How will the Chinese market crash modify the outlook of outbound travel?

Published on : Thursday, September 3, 2015

Chinese-touristsChinese travelers have positioned themselves as one of the major economic forces in the global travel industry in the recent years. However, the recent stock market crash and the declining Shanghai Composite Index have infused a substantial tension in the core quarters of the tourism industry.



The impending question is how the prolific outbound Chinese travelers will react to the economic downturn. Will it reshape the way Chinese travelers jet to their favorite destinations like Japan, U.S., New Zealand and indulge in shopping, dining and sunbathing?



The depreciating Yuan following the market crash has a wide range of impacts, but experts believe that the outlook of outbound travel in China still remains pretty strong. Trips to long haul destinations might decrease and travel spending behavior of Chinese travelers might see a decrease.



In terms of economic volatility, the value of Yuan against dollar has dropped to the 2012 levels.  However, the loose visa regimes for Chinese travelers in most of the countries coupled with the strong tourism strategies to allure Chinese nationals will keep on driving China’s outbound travel.



According to the travel figures, in the first two quarters of 2015, Chinese travelers made 61.9 million overseas trips, depicting an increase of 13% over the previous year. In 2014, 117 million Chinese traveled overseas and the travel spending by reached a record $164.8 billion. It is inferred that the recent economic recession after the market crash may hurt the travel spending, but the increasing habit of flying to international destinations will remain strong.



The Chinese travelers are among the highest contributors to the world tourism industry and rising middle-class Chinese travelers added to the figures.



The world travel and tourism industry will have to wait and see whether the Chinese outbound travelers opt for cheaper and closer destinations or travel to Europe and the U.S. on a tighter budget.

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