In recent months, mainstream and travel trade journalists issued a flurry of articles about the growth of Chinese outbound tourism.
I find the sheer magnitude of the numbers and the estimates remarkable:
- As of year-end 2012, Mainland China was the biggest source of foreign tourists in the world, with 83.2 million Chinese citizens having traveled abroad during the year, a 398% increase over the previous ten years. This number is pegged at 97 million for 2013, with some observers seeing continued annual growth of 15%–20% for the next few years.
- Collectively, Chinese travelers will spend roughly $129 billion from mid-2013 to mid-2014 on outbound travel, more than any other nationality, having surpassed both the U.S. and Germany for the first time in 2012.
- More than one million Chinese citizens have assets exceeding $1.6 million, with foreign travel generally thought to be an essential part of their spending habits. Of this elite group, 68% spend more than $8,000 while overseas, and 28% spend more than $16,300. Many with less modest incomes, especially in second- and third-tier cities, are also saving for their first visit to the West.
- China is on track to become the second largest cruising market after the US by 2017.
What Does This Mean for Small Ship and Expedition Cruising?
I was curious what these trends mean for the small ship and expedition cruise segments of the industry – the area that I know the best – and wanted to learn a bit more. This blog post explores some of the marketing issues involved in tapping into the Chinese market, as well as the many cultural challenges in bringing these travelers aboard small cruise ships.