Enter the Chinese era of outbound spending and business travel
It has been predicted that travel industry growth will outpace global GDP expansion over the next 10 years and Chinese outbound tourism is already leading the way; only one year, 2009, showed a slight drop in the number of outbound tourists. But this is not the only encouraging news to emerge from the Amedeus-Oxford Economics report titled â€œShaping the Future of Travel.â€
Concerning the airline and accommodation sectors, the first saw an increase in passengers flying between the Asia-Pacific area and Europe and the Americas of 35% and of 30% respectively in the period 2009-2013. Despite this, figures show that Europe will retain the lionâ€™s share of the international accommodation market until 2023, while China is developing its domestic accommodation sector at a faster pace. Nevertheless, for outbound travel spending the Asia-Pacific region will pave the way over the next ten years, overtaking Europe to dominate the outbound travel market by 2023. Chinaâ€™s spending power is expected to rise from 1% in 2005 to a 20% share in 2023, strengthening Beijingâ€™s position as the biggest outbound travel spenders in the world. A younger and more demanding generation of Chinese travelers promises to be not only more aware of the world and extremely confident when using the Internet but also wealthier: 220 million Chinese are expected to earn an annual salary of $18,000 by 2023, while today 100 million citizens earn that amount.
Secondly, Asia is the only region where business travel expenditures were unaffected by the global financial crisis. Data from the International Air Transport Association (IATA) shows that intercontinental air traffic has recovered quickly since 2009, particularly routes that connect advanced to emerging markets, such as China and Europe. East Asia, with China as its core, is expected to account for 42% of global outbound business travel expenditures by 2023.