Home>China Travel News

Chinese Tourism Industry under 2009 Financial Crisis

Print
Date: 2010.09.26 Editor: Evelyn Shi
Print

China's position in the tourism development in the world has been rising, the fourth largest entry receiving country in the world and the largest exit tourist source country in Asia. From 2000 to 2008, the total revenues of Chinese tourism increased by 12.5% annually (by CNY). In 2008, China totally received tourists about 1.89 billion man-time, rising by 5.9% of last year, realizing the tourism revenues of 1.16 trillion CNY (166 billion USD), increased by 5.8% of last year.

 

The slowdown of economy growth negatively affected the tourism, leading to the slowdown of growth rate, even negative growth, especially in entry tourism market, exit tourism market and hotel industry etc. By contrast, domestic tourism market and scenic resorts were less influenced by the slowdown of economy growth

 

With the spread of international financial crisis, the unfavorable influences had clearly showed in Chinese tourism.

 

The market scale of Chinese online tourism market was only about 500 million USD, however, its annual growth speed reached to 50% in 2008, Because the total demands for the abroad tourism market declined, the cost pressure for online tourism providers accelerated. Chinese online tourist enterprises reduced the investment in advertisement and marketing so as to maintain their finance.

 

Chinese online tourism is obsessed by two problems: incapable of product standardization and risks in payment. Facing the fierce competitions, the tourist booking websites will take more consideration in the newer services and broader marketing channels in order to find their market in various categories.

 

Under the international financial crisis, it is predicted that online tourist booking services will gradually permeate into traditional tourist market, even expand the services by the establishment of travel agents. Meanwhile, traditional travel agents will provide online tourist booking services for their customers. From a long run, the integrators will be the winners in the future. The integration of online and offline services for customers will possibly dominate the market. With the revenue reduction of booking market in the market share, the tourist products will become the fastest growth business in online tourist booking market. Besides, providing online tourist route will be the transfer direction for online tourist websites.