Chinese outbound travel has encountered substantial hurdles post-COVID-19, significantly impacting global tourism and reshaping travel patterns within China itself. The decline is attributed to multiple factors including increased costs, visa complexities, and economic uncertainties.
Economic factors such as a lingering property crisis and high unemployment have led Chinese consumers to exercise caution in spending, fostering competitive pricing wars across various sectors including travel, automotive, hospitality, and retail. In 2023, Chinese outbound trips totaled 87 million, a stark 40% drop from pre-pandemic levels in 2019, accompanied by a 24% reduction in spending, according to UN Tourism data. Domestically, however, there was a notable uptick with 295 million trips recorded during the May Day holiday, marking a 20% increase from 2019 figures.
Visa processing delays and higher costs due to currency devaluation and inflation in destination countries like the US and Europe have further deterred international travel. This has prompted a shift towards visa-free destinations such as Singapore, Malaysia, Thailand, Japan, and Switzerland, where Chinese visitor numbers have seen relative increases.
The impact on global markets is evident, with destinations heavily reliant on Chinese tourism experiencing significant declines. For instance, Australia witnessed a 53% drop in Chinese tourist arrivals in March 2023 compared to 2019, while France hosted only 28.5% of its pre-pandemic Chinese visitor levels.
Consultancy firm Oliver Wyman anticipates a gradual recovery by late 2025, underscoring a slower-than-expected return to pre-COVID travel norms. This evolving landscape underscores fundamental shifts in travel preferences and consumption behaviors among Chinese travelers, reflecting broader changes in global tourism dynamics.