1

“According to CNTA, in 2015 China will be the No. 1

tourism source market worldwide. The CTA Report

offers for the first time insights and analysis directly

from the CNTA think-tank in English as a basic tool

for success in the Chinese outbound market.”

Prof. Dr. Wolfgang Georg Arlt,

Director of COTRI

2

China Tourism Academy:

Annual Report China Outbound Tourism Development 2009/2010 -

English Edition

Executive summary

The official tourism research institute of the CNTA China National Tourism Administration has produced

an authoritative survey and analysis providing reliable facts and figures to facilitate a profound understanding

of the needs and the characteristics of Chinese outbound tourists. To make this report available in ENGLISH

as well, COTRI and CNTA have joined forces to produce a ground-breaking book.

On more than 330 pages the CTA ANNUAL REPORT 2009/2010 shows in detail the situation of China’s

Outbound Tourism using current data up to October 2009. The report includes a detailed survey of not only on

the major Chinese cities of Beijing, Shanghai, Guangzhou but also on the situation of Chongqing and Chengdu.

Factors which influence China’s outbound market, consumption characteristics and business development are

all included in this report. Thanks to its reliability, it represents an indispensable tool and a useful reference for

tourism organizations and companies interested in the outbound tourism market. Information on operations and

management, policy making, development strategies, teaching and research can also be found here.

The current situation of China’s outbound tourism is clearly depicted in six chapters, supported by more than

150 diagrams and charts that help the reader to understand the development of this market.

The price per copy is € 280.

The CTA Annual Report 2009/2010 – English Edition is easily available from COTRI by filling the return

coupon, included at the back of this abstract, and sending it to us via mail, fax or email:

COTRI, Fritz-Thiedemann-Ring 20, 25746 Heide/Germany

+49 481 8555 121

research@china-outbound.com Or simply by calling us at +49 481 8555 523

After receiving your order we will send you a confirmation email and invoice. Payments can be made by using

cheque, bank draft or all major credit cards via PayPal platform.

If you need more information, please visit our website: www.china-outbound.com

3

Foreword

The onset of a financial crisis in the second half of 2008, together with the global outbreak of

Influenza A H1N1 in 2009, had serious effects on the global tourism industry. However, Chinese

outbound tourism maintained steady growth. The rapid development of the Chinese economy has

provided motivation for the development of sustainable outbound tourism. Other factors, such as the

acceleration of regional integration, a consistent policy of opening up for outbound tourism, and on-

going improvement in the quality of travel services create favourable conditions for the development

of outbound tourism. A short-term decline in outbound travel was experienced because of Influenza A

H1N1; nevertheless, that did not cause the industry serious harm. Outbound tourism has become a

major profitable undertaking at most tourism businesses in China, especially travel agencies.

Furthermore, outbound tourism has the power to promote steady tourism development for destination

countries and regions.

This report consists of six chapters which provide a comprehensive picture of China’s outbound

tourism in 2009. Chapter One includes a brief introduction of the market environment for outbound

tourism. Operations within the industry and product innovation, along with market conditions and

tourists’ behaviours are stated in this chapter. Chapter Two provides a complete analysis of factors

which have impacted the outbound tourism market nationwide and worldwide. Chapter Three

analyzes basic characteristics of the outbound tourism industry in China. Operational trends in the

industry and product innovation are also touched on in this chapter. Chapter Four refers to consumer

trends in outbound tourism in China, especially characteristics of consumer behaviour at the

destination. Statistics from satisfaction evaluations of outbound tourism can be found in this chapter.

Chapter Five explores typical cases of impact on markets, a market overview and explication of

industry operations in the North, East, South and Southwest of China, especially in Beijing, Shanghai,

Guangzhou, Chongqing and Chengdu. Chapter six includes a discourse on the environment for

development of Chinese outbound tourism as well as controls over development trends.

Recommendations to authorities, business operators, tourist destinations and other related bodies are

made in this last chapter.

ANNUAL REPORT 2009/2010 is the first English edition of the ANNUAL REPORT SERIES. The

publication benefits from the hard work of the team of the COTRI China Outbound Tourism Research

Institute in Heide/Germany team, led by Prof. Dr. Wolfgang Georg Arlt together with Mr. Yuan Yi,

Mrs. Fabiana Rosat and Mrs. Berenice Aceves.

Du Jiang (杜江)

President of China Tourism Academy

January 12, 2010

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DU Jiang

Professor, PhD,

Former President of China Tourism Academy

Role in Publication: Chairman

DAI Bin

Professor, PhD,

President of China Tourism Academy

Role in Publication: Vice Chairman

JIANG Yiyi

Associate Researcher, PhD, Director of International Tourism Research

Institute- China Tourism Academy

Role in Publication: Editorial Director

Wolfgang Georg ARLT

Professor, Tourism Specialist, PhD, Director of COTRI China

Outbound Tourism Research Institute

Role in Publication: Facilitator of the English Edition

Editorial Board Executives

The Editorial Board Executives of ANNUAL REPORT 2009/2010 consist of the top outbound tourism

experts from China Tourism Academy. Under the cooperation with other professors and researchers,

CTA and COTRI are dedicated to provide the readers with the most reliable and comprehensive

report concerning the China outbound tourism.

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Contents

Chapter One An Overview of China Outbound Tourism Development in 2009

Section One Market Environment Analysis

1.1 Impact of Domestic Environment

1.2 Impacts of International Environment

1.3 Impacts of Related Market Environment

Section Two Industry Operation and Product Innovation

2.1 The Industry Features of Outbound Tourism

2.2 The Operating State of the Majority Outbound Tourism Business

2.3 Outbound Tourism Product Development and Innovation

Section Three Market Conditions and Tourism Behaviours

3.1 Market Conditions

3.2 Consumption Features

3.3 Status of Satisfaction

Chapter Two Analysis of China’s 2009 Outbound Tourism Market

Section One Impact of Domestic Environment

1.1 China’s economic aggregate and per capita income maintain a steady growth

1.2 Slight Decline of the RMB Exchange Rate

1.3 Financial crisis has not affected consumption confidence and willingness to spend money

1.4 Overall Downward Trent of China’s Consumer Price Index

1.5 Wage Adjustments’ Influence on Consumption

1.6 The further stringent control on Official travel

1.7 Steady progress in Taiwan-oriented affairs and further promotion of cross-strait tourism

Section Two Impact of International Environment

2.1 Enhancing Foreign Political and Economic Cooperation

2.2 More Convenient Visa Application Policy

2.3 Partial and Transient Characteristics of the Impact of Influenza A H1N1

2.4 Thailand’s political unrest and Indonesia’s bombings had limited influence

2.5 Destination countries/regions enhance their efforts of marketing in China

Section Three Impacts of Related Market Environment

3.1 Air routes were increasing while fuel price and bunker surcharges were also going up

3.2 Continued Improvement of Policies and Regulations

3.3 Improvement of Service Environment

Chapter Three The Operational Characteristics of China’s Outbound Tourism Industry in 2009

Section One The Industry Features Of Outbound Tourism

1.1 The entry barrier of the outbound tourism business was lower and the scale of the industry was expanding

1.2 The number of aviation port cities increased and unbalanced regional distribution is still obvious in the industry

1.3 More destinations were granted approved destination status and opportunities increased nationwide for most

tourism enterprises to provide overseas services

1.4 The outbound tourism business grew rapidly and the foundation for the industry’s development was broadened

Section Two Trends in Outbound Tourism Operations

2.1 Tourism continued to be concentrated in certain regions, but a trend of decentralization was seen for the first

time

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2.2 The conglomeration/collectivization of tourism-related organizations presented a “3+3” pattern and the process

of “going out” was slow

2.3 The industry chain was extended and the vertical integration process was continuously moved forward

2.4 New types of business emerged and independent travel products became popular

2.5 The new edition of “Regulations on Travel Agencies” increased competition and made China’s tourism business

more open

2.6 The effects of the financial crisis and Influenza A H1N1 were serious

Section Three Outbound Tourism Product Development and Innovation

3.1 Outbound tourism products became increasingly diverse

3.2 Product brand-building was strengthened trough cooperation

Chapter Four Market Structure and Consumption Traits of 2009 Outbound Tourism

Section One Market Structure

1.1 Market situation

1.2 Market structure

1.3 Composition of major destinations

Section Two Overall Analysis

2.1 Variable in outbound tourists’ consumption

2.2 Demographic characteristics of outbound tourists

2.3 Factors influencing consumers’ decision

2.4 Characteristics of outbound tourists’ consumption decisions

2.5 Characteristics of outbound tourists’ consumption

2.6 Evaluation and future projections for outbound tourism

2.7 Correlation analysis of demographic characteristics of outbound tourists and tourism consumption

Section Three Consumption Characteristics of Mainland Chinese Tourists in Major Destinations

3.1 Analysis of mainland Chinese tourists’ consumption in Hong Kong SAR

3.2 Macau SAR

3.3 Taiwan China

3.4 Japan

3.5 The United States

3.6 Australia

3.7 South Africa

Section Four Analysis of Outbound Tourists’ Satisfaction

4.1 Statistical analysis of Visitors’ Satisfaction

4.2 Integral satisfaction and quality perception of index of tourism elements

Chapter Five Research On Major Tourist Source Market

Section One North China Market

1.1 Economy Overview

1.2 Development of Outbound Tourism

1.3 Development of Exit Ports

1.4 Case study – Beijing

1.5 Operational Characteristics of Outbound Tourism Industry

Section Two East China Market

2.1 Economy Overview

2.2 Development of Outbound Tourism

2.3 Development of Exit Ports

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2.4 Case study – Shanghai

2.5 Operational Characteristics of Outbound Tourism Industry

Section Three South China Market

3.1 Economy Overview

3.2 Development of Outbound Tourism

3.3 Development of Exit Ports

3.4 Case study – Guangzhou

3.5 Operational Characteristics of Outbound Tourism Industry

Section Four Southwest China Market

4.1 Economy Overview

4.2 Development of Outbound Tourism

4.3 Development of Exit Ports

4.4 Case study – Chongqing

4.5 Operational Characteristics of Outbound Tourism Industry

4.6 Case Study – Chengdu

4.7 Operational Characteristics of Outbound Travel Industry

Chapter Six Forecast Recommendation for Outbound Tourism Developing Trend in China

Section One The Outlook for Development Environment of Outbound Tourism in China

1.1 Judgment over Economical and Political Situation

1.2 Influential Factors from Policy and Social Environment

1.3 Influential Service Environment Factors

Section Two Development Trend for Outbound Tourism in 2010

2.1 Outbound Tourism Scale Continues to Expand Service; Trade Services Further Increases

2.2 Enlargement of Outbound Tourism Destinations and Multi-Type Outbound Travel

2.3 Competition over Development of Outbound Tourism Industry Is to Intensify

Section Three Proposals to Promote Outbound Tourism Development in China

3.1 Recommendations for Governing Bodies

3.2 Recommendations to Tourism Enterprises

3.3 Proposals for Tourism Destination Countries/Regions

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Chapter One

An Overview of China Outbound Tourism Development in 2009

Despite the financial crisis and the impact of Influenza A H1N1, China’s outbound tourism industry

continued to grow steadily in 2009. Private travel abroad was the major force propelling outbound

tourism in 2009. This, in turn, was driven by rapid economic development and the orderly promotion

of market supervision by government authorities, as well as the further expansion of outbound tourism

destinations. Due to the decline of both inbound tourists and hard currency earned, Chinese outbound

tourism consumption in 2009 exceeded the foreign exchange earnings made from inbound tourism for

the first time; a deficit in tourism service trade had thus emerged. This kind of situation made

outbound tourism an important brace for travel agencies in responding to the financial and global

health crises. It also made major contributions to the development of the global tourism economy

worldwide. This chapter will fully analyze the market environment for outbound tourism, the

industry’s operation and innovations, as well as behaviour of outbound tourists in 2009.

In 2008, the total number of Chinese citizens travelling abroad reached 45.8 million person-times,

an increase of 11.9% compared with the year before. From October 2008 to September 2009, the total

number of Chinese citizens travelling abroad reached 46.5 million person-times, an increase of 1.41%

over 2008……

The percentage of first-time outbound tourists was further increased in 2009. In 2008, the

percentage of first-time outbound tourists was 10% higher than that of non-first time tourists. The

increase in 2009 indicated that outbound travels were chosen by wider public……

“Travelling with families” was always the largest group among outbound tourists over the years.

In 2009, the percentage of travellers falling into this group came to 43.7%; it was nearly 60% in

2008. The percentage of travelling in groups organized by company and/or social groups came in the

second place. The percentage of outbound tourists travelling with friends and/or colleagues also

increased year by year……

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Chapter Two

Analysis of China’s 2009 Outbound Tourism Market

This chapter provides a comprehensive analysis of domestic, international and other market-related

environment affecting China’s outbound tourism market in 2009. This year, China’s outbound tourism

has faced more opportunities than challenges. The steady development of the domestic economy,

overall decline in the CPI and wage adjustment in public institutions combined to stimulate consumer

demand for outbound tourism. In addition, the fast-growing Chinese outbound market has been the

focus of the destination countries and regions, which is evidenced by the increasingly convenient visa

policy for Chinese citizens and diversified promotion activities…

During the period from October 2008 to September 2009, China's GDP was RMB 31.0462 trillion

Yuan, an increase of 6.69%. In the first three quarters of 2009, the per capita income of urban

residents was RMB 14,213 Yuan (per capita disposable income RMB 12,973 Yuan) or an increase of

9.3% (or 10.5% once the price factor is deducted). Cash income of rural residents per capita was

RMB 4,307 Yuan, an increase of 8.5% over the same period of previous year (taking prices into

account, the actual increase was 9.2%)……

Figure 2.1 shows that at the end of October 2008, the RMB nominal effective exchange rate index

was 118.57, while the actual effective exchange rate index was 123.01. At the end of October 2009,

RMB nominal effective exchange rate index was 111.61, while the actual effective exchange rate index

was 115.16……

Figure 2.1 China’s GDP Variation by Quarter

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Chapter Three

The Operational Characteristics of China’s Outbound Tourism Industry in 2009

China’s outbound tourism underwent many hardships and difficulties in 2009 due to the impact of

economic, political and public health events, such as the financial crisis and Influenza A H1N1.

However, with the government’s strong support and efforts of the industry, many new operations

features were introduced, including industrial scale, regional distribution patterns, integration and

product development……

The regional distribution of the number of outbound travel agencies had always been closely linked

to local economic development, political and cultural development and the degree of openness of the

aviation ports. In recent years, with the constant rise of China’s overall national strength and

international status, accompanied by increasing positive actions by the Chinese government in

international tourism cooperation, the permission to have aviation ports gradually spread to second-

tier cities like Chengdu and Xi’an in addition to first-tier cities such as Beijing, Shanghai and

Guangzhou. Still, as is shown in Figure 3.1, the regional distribution imbalance of outbound travel

agencies become gradually greater rather than smaller as a result of ever-greater unbalanced

development in China’s regional economies.

Figure 3.1 Regional distribution of travel agencies in China that operate the business of Chinese Citizens travelling abroad

and to Hong Kong and Macao

Source: Website data from China National Tourism Administration (CNTA )

The top 10 regions with outbound travel agencies in 2009 were Beijing (153), Guangdong

Province (140), Shandong Province (62), Liaoning Province (55), Jiangsu Province (54), Zhejiang

Province (49), Shanghai (42), Fujian Province (41), Guangxi Province (37) and Heilongjiang

Province (34), respectively. Regional disparity can be seen from the fact that the top ten regions

accounted for 62.4% of the total number of outbound travel agencies in the country, while the bottom

ten only accounted for 9.5%......

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Chapter Four

Market Structure and Consumption Traits of 2009 Outbound Tourism

The fourth chapter along with the fifth are the central and the most important parts of the entire

report.

In 2009, thanks to private outbound travel, China tourism continued to grow; therefore, the

consumption scale expanded rapidly. Moreover, with the decline of inbound tourism, there was a

deficit in the tourism service trade for the first time in the past 30 years…

According to analysis by the World Tourism Organization, among the top 50 major countries with

high international tourism expenditures, developing countries like China, Turkey (+11%), and India

(+10%) have gradually shown strong consumption levels, with Chinese tourists taking the lead……

Figures show that from October 2008 to September 2009, the peak periods of outbound tourism for

Chinese citizens were Spring Festival, and the months of July and August. In August 2009, the number

of Chinese outbound tourists exceeded 4.5 million, showing a growth rate of 12%,and the largest

number of outbound tourists in the year until September. A survey of the year by year growth rate of

month by month shows that the tourism figures for May, June and July 2009 were seriously affected

by Influenza A H1N1. The number of outbound tourists declined obviously over the previous year.

Also, due to the fact that Spring Festival was earlier than usual in 2009 , the peak period of outbound

travel which usually occurs in February, arrived in January in 2009. Therefore, the annual growth

rate in January reached 13.51%, while the February growth rate saw a decrease……

Figure 4.1 Mainland China outbound tourists and growth rate, October 2008 to September 2009

Source: China National Tourism Administration (CNTA)

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Chapter Five

Research on Major Tourist Source Market

China, with its vast territory, is a big tourist country. However, regions differ greatly with respect to

their economic and tourism development, visa processing and actual demand for outbound tourism,

along with culture and customs. All this leads to a distinct regional block structure of China’s

outbound tourist source distribution, resulting in different consumption characteristics among various

tourist groups. This chapter divides China into four basic tourist source markets – North China, East

China, South China and Southwest China – according to the distribution characteristics of its

outbound tourists. The regional economies and development of outbound tourism are then explored

based on a thorough and meticulous analysis of the most typical cities in these regions. In particular,

this study makes use of a survey on outbound tourists in major cities conducted by the China Tourism

Academy (CTA). The highlights of the chapter are the greatly different tourist consumption patterns in

the four major tourist source markets.

The analysis of North China Market shows that, outbound tourists from North China mainly travel

to surrounding countries and regions. Beijing, as the first exit port city within North China, is typical

in its distribution of outbound travel destinations (as is shown in Table 5.1). It can be seen that for

outbound tourism, visitors to Hong Kong, Macao, Taiwan, and other Asia-Pacific locations accounted

for 66.07% of all outbound tourists. Outbound tourists to Asia-Pacific accounted for more than one

half, or 56.66%. Thus it can be concluded that……

Table 5.1 Number of outbound tourists and main destinations during the first three quarters of

2009 in Beijing

First three quarters of 2009 YOY (%)

Number of outbound

tourists 578,772 -24.0

Outbound tour 452,904 -27.0

Hong Kong tour 89,870 -27.3

Macao tour 6,914 -58.3

Taiwan tour 29,084 1958.3

First stop nations

Thailand 39,252 -52.1

Singapore 19,152 -16.4

Malaysia 13,517 -10.2

the Philippines 9,485 -4.6

Australia 29,000 -44.0

South Korea 57,803 -14.2

Japan 88,410 -32.0

Germany 20,814 -14.5

France 19,754 -17.5

Italy 16,676 -22.8

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Chapter Six

Forecast and Recommendation for Outbound Tourism Developing Trend in China

China’s outbound tourism market will increase steadily in 2010 after taking into account factors,

including the economy, politics, policy, society and service environment, significantly affecting

outbound travel. Due to higher outbound tourism consumption, the tourism services trade deficit will

increase in 2010. Destinations and travel options for overseas tourists will also continuously

increase…

Factors such as the bottoming out of the global financial crisis, stable and rapid development of

China’s economy, renewed RMB Yuan appreciation all create a dynamic for the sustainable

development of outbound tourism. Other issues like acceleration of regional integration process,

relaxation of outbound travel policy, and improvement in outbound tourism service quality provide

favourable external conditions for the development of outbound tourism. However, the Influenza A

H1N1 creates uncertainty with respect to outbound tourism development. Other factors like ……

Satisfaction surveys conducted by the China Tourism Academy indicate that training for Chinese

language tour guides in outbound tourism destination countries should be enhanced…..

“According to CNTA, in 2015 China will be the No.1 tourism source market

worldwide. The CTA Report offers for the first time insights and analysis directly

from the CNTA think-tank in English as a basic tool for success in the Chinese

outbound market.”

Prof. Dr. Arlt,

Director of COTRI China Outbound Tourism

Research Institute

…it is comprehensive, preciseness and full of instructional information….

Jiang Yiyi,

Head of International Department

China Tourism Academy (CTA )

If you have any inquiries regarding the CTA Annual Report 2009/2010 English Edition or need other

information, please visit our website www.china-outbound.com or send an email to research@china-

outbound.com or call +49 481 – 85 55 523 (9 a.m. to 5 p.m. CET).

14

Purchasing Information and Contact

The price per copy is € 280.

The CTA Annual Report 2009/2010 – English Edition is easily available from COTRI by filling and

returning the following coupon.

After receiving your order we will send you a confirmation email and invoice. Payments can be made by using

cheque, bank draft or all major credit cards via PayPal platform.

PROFIL VERLAG

China Tourism Academy:

Annual Report China Outbound Tourism Development

2009/2010 – English Edition

More than 330 pages, 150 tables and graphs, presenting data up to

October 2009 about all aspects of China’s Outbound Tourism!

Published in April 2010 by Profil Verlag (Munich)

ISBN: 978-3-89-019700-5

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