Chinese travellers increase travel expenditure by 40 per cent, as Australia tops the list as most popular destination for first-time visits

Research from Hotels.com™ has revealed that Chinese travellers have significantly increased their travel expenditure – spending 40 per cent more than last year as they opt for lengthier vacations and more long-haul travel – with Australia taking out the top position as the most popular country for first-time visits.

The Hotels.com Chinese International Travel Monitor (CITM) found Chinese millennials born after 1990 are driving this trend, increasing their travel expenditure in the past year by a staggering 80 per cent and committing a third (36%) of their income to travel – more than any other age group – as they take full advantage of the strong exchange rate against the Aussie dollar.

David Spasovic, Marketing Manager of Australia and New Zealand for the Hotels.com brand comments: “In the year that saw China become Australia’s largest and most valuable inbound tourism market[1], the CITM report found Australia to be the most popular country for first-time visits for Chinese travellers, recovering from a third position slump last year. This top spot was taken out after a three per cent year-on-year increase, beating out Canada and France”.

Benefitting from a strong economy and exchange rates in 2017, Chinese travellers spent a record $10.4 billion[2] on their Aussie travels, but were less interested in filling their bags with luxury items (38%) according to the CITM report; instead, stocking up on authentic local items (43%) such as local cosmetics and skincare (38%), local craft (37%) and natural specialty products (31%).

The report showed Chinese travellers are heading Down Under mostly for leisure (81%) but “bleisure” is an increasingly lucrative market with 80 per cent of travellers saying they would add up to four days extra to their business trip when visiting Australia. Millennials (15%) are more likely than their older cohorts (7%) to make the trip to Australian shores for visiting friends, possibly an outcome of the 54 per cent increase of Chinese international students to Australia since 2014[3].

The report found Australia’s appeal for Chinese travellers revolves largely around our once-in-a-lifetime “must see” destinations and landmarks like the Sydney Opera House and the Great Barrier Reef, although the marine wonderland dropped two per cent in popularity from last year, reflecting Climate Council research that found over half of Chinese travellers would be inclined to go elsewhere if bleaching of the Great Barrier Reef continued[4].

The CITM report found Sydney (73%), Melbourne (61%), and the Gold Coast (33%) continue to dominate as the preferred destinations for future Chinese travel plans. Despite this, eco-tours increased in popularity (+5%) in 2017, with the research revealing a demand from Chinese travellers for more off-the-beaten track experiences.

Meanwhile, Australia was deemed the fifth most welcoming country to Chinese visitors, down two places from last year.

Spasovic comments: “We know from the CITM report Chinese travellers feel comfortable and most welcome in destinations when Chinese mobile wallet and QR code scan via WeChat is accepted, shop and hospitality assistants speak Mandarin, and there is signage they can understand.

“While Australia is overwhelmingly known for our friendly culture and hospitality, we have been slower to implement Chinese-friendly initiatives in comparison to global markets. The CITM report shows the Australian accommodation industry must keep up in order to stay connected to the Chinese audience, especially with Tourism Australia predicating Chinese travellers will make up close to half of Australia’s inbound tourism market by 2020.”

 Overview of Chinese travellers in 2018

According to the CITM report, film and television (62%) and social media (52%) are now the main sources of inspiration for Chinese travellers, playing a key role in influencing Chinese travellers to look outside of Asia. In 2017, two thirds of travellers picked Europe, Africa and the Middle East are their top destinations for first time visits. Increasing connectivity at their fingertips is also inspiring Chinese travellers to opt for more ‘free and easy’ vacations, with the independent style of travel increasing 11 per cent in the past 12 months.

The research showed stints in atypical accommodation is important to over half of Chinese travellers for a great travel experience, with 55 per cent opting for unique and independent hotels with local flavor over star ratings. Another 33 per cent booked boutique hotels, 23 per cent eco-friendly hotels and 21 per cent hotels with cutting edge technology.

Interestingly, the CITM reported that Chinese millennial travel anxieties are taking form in ancient superstitions, surprisingly more so than their elders. 40 per cent of millennials don’t want a mirror opposite the bed, compared with 35 per cent for the generation of their parents. They also wouldn’t like to stay at the end of a corridor (41% vs. 35%) and are more reluctant to stay on a 4^th or 7^th floor (20% vs. 12%).

Spasovic comments: “This year’s CITM report really hit home that Chinese travellers are adventurous, feeling flush, and getting edgy when it comes to their accommodation choices and travel experiences. It’s therefore vital the Australian travel industry quickens the pace in adapting to their evolving needs in order to tap into their enormous spending power, and maintain our reputation as a world-class destination for this incredibly important market to the Australian economy.”

 Top ten destinations visited by Chinese travellers in the past 12 months:

Top ten destinations where Chinese travellers feel most welcome:

Top ten destinations Chinese travellers are excited to visit for the first time in the next 12 months: