IHG REPORT REVEALS CHINESE ARRIVALS TO ABU DHABI EXPECTED TO INCREASE OVER 300% BY 2023
IHG publishes comprehensive report forecasting over 300% growthin number of Chinese visitors to the UAE capital Dubai most popular choice for Chinese travellers in MEA region Growth in arrivals to and nights spent in Dubai and Abu Dhabi is expecte
Dubai, United Arab Emirates, 09 March, 2015: New research released by InterContinental Hotels Group (IHG®), one of the world’s leading hotel companies, reveals Abu Dhabi is expected to welcome more than 177,000 Chinese travellers by 2023, a phenomenal increase of more than 300% from just over 44,000 in 2013.
The recently published report on 'The Future of Chinese Travel' produced in partnership with Oxford Economics, shows that favourable economic and demographic trends shaping the Chinese travel market are set to fuel huge increases in the number of Chinese travellers visiting the UAE over the next decade. The research also highlights that Dubai, currently the most popular destination in the Middle East and Africa region amongst Chinese travellers, is set to benefit from the 90 million Chinese households who will be travelling overseas by 2023. The report projects a 97% increase in arrivals expected, totalling more than 540,000 travellers in ten years.
Findings also showed that Chinese travellers to the Middle East tend to stay longer than the average long-haul destination. The trend of longer stays per trip raises the value of Chinese visitors to the region.
As one of the most comprehensive studies into the Chinese travel market ever undertaken, the report also reveals the opportunities this forecasted growth will present, as Chinese traveller preferences evolve towards long-haul, leisure-driven travel. The study reports that increases in leisure and retail spend will contribute to significant increases in the value of Chinese travellers to local economies.
Richard Solomons, Chief Executive Officer of IHG, commented: “This is a ground-breaking piece of research, which demonstrates the sheer scale of the ‘China outbound’ opportunity for cities and local economies worldwide. With the shift towards leisure travel, coupled with the 90 million Chinese households able to take long-haul trips by 2023, the country’s growing importance in the global travel market cannot be underestimated. With 30 years of experience in China, the recent launch of our new Chinese brand, HUALUXE Hotels and Restaurants, and the roll-out of our China Ready programme, IHG is well-placed to meet this growing demand.”
Pascal Gauvin, Chief Operating Office, India, Middle East and Africa, IHG, said: "The UAE is one of our key growth markets in the Middle East. We have a strong strategy for growth and part of that is enhancing our service and offerings to deliver greater guest experiences for everyone who stays with us. As the volume of Chinese travellers grow in key cities such as Dubai and Abu Dhabi in the country, we must also ensure we are ready to cater to their and we are pleased to share that today nearly 40 percent of our hotels in the UAE are now China Ready accredited. In the years ahead we will work towards growing this number alongside the growth that we can expect from Chinese guests."
Adam Sacks, President, Oxford Economics, commented: “The Future of Chinese Travel Report provides a comprehensive view of Chinese travel and shows that overseas trips will become possible for tens of millions of new Chinese households within the next 10 years. History shows that destinations which improve access for Chinese travellers, experience a significant growth premium in the number of arrivals. This represents a clear opportunity for both countries and international cities to benefit from the huge future increases in Chinese outbound travel.”
The Future of Chinese Travel report: Key findings
Scale of the opportunity
§ Annual arrivals from China will total nearly 97 million by 2023 (an increase of 5% per year)
§ 88 million Chinese households will be able to travel overseas by 2023
Increase in family income is the key driver behind this change
§ In the next decade, over 60 million Chinese households will cross the annual income threshold of $35,000, at which point international travel becomes more affordable
Three key trends in Chinese travel will emerge over the next 10 years
1.Chinese demand for long-haul travel will experience huge levels of growth
o China will overtake the US, UK and Germany to become the largest source market for long-haul travellers by 2020
o As Chinese tourism demand matures, preferences will shift toward more expensive, longer-haul trips
2.Chinese travellers will mix business with leisure
By 2023 nearly two thirds (62%) of total Chinese outbound travel will be leisure-driven – a major shift in the purpose of travel for outbound Chinese away from business
3.Chinese travellers will spend more during overseas trips
o Per-trip spending by Chinese travellers is expected to grow nearly 75% in nominal terms by 2023
o Continuing shift in preferences towards higher-cost accommodation and upscale shopping
HUALUXE Hotels and Resorts
IHG opened the first hotel under its HUALUXE Hotels and Resorts brand – HUALUXE Yangjiang City Centre – last month. The HUALUXE brand was developed based on extensive market insight, reflecting its deep understanding of Chinese guests. IHG plans to take the brand to 100 cities across Greater China over the next 15 to 20 years, and over time, introduce the brand to key international destinations, such as London and New York.
IHG’s China Ready Programme
As part of the IHG’s ‘China Ready’ programme, tailored offerings are provided to make Chinese guests feel appreciated and welcomed. Already rolled out to over 80 hotels across 24 counties, IHG’s China Ready hotels have Mandarin-speaking staff, trained Chinese chefs and provide cultural awareness training to their people. Other services include facilities for guests to pay with UnionPay, the only domestic bank card organisation in China, tailored food and beverage offerings and Mandarin-speaking television channels in hotel rooms.
IHG in Greater China
IHG has more than 30 years of experience in Greater China, having opened its first Holiday Inn hotel in China in 1984. It continues to lead the hospitality industry there, opening 11-thousand rooms in 2014 alone, its most ever during a calendar year and more than double that of its nearest international competitor.
For more information on The Future of Chinese Travel report please visit: www.ihgplc.com/chinesetravel
IHG has 79 hotels open across five brands in the Middle East, including InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Staybridge Suites. The company has a further 26 hotels in its development pipeline including InterContinental Dubai Marina and InterContinental Abu Dhabi Grand Marina, due to open in the next three to five years.
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of hotel brands, including InterContinental® Hotels & Resorts, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Hotel Indigo®, EVEN™ Hotels, Holiday Inn® Hotels & Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites®. In January 2015, IHG acquired Kimpton Hotels & Restaurants, the world’s leading boutique hotel business.
IHG manages IHG® Rewards Club, the world’s first and largest hotel loyalty programme with over 84 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally.
IHG franchises, leases, manages or owns over 4,800 hotels and more than 710,000 guest rooms in nearly 100 countries, with over 1,200 hotels in its development pipeline. Over 350,000 people work across IHG’s hotels and corporate offices worldwide.
In January 2015 we completed the acquisition of Kimpton Hotels & Restaurants, adding 62 hotels (11,300 rooms) to our system size and 16 hotels to our development pipeline.
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales.
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