With money left to spend

Falling hotel prices in Europe and elsewhere are leaving Chinese tourist with a lot more in their wallets

Despite the hefty purchasing power that Chinese tourists have in their pocket when they head overseas, they are spending less than other tourists on hotel rooms in many countries, a survey shows.

They are also cashing in on Europe's economic woes, where last year hotel prices in many destinations fell sharply, the survey by the online booking website hotels.com found.

The website has a portfolio of 200,000 properties worldwide, and the survey found that Chinese tourists were paying less than others in half the countries covered.

Chinese travelers came fifth among the biggest spenders abroad with an average outlay of 1,069 yuan ($172; 133 euros) a night, according to the report, based on bookings made on the website and prices paid by each customer per room per night in 71 cities.

The Japanese spent the most away from home at 1,177 yuan, followed by Australians at 1,098 yuan and US citizens at 1,079 yuan.

In Europe, the Swiss were the highest-paying Europeans at 1,075 yuan, followed by Norwegians at 1,055, Russians at 1,014 yuan and the British at 998 yuan.

The report found that the Chinese spent 414 yuan a night more on average when traveling abroad than when traveling in China.

Global Blue, the largest tax-refund and shopping services provider, said Chinese shoppers' tax refunds reached a record 24.4 billion yuan last year, an increase of 58 percent on 2011. The average trade through tax refunds in Europe and Asia was about 7,100 yuan a person. Spending on luxury items contributed to between 60 and 70 percent of overseas buying.

But Jessica Chuang, hotel.com's senior marketing manager for Greater China, says Global Blue's survey overestimated the buying power of Chinese tourists overseas, with only 5 percent visiting Europe and the rest traveling to neighboring countries and regions, where they spend much less than in Europe.

Jiang estimated that on average a Chinese traveler spends about $1,000 (774 euros) on every trip outside the Chinese mainland, including shopping, hotels and flights. "Most Chinese outbound travelers do not stay at luxury hotels, and they prefer economy and medium-priced hotels.

"What they save from accommodation is used to buy luxury brands. Therefore it appears that Chinese travelers tend to spend more, but in fact that is not the whole picture."

Over the past 10 years Chinese outbound travel has risen 20 percent a year on average, with destination countries and regions climbing from 18 to 146.

According to the 2013 travel budget report by Ctrip.com, one of China's leading online travel booking website, about 57 percent of travelers intend to increase their spending on tourism over what they spent last year. Turnover in Ctrip's outbound business grew 20 percent more than the average of its other operations, says Niu Yue, a spokesman for the company.

The US was by far the most popular country to visit for Chinese travelers.

The gambling capital of Las Vegas climbed to No 2 and New York maintained its position at No 3, with Los Angeles at No 4 and San Francisco gaining one place at No 9.

Jiang says the number of Chinese visitors to the US grew more than 25 percent last year compared with 2011 thanks to relaxed visa restrictions.

Chinese travelers parted with more for their hotel stays last year in 10 of the US destinations included in the report, as the stronger economy coupled with increased international and domestic travelers drove double-digit increases.

The steepest rises were in San Francisco, up 21 percent to 1,285 yuan a day, and the theme park capital of Orlando, Florida, up by the same percentage to 724 yuan. In Anaheim, California, site of the Disneyland Resort, hotel spending rose 19 percent to 1,019 yuan and in Miami, it rose 10 percent to 1,328 yuan.

In some of the big northeastern cities the amounts Chinese paid for hotels fell, in Washington by 13 percent to 1,168 yuan and in Philadelphia by 9 percent to 1,101 yuan. In New York, the highest priced US destination and at No 2 in the price overall table, spending rose 5 percent to 1,788 yuan.

In Europe, Paris was the city where Chinese travelers spent most on hotels, helped by the relaxation of visa regulations, followed by London in its Olympic year, rising three to No 12.

The number of Chinese travelers going to Europe rose 10 percent year-on-year, Jiang says, attributing this to the impact of a stronger yuan and falling hotel rates.

Britain had the largest downturn in Europe, with the amount Chinese spent sliding 18 percent to 1,303 yuan, even though the country was in the global spotlight for much of the year with the celebrations for the diamond jubilee of the Queen's ascent to the throne, and the Olympic Games, the report said. Switzerland was the European country where Chinese travelers paid the most, with 1,472 yuan.

In Venice the average amount Chinese paid fell 22 percent to 1,210 yuan, in Zurich, it fell 20 percent to 1,286 yuan, and in London and Stockholm it fell 19 percent, to 1,550 and 1,158 yuan respectively.

Among European cities there were only three risers: Nice up 11 percent to 1,536 yuan, Munich, 8 percent to 1,297 yuan, and Paris, 1 percent to 1,559 yuan, making it No 3 in the overall price chart. Dubai was the destination where the Chinese paid the highest average prices overall last year, 1,870 yuan-even after a 16 percent fall.

Vancouver in Canada dropped 11 percent to 1,056 yuan, still higher than Toronto on 944 yuan, the same level as in 2011.

In the Pacific region, Auckland rose 10 percent to 752 yuan. In a year in which Chinese travelers took over from the British as the second-highest inbound market for Australia, the average price Chinese paid for a hotel room in Sydney was 1,259 yuan, 5 percent higher than the year before. In Melbourne they spent 4 percent less, 1,032 yuan.

Globally, the average price Chinese paid for a hotel room was 3 percent higher last year compared with the year before. The survey found that prices climbed for all regions apart from Europe and the Middle East, where there was a slight fall.

wangzhuoqiong@chinadaily.com.cn

(China Daily 04/12/2013 page21)