[Guide] China’s business travel market will not catch up with and surpass the business travel market of America in the short run according to China’s economic volume and business activities, but China’s leisure travel market has basically routed to the world’s first. Under the pressure of slowing growth of China economic, China tourism will hopefully be a contrarian.
Liangjianzhang, CEO of Ctrip(one of China’s largest online travel platforms) and a entrepreneur with more than 10 years of working experience on online travel, said in the interview by CNBC in April 10 that the slowing growth of China economic will not affect China’s booming tourism industry. He said: We are very optimistic because the growth rate of tourism is much faster than other industries, whether from a macro point of view or from the demand.
As the world’s second largest economy, China’s economic growth 7.4% for 2014 did not meet expectation of the government for the first time since 1998 and was the slowest growth rate in the past 24 years. Just last month, the Chinese government in turn made 2015′s economic growth forecast down to 7%. Under the pressure of sustained deflation and cooling real estate, the central bank unexpectedly cut interest rates twice within three months. In contrast, domestic tourism which is still in the incubation period, made an outstanding performance with the increase of income and enthusiasm for foreign cultural.
China Tourism Academy posted Tourism Economic Analysis of the first quarter of 2015 as well as forecasting for the first half of 2015. It said that tourism economy of the first quarter is generally stable. The first half of this year, the total number of tourist reception is 20.6 million passengers with 1.7 trillion RMB tourist income, an increase of 10.8%, of which outbound passengers is expected to reach 62 million in the first half, an increase of 17%. Liangjianzhang said to CNBC that in fact, the cooling real estate and manufacturing investment may make people spend more money on leisure consumption, such as tourism. Weixiaoan, Secretary of leisure Travel Branch of China Tourism Association also thinks the slowing growth of China economic will not affect China’s tourism industry. “Tourism will not spend you a lot of money anyway, it’s not like you are going to buy a big house or make a serious investment, most people do not think traveling is a burden on economy” Weixiaoan said to the World News.
Both China’s business travel and leisure travel market will have a faster growth. The report Global Business Travel Association made this March announced that China’s consumption in business travel is likely to overtake the US as the world’s largest market to the year of 2017. However, Weixiaoan thinks China’s business travel market will not catch up with and surpass the business travel market of America in the short run according to China’s economic volume and business activities, but China’s leisure travel market has basically routed to the world’s first. “My judgment comes from two points,” said Weixiaoan,” First, China’s 1.3 billion population and second the per capita GDP of more than 7000 US dollars, these two datas together will make China’s leisure travel market a definitely striking growth.”
World Travel and Tourism Council(WTTC) predicts in a report released this March that by 2025, China will be one of the major countries with fastest growing of tourism GDP.