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Chinese travelers moving up the value chain

By Liu Weifeng and Raymong Zhou | China Daily | Updated: 2013-06-03 13:22
Individual travel

Of the 83 million outbound trips Chinese made last year, more than 92 percent were made for private reasons, unlike the business delegation group tours of years ago paid by sponsors.

Chinese travelers moving up the value chain

And a rising number of Chinese tourists are opting for natural resorts and historic destinations instead of the hustle and bustle of hurried sightseeing.

By 2012, the number of high net worth individuals in China climbed to 700,000, up from 500,000 in 2011 and 320,000 in 2009, according to a study by China Merchants Bank and Bain & Company in May. Such wealthy individuals are defined as those with liquid cash of at least $1 million.

Another wealth report, issued by Citibank in March 2012, said all of Asia has 18,000 ultra high-net-worth people, each with liquidity of at least $100 million, exceeding the number in North America for the first time. The study said there are now 17,000 in North America and 14,000 in Western Europe, signifying a global shift in the economy and fortunes to the East.

Estimates say there will be 26,000 billionaires in Asia by 2016. About 60 percent of them say travel tops their recreational activities.

The South Pole, South America, South and East Africa, Oceania and even outer space are among their luxury travel destinations.

Though Asia is still the most visited locale for outbound Chinese travelers - some 90 percent of the total - per person spending in luxury travel is 10 to 50 times higher than a conventional traveler.

Private jets, cruise liners, luxury hotels, seamless tailor-made transport services, and customized cultural touches throughout the whole trip are major features of luxury travel.

"Especially the affluent are glad to pay for joyful, unforgettable, in-depth and rare experiences," said Liu Deqian, a senior tourism industry expert.

Abercombie & Kent, a global luxury travel service provider, told the Daily Telegraph that "what we're trying to do with China is to try to understand the quirks of that particular nationality and design products that suit their wants and needs".

"Anyone who conquers the Chinese market will really do well," A&K founder Geoffrey Kent told media.

Only 3 percent of the Chinese population now holds a passport. If the ratio increases to 10 percent, the numbers become irresistible to travel companies worldwide.

The China Tourism Academy report says the number of Chinese outbound travelers will increase 15 percent to 94.3 million this year. Their total spending is projected to hit $117.6 billion, a 20 percent surge over 2012.

Chinese travelers moving up the value chain

Chinese travelers moving up the value chain

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