Posts tagged with "TradingPlatforms"

travel illustration by Gabrielle Marchan for 360 Magazine

Beijing’s Tourism Revenue Drop

Beijing’s Tourism Revenue Dropped by 53% in 2020 – Loss of Over ¥330B 

The tourism industry was badly hit by the COVID-19 pandemic and the city of Beijing saw the momentum of the industry halted in 2020. Beijing had become an increasingly popular tourist destination prior to the pandemic with revenue from inbound tourism recorded at $5.16B in 2019. According to data presented by TradingPlatforms, Beijing’s total revenue from tourism decreased by over 53% in 2020 for a staggering loss of ¥330B, or $50B.

Beijing Revenue From Tourism Dropped By Over $50B After Years Of Growth

China has long moved on from its isolationist policies and has encouraged the mainland as a travel destination for tourists. Revenue from China’s tourism sector grew at a strong 13.8% CAGR from 2010-2019 to ¥5.7T, or almost $880B. In 2019, China was the fourth most visited country by foreign tourists with 65.7M arrivals for the year.

Beijing is one of the leading tourist destinations in China, and the city has been enjoying the growth of the tourism sector until the pandemic of 2020 hit. From 2016-2019, Beijing’s tourism revenue experienced a 5.53% CAGR, rising to a value of ¥622.7B in 2019. However, COVID-19 shut borders around the world, crippling global mobility and disrupting the momentum built up by Beijing’s tourism industry. Beijing’s revenue from tourism dropped over 53% in 2020 to just over ¥291.

Beijing suffered a staggering loss in revenue, specifically in inbound tourism, where revenue dropped from $5.16B in 2019 to just $480M in 2020.

COVID-19 Hit China Early – Caused Massive Disruption in H1 of 2020

China felt the effects of COVID-19 before much of the rest of the world did. A clear example of this is in the drop in weekly Airbnb bookings from the period between January 5th to March 7th. This drop occurred when the coronavirus was just becoming news to the rest of the world of what was happening in various parts of China. Beijing experienced a dizzying 96% drop in weekly Airbnb bookings compared to just 46% in Seoul and 29% in Tokyo in this time period.

The number of domestic tourists is estimated to have dropped by as much as 62% in the first half of 2020 compared to the year prior, with revenues dropping by as much as 77%. By the end of the year, China had experienced a 43% drop in domestic tourists and a 52% drop in revenue from domestic tourism.

Tourism in China Projected To Completely Recover Within 5 Years

In 2019, the absolute economic contribution of tourism in China was estimated at $1.67T. This fell sharply to just $745.5B in 2020-a decrease of more than 55%, but still the largest in Asia and the second-largest overall, after the USA. However, projections have the figure bouncing back up by over 40.5% in 2021 to $1.04T. The figure is projected to surpass pre-pandemic levels for the first time in 2023, when the absolute economic contribution of tourism is projected to be at $1.75T.

Despite the turmoil of 2020, China’s absolute economic contribution from tourism is projected to have an impressive CAGR of 20.75% from 2021-2025, reaching more than $2.67T by the end of the forecast period.

You can read more about the story with more statistics and information on TradingPlatforms’ website.

 

 

Green Car by Mina Tocalini for 360 Magazine

China’s EV Industry Growth

1.3M Electric Vehicles Were Sold In China In 2020 – Projected For 51% Increase By 2021

China has become a relatively rich market for Electric vehicles (EVs) in recent times, and companies like Tesla have pounced on the opportunity. China posted a record number of EVs sold in the country in 2020, despite the global downturn of the automotive industry due to the COVID-19 pandemic. According to data presented by TradingPlatforms, 1.3M EVs were sold in China in 2020– a rise of 8% YoY, but is projected to grow by over 51% in 2021 to almost 2M.

EV Enters Mainstream– China One of Promising Markets, Despite Negative Effects of Pandemic

EVs have entered the automotive mainstream in recent times with Tesla setting the tone for affordable and stylish EVs. In 2019, the global EV market was valued at just over $162B and is expected to see tremendous growth in the next decade. The global EV market is projected to have a compound annual growth rate of 22.12% in the period from 2019-2026, and rise to a value of almost $803B in 2026.

China is a particularly strong market for EVs, where a record number of EVs were sold in 2020. However, recent policy changes around the EV industry in China, and the more recent Coronavirus pandemic, have slowed down the strong momentum EVs once generated. Despite this, the number of EVs sold in China still saw a modest increase of 8% YoY from 2019-2020 to a record 1.3M units sold.

Demand is also expected to rebound after 2020’s sharp downturn for the entire industry. EV sales are projected to increase by over 51% to almost 2M EVs sold. Automotive industry expert Chris Jones noted: “Prospects are very good for China’s EV market in 2021. There is already an excellent network of standardized public EV chargers in China, good government support and now a return to strong consumer demand.”

SAIC-GM-Wuling and Tesla Carried Chinese EV Industry Through Turbulent Time

Two brands and their vehicles carried the Chinese EV industry through a difficult period caused by the pandemic: SAIC-GM-Wuling and Tesla. The Tesla Model 3 was the most popular EV in China for a time until the Wuling Hong Guang Mini EV entered the market in the middle of 2020. As of July 2020, the Tesla Model 3 was the most registered new electric car in China with the Wuling Hong Guang Mini EV already following closely behind.

An estimated 11,000 Model 3’s had been registered by that period while 7,250 Wuling Hong Guang Mini EV had already been registered despite deliveries only starting in the same month. By the end of 2020, SAIC-GM-Wuling had become the most popular EV brand in China with an estimated 177,000 units in car sales compared to Tesla’s 137,460 units.

The two brands offer two very different EVs, yet found that their shared success that carried the Chinese EV market through a difficult time. Jones further notes: “If it had not been for the huge success of these two very different EVs, the Chinese EV market would have declined in 2020. Between them, the two models represented one in five of all EVs sold in China.”

You can read more about the story with more statistics and information at TradingPlatform’s website.