SWOT Analysis: China's Tourism Industry

Strengths:

  • High visitorship
  • Considerable state assistance to the industry.
  • Strong economic growth in recent years offers the industry support, underpinning domestic tourism, and creating an exciting environment for foreign visitors.

Weaknesses:

  • State assistance is a doubled edged sword, therefore undermining the long term competitiveness.
  • Underdeveloped infrastructure is a hindrance to tourism development.

Opportunities:

  • Liberalization, particularly for travel agencies and visas, offer incentives for investors.
  • Infrastructure improvements, following the 2008 Beijing Olympics will provide a long-term boost to ease the transportation network within the country.
  • Major incentives for domestic tourism during the 2008-2009 economic slowdown have created a strong foundation for ongoing growth.

Threats:

  • The global economic slowdown will act as a disincentive to international tourists
Source: Business Monitor International



Table: Tourist Expenditure & Economic Impact, 2006 - 2014
Tourist Expenditure   2008 2009e 2010f 2011f 2012f 2013f 2014f
Tourist Expenditure, US$mn   46,430 44,475 48,539 52,351 57,182 61,333 64,079
Contribution to GDP, %   1.1 0.9 0.9 0.8 0.8 0.8 0.7
Contribution to exports of goods, %   3.2 3.7 3.4 3.5 3.6 3.6 3.5
Government Expenditure
Individual, CNY bn   48,153 57,180 64,193 69,382 75,435 81,697 88,170
Source: WTTC, UNWTO



Inbound Tourism Data (2008 - 2014)
By region ('000) 2008 2009e 2010f 2011f 2012f 2013f 2014f
Africa 389 373 367 397 453 509 568
Asia Pacific 132,014 118,070 119,666 124,328 132,714 141,046 149,474
Europe 7,489 5,479 4,481 4,486 5,139 5,744 6,360
Middle East 210 201 165 160 181 196 212
North America 2,665 2,290 1,867 1,769 1,935 2,067 2,219
By country ('000) 2008 2009e 2010f 2011f 2012f 2013f 2014f
Hong Kong 80,405 78,236 80,077 82,398 85,231 88,419 91,621
Macau 25,151 22,494 22,798 23,686 25,284 26,871 28,477
South Korea 4,941 4,965 5,590 6,041 6,644 7,276 7,984
Japan 2,998 2,974 3,152 3,231 3,360 3,497 3,633
Russia 3,338 2,972 2,761 2,802 3,061 3,301 3,538
United States 2,051 1,976 1,663 1,550 1,687 1,798 1,923
Malaysia 1,229 1,281 1,018 938 1,029 1,087 1,153
Singapore 1,006 993 969 979 1,059 1,135 1,215
Philippines 896 921 878 893 964 1,048 1,132
Source: UNWTO, NBS



Outbound Tourism Data (2008 - 2014)
Total resident departures ('000) 2008 2009e 2010f 2011f 2012f 2013f 2014f
27,162 31,620 36,564 38,536 42,416 46,747 51,128
Resident departures by destination country ('000) 2008 2009e 2010f 2011f 2012f 2013f 2014f
Hong Kong 10,124 10,901 11,765 12,559 13,545 14,493 15,447
Macau 3,277 3,611 3,981 4,321 4,744 5,150 5,559
Singapore 1,285 1,417 1,564 1,699 1,867 2,028 2,190
South Korea 1,212 1,363 1,531 1,685 1,876 2,060 2,245
Thailand 1,162 1,270 1,390 1,501 1,638 1,769 1,902
Japan 1,076 1,204 1,347 1,478 1,640 1,797 1,954
Russia 990 961 967 1,008 1,039 1,061 1,082
Malaysia 673 739 813 880 964 1,044 1,126
Vietnam 559 540 700 773 767 771 772
Source: UNWTO