Alexander Pershikov, the transportation evangelist, founder of GetTransfer.comserial entrepreneur and a metaverse visionary.
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The world is coming out of lockdowns and travel restrictions, with Chinese tourists at the forefront due to their population of 1.4 billion and growing middle class. In recent years, Chinese tourists have become an increasingly important growth engine for many destinations around the world, and their return is closely monitored by the industry as a whole. Let’s see what impact Chinese tourists can have on the global tourism services market.
Before the 2019 Covid-19 outbreak, China was the biggest contributor to outbound tourism, with 170 million trips, bringing in $253 billion to the global economy. However, the China Outbound Tourism Research Institute (COTRI), a consulting and training organization for China’s outbound market, predicts that Chinese travelers will make only two-thirds of trips in 2019 this year, or 110 million international trips.
As the founder of a global transfer marketplace, I am one of the first to see trends in travel mobility worldwide as most of our customers travel from home to airport and hotel. I have seen a strong growth of Chinese tourists heading to international travel destinations. And many others in the international travel community expect Chinese tourists to reach all travel destinations soon. Market leaders must be prepared!
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The world during and after the pandemic
The global tourism industry suffered a big blow due to the Covid-19 pandemic, resulting in approximately a 70% drop in international tourist arrivals in 2020 and 2021, and a $2 trillion revenue loss for the industry in 2021. Nearly 62 million The travel and tourism sector lost jobs worldwide in 2020, with many countries experiencing significant losses in international tourists and related revenues.
Currently, the tourism industry has recovered strongly, with most countries open to travel, and many people are still interested in traveling despite high airfares. Tourism contributed pre-pandemic 10.3% to global GDP, but the figure fell to 5.3% in 2020. However, the industry is currently experiencing growth, with more than 900 million tourists have traveled in 2022.
China’s influence
Chinese tourists are known for high spending, and their resurgence is expected to benefit destinations around the world. Chinese tourists are among the highest spenders worldwide, and some expect their return to boost the economies of destinations that depend on this source of visitors. Let’s take a look at some of the main reasons why Chinese tourists are a major influence on the international tourism industry.
• Huge Population: China’s population of over 1.4 billion provides a huge pool of potential tourists who are able to travel abroad. This huge market means that a significant number of Chinese tourists can have a significant impact on the destinations they choose to visit.
• Growing middle class: As the Chinese economy progresses, the the middle class is also increasing in size. This growing group of consumers has a larger disposable income to spend on foreign travel.
• Increased purchasing power: Chinese tourists are often recognized for their high income spending powerwho often spend more than tourists from other countries.
Chinese tourists can have a significant impact on the national economy of entire countries. They make up a substantial part of the total number of tourists in some areas, and their spending on local products and services boosts the local economy.
Keeping up with modern trends
The travel industry is known for its unpredictability and the pandemic has further emphasized the need for flexibility and innovation. One of my top tips for business leaders is to stay abreast of industry trends and technological advancements. This can help you respond quickly to changes as they happen and stay ahead of the competition. In addition, it is essential to create an environment that encourages new ideas and collaboration between team members.
When it comes to diversifying your offerings, my advice is to start by identifying your target audience and understanding their needs and preferences. Then research different niches within the travel industry that align with these preferences.
For example, ecotourism and meaningful tourism have grown in popularity as travelers seek sustainable and ethical travel experiences that promote engagement with local communities and the environment. The trend of slow travel is also growing, with many tourists choosing to stay longer in one location and immerse themselves in the local culture and lifestyle at a more leisurely pace, rather than scrolling through a list of popular tourist attractions to rush. Consider how you can incorporate these preferences into your offering.
As Chinese tourists return in greater numbers, they are likely to play a vital role in the recovery and development of the tourism industry. It is imperative that companies and destinations understand travelers’ needs and preferences in order to attract them. By embracing the opportunities of Chinese tourism, companies and destinations can position themselves for long-term growth and success in the competitive global travel industry.
To do this, companies could consider investing in technology and sustainability while diversifying and exploring new destinations, and partnering with local businesses and industry associations. Despite the potential challenges such as travel restrictions, rising costs and competition, the tourism industry must remain flexible and adapt to changing circumstances to ensure future success.
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