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China’s Hospitality and Tourism Industry

China has always been a mystery to me. Even though I’m a Chinese, but having exposed to Western culture at a young age, trying to understand China would take some effort. Nonetheless, it is still worth the effort; given the massive market it has. Luckily, Singapore’s bilingualism policy has made reading Chinese relatively easy to me.

Understanding China’s Hospitality and Tourism Industry and culture would definitely take some time, and preferably some opportunity to work within China. I guess I would take the first step by doing some research in the industry, from a statistical point of view. The information below is from National Bureau of Statistic of China.

China's GDP

The graph above indicates the Gross Domestic Production (GDP) of China over the past 5 years. As we can see, the GDP has increased over the years although the rate of growth has decreased from over 10% in 2010 to about 7.3% in 2014; the lowest growth rate since 2009. Still, China remains as a major global growth driver.

China Tourists Number and Revenue

Looking at the tourism industry, the graph above shows the data with regards to the tourists entering China (in Red) and the revenue (in Blue). We see a decline in tourists entering China from more than 133 million tourists in 2010 to 128 million tourists in 2014; a 4% decrease over the past 4 years.

From revenue’s perspective, it was an increase. The revenue is about US$46 billion dollars in 2010, which has grown to almost US$57 billion dollars in 2014; a 24% increase over the past 4 years.

Tourist from Hong Kong, Macau, Taiwan and the rest of the world

Among the tourists entering China in 2013 (doesn’t seem to have data of 2014 on date of posting), Hong Kong & Macau, other countries and Taiwan represents 75% (97.63 million), 20% (26.29 million) and 4% (5.16 million) respectively.

Top 10 countries except Hong Kong, Macau & Taiwan

From the graph above, we could see the top 10 countries (other than Hong Kong, Macau & Taiwan) in terms of tourists entering China. They are:

  1. Korea (4.18 million)
  2. Japan (2.71 million)
  3. America (2.09 million)
  4. Russia (2.04 million)
  5. Malaysia (1.13 million)
  6. Mongolia (1.08 million)
  7. Singapore (0.97 million)
  8. Philippines (0.97 million)
  9. India (0.71 million)
  10. Australia (0.67 million)

China's Hospitality Revenue and Hotel Room Number

Now let us take a look at the hospitality industry. From the graph above, we see the overall trend seems to peak in the year 2012.

  • The total number of rooms in 2013 is 2.66 million, a drop of 21% from the year 2012.
  • The total revenue from F&B in 2013 is RMB137.45 billion, a drop of 7% from the year 2012.
  • The total revenue from accommodation in 2013 is RMB170.54 billion, an increase of 5% from the year 2012.
  • The total revenue of the Hospitality industry in the year 2013 is RMB352.8 billion, almost the same from the year 2012.

Summary

From the GDP, we could see a slowing economy in China. As she plays an important role in the global economic growth, the slowing economy would definitely affect many countries around the world. This would certainly affect the tourism in the region and China itself.

We see a decrease of tourists entering China since 2011; this causes a reduction number of hotel rooms in the year 2013.

The good news is, even though the number of tourists entering China has reduced, the revenue generated has increased. This helped the hospitality industry’s revenue to stabilize though there is sign of a slowing down.

Lastly, we know that the top 10 countries in terms of tourists entering China are Hong Kong, Taiwan, Korea, Japan, America, Russia, Malaysia, Mongolia, Singapore and Philippines.

Published by

Johnny Koh

I've been working as an account or project management related role for quite some time. It's time to go deeper and be a subject matter expert in digital acquisition, specifically in the hospitality solutions.