In the afternoon of Nov. 8, Sina Technologies News reported that Ctrip (Nasdaq: CTRP) today released its unaudited financial performance for the third quarter ending Sept. 30, 2018. Liang Jianzhang, co-founder and chairman of the Executive Board of Ctrip, said at a conference call that he remained confident and enthusiastic about the tremendous opportunities for China and the global tourism industry in the future. In addition, compared with the industry, the development of Ctrip is still accelerating.
"We remain confident and enthusiastic about the tremendous opportunities for China and the global tourism industry in the future, and strive to consolidate and expand our market leadership." "China will remain one of the fastest growing economies in the world in the next ten years," Liang Jianzhang said. Technological progress, acceleration of urbanization and transformation to consumption and service-oriented economic growth model will continue to promote China's economic development, which will also synchronously promote the expansion of China's middle class group.
Liang Jianzhang also believes that China's sustained economic growth will benefit the development of the tourism industry, and he is "very excited" about the opportunities brought by several growth engines of the tourism industry in China.
Liang Jianzhang believes that the construction of high-speed rail in China will bring huge growth space for convenient and economic high-speed rail travel. It is expected that by 2020, high-speed rail will connect more than 80% of the mega-cities with a population of more than one million. He also revealed that Ctrip's first high-speed rail travel channel, recently launched on App, had reached a peak of 100,000 orders in the first month; China's strategy of deepening its opening-up will promote the growth of international travel, which currently accounts for less than 10% of China's total population, and there is still a lot of room for growth. In Hong Kong, Taiwan and Macao, less than 30 million foreign overnight tourists come to China every year. The inbound tourism market has great potential for growth. The research institutes report that China will become the largest tourism destination in the world by 2030.
Based on the above three reasons, Liang Jianzhang "is excited about the development prospects of China's tourism industry", and said that "in the future, we will continue to strive to expand the scale advantage, seize the opportunities of globalization to achieve Ctrip's long-term success". (Zhang Jun)
The following is the full text of Liang Jianzhang's speech in the conference call:
In the third quarter of 2018, Ctrip continued to expand steadily in every business area. Despite a slight slowdown in industry growth this quarter, our pace relative to the industry is accelerating. We remain confident and enthusiastic about the tremendous opportunities for China and the global tourism industry in the future, and strive to consolidate and expand our market leading position.
First of all, I would like to share some thoughts on China's macro economy. We believe that China will remain one of the fastest growing economies in the world in the next ten years. Technological progress, acceleration of urbanization and transformation to consumption and service-oriented economic growth model will continue to promote China's economic development, which will also synchronously promote the expansion of China's middle class group.
Sustained economic growth in China will benefit the development of the tourism industry. I am very excited about the opportunities brought about by several growth engines in China's tourism industry.
1) China has the largest high-speed railway network in the world, with a total length of 25,000 kilometres, twice as long as the entire European railway system. By 2020, high-speed railways will connect large cities with more than 80% of the population, which will make travel in China very convenient and economical. In fact, we recently launched our first high-speed rail travel channel on Ctrip App, with orders peaking at 100,000 in the first month.
2) China's strategy of opening up to the outside world will promote the growth of international travel. China is already the largest tourist market in the world. Last year, the total consumption of outbound tourism by Chinese residents exceeded 200 billion US dollars, but at present, the number of outbound tourists only accounts for less than 10% of the total population of China. In the past few years, China's passport issuance has maintained an annual growth rate of about 20%. At the same time, China's passport supports visa waiver or landing visa in 74 countries and regions. Despite some short-term fluctuations in outbound tourism growth, Ctrip has always been committed to expanding our core competitiveness in international destinations to meet the long-term needs of Chinese tourists for international travel. In addition, taking advantage of China's advantage as the world's largest tourist market, we are strengthening our global supply chain to serve travellers outside China through Trip.com and Skyscanner.
3) According to the statistics of the Ministry of Culture and Tourism, excluding tourists from Hong Kong, Taiwan and Macao, less than 30 million foreign overnight tourists come to China every year. Compared with the volume of more than 75 million inbound tourists in the United States each year, China's inbound tourism market has tremendous growth potential. According to the latest research report of Ou Rui International, China will become the world's largest tourist destination in 2030. At present, our global brands Trip.com and Skyscanner have more than 90 million monthly users from all over the world. They have natural advantages to attract more foreign tourists to China.
Therefore, we are excited about the development prospects of China's tourism industry. Our past growth has been more than four times the growth rate of China's GDP. In the future, Ctrip will continue to strengthen our leading position in the market.
Next month, Ctrip will be listed on NASDAQ 15th anniversary. Looking back on the past, we have made some achievements, looking forward to the future, we will continue to achieve further development in the general trend of industry development. In the period of rapid growth of the industry, we will accelerate the expansion of business scale and enhance profitability; when the growth rate of the industry slows down, we can strengthen our competitive advantage and expand market share. We will continue to strive to expand our scale advantages and seize the opportunities brought by globalization in order to achieve Ctrip's long-term success.
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