The travel and tourism industry in China is one of the largest and fastest-growing sectors in the country’s economy. With a rich cultural history, diverse landscapes, and increasing disposable incomes, China has become both a major source of outbound tourists and a leading destination for international travelers. As the world’s most populous country, China’s tourism market continues to expand and evolve, shaped by both domestic and global trends.

This report provides a comprehensive overview of China’s travel and tourism industry, exploring its market size, key segments, major players, and future prospects.

Overview of China’s Travel and Tourism Industry

China’s travel and tourism industry is multifaceted, encompassing leisure and business travel, domestic and international tourism, hospitality services, and more. With a population of over 1.4 billion, China represents a massive market for travel and tourism services, including transportation, accommodation, food services, and leisure activities. The sector contributes significantly to China’s GDP, accounting for approximately 11% of total economic output in 2023.

Market Size and Growth

The total value of China’s travel and tourism industry in 2023 was estimated at USD 830 billion, making it the largest tourism market in Asia and one of the largest in the world. Domestic tourism is the dominant segment, accounting for over 80% of the total market value. However, outbound tourism is growing rapidly, fueled by rising middle-class incomes and greater international connectivity.

• In 2023, China’s domestic tourism spending was approximately USD 700 billion, reflecting the increasing disposable income of the country’s middle class and a growing desire for travel experiences.
• The Chinese outbound tourism market reached USD 80 billion in 2023, driven by the growing number of Chinese tourists traveling abroad for leisure, business, and education.

Projections suggest that by 2030, China’s travel and tourism industry will be valued at USD 1.5 trillion, with continued growth in both domestic and international travel driven by technological innovation, infrastructure development, and the rise of new tourist destinations.

Key Segments of China’s Travel and Tourism Market

China’s travel and tourism industry can be divided into several key segments, including domestic tourism, outbound tourism, inbound tourism, transportation, and the hospitality industry. Each of these segments plays an important role in the overall market and has its own unique dynamics.

Domestic Tourism

Domestic tourism is the largest segment of China’s travel and tourism market, driven by the growing number of Chinese citizens who are traveling within their own country. The rapid expansion of middle-class income, coupled with a growing appetite for diverse travel experiences, has significantly boosted domestic travel in China.

Market Trends and Growth

In 2023, domestic tourism in China accounted for approximately USD 700 billion, with more than 5 billion domestic tourist trips made throughout the year. This represents a sharp increase over the past decade, fueled by greater access to transportation, improved infrastructure, and government efforts to promote tourism.

• The rise of tier 2 and tier 3 cities has led to an increase in travel to lesser-known, off-the-beaten-path destinations within China, contributing to the growing domestic tourism market.
• Cultural and historical tourism, including visits to ancient cities, temples, and UNESCO World Heritage Sites, remains a central focus of domestic tourism.

The Chinese government has been a key player in promoting domestic tourism, with policies designed to develop new tourist destinations and boost local economies through tourism-related investments. The shift from mass tourism to more individualized travel experiences, including eco-tourism and wellness tourism, is also evident.

Outbound Tourism

Outbound tourism has emerged as one of the fastest-growing segments in China’s travel and tourism market. As Chinese citizens’ incomes rise, more people are able to travel abroad for leisure, education, and business. In 2023, China was the world’s largest outbound tourism market, with Chinese tourists spending approximately USD 80 billion abroad.

Popular Destinations and Travel Behavior

Chinese outbound tourists favor destinations in Asia, Europe, North America, and Oceania, with countries such as Japan, Thailand, the United States, and Australia being top choices. The United States, in particular, remains a leading destination for business travel and high-end tourism.

• Over 155 million outbound trips were made by Chinese tourists in 2023, with spending increasing by 12% from the previous year.
• Chinese tourists are increasingly seeking luxury travel experiences, including high-end shopping, private tours, and customized vacation packages.

The rise of middle-class Chinese tourists with greater spending power has led to an increased demand for luxury, bespoke travel services. Furthermore, the development of direct flights to international destinations and the growth of online travel agencies (OTAs) have made it easier for Chinese tourists to plan and book international trips.

Inbound Tourism

Inbound tourism refers to the influx of international tourists visiting China. As the world’s fourth most visited country by international tourists, China attracts millions of visitors each year due to its rich cultural heritage, diverse landscapes, and historical landmarks. The value of inbound tourism in China was estimated at USD 40 billion in 2023.

Major Tourist Attractions

China’s tourism industry is supported by numerous iconic attractions, including the Great Wall, the Forbidden City, the Terracotta Warriors, and scenic regions like the Yangtze River and Guilin’s limestone mountains. In recent years, there has also been an increase in the number of tourists visiting China’s modern cities such as Shanghai, Beijing, and Shenzhen for their cosmopolitan lifestyle, shopping, and cultural offerings.

• In 2023, China welcomed more than 60 million international tourists, with most visitors coming from neighboring countries in Asia, followed by Europe and North America.
• The tourism market is also benefiting from China’s growing prominence as a destination for business travel, especially in cities like Beijing, Shanghai, and Guangzhou.

China’s inbound tourism has seen strong growth, particularly from countries in Southeast Asia, Europe, and the United States. However, the COVID-19 pandemic had a significant impact on international travel, and the recovery of inbound tourism is expected to be gradual, with Chinese tourism authorities aiming to promote China as a safe and attractive destination for foreign visitors.

Transportation in the Travel and Tourism Sector

Transportation plays a crucial role in supporting the growth of China’s travel and tourism market. The development of high-speed rail, expanding air travel infrastructure, and improved highways have made it easier for both domestic and international tourists to travel across the country.

Air Travel

Air travel is a key component of both domestic and outbound tourism in China. In 2023, China’s civil aviation industry was valued at USD 65 billion, with more than 600 million domestic and international passengers flown during the year. China’s expanding network of airports and airlines, including Air China, China Eastern, and China Southern, continues to boost tourism in both urban and remote areas.

• The rapid expansion of low-cost carriers has made air travel more affordable, particularly for Chinese consumers traveling domestically or to nearby international destinations.
• The rise of budget airlines has made international travel more accessible, increasing the number of outbound trips made by Chinese consumers.

Air travel has become more efficient, with numerous direct flights to key international destinations, making travel more convenient for Chinese tourists. In addition, the growing number of domestic flights has made it easier for Chinese travelers to visit less-accessible tourist spots within the country.

Rail Travel

China has one of the most extensive high-speed rail networks in the world, with over 40,000 kilometers of track connecting major cities and regions. High-speed rail has become a popular mode of transportation for domestic tourists, offering comfort, efficiency, and affordability.

• The high-speed rail sector in China was valued at USD 35 billion in 2023, and continues to grow as more routes are added to the network.
• High-speed rail has played a key role in making domestic tourism more accessible, particularly in regions that are not well-served by air transportation.

The convenience of rail travel has also driven the popularity of train tourism, with travelers seeking experiences on scenic trains that travel through China’s beautiful countryside.

Key Players in China’s Travel and Tourism Industry

China’s travel and tourism industry is supported by numerous key players, ranging from travel agencies and airlines to hotels and tour operators. These companies play vital roles in delivering services to both domestic and international tourists.

Ctrip (Trip.com Group)

Ctrip, now known as Trip.com Group, is China’s largest online travel agency (OTA). It provides a wide range of services, including flight bookings, hotel reservations, vacation packages, car rentals, and tour services. Ctrip is a dominant player in the travel industry, with a strong presence in both domestic and outbound markets.

• Ctrip’s revenue in 2023 was estimated at over USD 7 billion, with a significant portion coming from the company’s international operations.
• The company continues to expand its market share through acquisitions and partnerships, including its collaboration with global travel platforms and local businesses.

Ctrip has been a key player in the development of China’s digital travel ecosystem, offering easy-to-use online and mobile platforms for consumers to plan, book, and manage their travel.

China National Tourism Administration (CNTA)

The China National Tourism Administration (CNTA) is the government body responsible for regulating and promoting tourism within China. The CNTA plays a central role in developing policies, promoting China as a tourist destination, and overseeing tourism-related industries.

• The CNTA has implemented various initiatives to encourage tourism in underdeveloped regions and promote China’s cultural and natural heritage.
• The agency has also been active in creating global campaigns to position China as a premier tourist destination, particularly for inbound tourism.

The CNTA is vital to the success of China’s tourism industry, and its continued investment in tourism infrastructure and marketing will help sustain growth.

China Eastern Airlines and China Southern Airlines

China Eastern Airlines and China Southern Airlines are two of the largest airlines in China, both of which play a crucial role in domestic and international tourism. Together, these airlines represent a significant portion of China’s air travel market.

• In 2023, China Eastern Airlines and China Southern Airlines collectively accounted for over 40% of the domestic air travel market, flying millions of passengers annually.
• Both airlines have been expanding their international flight networks, making it easier for Chinese tourists to travel abroad and for international tourists to visit China.

These airlines also cater to the growing demand for budget and mid-tier travel, offering more affordable options for consumers.

Jin Jiang International

Jin Jiang International is one of China’s largest hotel groups, with a wide portfolio of properties ranging from budget hotels to luxury brands. It operates in both domestic and international markets, serving a variety of tourist segments.

• Jin Jiang’s revenue in 2023 was estimated at USD 3.5 billion, with the company continuing to expand its global footprint through acquisitions and new hotel openings.
• The company’s diverse range of properties, including brands like Jin Jiang, Metropolo, and InterContinental, allows it to cater to a broad spectrum of travelers.

Jin Jiang’s strong presence in China and abroad makes it one of the most important players in the country’s hospitality sector.

Future Outlook for China’s Travel and Tourism Industry

The future of China’s travel and tourism industry looks promising, with continued growth expected across all segments. Domestic tourism will remain the largest segment, but outbound tourism is projected to grow rapidly as more Chinese consumers travel internationally. The rise of digital platforms, the growth of eco-tourism, and the increasing focus on luxury travel experiences will further shape the market in the coming years.

• The development of smart tourism technologies, including mobile apps, AI, and virtual tours, will enhance the overall travel experience for consumers.
• Sustainability will become an increasingly important consideration, with the Chinese government and private sector focusing on reducing the environmental impact of tourism and promoting sustainable travel options.

As China’s economy continues to grow, the travel and tourism industry will play an increasingly central role in the country’s economic development, contributing to both domestic growth and global tourism.