China’s travel and tourism sector recorded a marginal growth during the review period (2009-2013).Domestic tourism is the major contributor to the sector and increased from 1.01 billion in 2009 to 1.45 billion in 2013. Government initiatives focusing on domestic tourism, infrastructure development, and promotional campaigns in key source countries such as Hong Kong, Macao, and the US are the major drivers for tourism growth in China. However, international arrivals recorded a decline of 3.5% to 55.7 million in 2013 from 57.7 million in 2012. Inbound tourist numbers were adversely affected by ongoing pollution problems and a lengthy visa process.
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Domestic tourism is the major driving force of the Chinese tourism sector. The total number of domestic trips increased from 1,014.4 million in 2009 to 1,455.9 million in 2013, at a CAGR of 9.45%. Total domestic tourist expenditure posted a CAGR of 32.12%, increasing from CNY1,018.4 billion (US$149.1 billion) in 2009 to CNY3,103.3 billion (US$500.3 billion) in 2013.
The Chinese cruise tourism sector has recorded growth. According to the China Cruise & Yacht Industry Association (CCYIA), the number of overseas cruises departing from the Chinese mainland increased from 24 in 2006 to 170 in 2012.
Trends in air pollution in China will be difficult to reverse, thereby negatively affecting the tourism sector. According to TTIC analysis, international arrivals in China have decreased from 57.7 million in 2012 to 55.7 million in 2013, representing a decrease of 3.5% over 2012 due to worsening air pollution.
China’s airlines have increasingly looked outward over the past several years. Growth in the international segment has been stronger for China Eastern Airlines and China Southern Airlines than for Air China. In 2013, China Eastern Airlines recorded an average annual growth of 18.5%...