IVIS Country Analysis – China

CHINA (PRC)
157,326 Arrivals in the United States

Loss of 68,239 over 2002, -30.3%

8.5% of all Chinese Long-Haul Travel

-29.6% over 2002

SUMMARY

Total outbound travel from the People's Republic of China had been growing steadily since 1992, increasing 500 percent in the decade through 2002. The outbreak of Severe Acute Respiratory Syndrome (SARS) in Asia during 2003 dampened Chinese outbound travel, which declined by four percent. This small decline was due mostly to a decline in short-haul regional travel, which all but stopped for a few months during the height of the SARS epidemic. Still, Chinese long-haul travel remained fairly robust, and generated nearly 1.9 million arrivals to long-haul destinations outside of Asia, declining less than one percent from the year before. Yet, arrivals to the United States from China declined 30.3 percent in 2003. As a result, the U.S. market share (MSI) also declined by 29.6 percent in 2003 over 2002. The U.S. earned 8.5 percent of the long-haul market from China in 2003.

Chinese real GDP expanded 8.4 percent in 2003 over 2002, an economic growth rate that is one of the strongest in the world. Real private consumption also increased, but by a much slower rate, only 1.7 percent year-over-year. Consumer prices grew about one percent in 2003. The Chinese currency is pegged to the U.S. dollar. Therefore, even though the Chinese yuan remained flat against the dollar, it declined against other world currencies as did the dollar.

With one third (32.7%) of the long haul market from China in 2003, Italy was the most popular long-haul country destination for travel from China. Russia was the second most popular country destination with 28 percent of the long-haul market, followed by Germany (12.9%). The U.S. fell in behind Germany in the fourth position (8.5%) followed by Canada (4.5%), and the UK (3.7%). Among these countries, only the U.S. and Canada lost market share in 2003.

Source: Global Insight

In 2003, Europe was clearly once again the most popular long-haul regional destination for Chinese travel, attracting more than eight in ten long-haul arrivals (82.3%). As a region, the United States is second in popularity with 8.5 percent of all Chinese long-haul travel in 2003. Other long-haul regional destinations for Chinese travel in 2003 included the Middle East (1.9%), South/Central America (1.6%), and Africa (1.0%). Only the U.S. lost market share in 2003.

Source: Global Insight