Consumer China

Travel’s tepid sun

  • Published 30 Apr 2009

Despite a slump in international visitors, China’s travel market is maintaining overall buoyant demand, but profit margins are slipping in several industry segments.

Travel is important to the wider economyChina’s travel market – which includes international and domestic passenger traffic for leisure, business or other purposes – is the fastest-growing national industry in the world. In the context of the wider Chinese economy, it has an importance that extends beyond the industry itself. Passenger traffic volumes on airlines, railways and roads are a key component of broader transport demand – and that demand underpins investment in transport infrastructure, the most active part so far in the Rmb 4,000bn ($586bn, €446bn, £400bn) national stimulus plan. For example, infrastructure spending on airports alone is set to rise to Rmb 250bn in 2010 from Rmb 100bn this year, increasing the number of airports nationwide to 190 in 2010 from 152 at the end of 2007, according to official statistics.

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