Travel and Tourism

Overview

In 2012, China became the world’s largest source of international tourists and tourism-related spending. Chinese tourism continues to grow at an impressive rate. In 2015, more than 120 million trips were made by Chinese tourists, up 12 percent from 2014. Chinese tourists made 10 percent of all international trips worldwide, spending US$215 billion on their travels. The market is rapidly growing and is projected to become a US$422 billion industry by 2020.

Chinese travelers are increasingly venturing beyond their neighboring Asian countries to more distant destinations. The U.S. welcomed a record 2.19 million Chinese visitors in 2014 and an estimated 2.6 million in 2015. While this represents less than two percent of Chinese tourists worldwide, it is over five times more than the 397,000 who visited in 2007. Although China ranked just sixth for visitors to the U.S. in 2014, Chinese tourists spent more than those from any other country (excluding Canada), totalling US$24 billion. Chinese spending on tourism continues to grow rapidly, as Chinese travelers accounted for 13 percent of all tourism-related expenditures in the U.S. in 2015 – over four times more than a decade before.

In 2015, 57 percent of the U.S. service industry’s exports to China were tourism related, representing 15 percent of total exports to the U.S. By 2020, the National Travel and Tourism Office projects that Chinese visitors to the U.S. will outnumber those of all other countries besides Canada and Mexico, growing at a rate of 129 percent, compared to 47 percent for India, 39 percent for Taiwan, and 36 percent for South Korea, reflecting significant projected growth in an already robust market.

Top International Arrivals to U.S. in 2014

Source:  U.S. Department of Commerce, National Travel and Tourism Office

*  Overseas is all countries excluding Canada and Mexico

Top International Markets for U.S. Travel and Tourism Exports in 2014

Source:  U.S. Department of Commerce, National Travel and Tourism Office
*  Overseas is all countries excluding Canada and Mexico

Source: U.S. Department of Commerce, National Travel and Tourism Office

Government Promotion

Keenly aware of the economic opportunities presented by the lucrative Chinese market, the U.S. government implemented a series of programs to facilitate Chinese travel to the U.S. In 2014, the U.S. and China both agreed to offer tourist and business visas lasting one to 10 years and student visas of one to five years, simplifying travel between the two countries. Previously, Chinese travelers needed to apply for tourist visas annually, adding additional inconvenience and expense, as a single visa could cost up to US$160. The easing of visa requirements has contributed to the rise of Chinese tourists in recent years, as is also the case with several other countries, including Japan, South Korea, and France. Following this agreement, the two countries announced that 2016 would be the U.S.-China Tourism Year, featuring a series of efforts by the U.S. Department of Commerce, Brand USA, the U.S. Travel Association, the China National Tourism Administration, and other organizations to promote tourism between the two countries.

Annual 2014 U.S. Travel and Tourism Balance of Trade

Travel & Passenger Air Transport Receipts (Exports)1     

Source: U.S. Department of Commerce, National Travel and Tourism Office from the Bureau of Economic Analysis, October 2015. 

Demographics

The typical Chinese visitor to the U.S. is far wealthier than the average Chinese citizen, and young wealthy Chinese make up a significant percentage of total visitors. Half of international Chinese travelers are 15-29 years old, while 37 percent are aged 30-44, and 10 percent are aged 45-59. There is a sizeable gender gap in outbound tourists, as 64 percent of Chinese traveling abroad are women. Travelers visiting the U.S. are fairly affluent, as the median household income of Chinese visitors to the U.S. in 2014 was nearly US$50,000 and the average income approached US$80,000. In contrast, the average household income of all international Chinese tourists just one year earlier was US$21,000. The wealthy cities of Beijing, Shanghai, and Guangzhou account for over 75 percent of all Chinese visitors to the U.S. However, the rising incomes and deepening global connectivity of China’s lower tier cities are increasing the number of tourists hailing from the country’s other regions. Currently only four percent of Chinese citizens have passports, a number sure to grow as more areas benefit from the country’s economic growth.

Travel Preferences

China’s Asian neighbors are the most popular foreign destinations for Chinese tourists, led by South Korea, Thailand, Hong Kong, Japan, and Taiwan. Europe is the most popular region outside of Asia, followed by the U.S. However, a survey by Travelzoo found that the U.S. is second only to Japan as the location Chinese tourists would most like to visit, indicating greater potential for expansion.

Roughly one-third of Chinese tourists choose their destination based shopping opportunities, giving nearby locations an advantage for attracting those who are traveling primarily to purchase foreign products. As such, promoting luxury travel incorporating shopping, fine dining, and related leisure activities is an effective way to attract upscale tourists. On average, Chinese tourists spend over US$2,500 on retail goods during each trip to the U.S., nearly US$1,000 more than the global average. The most sought-after products for Chinese tourists are clothing, footwear, cosmetics, and electronics.

Although shopping is an important aspect of Chinese tourists’ experience, it is not their only travel purpose. Popular leisure activities include sightseeing, fine dining, visiting national parks and monuments, and touring small towns and the countryside. They also visit friends or relatives, attend school, and travel for business purposes such as attending conventions, conferences, and trade shows.

Forty percent of Chinese tourists report visiting a national park during their stay in the U.S. The West Coast is the most frequented region, capturing 50 percent of Chinese tourist spending in 2014, while the Mid-Atlantic collected 33 percent. Chinese tourists – particularly young ones – are increasingly interested in traveling off the beaten path and exploring less frequented locations, demonstrating a growing interest in visiting unique destinations and experiences.

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The U.S. Commercial Service acknowledges Dezan Shira & Associates as the co-author of this article. For inquiries, please email them at china@dezshira.com.