Visa releases China Tourism Outlook
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Singapore, 24 September 2009 - International tourists in China spent more than $4.6 billion in
2008 on their Visa-branded payment cards across all merchant segments,up seven percent over 20071, according to Visa’s Tourism Outlook: Chinareleased today.The report indicates that despite global economic uncertainty, opportunities still exist for the Chinese tourism economy in 2010 and beyond. “The Beijing 2008 Olympic and Paralympic Games have put a spotlight on China and its broad appeal and have also contributed to vast infrastructure developments that will support China’s tourism economyfor years to come.” said Li Sheng, general manager of Visa China. As a longtime supporter of tourism industries around the world, Visaissued the report based on analysis of Visa card spending data2, tohelp outline ways to support tourism’s continued contribution to China’s national economy. The report providesqualitative insight into the mindset and attitudes of internationaltravelers considering China as a future travel destination.Growing as a Leading Tourism Destination According to the report, morethan half of the survey3 respondents indicated that the Beijing 2008Olympic Games increased their awareness of China as a traveldestination.
The report also indicated that visitors from the United States and Asiacontinue to be the largest contributors to tourism revenues in China.Of the US$4.6 billion spent on Visa cards in China by internationaltravelers in 2008, 56 percent of the spending came from travelers fromthe US,Japan, Hong Kong, South Korea and Taiwan.
The appeal of China, however, is not limited to travelers from the USand Asia. Brazil, India, the Russian Federation and South Africa, whoare among the top 25 source markets for travelers to China, saw thegreatest year-over-year growth in both spending volume and transactionson Visa cards.A year after the Beijing 2008 Olympic Games, there is continuedinterest in visiting China. One in 10 survey respondents report theywill likely visit China within the next two years; these respondents are primarily travelers from South Korea, Japan, Russia and Australia.
Spending Beyond Beijing and Shanghai While Beijing and Shanghai are popular destinations for visitors toChina, as indicated by 21 percent and 25 percent of international Visa cardholder spending in 2008 respectively, Shenzhen (seven percent),Guangzhou (five percent) and Dongguan (three percent) were also centersof visitor spending.
International Visa Cardholders in China Spent Most On Retail PurchasesRetail purchases continue to be the largest share of Visa card spendingby international travelers visiting China. In 2008, the largestmerchant segments for China inbound tourism spending, based on transaction volume, were general retail (45 percent), accommodation (31percent),restaurants (five percent), department stores (four percent)and airlines (threepercent).General retail
($2.1 billion) and airlines ($146 million) bothexperienced a growth rate of 11percent in transaction volume in 2008.Additional categories that saw significant growth include quick service restaurants (67 percent), sporting goods stores (32 percent), andradio, TV and stereo stores (27 percent).
Chinese Tourists Still Show Strong Interests in Outbound Traveling Visa’s Tourism Outlook: China also revealed that Chinese travelers showed strong interest in international travel,despite negative global economic indicators. Approximately 70 percent of Chinese survey respondents expect to take multiple trips abroad in the next two years. Fewer than one in five Chinese survey respondents said they are less willing to travel; 38 percent said they are more likely to do so, but would adjust their plans — optingfor off-peak season trips or visiting places where the cost of travelis lower. Destinations that Chinese respondents hope to travel toinclude the US, Australia, Hong Kong, Japan and France.
Credit Card the First Choice of Payment Method for Chinese Tourists Abroad Growth in tourism revenues is closely tied to growth in the number oflocations where tourists can use payment cards. This is underscored bysurvey respondents’ preference to use credit cards while travellingabroad. Preference among respondents to use credit cards whiletraveling internationally was high, with 76 percent of Chineserespondents saying they prefer to pay with their credit card, whilejust nine percent prefer to pay with cash. Chinese respondents selectedtheir preferred payment method based on three factors: convenience (79percent), security (68percent) and the ability to earn rewards (48percent).Today, more than 58 million Visa international cards have been issuedin mainland China, almost a 100 percent increase compared with thenumber in 2001, when China won the bid to host the 2008 Beijing OlympicGames. There are also now more than 260,000 merchant locationsand100,000 ATMs deployed and installed in China, a 65 percent and 93percent increase respectively, compared with that of seven years ago.”As the world’s largest retail electronic payments network, Visa’s support to China’s tourism industry did not stop with the Olympic Closing Ceremony. Visa iscommitted to providing tourism spending data and work with our industrypartners to ensure that businesses and consumers in China benefit froman efficient modern payments system,” said Li Sheng. “Visa will remaincommitted to partnering with national and local tourism authorities tosupport continued growth by providing both the currency forcross-border transactions and access to millions of cardholders aroundthe globe.”
Comments are closed.