China’s anticipated travel recovery post-lockdown has hit obstacles, signaling troubling times for global tourism sectors reliant on Chinese tourists.
Despite reopening its borders eighteen months ago, Chinese outbound travel remains significantly below pre-pandemic levels. In 2023, Chinese travelers made 87 million trips abroad, marking a 40% decrease compared to 2019. UN data also indicates a 24% reduction in spending by Chinese travelers, contrasting with a 14% increase in spending by US travelers during the same period.
This downturn poses challenges for global tourism and retail industries, as Chinese travelers traditionally rank among the highest spenders on international tourism and air travel. Popular destinations such as France, Australia, and the US are particularly affected, with arrivals from China notably diminished.
Several factors contribute to this decline, including the depreciation of the Chinese yuan, which has driven up the cost of overseas travel. High unemployment and economic uncertainty have further dampened consumer spending power, prompting a shift towards booming domestic travel within China.
Visa complications have also hindered international travel plans, particularly in Europe, where Chinese travelers report difficulties and delays in obtaining visas. As a result, travel to countries like France has plummeted to just over a quarter of pre-pandemic levels. Meanwhile, air route capacities to the US remain reduced by 80%, exacerbated by ongoing political tensions.
In contrast, destinations offering visa-free access, such as Singapore, Malaysia, Thailand, and Japan (aided by a weak yen), have witnessed increased demand from Chinese tourists seeking more accessible travel options amidst current challenges.