China will continue to drive tourism in Asia Pacific this year, with 50.4 million Chinese visitors expected to travel to destinations in the region in 2016.
This is according to the MasterCard Asia Pacific Destinations Index, which found that 15.7% of total international overnight arrivals into Asia Pacific cities this year will from China. These travellers are expected to spend US$45.3 billion in their destinations, comprising 18.2% of total tourist expenditure in the region.
It is not only China driving tourism in Asia Pacific however, but the entire the Northeast Asia region. Four of the region’s top five source markets are in Northeast Asia, with China being followed by South Korea (32.5m international arrivals), Taiwan (22.5m), the US (20.6m) and Japan (18.0m).
These four Northeast Asian markets are expected to contribute 38.4% of total international overnight arrivals to the region in 2016.
“In the past few years, the mix of tourists in key Asia Pacific destination has changed significantly reflecting the economic rise of China and other emerging Asian economies. Where you might have found tourists from Japan, Hong Kong, South Korea and the United States, you are now much more likely to come across travellers from mainland China,” commented Matthew Driver, MasterCard’s executive vice president of global products & solutions for Asia Pacific.
“The impact of the economic transformation of China and specifically the rise in disposable incomes is the biggest driver of tourism growth globally. While we are expecting similar growth from India and Indonesia in the longer term, as well as other segments such as halal tourism, Chinese tourists are more concentrated in Asia and impact markets at a larger scale.”
Such has been the rapid growth of the Chinese outbound tourism market, the country jumped from being the sixth largest source market for Asia Pacific in 2009, with a 5.8% share of arrivals, to the largest in 2012 with a 9.8% share. It has extended its lead at the top ever since, driven by a 25.9% average annual growth rate between 2009 and 2016.
The US has consistently been the highest ranked non-Asia Pacific origin country since 2009, and the UK is the only other non-Asia Pacific country in the top 10, in ninth place.
“This growth is very positive for the Asia Pacific tourism industry and there remains a huge opportunity for industry players to tap into it and benefit from it. Like any other important market, players can gain advantage if they identify the relevant segments of the market for their business, understand their unique needs and then design products and services to best cater to their needs, complementing the services they provide to other key traveller segments,” Driver added.
The top five Asia Pacific destinations for Chinese tourists in 2016 are expected to be Bangkok (8.2m visitors), Seoul (5.2m), Tokyo (2.7m), Phuket (2.5m) and Pattaya (2.1m). Singapore (1.8m) is in seventh place and Bali (1.4m) is 10th.
Top 10 Source Markets for Asia Pacific Destinations
1) China – 50.4m visitors (15.7% share)
2) South Korea – 32.5m (10.1%)
3) Taiwan – 22.5m (7.0%)
4) US – 20.6m (6.4%)
5) Japan – 18.0m (5.6%)
6) Singapore – 14.3m (4.5%)
7) Malaysia – 13.5m (4.2%)
8) Australia – 13.3m (4.2%)
9) UK – 12.3m (3.8%)
10) Thailand – 10.2m (3.2%)
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