Underinvested, underinsured and over here – China’s wealthy on the move
By Will Grahame-Clarke, 11 Jun 18
China’s private wealth is growing at a break neck pace with four of its eastern provinces as wealthy as Portugal, according to analysis from Legal & General Investment Management (LGIM).
Travel
According to national statistics, Chinese outbound travellers are predicted to reach 203 million by 2020 (four times the UK), with growth of 14% in 2018.
This is driven by three key destinations: South Korea, Japan and Thailand, and increasingly also Europe.
In 2017, the 130 million outbound Chinese travellers were estimated to have spent over £150bn on overseas travel, including airlines, airports, hotels, luxury brands and duty free.
This has been fuelled primarily by a rise in GDP per capita on a PPP-adjusted basis. At $16,624 (2017 IMF data) the disposable income level of more than 30% of China’s population is in-line with that of the UK (currently 350 million people and 865 million.)
“The loosening of visa restrictions and increasing number of passport holders are also key factors,” said Mazunder.
“Only 10% of Chinese hold passports, compared to 75% for Brits. Due to China’s enormous scale, even this low number results in one in 10 international tourists being Chinese.
“As more Chinese become wealthy enough to travel abroad, businesses that serve them are likely to experience significant increases in demand. And what’s more, Chinese tourists spend more on average than other nationalities.”
Tags: China | Legal & General
