Published: July 2019 (2 Min Read)

An Asian Growth Theme

The current travails of the world’s oldest package holiday group, founded in 1841, highlight a theme which is favoured by a number of managers of emerging market and Asian equity funds – the Chinese tourist.

The ailing company is in discussions with its largest shareholder, a major Chinese travel company, for the latter to inject cash and take control.

In the year 2000 a modest 10.5m overseas trips were made by Chinese residents. By the end of 2018 that figure was 149.72m – an astonishing increase of 1,326 per cent. In less than two decades Chinese people have become the world’s most numerous international tourists.

Now consider this: just 9 per cent of Chinese citizens – or 120 million people – possess a passport, compared to around 40 per cent of Americans, and 76 per cent of Britons. Moreover, as of 2 July 2019, Chinese citizens only had visa-free or visa on arrival access to 70 countries and territories according to the Henley Passport Index.

And they are not just visiting Paris to buy branded handbags!

Article written by
Simon James