China’s border reopening sparked anticipation, yet the travel boom didn’t materialise as expected. Optimism for 2024 remains strong.
Analysts believe China’s tourism will soon recover, underscoring the country’s influence in global travel dynamics.
China’s Road to Recovery
In the aftermath of reopening its borders, China faced significant hurdles such as limited flights, high travel costs, and visa acquisition challenges. These obstacles have begun to ease, nudging the country towards recovery. In December 2023, international seat capacity stood at 62% of pre-pandemic levels, showing a promising upward trajectory, as Oliver Sedlinger elaborates, “We should be back to normal in the near future.”
The recent economic upswing has breathed new life into leisure travel, with an evident shift towards younger demographics who are financially capable of traveling. Michael Jones from China Create Consulting notes China’s issuance of over 200 million passports to just 13% of its population, signifying a promising potential for global travel growth.
The Outbound Prospects
The pandemic’s impact left the outbound travel industry with a noticeable scar, visible in the reduced establishment of outbound travel companies. From a peak of 33,500 new travel companies in 2019, the number dwindled, though 26,000 emerged in 2023. The landscape is poised for substantial growth in 2024 as travel conditions normalize, facilitated by easing visa restrictions and restoration of flights.
Countries including Thailand, Malaysia, and Singapore are capitalising on China’s outbound revival, extending visa-free entry to Chinese tourists. This has led to significant booking activity, noted Boon Sian Chai, Trip.com Group’s vice president. His observation at a recent conference underscores the strategic importance of these moves to bolster tourism.
Inbound Pivot
China’s inbound tourism strategy is equally robust, aiming to rejuvenate with expanded visa-free policies to several countries including Germany and France. This strategic pivot demonstrates China’s commitment to an economic renewal focused on tourism.
Data reflects a 28% monthly increase in arrivals from designated countries by December 2023, boosted by arrangements like the 30-day visa exemption with Singapore. Such initiatives mark China’s intent to enhance its appeal to international visitors, supported by Trip.com’s extensive promotional initiatives.
The recent reciprocal visa waiver announcement with Thailand signifies a collaborative international strategy. This aligns with China’s increasing efforts to streamline travel, supported by innovative programs and partnerships with the likes of Trip.com. It addresses the urgency in reinforcing China’s tourism momentum.
The New Chinese Traveler
New trends in travel emerge as Chinese tourists break away from conventional practices. Gen-Z travellers are leading a trend known as “special-forces travel”, placing a premium on rural and experiential tourism. This pivot enriches the domestic tourism sector and sets the stage for 2024’s potential international travel boom.
Alexander Glos of i2i Group highlights a pivotal shift towards experiences over commodities in Chinese tourism. The younger demographic, especially Free Independent Travelers, are steering a course towards sustainable travel preferences, mirroring their Western peers.
The typical Chinese traveller now seeks diversified experiences, beyond the customary shopping agenda. There’s a rise in demand for rich, authentic travel experiences, indicating evolving consumer priorities following the pandemic.
The Stay-at-Home Chinese
Domestically, Chinese tourism rebounded to near pre-Covid levels. By October 2023, the China Tourism Research Institute projected an annual domestic travel volume of 5.4 billion trips, promising a near-full recovery in tourism revenue.
Analyses reveal domestic tourism has surpassed pre-Covid levels by over 10%, underscoring the vigorous return of Chinese consumer spending. Such resurgence underpins a broader economic recovery essential to global tourism projections for 2024.
Glos projects 2024 will eclipse pre-Covid travel numbers, with domestic spending trends suggesting sustained growth. The exuberant return of travel is forecasted to significantly bolster the global tourism landscape.
China’s renewed focus on tourism signals a promising future. The industry must leverage this momentum to sustain growth.
With strategic visa policies and consumer trends supporting expansion, China’s travel sector stands poised for robust growth.