Tourism’s niche segment attracts investors
China’s tourism sector is fast becoming the sector of choice for prospective entrepreneurs because of the promise of quick, steady returns.
Over 19 billion yuan ($3.081 billion) was invested in tourism-related companies during 2014 and most of the investments came from entrepreneurs targeting the niche segment of specialized services, according to data from CTCNN.com Inc, a company that tracks the online tourism sector.
The bigger companies are also charting strategies to grab or retain market share, the sources said. Travel services company Ctrip.com International Inc is the market leader with a market share of about 54.3 percent in 2014. Sales and marketing costs of Ctrip was about $97 million in the third quarter of 2014, a 25 percent year-on-year growth.
Total spending by Chinese outbound tourists stood at $140 billion in 2014, an 8 percent year-on-year growth, according to data provided by the China Tourism Academy.