According to a report sponsored by Amadeus IT Holdings SA, global travel will see an annual growth rate of 5.4% over the next decade as more and more Chinese families are able to afford foreign trips. The number of households in China that will travel abroad is expected to more than double over this period.
According to the survey, China is likely to overtake the United States as the country accounting for the largest outbound travel in the world. Furthermore, China will also emerge as the largest domestic travel market by 2017, said the report by Oxford Economics. It also states that nearly 220 million households in China will be able to afford an overseas trip over the coming ten years.
The international travel industry is projected to witness a growth rate that’s 2% faster than the global GDP over the next ten years. It is also projected to be 1.3% points more than the growth rate that was recorded between 2009 and 2012.
In addition to China, other countries that are expected to contribute significantly to the international travel industry are—India, Brazil, Russia, Turkey and Indonesia. Over the next decade, these countries are expected to record an average of 5% annual growth mainly owing to factors such as growing wealth and a perceptible change in consumer behavior, the report further stated.
The report goes on to state that the travel industry has been through a rough patch in the last five years after the global economic crisis affected the world. But it seems as though the tide might finally be turning.
A significant chunk of demand in the travel industry will be created by growing travel between the west and the east. It is estimated that Asia alone will account for nearly 55% of a spike in the global corporate travel volumes in the coming decade.