2017 Spring Festival Preview Part 2: Chinese Expected to Spend Big on Outbound Travel and Entertainment

Executive Summary

• In Part 2 of our 2017 Spring Festival Report, we focus on two main themes: 1) the continued rise in Chinese outbound travel; and 2) the growing preference for spending on experiences and entertainment.
• We expect the number of overseas trips taken by Chinese to increase 9% year over year to reach 6.3 million during this year’s Spring Festival. In our view, the sustained increase in outbound tourism is driven by currency fluctuations, the relaxation of visa policies and the expanding network of airlines’ international direct flights from China.
• Within China, we have a positive view on the performance of payment providers and the movie industry during this year’s Spring Festival. For outbound travel, we are positive on Australia, Thailand, the UK and Japan, due to increasing flights, currency, and/or relaxed visa policies. We remain negative on Taiwan and Hong Kong, as Chinese tourists increasingly prefer destinations that offer unique experiences.