Have zest, will travel
The Ministry of Culture and Tourism said at a recent seminar that high-quality development of the culture and tourism industries will likely be a priority during the 14th Five-Year Plan (2021-25).
Under the new dual circulation development pattern, China will rely mainly on "internal circulation "or the domestic cycle of production, distribution, and consumption for its long-term development.
During the 14th Five-Year Plan period, consumption will continue to be an important starting point for expanding domestic demand.
UBS economists said China's total consumption is expected to hit $12 trillion in 2025. The country is seen to continue to be a main force driving global consumption growth.
The consumption upgrade drive, which started gathering momentum last year, is showing bright market prospects, said Wang Tao, chief China economist at Swiss bank UBS.
"Consumers will prefer more high-quality and premium products and services, increase their spending on healthcare, experiential and self-improvement-related services (including tourism), and online consumption (including that of travel products) is set to continue to grow," she said.
"We expect the penetration rate of China's online consumption to further increase from 25 percent seen in the first eight months of this year. Besides, the spending on online services such as video communication for work, online education, online healthcare and financial services, is also foreseen to grow rapidly in the next few years."
Last year, China's consumption expenditure contributed almost 58 percent of the country's economic growth. Consumption has become the top driver of China's economic growth for six consecutive years, according to the National Bureau of Statistics.
Six major industries－tourism, culture, sports, pensions, healthcare, and education－have shown considerable growth momentum. They have indicated a huge market growth potential, and tourism is one of the fastest-growing sectors among the six, according to LeadLeo.
For the tourism industry, social media will play an important role during the 14th Five-Year Plan period. Short videos, livestreamed promotions, and other marketing formats will intensify the allure of scenic spots and other sightseeing areas for travelers. Online and offline connections will integrate tourism into people's daily life and deepen their interest in travel, Lead-Leo said.
Liang of LeadLeo said: "Besides, during the period of epidemic prevention and control, some newly emerging consumption patterns in China have effectively boosted spending. They are helpful in activating more business opportunities. For instance, the rapid growth of online shopping for fresh food has made it possible for consumers to stay at home and shop conveniently.
"Meanwhile, other new business formats such as livestreamed promotions and group buying have offered new shopping experiences to consumers. They further satisfy consumers' demand for diversified and personalized experiences."
The advent of 5G telecommunication will further upgrade online tourism consumption, intelligent navigation and other functions, thanks to more mature applications of augmented reality, virtual reality and artificial intelligence technologies, which will likely attract more consumers to experience certain services like niche tourism, Liang said.
