update on china inbound travel & the u.s.-china tourism year · nearly 3/4s of volume is to...

1 National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce (October 2016)

Update on China Inbound Travel & the

U.S.-China Tourism Year

Presented by: National Travel and Tourism Office International Trade Administration U.S. Department of Commerce August 2016


China The Big Picture

• DOC opened the group travel market from China in 2007.

• DOC Market Development Cooperator Grants (MDCP) have further helped “introduce” the United States to potential Chinese travelers

• NTA working to educate the China Inbound Program operators by doing FAM tours beyond gateway cities

• China receives 10 year visas in November 2014

• Multiple entities in China working hard to promote leisure travel: Visit USA Committee, Brand USA, Commercial Service

Presenter

Presentation Notes

DOC opened the group leisure travel market through a Memorandum of Understanding with the government of China in 2007. The first leisure groups arrived in the United States in June 2008. All but 2 provinces in China are now open to the group leisure market, and we continue to work with the Government of China to get those last two provinces included in the MOU. NTA sought and was granted a Market Development Cooperator Grant in 2009, and by 2011 you and your partners had generated more than $1.3 BILLION in exports for the United States from this obviously lucrative market. NTA continues to work with the China Inbound Program partners to educate them about the China market, and, in particular, to introduce them to destinations beyond the gateways. Other organizations, such as the Visit USA Committee China, our Commercial Service offices and Brand USA are also working hard in market and here in the United States to continue promoting leisure travel to our country.


China Visitors & Spending Trends

Sources: Department of Commerce, National Travel and Tourism Office; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

Note: The Bureau of Economic Analysis revised the definition of travel exports (spending) in 2014 to better align with international standards. In general, this revision increased U.S. travel exports by 20%. The timeline shown includes the revisions back to 1999 and thus represents comparable data.

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

China Travel Exports

China Arrivals

$millions of travel exports millions of USA visitors

Presenter

Presentation Notes

Traveler volume from China grew 575% from 1999 to 2015. Travel exports from China grew 1510% from 1999 to 2015. Travel exports per visitor has been a near constant $12,000 over the past ten years.


China Traveler Volume & Spending Highlights China is now the #1 country in producing both outbound travelers and travel exports to the world.

2015 traveler volume will be well over 120 million…

…2015 outbound expenditures were US$292 billion, up 24% over 2014

Nearly 3/4s of volume is to Hong Kong, Macau, and Taiwan. Other top destinations are South Korea, Thailand, Japan, Singapore, and Malaysia.

China traveler volume to the USA was a record 2.6 million in 2015, up 18% over 2014. Arrivals from China have registered double-digit (>10%) for 11 of the last 12 years. China is the 5th largest arrival market for the United States.

China travel exports to the USA were a record $30.1 billion, outpacing Canada ($22.6B) for the second straight year.

China outbound in 2016 through Q2 is up 16%, although travel to Hong Kong, Macau, and Taiwan were down 7% for the first six months of 2016.


0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

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Convention

Business

Education

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Vacation

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Airlines in USA

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China Visitor Traveler Segments to the USA (2015)

Presenter

Presentation Notes

Here’s a visitor volume breakdown of from China to the USA for some traveler segments of interest to this group. Again, total volume was 2.2 million in 2014… …of which 1.3 million were repeat visitors and nearly 900 thousand were first-time visitors to the USA. Visitors often included several travel modes in the USA during their trip. Here are two of importance to this group. Nearly a million visitors used airlines between US cities, and 650 thousand rented cars. The MAIN trip purpose is led by vacation-holiday and visiting friends or relatives. Note that 341 thousands, or 16% of visitors traveled for education purposes. A quarter of a million U.S. university students are from China, by far the most of any foreign country. In 2013 EDUCATION SPENDING was 43% of all spending in the USA made by visitors from China. 1.5 million visitors stayed one or more nights in the USA, and those that did stayed an average of 18 nights. And lastly, 429 thousand used a travel package for their USA trip.


California 49% 42% -7% pts New York 31% 31% 0% pts Nevada 17% 14% -3% pts Hawaii 6% 11% 5% pts Massachusetts 10% 8% -2% pts Illinois 10% 6% -4% pts Florida 6% 6% 0% pts Pennsylvania 4% 5% 0% pts Texas 4% 4% 0% pts Washington State 4% 4% 0% pts

States/Territories 2010 2015 2010/2015 Visited % % (% pt change)

Top U.S. States/Territories Visited by Chinese Travelers (2010 vs. 2015)

Presenter

Presentation Notes


Los Angeles 34% 30% -4% pts New York City 28% 29% 1% pt San Francisco 22% 19% -3% pts Las Vegas 16% 14% -2% pts Washington, DC 14% 12% -2% pts Boston 9% 8% -1% pt Chicago 10% 6% -4% pts Honolulu 1% 6% 3% pts San Diego 3% 4% 1% pts Seattle 4% 4% 0 pts

Cities Visited 2010 2015 2010/2015 % % (% pt change)

Top U.S. Destinations Visited by Chinese Travelers (2010 vs. 2015)

Presenter

Presentation Notes

We see a very similar declines in share for the cities. Like the states, every single city is now hosting more travelers now than they did in 2010 because of the dramatic increase in the number of arrivals to the country from China. But, unlike the states, we have see more shifts in the top cities with Los Angeles posting the top spot for the last 3 years. New York City held the top spot in 2011. San Francisco has held the number 3 spot for since 2008, and its share has been up and down over the years. Las Vegas has moved to the number 4 spot, although it did see a slight drop in share between 2012 and 2013. DC had held the #4 spot in 2011, and it too has seen increases and declines in share over the last several years as the changes in all of the characteristics I have talked about influence where they go.


California 395 1,076 173% New York 249 789 218% Nevada 133 374 181% Hawaii 45 296 560% Massachusetts 79 215 171% Illinois 82 166 102% Florida 46 155 240% Pennsylvania 58 118 105% Texas 31 111 254% Washington State 33 101 206%

States/Territories 2010 2015 2010/2015 Visited # of visitors # of visitors (% change) (000) (000)

Top U.S. States/Territories Visited by Chinese Travelers (2010 vs. 2015)

Presenter

Presentation Notes


Los Angeles 273 778 185% New York City 226 752 232% San Francisco 178 483 171% Las Vegas 125 370 196% Washington, DC 109 304 178% Boston 75 208 178% Chicago 78 157 102% Honolulu 8 145 1703% San Diego 25 106 327% Seattle 32 99 208%

Cities Visited 2010 2015 2010/2015 # of visitors # of visitors (% change) (000) (000)

Top U.S. Destinations Visited by Chinese Travelers (2010 vs. 2015)

Presenter

Presentation Notes


Shifts in Activity Participation China 2012-2015, vs Overseas 2015

• Chinese visitors are active travelers—they participate in leisure-oriented activities at a rate as high as--and often much higher--than the average for all overseas visitors for all but two activities (nightclubs and attend sports event).

• As a result, the shifting in this market from a business and VFR-dominated market to increasingly vacation/leisure has produced shifts in only a few activities

– sightseeing – national parks – art gallery/museum – historical locations

• Conversely, shifting down in incidence is… – guided tours – concert/play/musical – casinos/gambling

AllOverseas

2012 2013 2014 2015 2015Shopping 87 85 89 87 87 Sightseeing 78 78 79 81 77 Experience Fine Dining 47 48 51 51 37 National Parks/Monuments 36 37 40 45 35 Art Gallery/Museum 33 36 39 42 29 Small Towns/Countryside 36 34 39 41 28 Amusement/Theme Parks 34 34 34 36 29 Historical Locations 23 26 25 30 27 Cultural / Ethnic Heritage Si 23 22 22 24 16 Guided Tours 27 22 22 20 23 Concert/Play/Musical 18 14 15 14 16 Casinos/Gambling 18 15 13 13 10 Water Sports 11 7 11 12 11 Environ./Eco. Excursions 11 11 11 11 4 Attend Sports Event 13 11 12 10 14 Visit Am. Indian Comm. 11 6 8 9 5 Camping/Hiking 6 5 7 6 5 Nightclubs/Dancing 8 7 6 6 15 Golfing/Tennis 5 4 4 4 3 Hunting/Fishing 6 3 3 3 2 Snow Sports 2 3 2 2 1 Other 1 1 1 1 1

Incidence of Activity Particpation in USA (%)


Chinese Visitors to Nevada 2015

• Nevada is the third most visited state by the Chinese • 374,000 Chinese travelers visited the State • The volume is up 181% since 2010 • China was the 3rd overseas visitor market for NV • First trip to USA: 63%, visited only one state 7% • Purpose: Vacation (70%), Convention (15%) & VFR (5%) • Ports of Entry: LAX (48%), SFO (19%), JFK (5%), & SEA (5%) • Transportation within U.S.: Air Travel Between Cities

(64%), Rented Auto, (43%) & Private/Company Auto (43%) • Activities: Shopping, Sightseeing, National Parks,

Experience Fine Dining, & Small Towns/Countryside


China Traveler Forecast Highlights

Volume will reach nearly 5 million by 2020 based on the assumption of a slowly-decelerating growth rate (issued Oct. 2015).

China will become the # 2 overseas market in 2018 surpassing Japan, and the #1 overseas market in 2020 surpassing the U.K. unless the U.K. grows faster than 3% per year forecast over the next few years.

Total traveler growth will be 2.8 million, or 129% larger than 2014 volume compared to 2020 forecast.

China will account for 19% of total growth from 2014 through 2020… behind only Mexico’s 27% share of growth.


Summary

• The U.S. is in a more competitive environment than ever before.

• To remain competitive and meet increasing demand, we have: – Created Brand USA – Developed a National Travel and Tourism Strategy – Elevated NTTO to better coordinate and meet the goals of the Strategy

• Looking forward: Work with industry to maximize the potential of travel and tourism to grow the economy, create jobs, and bring people closer together.

Presenter

Presentation Notes

In summary, the United States is a more competitive environment than even before. We need to ensure that we remain competitive. To meet that challenge, and to ensure that we are meeting an increasing demand, we have: Created Brand USA Developed the NTTS Elevated the NTTO within government to better coordinate and meet the goals of the Strategy. We look forward to working with industry to ensure that we maximize the potential of travel and tourism to grow the economy, create jobs, and bring people closer together.

update on china inbound travel & the u.s.-china tourism year · nearly 3/4s of volume is to...

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