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Chinese spend less on hotels, still flash the cash(2)

2013-04-08 08:37 China Daily     Web Editor: qindexing comment

Per capita spending

Jiang estimated that on average a Chinese traveler spent about $1,000 on every overseas trip including shopping, hotels and flights. "Most Chinese outbound travelers do not stay at luxury hotels and they prefer economy and medium-priced hotels," she said. "What they save from accommodation is used to buy luxury brands. Therefore it appears that Chinese travelers tend to spend more but actually that is not the whole picture."

Over the past 10 years Chinese outbound travel has increased 20 percent on average year-on-year, with destinations climbing from 18 to 146.

According to the 2013 travel budget report released by Ctrip.com, the country's leading online booking website, about 57 percent of travelers intend to increase their spending on tourism over what they spent in 2012. Ctrip's growth in outbound business exceeded 20 percent of its average operations, according to Niu Yue, spokesman for the company.

Hong Kong maintained its position as the most popular destination outside the Chinese mainland for Chinese travelers, according to the report. Mainland travelers to Hong Kong increased 20 percent and to Singapore 15 percent year-on-year, Jiang said.

The report found that San Diego made its first appearance on the list, ousting Osaka.

Many Chinese travelers chose to stay closer to home, choosing Asian destinations. Singapore, though, slid four places to No 6 and Kuala Lumpur dropped three to No 15. Bangkok rose to No 5 and Phuket to No 7, while Bali and Chiang Mai both rose one place to 18 and 19 respectively.

Of the 14 Asian destinations, China saw the average price paid rise by 2 percent to 626 yuan. Singapore was the Asian destination where the Chinese travelers paid the highest average price during 2012 at 1,383 yuan, a 1 percent rise.

Chinese travelers are willing to pay more in Hong Kong and the Philippines, both with an 11 percent increase taking them to 1,174 yuan and 702 yuan respectively. Macao saw a 3 percent rise to 1,173 yuan.

The largest fallers were Indonesia, down 10 percent to 1,285 yuan, and Cambodia, down 9 percent to 491 yuan, making it the destination where Chinese travelers paid the least overall on average in 2012.

In the Asia-Pacific region, Johan Svanstrom, vice-president of hotels.com APAC, said the Asian continent saw a price rise of two percent compared with 2011.

Among notable events moving prices upward, Svanstrom pointed out that China overtook the United Kingdom to become the second largest inbound source market, with prices rising after the 2011 tsunami and nuclear disaster in Japan and flooding in Thailand.

Big business and tourism destinations such as Singapore and Hong Kong saw continued high demand but rate rises were more moderate because of 25 new hotel openings in Hong Kong and further room openings in the Singapore mega-hotel industry.

The continuing rise in the number and spending of Chinese outbound travelers, as well as the rapid build up of the low cost and alternative carrier market in North East Asia, will drive the hotel industry development and investment for years to come, said Svanstrom.

Most popular country

The United States was by far the most popular country to visit for Chinese travelers. The gambling capital of Las Vegas climbed to No 2 and New York maintained its position at No 3 with west coast cities Los Angeles at No 4 and San Francisco gaining one place at No 9.

Researcher Jiang said the number of Chinese visitors to the United States grew more than 25 percent in 2012 over 2011 thanks to a relaxing of visa restrictions that contributed to an increase of 40 percent in visa numbers.

In the United States, Chinese travelers parted with more for their hotel stays during 2012 in 10 of the 14 US destinations included in the report, as the stronger economy coupled with increased international and domestic travelers drove significant double-digit increases.

Crisscrossing the continent, the steepest rise was in the west coast city of San Francisco, which saw a 21 percent increase to 1,285 yuan a day and the theme park capital of Orlando in Florida, up by the same percentage to 724 yuan.

Back in California, Anaheim, site of the Disneyland Resort, was up 19 percent to 1,019 yuan followed by Miami, again on the east coast, up 10 percent to 1,328 yuan.

Some of the major northeast cities did not fare so well with Washington DC down 13 percent to 1,168 yuan, Philadelphia down 9 percent to 1,101 yuan while New York, the highest priced US destination and at No 2 in the price overall table, was up 5 percent to 1,788 yuan.

In Europe, Paris was the highest European entrant for Chinese travelers, helped by the relaxation of visa regulations for Chinese travelers, followed by London in its Olympic year, rising three to No 12.

The number of Chinese travelers to Europe increased 10 percent year-on-year, according to researcher Jiang, citing the impact of an appreciated Chinese yuan and declining hotel rates.

Average daily hotel prices in Europe paid by Chinese travelers fell substantially, helped very much by the economic situation in the eurozone, which deterred travel to and within the most affected countries.

Venice led the way with a slide of 22 percent to 1,210 yuan, followed by Zurich, down 20 percent to 1,286 yuan. A 19 percent fall in both Stockholm and London took them to 1,158 yuan and 1,550 respectively.

There were only three risers: Nice up 11 percent to 1,536 yuan, Munich up 8 percent to 1,297 yuan and Paris up 1 percent to 1,559 yuan to No 3 in the overall price chart, making it the European destination where Chinese travelers paid the most.

Dubai was the destination where the Chinese paid the highest average prices overall during 2012, with the Middle East city recording a figure of 1,870 yuan, even after a 16 percent fall.

Vancouver in Canada dropped 11 percent to 1,056 yuan, still higher than Toronto on 944 yuan, the same level as 2011.

In the Pacific region, Auckland rose 10 percent to 752 yuan. During the year when Chinese travelers took over from the British as the second highest inbound market for Australia, Sydney saw a 5 percent increase to 1,259 yuan and Melbourne was down 4 percent to 1,032 yuan.

Globally, the average price of a hotel room rose by 3 percent during 2012, compared with that in 2011. The survey found that prices climbed for all regions apart from Europe and the Middle East, where there was a slight fall.

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