China

How does Travel & Tourism compare to other

sectors?

World Travel & Tourism Council

Benchmarking Travel & Tourism in China: GDP

GDP Size

Travel & Tourism generated, either directly or indirectly,

$644 billion of China’s GDP in 2011.

Travel & Tourism GDP is larger than that of the

automotive manufacturing, education, and

communication services sectors.

In terms of its direct GDP, Travel & Tourism is nearly

60% larger than the direct GDP of the automotive

manufacturing sector in China.

GDP Share

Travel & Tourism generated, either directly or indirectly, 9.2% of

China’s GDP in 2011.

This is larger than the size of automotive manufacturing’s GDP

impact at 8.0%.

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World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Employment

Employment Size

Travel & Tourism sustained, either directly or indirectly,

61.9 million jobs in China in 2011.

Travel & Tourism in China directly employs more people

than all other studied sectors.

Employment Share

Travel & Tourism generated, either directly or indirectly, 8.1% of

employment in China in 2011.

For every job directly in the Tourism sector, nearly two jobs are

created on an indirect or induced basis.

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World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Growth

Growth Trends

Travel & Tourism direct industry GDP expanded 430%

between 1990 and 2011 while the total economy

expanded 693%.

The communication services industry grew 693% over

this 21-year period.

Growth Forecasts

The Oxford Economics global industry model predicts annual

average growth of 9.2% for Travel & Tourism GDP over the next

decade.

In comparison, the total economy is expected to expand 7.6% per

annum in real, inflation-adjusted terms.

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Total economy

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World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Exports

Tourism’s Share of Exports

Travel & Tourism is a significant source of export

revenue for China.

In 2011, visitor exports totalled $50.9 billion. This was

26.6% of all service exports and 2.4% of all exports

(including goods and services).

Ranking Tourism Export Industries

Travel & Tourism is a significant export earner in China,

exceeding its exports of automotive manufacturing, construction,

agriculture, mining, financial services, and education..

Travel & tourism, 50,853

Other service exports, 140,614

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US$m

Service exports (2011)

US$m% total

exports

Manufacture of chemicals 107,837 5.2%

Travel & tourism 50,853 2.4%

Automotive manufacturing 42,960 2.1%

Construction 17,287 0.8%

Agriculture 15,696 0.8%

Mining 9,234 0.4%

Financial services 3,647 0.2%

Education 674 0.0%

Exports (2011)

World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Exports

Ranking Tourism Exports by Commodity

Travel & Tourism is the ninth largest Chinese export as visitors

purchase goods and services with foreign currency.

It is larger than the exports of food products, beverages &

tobacco.

US$m% total

exports

Machinery & equipment 897,929 43.0%

Textiles, leather & footw ear 312,193 15.0%

Chemicals, rubber, plastics & fuel products 182,964 8.8%

Basic metals & fabricated metal products 134,638 6.5%

Other 122,049 5.8%

Transport equipment 109,822 5.3%

Manufacturing nec 109,572 5.3%

Other business services 73,038 3.5%

Travel & tourism 50,853 2.4%

Food products, beverages & tobacco 41,240 2.0%

Other non-metallic mineral products 35,064 1.7%

Construction services 17,287 0.8%

Total economy 2,086,649 100.0%

Exports (2011)

World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Linkages

Comparing the effect of $1 million in spending

Spending in a sector will have varying impacts on GDP,

depending on the local value added and linkages to the

rest of the economy.

In China, $1 million in Travel & Tourism spending

(consumption) generates $1.4 million in GDP. This

impact of spending is greater than all studied industry

sectors except for education.

How much of T&T spending stays in the economy?

When travellers spend money in a destination, not all of it

remains in the economy as some goods and services need to be

imported. This represents “leakage” to the economic value

produced.

In China, 8% of Travel & Tourism spending leaks out of the

economy through imports. The automobile and chemicals

industries each require imports amounting to 16% of sale.

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Whole Economy

Supplier Imports Direct Imports

Leakages per $100 spend - China

World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Linkages

Beneficiaries of Travel & Tourism

Travel & Tourism is interconnected with the entire

Chinese economy. These links exist through the supply

chain to the Tourism industry (indirect linkages) as well

as through Tourism-earned incomes as they are spent

across a variety of other sectors.

In this sense, the Travel & Tourism sector has many

“beneficiary” sectors across the whole spectrum of the

economy.

The agriculture sector gains $150,000 for every $1

million in spending on Travel & Tourism.

For every $1 million in Travel & Tourism sales, $67,000

of gross value added is generated in the transport and

storage sector.

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T&T links with other sectors - China

GVA ($000s)

GDP generated per $1 million in Travel & Tourism sales

World Travel & Tourism Council

Benchmarking Travel & Tourism in China: Employment Generation

Travel & Tourism’s employment potential

For every $1 million in Travel & Tourism spending, 144

jobs are supported. (51 direct, 62 indirect, and 31

induced)

The average of the Chinese economy, also generates

161 jobs per $1 million in spending.

Financial services: 93 jobs per $1 million

Auto manufacturing: 83 jobs per $1 million

Communications: 83 jobs per $1 million

Agriculture: 384 jobs per $1 million

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World Travel & Tourism Council

Benchmarking Travel & Tourism in China

Direct, '000s

Indirect +

Induced,

'000s

Total, 000s% total

economy

Automotive manufacturing 5,173 39,972 45,145 5.9%

Communication services 9,787 19,225 29,012 3.8%

Financial services 6,443 42,127 48,570 6.4%

Mining 10,361 62,232 72,594 9.5%

Education 9,445 39,613 49,058 6.4%

Manufacturing of chemicals 6,241 100,245 106,486 14.0%

Travel & Tourism 22,081 39,856 61,937 8.1%

Employment, 2011

DirectIndirect +

InducedTotal

% total

economy

Automotive manufacturing 117 446 563 8.0%

Communication services 170 189 359 5.1%

Financial services 322 375 697 9.9%

Mining 456 640 1,096 15.6%

Education 192 310 502 7.1%

Manufacturing of chemicals 243 920 1,163 16.5%

Travel & Tourism 182 462 643 9.2%

GDP