The Latestlook Atchinesevisitationto the United States

The LatestLook atChineseVisitationto the United States

BY RON ERDMANN

DEPUTY DIRECTOR, RESEARCH AND ANALYSIS

NATIONAL TRAVEL AND TOURISM OFFICE

U.S. DEPARTMENT OF COMMERCE

IN 2014, THE UNITED STATES’ second-largesttravel and tourism exportmarket was China, which generateda record $24 billion of the $221 billion(also a record) spent by international

visitors. The growth in Chinese travelspending started after the 2007 memorandumof understanding was signedbetween China and the United States toopen group leisure travel to the U.S.

Although the 2009 global recessionslowed traveler spending by the Chinesein the U.S., expenditures increasedbetween 30 and 49% from 2010 to 2012,then decreased to around 15% over thelast two years. Spending by Chinesevisitors has grown the fastest of any ofthe United States’ top travel markets,134% since 2010. The $24 billion spent in2014 includes $9.8 billion by education-relatedtravelers (up 144% since 2010),$11.6 billion from business/leisure travelers(up 139% since 2010) and $2.5 billionin passenger air travel exports (up93% since 2010).

In terms of arrivals, China generatedthe strongest growth in 2014, postinga record

2.189 million visitors (up21% over 2013) of the record 75 millioninternational visitors to the United States.

Since2010, China leads the growth in arrivals,up 227%. Like the spending figures,arrivals include business, leisure, educational,medical and other related visitors.Business and leisure travelers accountedfor 1.8 million of the visitors, while studentsgenerated 373,000 visitors.

Student travelers were added to thespending data in 2013, when the Bureauof Economic Analysis restructured andrevised its goods and services exportsreporting. Prior to that, spending by studentswas not included in travel exportestimates, but students were alwayscounted as arrivals. This change createsan inflated spend-per-traveler figurefrom China and a few other countries.

In 2014, spending per student travelertotaled over $26,000, driving up theaverage for all Chinese visitors to nearly$11,000 per traveler. Backing studentspending out, business and leisure travelerspending averages $6,400.

Since 2010 the United States has seenconsiderable shifts in characteristics ofChinese travelers, including when theyvisit. Both in 2010 and 2014, July andAugust were the two top months forarrivals from China. In 2010, Septemberand October were the next two largestmonths for visits, but by 2014, thatswitched to January and September.

There has also been a shift in thetop ports of entry. In 2010 the top fiveports of entry were San Francisco (18%),Los Angeles (16%), Chicago (14%), NewYork’s JFK Airport (10%), and Blaine,Washington, (6%). By 2014 it shifted toLos Angeles (21%), San Francisco (13%),JFK (11%), Chicago (10%), Newark (5%)and Honolulu (5%). Posting the fastestgrowth in total arrivals between 2010and 2014 were Los Angeles (+314%) andNew York’s JFK Airport (+258%).

Top U.S. Destinations Visited by Chinese Travelers
(2010 vs. 2014)
Cities Visited / 2010
Market Share / 2014
Market Share / 2010/2014
(% point change)
Los Angeles / 34% / 33% / -1
New York City / 28% / 27% / -1
San Francisco / 22% / 19% / -3
Las Vegas / 16% / 14% / -2
Washington, DC / 14% / 10% / -4
Boston / 9% / 8% / -1
Chicago / 10% / 6% / -4
San Diego / 3% / 5% / 2
Seattle / 4% / 4% / 0

National Travel and Tourism Office, International Trade Administration, U.S. Department of

Commerce

Several cities show declinesinmarketshare,but everysinglecityishostingmore travelersnow

than in2010becauseofthe dramatic227%increase inthenumberofChinesearrivals tothecountry.

There were other notable changes intraveler characteristics of Chinese visitorsto the country between 2010 and 2014:

• In 2011, 55% of all Chinese visitorsto the U.S. were first-time visitors.Since that peak year, the numberhas dropped for the last three yearsto 41%.

• Packaged travel had been growingfor the last four years, but registereda decline between 2012 and 2013.

• Leisure travel for the Chinesemarket set a record for the highestshare in 2014, at 34%, afterincreasing every year since 2006. Incontrast, business travel as a mainpurpose of trip declined in four ofthe last five years to 16%.

• Chinese travelers stay twice aslong as Asian travelers overall (41nights), but this long stay is influencedby student travel. When welook at leisure travelers from China,their trip is 28 days on average. Hotelstays are also influenced by the dropin business travelers.

There has been an increase in theshare of Chinese travelers who visitonly one state or city while in theUnited States. Between 2008 and 2013,the share of those visiting only one destinationwent from its lowest point toits highest point.

This has had a major impact ondestinations visited, with Los Angelesposting the top spot for the last threeyears. New York City held the top spotin 2011. San Francisco has ranked thirdsince 2008, and its share has been upand down over the years. Las Vegasmoved to No. 4, although it did see aslight drop in share between 2012 and2013. Washington, D.C., held the fourthspot in 2011, and that city has also seenincreases and declines in share over thelast several years.

During their official meeting inSeptember 2015, President Obama andPresident Xi agreed to capitalize on the2014 reciprocal extension of visa validityand maximize the potential for encouragingtravel between the two nations bylaunching the U.S.-China Tourism Year2016 with the following objectives:

• Promote travel between the UnitedStates and China

• Spread the economic benefits ofChinese tourism throughout the U.S.

• Expand market access

• Advance initiatives to ensure a qualityvisitor experience for travelers

With both governments and the privatesector working together in 2016and beyond, China should continue toadvance as a top overseas market forthe country, potentially hitting

No. 1 by2020. Be sure you are prepared to welcome Chinese visitors!

About the National Travel andTourism Office

The National Travel and Tourism Officeof the U.S. Department of Commerce’s International Trade Administration manages the travel and tourism statistical system for the United States. The systemprovides national and local level datathat tracks past performance, providesinsights into the future and offers keytraveler characteristics data to guideresearch-based marketing campaigns.For more information on the latestdata, market research, news releases andtravel and tourism policy, please see .