Chinese Market Crash Takes a Toll on Asian Outbound Travel

As the Chinese market crash continues to go down to almost 40% of its value from its peak on June 12, the global travel industry is expecting mixed results. However, the Asian outbound travel is expected to bear the burns of this huge economic meltdown.

The difference between Chinese Yuan, the alarming drop of Monday by 9%, the sharp drop of dollar, have all fueled a major panic among all investors. China’s benchmark Shanghai Composite index is down more than 8 percent in Monday trading. The market is now down 38 percent from its June peak.

The trend of outbound traveling is expected to witness a major setback as one of the major contributors of outbound traveling; China is the prime victim from this market crash and is going through a major economic turmoil.

The market meltdown in China coupled with the debt crisis in Greece is already bringing a toll on U.S. investors. Since the Shanghai market started crashing in mid June, U.S. dollar has gained 3% in value against global currencies.

However, the crash follows with the side-effects of the strong U.S. currency. It is resulting in price hikes on every commodity that the U.S. exporters sell abroad.

The entire scenario is not very pleasant for outbound Asian travelers; however, it might encourage travel companies in North America to push tourists to China, Australia and other Southeast Asian countries.

Some market experts are predicting a probable ‘correction’ in the Chinese market, but the recent future of outbound traveling for the quintessential Chinese travelers is not very bright to say the least.