -27%

per Visit (AEV)

AEV Rank 4 5 Down 1 place

Average Spend £72 £60 -17%

per Day (AED)

AED Rank 18 26 Down 8 places

Note: The expenditure figures for China have to be read with caution,

as the sample size is quite small for this market.

2004 was the best ever-recorded year for visits and spends from China.

Key Competitor Destinations – actual

Global Tourism Navigator shows us that the UK was 16th in the actual

ranking of top destinations (short and long haul included) for Chinese

outbound travel in 2004.

Asia, Hong Kong, Macao and Thailand attract most of the tourists from

Mainland China.

1 Hong Kong 6 Singapore

2 Macau 7 Russia

3 Thailand 8 South Korea

4 Vietnam 9 Japan

5 Italy 10 Malaysia

16 United Kingdom

Key Competitor Destinations - aspirational

According to the Anholt-GMI Nation Brands Index (Wave 3 2005),

which surveys a representative n=1000 sample of the online population

in China, the UK is ranked 4th out of 24 (i.e. not all potential are asked

about) destinations that would be likely for a leisure visit “if money were

no object”.

1 France 6 Switzerland

2 United States 7 Canada

3 Germany 8 Italy

4 UK 9 Sweden

5 Australia 10 South Korea

Competition from other European destinations remains strong.

According to VB intelligence, France and Italy get the lion’s share of

China’s Europe bound market.

Australia, New Zealand, Scandinavia, Germany and Switzerland are all

highly visible in the market. Switzerland will start to issue Schengen visa

by 2008 at the latest. Many East European destinations offer new and

cheaper alternatives.

5) Market Shape / Dynamics

www.visitbritain.com/ukindustry

Purpose of Visit

The biggest proportion of Chinese visitors come to the UK for

Business (38%).

However, the business share has declined from 57% in 1999 to 38% in

2004, whereas the proportion of holiday visitors has increased from 16%

in 1999 to 23% in 2004.

We must bear in mind that IPS figures on “purpose” for China may be

misleading. This is due to the fact that until January 2005, there was no

ADS agreement in place to allow holiday travel to the UK. Specifically,

those stating a business purpose are equally likely to have had some

holiday element to the visit.

VisitBritain’s Online Best Prospects research (2005), found that

three-quarters of best prospects (those already planning or very likely to

visit) were interested in visiting Britain for a holiday and now that ADS is

signed it will be possible to travel in this way.

There is more on business visits specifically in section 12 of this document.

21% of Chinese visitors are VFR visitors.

The 2001 census found that there were 51,717 UK residents who had

been born in China – an increase of 117% on the 1991 census. These

residents are most likely to be found in London, the South East and the

North West of England.

In 2004, 15% of Chinese visitors visited the UK for study. This proportion

represented only 3% in 1999. Although long-term study is not counted

in tourism statistics by IPS, this can be an important source market for

VFR visits. In 2004, UCAS had 39,445 Chinese applicants for degree

courses (of which 6324 were accepted – making China the largest

source market for UK overseas higher education students). The most

popular subjects taken in 2004 were: Business & Administration,

Engineering and Mathematics.

The FCO estimate that 32,000 Chinese students are currently

undertaking some form of study in UK.

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