how does china tourism industry cope up after the pandemic

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China’s Tourism Sector Prospects in 2023-24

Amid the post-pandemic recovery, China’s tourism sector is rebounding with vigor in 2023. We discuss the resurgence of outbound and domestic travel, evolving traveler behavior, and tech-enabled trends in this article. From cultural exploration to wellness escapes and digital integration, the stage is set for foreign businesses and investors to seize opportunities in this transformed landscape.

After enduring the significant impacts of the COVID-19 pandemic, China’s tourism sector is gearing up for a strong resurgence in 2023. Projections indicate that the total revenue from domestic tourism is expected to exceed RMB 4 trillion (approximately US$580.96 billion), marking an impressive 96 percent growth. Several driving forces contribute to this revival in China’s tourism landscape, including:

Easing of travel restrictions;
Increase in disposable income among Chinese consumers; and
Growing popularity of domestic tourism.

In particular, the government’s support in revitalizing the tourism sector is evident through subsidies and tax exemptions provided to tourism enterprises. The robust resurgence of China’s tourism industry also serves as a positive indicator for the nation’s economy, with tourism being a significant driver of economic growth and expected to contribute notably to the country’s GDP. Overall, 2023 has seen a continuous stream of new policies, products, technologies, concepts, trends, and opportunities impacting the tourism industry.

China’s evolving tourism landscape

Insights from outbound tourism in h1 of 2023.

Both outbound and inbound tourism markets in the first half of 2023 have shown impressive vitality, surpassing the levels observed in the same period of 2019. Average expenditures for outbound travelers have exhibited a notable increase, with Hong Kong and Macao leading the resurgence of outbound tourism. The total number of inbound and outbound individuals has surged by approximately 170 percent.

Data from the World Tourism Alliance’s reports, reveal that the outbound tourism sentiment index reached 28 percent in the first half of 2023, marking a 21-point increase from the same period in 2019. The outbound tourism market has displayed a gradual “U-shaped” recovery, emphasizing a steady resurgence rather than an abrupt rebound.

According to recent data from Alipay’s Overseas Spending Platform, the average expenditure per user for outbound travel in the first half of 2023 grew by 24 percent compared to 2019. Among popular destinations, the top 10 outbound travel destinations in terms of transaction volume for the first half of 2023 were:

South Korea;
United Kingdom; and

This data is supported by several favorable policies. Since the beginning of the year, the National Immigration Administration has continuously optimized and adjusted inbound and outbound management policies.

Starting from February 20, 2023, mainland cities within the Greater Bay Area initiated a pilot implementation of visa endorsements for cross-border talent to and from Hong Kong and Macao. On May 15, 2023, policies such as the nationwide implementation of group travel endorsements for mainland residents traveling to Hong Kong and Macao were fully restored.

The streamlined and optimized policies for travel to Hong Kong and Macao prompted provinces across the mainland to organize multiple tour groups, leading to a consistent rise in mainland visitors to these regions. According to data released by the Hong Kong Tourism Board, nearly 13 million visitors arrived in Hong Kong in the first half of 2023, of which approximately 10 million were mainland visitors, accounting for around 77 percent of the total.

Furthermore, based on recent data released by the National Immigration Administration, the first half of 2023 witnessed a total of 168 million inbound and outbound individuals passing through China’s immigration, marking a year-on-year increase of 169.6 percent.

At the same time, approximately 42.798 million entry and exit permits for travel to and from Hong Kong, Macao, and Taiwan were issued, indicating a significant 1509 percent increase compared to the same period in 2022.

These figures further underline China’s promising revival in outbound tourism. Indeed, Chinese tourists have once again become a significant force driving global tourism and offline consumption.

In terms of outbound travel numbers, the top 10 departure cities were: Shenzhen, Shanghai, Guangzhou, Beijing, Hangzhou, Foshan, Dongguan, Zhuhai, Chengdu, and Wuhan. This highlights that outbound travel is mainly concentrated in first-tier and new first-tier cities, with the “Guangzhou-Shenzhen-Foshan-Dongguan-Zhuhai” Greater Bay Area cities also playing a pivotal role in outbound tourism.

The primary reason driving Chinese tourists to travel abroad is leisure, with business and visiting friends and relatives (VFR) as the subsequent motivations. The rapid expansion of outbound tourism from China can be attributed to the rising incomes of the middle class , the growing desire among Chinese travelers to explore diverse countries and cultures, and the ease of obtaining visas and fulfilling entry criteria for various destinations.

Moreover, the retail sector captures the largest portion of Chinese tourists’ spending when traveling abroad and is anticipated to retain its dominant position in terms of outbound tourism expenditure over the projected timeframe.

The steady recovery of outbound tourism

Initial expectations for a robust rebound in outbound tourism this year have encountered a more precarious reality. Notable evidence of this transformation is seen in the changing preferences of Chinese leisure travelers. As reported by CNBC, the desire to travel abroad has surged from 28 percent to 52 percent among Chinese leisure travelers since last year, nearly doubling.

Business travel intentions have tripled, and interest in education, family visits, and medical tourism abroad is also on the rise. Other findings align, revealing that 50 percent of Chinese travelers plan to journey internationally within the next year.

A significant shift has also occurred in travel fears, particularly concerning Covid contraction. While it topped travelers’ concerns in 2022, it has diminished to the least worrisome aspect this year, as per Morning Consult’s survey. This shift reflects growing traveler confidence. Factors influencing this gradual recovery go beyond preferences. A recent report from the Mastercard Economics Institute reveals a shift in Chinese residents’ spending patterns.

Known for their shopping inclination, there’s a rising trend toward investing in experiences over possessions, particularly in a zero-Covid environment. Despite global economic uncertainties, Asia-Pacific’s, including China’s, travel recovery remains steady. As travel capacity grows, costs are anticipated to decrease, fueling a more dynamic travel landscape.

Contrary to an instant “boom,” China’s international travel revival is unfolding steadily. Though not as swift as initially projected, the evolving interests, changing attitudes, and gradual shift toward experiential spending all point to a growing and adaptive outbound tourism sector, offering a promising glimpse into the future.

The Chinese government’s recent efforts to revive outbound group travel

China’s Ministry of Culture and Tourism recently expanded outbound group tour destinations, including popular places like Japan and the US. A recent analysis provided by the EIU indicates that this move will aid global tourism recovery, benefiting countries with simplified visa procedures.

While the relaxed restrictions will moderately boost outbound tourism, obstacles and cautious spending persist. Nonetheless, domestic travel agencies are expected to see increased revenue, leading to employment and income growth in the sector.

However, challenges such as limited flights and labor shortages could hinder outbound tourism’s full recovery. A complete relaxation of restrictions is predicted in late 2023, but pre-pandemic outbound levels might not return until 2025.

Domestic tourism is thriving

In the first half of 2023, domestic tourism revenue (total tourist spending) reached RMB 2.3 trillion (approx. US$318 billion), marking a substantial increase of RMB 1.12 trillion (approx. US$155 billion) compared to the previous year. Notably, urban residents’ expenditures on travel accounted for a year-on-year surge of 108.9 percent, while rural residents’ travel spending grew by 41.5 percent.

The remarkable rebound of China’s domestic tourism sector can be attributed to a set of factors that differentiate it from the relatively slower recovery of outbound tourism. For one, the domestic tourism industry appears to be less affected by uncertainties surrounding employment and income growth compared to other service and retail sectors.

This is primarily due to the strong yearning of Chinese consumers to explore after years of mobility limitations imposed by the pandemic.

On the other hand, the prolonged revival of outbound flights has further bolstered the domestic tourism scene. Many individuals redirected their travel plans within China as international travel remained limited.

Notably, the return of international air traffic to approximately 80 percent of pre-pandemic levels is not expected until the fourth quarter of 2023, which creates a favorable environment for the vigorous resurgence of domestic tourism in the meantime.

Changing Chinese travelers’ preferences in 2023

In the wake of the COVID-19 pandemic and the subsequent travel restrictions, Chinese travelers underwent a transformation in their preferences and behaviors. Over the past three years, while international travel remained limited, domestic exploration thrived.

Around 8.7 billion domestic trips were taken, indicating an annual rate of around 50 percent of pre-pandemic levels. This period allowed the domestic market to mature, and travelers became more sophisticated in their pursuits, engaging in various new leisure experiences such as beach resorts, skiing trips, and city “staycations.”

As a result, the post-COVID-19 Chinese traveler exhibits distinct traits: heightened digital savvy, elevated expectations, and an appetite for novel experiences. These characteristics paint the profile of a typical Chinese traveler in 2023:

Experiences matter: Survey data reveals that the rejuvenated Chinese tourist is driven by experiential travel. While outdoor and scenic trips remain popular, the preferences have evolved. Sightseeing and culinary experiences, highly valued in the initial survey series, are now joined by a growing interest in culture and history, beaches, and resorts, as well as health and wellness. This shift solidifies the trend towards experience-driven travel. Additionally, activities like skiing and snowboarding have gained popularity, possibly influenced by the 2022 Beijing Olympic Winter Games .
Digital expert: Chinese travelers are among the world’s most digitally adept consumers, easily integrating mobile technologies and social media into their daily lives. The pandemic further propelled their online engagement. Short-form videos and livestreaming have emerged as dominant online entertainment options.
Curious: The desire to explore novel experiences in unfamiliar destinations remains strong among Chinese travelers. Despite travel radius limitations imposed by policies, survey respondents express eagerness to visit new attractions. Instead of revisiting familiar places, 45 percent of participants prioritize short trips to new sites, while long trips to new destinations are the second most favored option.

Emerging trends and destinations

Cultural and heritage tourism.

A significant shift in China’s tourism landscape is the increasing emphasis on cultural tourism, where traditional heritage seamlessly intertwines with contemporary travel. As the nation preserves and celebrates its abundant historical and cultural treasures, a surge in cultural tourism activities like immersive experiences and interactive exchanges has taken center stage.

This trend is particularly pronounced in the realm of domestic tourism, where travelers are flocking to heritage sites and cultural landmarks to gain a deeper understanding of China’s rich heritage.

Moreover, the development of cultural and tourism industries constitutes a crucial component of China’s cultural confidence-building efforts. This sector has received significant attention from the government, evidenced by policies like the “14th Five-Year Plan for Cultural Development” and the “14th Five-Year Plan for Tourism Industry Development.” Such policies drive the integration of culture and tourism, increase the supply of cultural tourism products, and enhance the quality of such offerings.

Wellness tourism

In 2023, a remarkable shift in travel preferences among Chinese tourists has propelled wellness and health tourism to the forefront. As observed by Rung Kanjanaviroj, Director of the Tourism Authority of Thailand’s Chengdu office, Chinese travelers are displaying a distinct preference for destinations that offer a blend of sunny beaches and holistic well-being experiences.

This evolving trend has prompted destinations like Thailand to proactively adapt by refining their offerings. Through the enhancement of health tourism services and a focus on engaging student and youth travelers, Thailand has positioned itself as a prime destination for those seeking rejuvenation and self-care during their journeys.

The rise in wellness and health tourism reflects a broader shift in Chinese travelers’ priorities, as they seek destinations that not only provide scenic beauty but also nurture their physical and mental well-being.

Tech-enabled tourism in China’s innovative travel landscape

China’s tourism industry has evolved dramatically through the fusion of technology and changing consumer demands. In 2023, the landscape is marked by a growing emphasis on tech-enhanced experiences that cater to modern travelers’ evolving preferences that foreign businesses and investors in the sector can learn from.

Smart appliances and IoT integration: China’s tech-driven tourism trend showcases the integration of smart appliances and the Internet of Things (IoT) into the travel journey. Travelers now wield the power to personalize their environment and encounters via smartphone apps. Innovations range from smart hotel rooms adjusting lighting, temperature, and ambiance to IoT-enabled transportation providing real-time updates, enhancing comfort and efficiency.
Virtual and augmented reality immersion: Tech-savvy Chinese travelers are increasingly seeking immersive encounters. Virtual and augmented reality (VR/AR) have taken center stage, enabling tourists to explore historical sites, cultural landmarks, and natural marvels through virtual tours that breathe life into destinations. This not only enhances engagement but also serves as a potent tool for destination marketing.
Seamless contactless services and digital payments : Contactless services and digital payments have become integral to China’s tech-enhanced tourism scene. Travelers can navigate touchpoints like check-in, security, dining, and shopping with minimal physical interaction. QR codes have revolutionized payment methods, enabling transactions through smartphones, and eliminating the need for physical currency or cards, in alignment with the country’s cashless society drive.

The city of Hangzhou offers a glimpse into the future of tech-enabled tourism. Hangzhou’s West Lake, a UNESCO World Heritage site, now features interactive kiosks that provide historical context, virtual guides, and navigation assistance to visitors. These digital enhancements blend seamlessly with the serene natural landscape, enriching the cultural experience.

Similarly, the China National Tourist Office uses VR to transport potential travelers to iconic destinations. Through immersive VR experiences, individuals can virtually explore the Great Wall, the Terracotta Army, and other renowned sites, sparking wanderlust and encouraging travel planning.

Preparing for the return of Chinese tourists to the international scene

The gradual easing of travel restrictions in China still presents a promising avenue for the recovery of the international travel and tourism sector. Amid this positive outlook, attracting Chinese tourists is becoming a priority for global businesses.

Chinese travelers, known for their enthusiasm to explore beyond their borders, are now seeking immersive experiences, quality accommodation, and exceptional service. Here are some strategies that foreign businesses can employ to entice and captivate the adventurous Chinese traveler.

Crafting authentic and familiar experiences

After a three-year hiatus from overseas travel, Chinese tourists are now yearning for high-quality experiences in familiar destinations.

They are looking beyond traditional shopping and sightseeing, expressing a keen interest in entertainment and experiential offerings. Theme parks, cultural activities, water sports, snow sports, and shows are among the sought-after activities.

The key is to offer authentic experiences that resonate with Chinese travelers’ desires for immersion, while still maintaining a touch of familiarity.

Businesses should leverage deep customer insights to design offerings that strike a balance between accessibility and authenticity, ensuring a comfortable yet exciting experience.

Harnessing the power of social media

Social media, particularly short videos, has emerged as a pivotal source of travel inspiration for all age groups. Tourist destinations have capitalized on this trend by launching engaging short video campaigns, maximizing exposure and engagement.

The burgeoning trend of city-walking , for example, where urban exploration is undertaken solely on foot, has not only captured the attention of locals but has also made significant waves across various social media platforms. Chinese netizens are embracing this form of experiential travel, and businesses can leverage social media to align with their preferences.

Platforms like Douyin, China’s counterpart to TikTok, have witnessed the rise of “city-walk content”. A recent video showcasing city-walk routes in Guangzhou amassed over 171,000 likes and found its way into the favorites of 72,000 viewers.

Furthermore, Xiaohongshu, a prominent lifestyle-sharing platform in China, reported a remarkable 30-fold increase in searches related to city walk during the first half of 2023 compared to the previous year.

Businesses can leverage social media platforms to connect with potential Chinese tourists, employing captivating content and innovative campaigns to pique their interest. Creating a strong presence on platforms like TikTok and engaging with influential figures can significantly boost visibility.

Collaboration with Internet giants

China’s tech-savvy travelers are deeply intertwined with the digital world, and internet giants like WeChat and Alipay play a pivotal role in their daily lives. Foreign businesses can tap into these existing digital ecosystems rather than starting from scratch.

For instance, Amsterdam’s Schiphol Airport offers a WeChat Mini Program providing information about the airport, including duty-free shopping and travel planning. Alibaba’s Alipay, renowned for its mobile payment capabilities, has partnered with tax refund agencies to streamline the tax refund process for Chinese travelers.

Such digital innovations enhance convenience and are fast becoming an expected norm.

Prioritize direct-to-consumer (D2C) channels

Navigating China’s intricate travel distribution landscape can be complex, as it encompasses diverse channels, such as online travel agencies (OTAs), online travel portals (OTPs), and traditional travel agencies. To make the most of this landscape, businesses can consider embracing D2C channels.

By leveraging social media platforms and official brand platforms, businesses can create a compelling value proposition that resonates with Chinese travelers. Investing in D2C channels not only enhances branding but also facilitates direct engagement with potential tourists, allowing for a personalized and enticing approach.

Key takeaways: Navigating China’s tourism resurgence

All in all, in 2023, China’s tourism is making a strong comeback, driven by key trends that reveal changing traveler preferences.

Domestically, easier travel rules and higher incomes are fueling local exploration. Internationally, outbound tourism is gradually recovering with a focus on immersive experiences, wellness, and cultural discovery.

Chinese travelers are becoming more tech-savvy, seeking out tech-enhanced experiences like virtual reality tours. This shift is boosting cultural, heritage, and wellness tourism.

Social media, especially platforms like TikTok and WeChat, are vital for engaging with Chinese travelers effectively.

In essence, China’s tourism resurgence is multifaceted, with travelers seeking enriched experiences, digital engagement, and authenticity.

Businesses that align with these preferences and capitalize on domestic and international opportunities are likely to thrive in the evolving travel landscape.

China Briefing is written and produced by Dezan Shira & Associates . The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at [email protected] .

Dezan Shira & Associates has offices in Vietnam , Indonesia , Singapore , United States , Germany , Italy , India , Dubai (UAE) , and Russia , in addition to our trade research facilities along the Belt & Road Initiative . We also have partner firms assisting foreign investors in The Philippines , Malaysia , Thailand , Bangladesh .

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China's tourism industry sees strong post-pandemic recovery

JINAN - During this year's three-day Mid-Autumn Festival holiday, China witnessed more than 88 million domestic trips, about 87.2 percent of the figure for 2019, highlighting the strong recovery momentum in the country's tourism sector.

According to the Ministry of Culture and Tourism, the tourism revenue during the holiday reached 37.15 billion yuan ($5.75 billion), recovering to 78.2 percent of that in 2019.

China's tourism industry seems to have adapted to the current situation of regular epidemic prevention and control, with growing market demand and more innovative business models and growth points.

In 2020, the international tourism industry was battered by the COVID-19 pandemic, witnessing a sharp decrease of 73 percent in the number of international tourists worldwide, according to the World Conference on Tourism Cooperation and Development held in Beijing.

However, with the rigorous implementation of regular epidemic prevention, China's tourism market has gradually recovered since the beginning of this year.

Statistics show that in the first half of 2021, the number of domestic tourists in China reached 1.87 billion, rising by 100.8 percent year-on-year. The gross revenue of domestic tourism hit 1.63 trillion yuan, up 157.9 percent from one year earlier.

As China's tourism market digested the impact of the pandemic, new trends and business models emerged. Theme-park tours, short-distance tours and road trips have become popular in the past Mid-Autumn Festival holiday.

China's leading online travel agency Trip.com Group, formerly known as Ctrip, released a report on tourism data during the Mid-Autumn Festival holiday, which highlighted the strong demand for short-distance trips.

A number of short-distance tours are offered as bundles with offline social games, such as Jubensha, literally translated as "script homicide" -- a role-playing murder-mystery game that is growing in popularity among young people.

The bundle is one of the novel business models emerging in China's travel market, said He Jingfu, head of an entertainment company in East China's Shandong province, adding that Jubensha is bringing more possibilities to the tourism industry.

Meanwhile, an increasing number of Chinese tourists are being drawn to domestic theme parks, including the newly-opened Universal Beijing Resort and Shanghai Disneyland.

The Universal Beijing Resort, currently the largest in scale worldwide, opened to the public on Monday, and was ranked among the top three most popular tourist destinations before this year's Mid-Autumn Festival holiday, according to Trip.com Group.

On the Qunar.com, China's online travel-service provider, tickets for the resort in the Mid-Autumn Festival holiday were sold out within 30 minutes, with the first one gone in a second.

The recovery of China's cultural tourism market is also bringing more opportunities and benefits to the global tourism industry, aided by various tourism fairs and expos.

From Sept 16 to 20, the 2nd China International Cultural Tourism Fair (CICTF) was held in Shandong's capital city of Jinan, attracting tourism authorities from 17 countries and more than 2,600 exhibitors with over 500,000 exhibits. Deals worth 437 million yuan were inked at the fair, an increase of 20.2 percent over the previous one.

Among the highlights at such exhibitions are goods from countries along the Belt and Road, including exotic souvenirs that would normally be sold to Chinese tourists abroad. Foreign businesses have been making up for the shortfall in orders by promoting their goods directly in China, thereby tapping directly into China's vigorous market.

Davor Richard, who hails from Ghana, went through a difficult time this year. His family is running a trade company in Shanghai, selling African tabla, masks, shea butter and other specialties that were popular among Chinese tourists before the pandemic.

"My business took a serious hit from the pandemic, but now things seem to be picking up again. The Chinese government has organized a lot of fairs just like this one. Customers are contacting us and orders are starting to boom again," said Richard.

Also at the fair was Muzaffar Bhat, an Iranian carpet seller, who said that the world is now sharing the fruit of China's tourism recovery, with tourism fairs like CICTF springing up again and business opportunities popping up anywhere. While the carpet market is relatively niche, he said the huge scale of Chinese market gives him hope for the future.

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Outlook for China tourism 2023: Light at the end of the tunnel

China is now removing travel restrictions rapidly, both domestically and internationally. While the sudden opening may lead to uncertainty and hesitancy to travel in the short term, Chinese tourists still express a strong desire to travel. And the recent removal of quarantine requirements in January 2023 could usher in a renewed demand for trips abroad.

Domestically, there are already signs of strong travel recovery. The recent Chinese New Year holidays saw 308 million domestic trips, generating almost RMB 376 billion in tourism revenue. 1 China’s Ministry of Culture and Tourism. This upswing indicates that domestic travel volume has recovered to 90 percent of 2019 figures, and spending has bounced back to around 70 percent of pre-pandemic levels. 2 McKinsey analysis based on China’s Ministry of Culture and Tourism data.

This article paints a picture of Chinese travelers and their evolving spending behaviors and preferences—and suggests measures that tourism service providers and destinations could take to prepare for their imminent return. The analyses draw on the findings of McKinsey’s latest Survey of Chinese Tourist Attitudes, and compare the results across six waves of surveys conducted between April 2020 and November 2022, along with consumer sentiment research and recent travel data.

From pandemic to endemic

By January 8, 2023, cross-city travel restrictions, border closures, and quarantine requirements on international arrivals to China had been lifted. 3 “Graphics: China’s 20 new measures for optimizing COVID-19 response,” CGTN, November 15, 2022; “COVID-19 response further optimized with 10 new measures,” China Services Info, December 8, 2022; “China reopens borders in final farewell to zero-COVID,” Reuters, January 8, 2023. This rapid removal of domestic travel restrictions, and an increase in COVID-19 infection rates, likely knocked travel confidence for cross-city and within-city trips. Right after the first easing of measures, in-city transport saw a marked drop as people stayed home—either because they were ill, or to avoid exposure. Subway traffic in ten major cities in mainland China fell and then spiked during Chinese New Year in February. Hotel room bookings also peaked at this time.

Domestic airline seat capacity experienced a minor rebound as each set of restrictions was lifted—suggesting a rise in demand as airlines scheduled more flights. Domestic capacity fluctuated, possibly due to the accelerated COVID-19 infection rate and a temporary labor shortage. International seat capacity, however, continued to climb (Exhibit 1).

By Chinese new year, China was past its infection peak—and domestic tourism recovered strongly. For instance, Hainan drew 6.4 million visitors over Chinese New Year (up from 5.8 million in 2019) and visits to Shanghai reached 10 million (roughly double 2019 holiday figures). 4 China’s Ministry of Culture and Tourism. Overall, revenue per available room (RevPAR) during this period recovered and surpassed pre-pandemic levels, at 120 percent of 2019 figures. 5 STR data. Outbound trips are still limited, but given the pent-up demand for international travel (and the upswing in domestic tourism) the tourism industry may need to prepare to welcome back Chinese tourists.

Tourism players should be ready for this; the time to act is now.

A demand boom is around the corner—Chinese tourists are returning soon

Before the pandemic, Chinese tourists were eager travelers. Mainland China had the largest outbound travel market in the world, both in number of trips and total spend. 6 World Tourism Organization (UNWTO) Tourism dashboard, Outbound tourism ranking. In 2019, Mainland Chinese tourists took 155 million outbound trips, totaling $255 billion in travel spending. 7 China’s Ministry of Culture and Tourism. These figures indicate total outbound trips, including to Hong Kong and Macau. China is also an important source market for some major destinations. For instance, Chinese travelers made up 28 percent of inbound tourism in Thailand, 30 percent in Japan, and 16 percent of non-EU visitors to Germany. 8 United Nations World Tourism Organization (UNWTO) database.

Leisure travel was the biggest driver of China’s outbound travel, representing 65 percent of travelers in 2019. In the same year, 29 percent of travelers ventured out for business, and 6 percent journeyed to visit friends and relatives. 9 Euromonitor International database.

Our most recent Survey of Chinese Tourist Attitudes, conducted in November 2022, shows that Chinese tourists have retained their keen desire to explore international destinations. About 40 percent of respondents reported that they expect to undertake outbound travel for their next leisure trip.

Where do these travelers want to go?

The results also indicate that the top three overseas travel destinations (beyond Hong Kong and Macau) are Australia/New Zealand, Southeast Asia, and Japan. Overall, respondents show less interest in travel to Europe than in previous years, down from 7 percent to 4 percent compared to wave 5 respondents. Desire to embark on long-haul international trips to Australia/New Zealand increased from 5 percent to 7 percent, and North American trips from 3 percent to 4 percent since the last survey. The wealthier segment (monthly household income over RMB 38,000) still shows a high interest in EU destinations (13 percent).

There are stumbling blocks on the road to recovery

While travel sentiment is strong, other factors may deter travelers from taking to the skies: fear of COVID-19; the need for COVID-19 testing which can be expensive; ticket prices; risk appetite of destination countries; and getting a passport or visa.

Chinese travelers may favor domestic trips, even if all outbound travel restrictions are removed, until they feel it is safe to travel internationally. A COVID-19-safe environment in destination countries will likely boost travelers’ confidence and encourage them to book trips again. 10 “Long-haul travel barometer,” European Travel Commission, February 1, 2023.

Travel recovery is also dependent on airline capacity. Some international airlines might be slow to restore capacity as fleets were retired during COVID-19 and airlines face a shortage of crew, particularly pilots. Considering that at the time of writing, in April 2023, international airline seat capacity has only recovered to around 37 percent of pre-pandemic levels, travelers are likely to face elevated ticket prices in the coming months. For instance, ticket prices for travel in the upcoming holidays to popular overseas destinations such as Japan and Thailand are double what they were in 2019. 11 Based on Ctrip prices. Price-sensitive travelers might wait for ticket prices to level out before booking their overseas trips.

Chinese airlines, however, appear more ready to resume full service than their international counterparts —fewer pilots left the industry and aircraft are available. Chinese carriers’ widebody fleets are mostly in service or ready to be redeployed (Exhibit 2).

Moving forward, safety measures in destination countries will affect travel recovery. Most countries have dropped testing requirements on arrivals from mainland China, and Chinese outbound group travel has resumed but is still limited to selected countries.

Many Chinese travelers—maybe 20 percent—have had passports expire during the COVID-19 period, and China has not been renewing these passports. Renewals are now possible, but the backlog will slow travel’s rebound by a few months. 12 Steve Saxon, “ What to expect from China’s travel rebound ,” McKinsey, January 25, 2023. Furthermore, travel visas for destination countries can take some time to be processed and issued.

Taken together, these factors suggest that the returning wave of Chinese travelers may only gather momentum by the Summer of 2023 and that China’s travel recovery will likely lag Hong Kong’s by a few months.

Overall, China is opening up to travel, both inbound and outbound—all types of visas are being issued to foreign visitors, and locals are getting ready to travel abroad. 13 “China to resume issuing all types of visas for foreigners,” China Briefing, March 14, 2023.

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The returning chinese traveler is evolving.

Although Chinese travelers did not have opportunities to travel internationally over the past three years, they continued to travel domestically and explore new offerings. Annual domestic trips remained at around 50 percent of pre-pandemic levels, amounting to 8.7 billion domestic trips over the past three years. 14 China’s Ministry of Culture and Tourism. During this time, the domestic market matured, and travelers became more sophisticated as they tried new leisure experiences such as beach resorts, skiing trips, and “staycations” in home cities. Chinese travelers became more experienced as thanks to periods of low COVID-19 infection rates domestically they explored China’s vast geography and diverse experiences on offer.

Consequently, the post-COVID-19 Chinese traveler is even more digitally savvy, has high expectations, and seeks novel experiences. These are some of the characteristics of a typical traveler:

Experience-oriented: Wave 6 of the survey shows that the rebound tourist is planning their trip around experiences. Outdoor and scenic trips remain the most popular travel theme. In survey waves 1 to 3, sightseeing and “foodie” experiences were high on the list of preferences while traveling. From waves 4 to 6, culture and history, beaches and resorts, and health and wellness gained more attention—solidifying the trend for experience-driven travel. Additionally, possibly due to the hype of the Winter Olympics, skiing and snowboarding have become popular activities.
Hyper-digitized: While digitization is a global trend, Chinese consumers are some of the most digitally savvy in the world; mobile technologies and social media are at the core of daily life. COVID-19 drove people to spend more time online—now short-form videos and livestreaming have become the top online entertainment options in China. In the first half of 2022, Chinese consumers spent 30 percent of their mobile internet time engaging with short videos. 15 “In the first half of the year, the number of mobile netizens increased, and short videos accounted for nearly 30% of the total time spent online,” Chinadaily.com, 27 July 2022.
Exploration enthusiasts: Chinese travelers are also keen to explore the world and embark on novel experiences in unfamiliar destinations. Survey respondents were looking forward to visiting new attractions, even when travel policies limited their travel radius. Instead of revisiting destinations, 45 percent of respondents picked short trips to new sites as their number one choice, followed by long trips to new sites as their second choice.

Consumers are optimistic, and travel spending remains resilient

McKinsey’s 2022 research on Chinese consumer sentiment shows that although economic optimism is seeing a global decline, 49 percent of Chinese respondents reported that they are optimistic about their country’s economic recovery. Optimism had dropped by 6 percentage points since an earlier iteration of the survey, but Chinese consumers continue to be more optimistic than other surveyed countries, apart from India (80 percent optimistic) and Indonesia (73 percent optimistic) (Exhibit 3). 16 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Chinese consumers are still keen to spend on travel, and travel spending is expected to be resilient. Wave 6 of the tourist attitude survey saw 87 percent of respondents claiming that they will spend more or maintain their level of travel spending. Moreover, when consumers were asked “which categories do you intend to splurge/treat yourself to,” travel ranked second, with 29 percent of respondents preferring travel over other categories. 17 “ Survey: Chinese consumer sentiment during the coronavirus crisis ,” McKinsey, October 13, 2022.

Against this context of consumer optimism, the wave 6 tourist attitude survey results shed light on how travelers plan to spend, and which segments are likely to spend more than others:

The wealthier segment and older age groups (age 45-65) show the most resilience in terms of travel spend. Around 45 to 50 percent of travelers in these two groups will spend more on their next leisure trip.
The wealthier segment has shown the most interest in beach and resort trips (48 percent). Instead of celebrating Chinese New Year at home with family, 30 percent of Chinese travelers in the senior age group (age 55-65) expect to take their next leisure trip during this holiday—10 percent more than the total average. And the top three trip preferences for senior travelers are culture, sightseeing, and health-themed trips.
When it comes to where travelers plan to spend their money on their next trip, entertainment activities, food, and shopping are the most popular categories. These are also the most flexible and variable spending categories, and there are opportunities to up-sell—attractions, food and beverage, and retail players are well positioned to create unique and unexpected offerings to stimulate spending in this area (Exhibit 4).

Independent accommodation is gaining popularity

Overall, Chinese consumers have high expectations for products and services. McKinsey’s 2023 consumer report found that local brands are on the rise and consumers are choosing local products for their quality, not just for their cheaper prices. Chinese consumers are becoming savvier, and tap into online resources and social media to educate themselves about the specific details and features of product offerings. 18 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

Furthermore, 49 percent of Chinese consumers believe that domestic brands are of “better quality” than foreign brands—only 23 percent believe the converse is true. Functionality extended its lead as the most important criterion influencing Chinese consumers, indicating that consumers are focusing more on the functional aspects of products, and less on emotional factors. Branding thus has less influence on purchasing decisions. 19 Daniel Zipser, Daniel Hui, Jia Zhou, and Cherie Zhang, 2023 McKinsey China Consumer Report , McKinsey, December 2022.

These broader consumer sentiments are echoed in the travel sector. Chinese travelers pay attention to cost, but do not simply seek out the lowest prices. While 17 percent of wave 6 respondents are concerned about low prices, 33 percent are on the hunt for value-for-money offerings, and 30 percent prefer good discounts and worthwhile deals.

And consumer sentiment regarding local brands holds true for travel preferences. Independent travel accommodation continues to be the preferred choice for most respondents, increasing in share against international chain brand hotels (Exhibit 5). Almost 60 percent of respondents prefer independent accommodation such as boutique hotels, B&Bs, and Airbnb—an 8 percentage-point increase since 2020.

Local chain brand hotels remain stable, the favored accommodation for 20 percent of respondents. These hotels are seen as a more standardized option, and as most are located in urban areas, they target the budget traveler segment.

Opting for independent accommodation is not considered a trade down; Chinese travelers expect a high level of service. In particular, respondents in the wealthier segment picked independent options (57 percent) over international premium brands (27 percent).

Premium independent options for the wealthier segment are abundant, specifically in leisure travel. Setting up a premium brand hotel requires long-term construction periods and heavy capital investment. Small-scale boutique hotels or B&Bs, on the other hand, are more agile solutions that can ramp up in the short term. This may explain the abundance of premium independent offerings. For instance, in destinations such as Lijiang and Yangshuo, between seven and nine of the top-ten premium hotels listed on Ctrip are independent boutique hotels.

Premium independent accommodation’s strength lies in quality guest experience with a genuine human touch. The service level at premium independent establishments can even surpass that of chain brand accommodation thanks to the high staff-to-room ratio, which easily reaches 3:1 or even 5:1. 20 “Strategic marketing analysis of boutique hotels,” Travel Daily , June 3, 2015. For hotels in Xiamen, Lijiang, and Yangshou, Ctrip service ratings of premium independent hotels are all above 4.7, outperforming international chain brand hotels.

Travelers are becoming smarter and more realistic during hotel selection, focusing on fundamental offerings such as local features and value for money. Across all types of hotels, local features are one of the most important factors influencing hotel selection—even for chain brand hotels which have a reputation for mastering the standardized offering. On average, 34 percent of respondents report that local features and cultural elements are the key considerations affecting their choice of hotel.

Outbound Chinese tourists are evolving rapidly, becoming increasingly diverse in their travel preferences, behaviors, and spending patterns. Chinese travelers are not homogeneous, and their needs and preferences continue to evolve. Therefore, serving each group of tourists may require different product offerings, sales channels, or marketing techniques.

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The path toward eco-friendly travel in China

How international travel and tourism can attract outbound chinese travelers.

China’s lifting of travel restrictions may cause some uncertainty in the short term, but a promising recovery lies ahead. Chinese tourists have maintained a strong desire to travel internationally and are willing to pay for this experience. They are also discerning and looking for high-quality accommodation, offerings, and service. As boutique hotels are becoming more popular, international hotel brands hotels could, for example, aim to stand out by leveraging their experience in service excellence.

With renewed travel demand, now may be the time for international travel and tourism businesses to invest in polishing product offerings—on an infrastructural and service level. Tourism, food and beverage, retail, and entertainment providers can start preparing for the rebound by providing unique and innovative experiences that entice the adventurous Chinese traveler.

Craft an authentically local offering that appeals to experience-driven Chinese travelers

Chinese travelers have suspended overseas trips for three years, and are now looking to enjoy high-quality experiences in destinations they have been to before. They also want to do more than shopping and sightseeing, and have expressed willingness to spend on offerings geared towards entertainment and experience. This includes activities like theme parks, snow sports, water sports, shows, and cultural activities. Authentic experiences can satisfy their desire for an immersive foreign experience, but they often want the experience to be familiar and accessible.

Designing the right product means tapping into deep customer insights to craft offerings that are accessible for Chinese travelers, within a comfortable and familiar setting, yet are still authentic and exciting.

Travel and tourism providers may also have opportunities to up-sell or cross-sell experiences and entertainment offerings.

Social media is essential

Social media is emerging as one of the most important sources of inspiration for travel. Short video now is a major influence channel across all age groups and types of consumers.

Tourist destinations have begun to leverage social media, and short video campaigns, to maximize exposure. For example, Tourism Australia recently launched a video campaign with a kangaroo character on TikTok, and overall views soon reached around 1.67 billion.

The story of Ding Zhen, a young herder from a village in Sichuan province, illustrates the power of online video in China. In 2020, a seven-second video of Ding Zhen turned him into an overnight media sensation. Soon after, he was approached to become a tourism ambassador for Litang county in Sichuan—and local tourism flourished. 21 “Tibetan herder goes viral, draws attention to his hometown in SW China,” Xinhuanet, December 11, 2020. Another Sichuan local, the director of the Culture and Tourism Bureau in Ganzi, has drawn visitors to the region through his popular cosplay videos that generated 7 million reviews. Building on the strength of these influential celebrities, visitor numbers to the region were said to reach 35 million, more than two-and-a-half times 2016 volumes. 22 “Local official promoting Sichuan tourism goes viral on internet,” China Daily, June 17, 2022; “The Director of Culture and Tourism disguises himself as a “Swordsman” knight to promote Ganzi tourism,” Travel Daily , June 17, 2022.

Online travel companies are also using social media to reach consumers. Early in the pandemic, Trip.com took advantage of the upward trend in livestreaming. The company’s co-founder and chairman of the board, James Liang, hosted weekly livestreams where he dressed up in costume or chatted to guests at various destinations. Between March and October 2020, Liang’s livestreams sold around $294 million’s worth of travel packages and hotel room reservations. 23 “Travel companies adapt to a livestreaming trend that may outlast the pandemic,” Skift, October 26, 2020.

Livestreaming is being used by tourism boards, too. For instance, the Tourism Authority of Thailand (TAT) collaborated with Trip.com to launch a new campaign to attract Chinese tourists to Thailand as cross-border travel resumed. The broadcast, joined by TAT Governor Mr Yuthasak Supasorn, recorded sales of more than 20,000 room nights amounting to a gross merchandise value of over RMB 40 million. 24 “Trip.com Group sees border reopening surge in travel bookings boosted by Lunar New Year demand,” Trip.com, January 13, 2023.

International tourism providers looking to engage Chinese travelers should keep an eye on social media channels and fully leverage key opinion leaders.

Scale with the right channel partners

Travel distribution in China has evolved into a complex, fragmented, and Chinese-dominated ecosystem, making scaling an increasingly difficult task. Travel companies need to understand the key characteristics of each channel type, including online travel agencies (OTAs), online travel portals (OTPs), and traditional travel agencies as each target different customer segments, and offer different levels of control to brands. It also takes different sets of capabilities to manage each type of distribution channel.

Travel companies can prioritize the channels they wish to use and set clear roles for each. One challenge when choosing the right channel partner is to avoid ultra-low prices that may encourage volume, but could ultimately damage a brand.

Meanwhile, given the evolution of the postCOVID-19 industry landscape and rapid shifts in consumer demand, travel companies should consider direct-to-consumer (D2C) channels. The first step would be selecting the appropriate D2C positioning and strategy, according to the company’s needs. In China, D2C is a complicated market involving both public domains (such as social media and OTA platforms) and private domains (such as official brand platforms). To make the most of D2C, travel companies need a clear value proposition for their D2C strategy, whether it be focused on branding or on commercial/sales.

Create a seamless travel experience for the digitally savvy Chinese tourist

China has one of the most digitally advanced lifestyles on the planet. Chinese travelers are mobile-driven, wallet-less, and impatient—and frequently feel “digitally homesick” while abroad. Overseas destinations and tourism service providers could “spoil” tech-savvy Chinese travelers with digitally enhanced service.

China’s internet giants can provide a shortcut to getting digital services off the ground. Rather than building digital capabilities from scratch, foreign tourism providers could engage Chinese travelers through a platform that is already being used daily. For example, Amsterdam’s Schiphol Airport provides a WeChat Mini Program with four modules: duty-free shopping, flight inquiry, information transfer, and travel planning. This contains information about all aspects of the airport, including ground transportation and tax refund procedures.

Alibaba’s Alipay, a third-party mobile and online payment platform, is also innovating in this space. The service provider has cooperated with various tax refund agencies, such as Global Blue, to enable a seamless digitized tax refund experience. Travelers scan completed tax refund forms at automated kiosks in the airport, and within a few hours, the refunded amount is transferred directly to their Alipay accounts. 25 “Alipay and Global Blue to make tax refunds easy for Chinese tourists,” Alizila, June 23, 2014.

Such digital applications are likely to be the norm going forward, not a differentiator, so travel companies that do not invest in this area may be left behind.

Chinese travelers are on the cusp of returning in full force, and tourism providers can start preparing now

With China’s quarantine requirements falling away at the start of 2023, travelers are planning trips, renewing passports and visas, and readying themselves for a comeback. Chinese tourists have not lost their appetite for travel, and a boom in travel demand can be expected soon. Though airlines are slow to restore capacity, and some destination countries are more risk averse when welcoming Chinese travelers, there are still options for Chinese tourists to explore destinations abroad.

Tourism providers can expect to welcome travelers with diverse interests who are willing to spend money on travel, who are seeking out exciting experiences, and who are choosing high-quality products and services. The returning Chinese traveler is digitally savvy and favors functionality over branding—trends suggest that providers who can craft authentic, seamless, and unique offerings could be well positioned to capture this market.

Guang Chen and Jackey Yu are partners in McKinsey’s Hong Kong office, Zi Chen is a capabilities and insights specialist in the Shanghai office, and Steve Saxon is a partner in the Shenzhen office.

The authors wish to thank Cherie Zhang, Glenn Leibowitz, Na Lei, and Monique Wu for their contributions to this article.

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China’s Travel Economy Is Slowly Coming Back. Here’s Where It Stands.

Over a year after China opened its borders following the pandemic, international trips are still lagging, although domestic travel is more popular.

By Tiffany May

Reporting from Hong Kong

Since China reopened its borders in 2023 after three years of Covid isolation, domestic travel has thrived and high-speed rail has grown increasingly popular. But international trips in and out of the country are lagging, and flight capacity is still just two-thirds of prepandemic levels.

The economic stakes are high. Before the pandemic, Chinese travelers were the world’s biggest spenders, accounting for 20 percent of global tourism spending, according to the United Nations World Tourism Organization.

In the past year, the Chinese authorities have tried to spur more inbound travel. Among the changes: China has waived travel visas or agreed to extend the length of visa-free travel for visitors from eight countries, including Germany and France.

The main factor holding back international travel by Chinese will continue to be China’s economy. Growth has bounced back from the pandemic, but the weight of a severe real estate downturn has dampened consumer spending and confidence inside China. And global geopolitical tensions remain a wild card. China is engaged in trade disputes with the United States and Europe, home to many major multinational companies. As they think twice about their business in China, travel suffers.

Here’s what to know about the state of China’s travel economy.

Travel to China ground nearly to a halt in the pandemic. It won’t fully recover until 2025.

Throughout the pandemic, China enforced some of the strictest travel rules in the world. Overseas travelers who managed to enter the country sometimes had to quarantine at their own expense for as long as two months.

As of December, international flight capacity — essentially the number of available seats on flights coming from and going to China — was only 62 percent of what it was in December 2019, according to OAG, a flight data analytics firm. But domestic travel has picked up: Over the 3-day weekend at the end of last month, the number of those fliers exceeded prepandemic levels by nearly 10 percent.

At the start of last year, there were only about 500 international flights every week in China, according to the Civil Aviation Administration of China, the aviation regulator. Now there are about 4,600, and that number is expected to increase to 6,000 by the end of the year — about 80 percent of prepandemic levels.

A big test will come next month during the spring festival around the Lunar New Year, typically a heavy travel period when millions of workers travel to their hometowns. Chinese airlines will schedule 2,500 additional international flights to accommodate spring festival visits, China’s aviation regulator said last week.

China’s transport officials said they expected 480 million rail trips to be made during a 40-day travel surge around the spring festival in the weeks before and after the Lunar New Year, a nearly 40 percent increase from last year.

High-speed rail has become a more popular way to travel within the country. China State Railway Group, the national rail operator, said rail trips exceeded 20 million at the start of the Golden Week holiday in October, a high, and the average daily number of passenger trips throughout the year exceeded 10 million.

Most analysts said they believed that the full recovery of international travel wouldn’t happen until 2025.

In a January research note, economists at Nomura, a Japanese bank, said the pace of the sector’s recovery would largely be determined by how much Chinese travelers were willing to spend. Pandemic-era problems like delays in issuing visas and passports that lasted through 2023 have been addressed.

“While supply-side constraints eased, the demand-side drag is now starting to kick in, and sizable headwinds remain for China’s outbound tourism recovery in 2024 and possibly 2025,” the Nomura economists wrote.

Applying for a visa and visiting China are a bit less complicated.

In December, China started allowing visitors from France, Germany, Italy, Spain, Malaysia and the Netherlands to travel for 15 days without visas, a change it said would last through November 2024. China’s National Immigration Administration said 147,000 visas had been granted in the first six and a half weeks of the program. China also reached agreements to make visa-free travel more accessible for tourists from Thailand and Singapore.

For Americans, visa applicants will no longer need to submit documents such as hotel booking records, an itinerary or an invitation letter. The authorities have also cut all visa application fees by 25 percent until the end of the year.

It has also gotten easier for foreigners to pay for things when visiting China. Last July, the main payment platforms, WeChat Pay and AliPay, said they would support foreign credit cards and allow visitors to pay like locals. China has moved away from paper money and coins , a trend that accelerated during the pandemic.

Flights between China and the United States have been only slowly restored. Before the pandemic, there were more than 300 flights every week between the two countries. That number was 36 a week in September and has gradually increased. In November, the countries agreed to increase flights to 70 a week.

Geopolitical tensions and reluctant Chinese travelers could derail the sector’s recovery.

The fraught Chinese-U.S. relationship will continue to lurk in the background of international travel to China.

The U.S. State Department maintains a “Level 3” travel alert on China, warning Americans to “reconsider travel” to the country because of “the risk of wrongful detentions,” among other reasons.

China’s Ministry of Foreign Affairs has its own travel notice, warning that travelers to the United States have been “harassed and interrogated” at the border with “various excuses,” and that Chinese citizens have been arbitrarily arrested and prosecuted.

The changing tastes and expendable income of Chinese travelers could shape how the travel economy’s recovery plays out.

“As Chinese households become more price-sensitive and rational, domestic tourism is more preferred, given that it usually takes less time and money,” said Ying Zhang of the Economist Intelligence Unit, a research business.

Tiffany May is a reporter based in Hong Kong, covering the politics, business and culture of the city and the broader region. More about Tiffany May

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Xinhua | December 14, 2023

China's tourism market experienced a remarkable surge during the first three quarters of this year, a senior cultural and tourism official said Thursday.

Domestic tourism recorded 3.67 billion visits and a staggering revenue of 3.7 trillion yuan (about 520.47 billion U.S. dollars) during the period, representing year-on-year increases of 75 percent and 114 percent, respectively, figures from the Ministry of Culture and Tourism (MCT) showed.

Du Jiang, vice minister of culture and tourism, said an increased desire for travel among residents this year had significantly propelled domestic tourism.

"This surge not only stimulated increased consumer spending in the sector but also played a role in driving economic recovery," Du told a press conference.

The ministry actively promoted new tourism products featuring camping, ice and snow, sports, and others to cater to the diverse tourism preferences of the public, Du said, adding that a variety of themed travel routes were also crafted for tourists.

The ministry is formulating a three-year plan to boost inbound travel, aiming to provide tourists visiting China with tourism products of higher quality and more convenient services, he added.

Speaking at the press conference, Lu Yingchuan, vice minister of culture and tourism, said that Chinese travel agencies and online travel companies have been allowed to resume outbound group tourism services to 138 countries to facilitate the recovery of outbound tourism.

ROBUST PERFORMANCE MARKET

Lu told the press conference that China's performance market is also gaining steam, with the number of revenue-generating performance events in the first three quarters of 2023 surpassing the pre-pandemic level.

During the period, 342,000 such performances were held nationwide, up 121 percent from the same period in 2019, said Lu.

He added that these performances generated revenues of 31.54 billion yuan and attracted 111 million audiences, representing a growth of 84.2 percent and 188.5 percent, respectively, compared to the same period in 2019.

Lots of Chinese theatrical productions, either newly created or restaged, were well received by audiences, he noted, citing spotlighted performances such as the dance drama "Wing Chun," Yue Opera "New Dragon Gate Inn," and Kunqu Opera "The Peony Pavilion."

He added that the ministry will continue implementing mechanisms and policies in talent cultivation, international communication, and theatrical creation, thus presenting the audience with more high-quality productions.

GOING DIGITAL

At the press conference, Lu also highlighted the role of cultural digitalization, which is a crucial step in promoting the high-quality development of the cultural sector.

MCT figures show that about 900,000 pieces and sets of cultural relics at the Palace Museum have undergone digitalization, constituting 48 percent of its total collections; among the 1.43 million sets of collections at the National Museum of China, 700,000 sets have been digitally processed.

Lu said promoting the digitalization of such resources lays a solid foundation for better utilization and presentation.

The country has also redoubled efforts to provide digital content in public cultural services, including projects for building a smart library system and public culture cloud platforms, according to Lu.

The MCT pledged to formulate supporting policies and regulations, including those related to market regulation and intellectual property protection, to facilitate the sound digitalization of the sector.

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Chinese, US officials encourage exchanges for tourism recovery

By LIA ZHU in San Francisco | chinadaily.com.cn | Updated: 2021-10-08 10:00

While the global tourism industry has been hit hard by the COVID-19 pandemic, officials from China and the US call on both peoples to strengthen exchanges with each other for tourism recovery in the post-pandemic era.

"Tourism, hospitality, and the cultural exchanges between China and the US are the foundation for mutual understanding and correct perceptions of the two peoples," said Chinese Ambassador to the US Qin Gang, at a forum on US-China tourism, hospitality and cultural exchanges held by the US-Asia Institute from Wednesday to Thursday.

To help the American tourism industry catch up with the changes happening in the Chinese society, since they are not able to visit China in person due to the pandemic, Qin shared a few buzzwords covering pop culture and government policies with the audience and explained the meanings and historical background behind them.

For instance, the phrase "people first, life first" stemmed from China's fight against the pandemic, but it is rooted in Chinese history and reflects a deep concern for humanity over 2,000 years ago, said Qin.

"The buzzwords I share with you today reflect the changing and unchanging elements in our values, when China experiences rapid economic growth and profound social transformation," he said.

Before the tourism market has fully recovered, Qin encouraged American people to take advantage of the 3D virtual tour to visit the Palace Museum, various food blogs to try Chinese cuisine, and interactive learning apps to practice Chinese language skills.

"Although the pandemic has put tourism and people-to-people exchanges on hold, the willingness of the two peoples to strengthen exchanges remains unchanged," said Zhang Xu, China's vice minister of culture and tourism, who virtually attended the forum on Wednesday.

Despite the challenges caused by the pandemic, Shanghai Disneyland was the first Disney resort in the world to reopen after the pandemic, and it has seen an outstanding performance and been looking to expand with a new theme park, said Zhang, citing the theme park's president Jose Schott during their meeting a few months ago.

"On Sept 20, Universal Beijing Resort officially opened, and its tickets were sold out within a minute on the first day. This resort is expected to attract 12 million visitors per day," said Zhang. "These are two powerful examples to prove the strength and potential of China-US people-to-people ties," he said.

China has seen steady recovery for the travel industry, said Zhang. In the first half of 2021, the total number of domestic visits made by Chinese tourists reached 1.87 billion, more than 60 percent of the same period in 2019; in the past Mid-Autumn Festival holiday, the number of domestic visits reached 88.2 million, 87 percent of the 2019 level, according to Zhang.

"As the largest developing country and the largest developed country, China and the US both boast cultural richness and huge potential for tourism. The two peoples have a strong desire for mutually beneficial exchanges," he said.

US Congresswoman of Nevada agreed that people-to-people exchanges are "very valuable" in strengthening trust and productive engagement between the US and China, when there are "a few disagreements on things" that the two countries are "not quite on the same page with".

"Ignorance is often an enemy," said Titus, "We do often equate people's attitudes towards each other with people's attitudes towards governments."

Using the example of the "Ugly American", a stereotype depicting Americans as loud, rude and arrogant when traveling abroad, Titus said, "You get there, you don't find that's the case at all, and you have good personal relations. And that was certainly true in China."

During her trips to China, she said she saw "absolutely fascinating things - historical and natural - that the country had to offer and ate incredible food". "There's no substitute for sitting down, looking somebody in the eye, and breaking bread with them," she said.

China's tourism industry sees strong post-pandemic recovery

During this year's three-day Mid-Autumn Festival holiday, China witnessed more than 88 million domestic trips, about 87.2 percent of the figure for 2019, highlighting the strong recovery momentum in the country's tourism sector.

According to the Ministry of Culture and Tourism, the tourism revenue during the holiday reached 37.15 billion yuan (about 5.75 billion U.S. dollars), recovering to 78.2 percent of that in 2019.

China's tourism industry seems to have adapted to the current situation of regular epidemic prevention and control, with growing market demand and more innovative business models and growth points.

However, with the rigorous implementation of regular epidemic prevention, China's tourism market has gradually recovered since the beginning of this year.

Statistics show that in the first half of 2021, the number of domestic tourists in China reached 1.87 billion, rising by 100.8 percent year on year. The gross revenue of domestic tourism hit 1.63 trillion yuan, up 157.9 percent from one year earlier.

The bundle is one of the novel business models emerging in China's travel market, said He Jingfu, head of an entertainment company in east China's Shandong Province, adding that Jubensha is bringing more possibilities to the tourism industry.

Meanwhile, an increasing number of Chinese tourists are being drawn to domestic theme parks, including the newly-opened Universal Beijing Resort and Shanghai Disneyland.

On the Qunar.com, China's online travel-service provider, tickets for the resort in the Mid-Autumn Festival holiday were sold out within 30 minutes, with the first one gone in a second.

The recovery of China's cultural tourism market is also bringing more opportunities and benefits to the global tourism industry, aided by various tourism fairs and expos.

From Sept. 16 to 20, the 2nd China International Cultural Tourism Fair (CICTF) was held in Shandong's capital city of Jinan, attracting tourism authorities from 17 countries and more than 2,600 exhibitors with over 500,000 exhibits. Deals worth 437 million yuan were inked at the fair, an increase of 20.2 percent over the previous one.

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During this year's three-day Mid-Autumn Festival holiday, China witnessed more than 88 million domestic trips, about 87.2 percent of the figure for 2019, highlighting the strong recovery momentum in the country's tourism sector.

Coronavirus: China's tourism industry thriving as world battles COVID-19

China's economy is improving, but the recovery had been focused on industry, infrastructure and loans for state owned enterprises.

Data and Forensics correspondent @chesh

Sunday 6 September 2020 06:03, UK

Tourism has been hit hard by COVID 19 but China has one key advantage: 1.4 billion people with nowhere else to go.

Tourism across the world has been hit hard by COVID-19 but China has one key advantage - 1.4 billion people with nowhere else to go.

Domestic flights are back to 2019 levels. Lockdown is long gone in China and people are keen to travel.

But with the pandemic raging abroad, with many popular tourist destinations keeping their borders closed and with the prospect of a two-week quarantine in a centralised facility on return, Chinese tourists are staying in the country.

On a recent weekday in Huangshan, the Yellow Mountains, in eastern China, thousands of people were making the climb. It is one of China's most popular tourist destinations, with an average of 3 million visitors a year, according to Chinese state media. But the number of tickets has been capped at half for COVID-19 reasons.

A tour guide who gave his surname as Jiang told Sky News: "The number of visitors dropped this year, of course. Take August for example. Last August, I had to work every day. But this August, there were some days I didn't work."

But it is a comeback, and the main reason offered by the tourists who spoke to Sky News was that they felt safe travelling, despite crowded trains, planes and buses.

Some were making up for lost time.

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This is how the COVID-19 crisis has affected international tourism

International tourist arrivals increased by 58 percent in the three months ended September 30 compared to the same period of 2020 but remained 64 percent below 2019 levels. Image: Unsplash/ Iwan Shimko

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International tourist arrivals increased by 58 percent in the three months ended September 30.
Compared to the same period of 2020 these numbers remained 64 percent below 2019 levels.
While the latest rebound is certainly encouraging, the recovery of the global tourism sector has been going slower than many had anticipated last year.

Amid fears that the newly discovered COVID-19 variant named Omicron could disrupt global travel once again, the World Tourism Organization (UNWTO) published its latest update on the state of international tourism on Sunday. According to the latest World Tourism Barometer, global travel activity rebounded sharply in the third quarter of 2021, while remaining far below pre-pandemic levels.

International tourist arrivals increased by 58 percent in the three months ended September 30 compared to the same period of 2020 but remained 64 percent below 2019 levels. Looking at the first nine months of 2021, the situation looks even bleaker with international arrivals down 20 percent even compared to 2020 and 76 percent below pre-Covid levels. Looking ahead, UNWTO Secretary-General Zurab Pololikashvili said that “we cannot let our guard down and need to continue our efforts to ensure equal access to vaccinations, coordinate travel procedures, make use of digital vaccination certificates to facilitate mobility and continue to support the sector.”

Have you read?

Aviation industry suffers 'worst year in history' as covid-19 grounds international travel, futurism is a means to see beyond covid-19. here's how to time travel, 4 charts showing covid-19's impact on chinese new year travel.

While the latest rebound is certainly encouraging, the recovery of the global tourism sector has been going slower than many had anticipated last year. According to its latest forecast, the UNWTO expects international tourist arrivals to remain 70 to 75 percent below 2019 levels this year. That translates to roughly $1 trillion in foregone export revenues, which amounted to $1.7 trillion in 2019 and are expected to reach $700 to $800 billion this year. Even this forecast could prove too optimistic, however, if the Omicron variant turns out to be as dangerous as initially feared.

As other sectors proceed to decarbonize, the aviation sector could account for a much higher share of global greenhouse gas emissions by mid-century than its 2%-3% share today.

Sustainable aviation fuels (SAF) can reduce the life-cycle carbon footprint of aviation fuel by up to 80%, but they currently make up less than 0.1% of total aviation fuel consumption. Enabling a shift from fossil fuels to SAFs will require a significant increase in production, which is a costly investment.

The Forum’s Clean Skies for Tomorrow (CST) Coalition is a global initiative driving the transition to sustainable aviation fuels as part of the aviation industry’s ambitious efforts to achieve carbon-neutral flying.

The coalition brings together government leaders, climate experts and CEOs from aviation, energy, finance and other sectors who agree on the urgent need to help the aviation industry reach net-zero carbon emissions by 2050.

The coalition aims to advance the commercial scale of viable production of sustainable low-carbon aviation fuels (bio and synthetic) for broad adoption in the industry by 2030. Initiatives include a mechanism for aggregating demand for carbon-neutral flying, a co-investment vehicle and geographically specific value-chain industry blueprints.

Learn more about the Clean Skies for Tomorrow Coalition's impact and contact us to find out how you can get involved.

Covid crisis drags on for international tourism.

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Tourism Recovery Accelerates to Reach 65% of Pre-Pandemic Levels

All Regions
23 Nov 2022

International tourism is on track to reach 65% of pre-pandemic levels by the end of 2022 as the sector continues to bounce back from the pandemic.

An estimated 700 million tourists travelled internationally between January and September , more than double (+133%) the number recorded for the same period in 2021. This equates to 63% of 2019 levels and puts the sector on course to reach 65% of its pre-pandemic levels this year, in line with UNWTO scenarios. Results were boosted by strong pent-up demand, improved confidence levels and the lifting of restrictions in an increasing number of destinations.

Highlighting the speed at which the sector has recovered from the worst crisis in its history, the latest World Tourism Barometer from UNWTO reveals that monthly arrivals were 64% below 2019 levels in January 2022 and had reached -27% by September. An estimated 340 million international arrivals were recorded in the third quarter of 2022 alone, almost 50% of the nine-month total.

Europe continues to lead global recovery

Europe continues to lead the rebound of international tourism . The region welcomed 477 million international arrivals in January-September 2022 (68% of the world total), hitting 81% of pre-pandemic levels. This was more than double that of 2021 (+126%) with results boosted by strong intra-regional demand and travel from the United States. Europe saw particularly robust performance in Q3, when arrivals reached almost 90% of 2019 levels.

At the same time, the Middle East saw international arrivals more than triple (+225%) year on year in January-September 2022, climbing to 77% of pre-pandemic levels.. Africa (+166%) and the Americas (+106%) also recorded strong growth compared to 2021, reaching 63% and 66% of 2019 levels, respectively. In Asia and the Pacific (+230%) arrivals more than tripled in the first nine months of 2022, reflecting the opening of many destinations, including Japan at the end of September. However, arrivals in Asia and the Pacific remained 83% below 2019 levels. China, a key source market for the region, remains closed.

Arrivals and receipts at – or above – pre-pandemic levels

Several subregions reached 80% to 90% of their pre-pandemic arrivals in January-September 2022. Western Europe (88%) and Southern Mediterranean Europe (86%) saw the fastest recovery towards 2019 levels. The Caribbean, Central America (both 82%) and Northern Europe (81%) also recorded strong results. Destinations reporting arrivals above pre-pandemic levels in the nine months through September include Albania, Ethiopia, Honduras, Andorra, Puerto Rico, Dominican Republic, Colombia, El Salvador and Iceland.

In the month of September arrivals surpassed pre-pandemic levels in the Middle East (+3% over 2019) and the Caribbean (+1%) and came close in Central America (-7%), Northern Europe (-9%) and Southern and Mediterranean Europe (-10%).

Meanwhile, some destinations recorded notable increases in international tourism receipts in the first seven to nine months of 2022, including Serbia, Romania, Türkiye, Latvia, Portugal, Pakistan, Mexico, Morocco and France. The recovery can also be seen in outbound tourism spending from major source markets, with strong results from France where expenditure reached -8% through September, compared to 2019. Other markets reporting strong spending in the first six to nine months of 2022 were Germany, Belgium, Italy, the United States, Qatar, India and Saudi Arabia.

Strong demand for air travel and hotel accommodation

The robust recovery of tourism is also reflected in various industry indicators such as air capacity and hotel metrics, as recorded in the UNWTO Tourism Recovery Tracker . Air seat capacity on international routes (measured in available seat-kilometres or ASKs) in January-August reached 62% of 2019 levels, with Europe (78%) and the Americas (76%) posting the strongest results. Worldwide domestic capacity rose to 86% of 2019 levels, with the Middle East (99%) virtually achieving pre-pandemic levels (IATA).

Meanwhile, according to STR, global hotel occupancy rates reached 66% in September 2022, from 43% in January. Europe led the way with occupancy levels at 77% in September 2022, following rates of 74% in July and August. The Americas (66%), the Middle East (63%) and Africa (61%) all saw occupancy rates above 60% in September. By subregion, Southern Mediterranean Europe (79%), Western Europe (75%) and Oceania (70%) showed the highest occupancy rates in September 2022.

Cautious optimism for the months ahead

The challenging economic environment, including persistently high inflation and soaring energy prices, aggravated by the Russian offensive in Ukraine, could weigh on the pace of recovery in Q4 and into 2023. The latest survey among the UNWTO Panel of Tourism Experts shows a downgrade in confidence levels for the last four months of 2022, reflecting more cautious optimism. Despite growing challenges pointing to a softening of the recovery pace, export revenues from tourism could reach USD 1.2 to 1.3 trillion in 2022, a 60-70% increase over 2021, or 70-80% of the USD 1.8 trillion recorded in 2019.

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Related content, international tourism to reach pre-pandemic levels in 2024, international tourism to end 2023 close to 90% of pre-p..., tourism’s importance for growth highlighted in world ec..., international tourism swiftly overcoming pandemic downturn.

China’s tourists are traveling again but they are spending less than before COVID as economic worries keep their wallets shut

Tourists dine at a restaurant in Wanda Plaza commercial Street during the May Day holiday in Yichang, Hubei province, China, May 5, 2024.

Chinese tourists hit the road in greater numbers during a recent five-day Labor Day holiday but kept a tight grip on their wallets, reflecting still-weak sentiment in the world’s second-largest economy .

Travelers made 28.2% more trips but spending only rose 13.5% from the 2019 break, the Ministry of Culture and Tourism said in a statement Monday. This translates to a 11.5% drop in spending for each traveler over the holiday ending Sunday, according to banks including Societe Generale, Goldman Sachs Group Inc. and Citigroup Inc.

“Spending per head softened and was again below the pre-pandemic level, owing partly to more tourist flows towards lower-tier cities, and suggesting continued consumption downgrading,” said Goldman economists including Lisheng Wang in a note late Monday, adding that more policy support is needed to sustain the recovery of the services sector. The 2019 holiday was one day shorter.

The figures add to evidence showing Chinese households remain cautious with consumption despite a recent rebound in economic growth driven by a pickup in industrial activity. Less than one in four residents wanted to spend more while an growing share of the urban population wanted to save in the first quarter, according to a survey by the People’s Bank of China.

Travelers made a total of 20.7 million trips by rail across the country on May 1, a new high for any single day on record, state broadcaster China Central Television reported late Sunday, citing government data.

The holiday season also showed a shift in how Chinese travelers spend since the country reopened from pandemic isolation. While big cities like Beijing and Shanghai remained popular, many more opted for cheaper destinations and small towns, online travel agency Trip.com Group said in a Sunday statement .

“Lower-tier market made a relaxing holiday possible for tourists, and they had better value for money as accommodation and dining costs spiked in tier-1 and tier-2 cities during the break,” Wang Yalei, an analyst with Trip.com, said in the statement.

Social media accounts promoting tourism in small towns have blossomed as tourists look for cheaper, off-the-beaten-path attractions. China’s expanding high-speed rail network and rising car ownership have also enabled travelers to get to more places within hours.

Bookings for hotels and tourist spots in tier-3 or lower-ranked cities in the country’s northwest and west more than doubled during the break from the same period a year earlier, according to data released by Tongcheng Travel Holdings, another tourism agency.

Inbound and outbound tourism also gained momentum during the holiday as China restored more air routes and expanded visa-free arrangements to more countries, the Ministry of Culture and Tourism said. Chinese travelers made 1.9 million trips abroad while 1.8 million visitors entered the country, it said, without providing last year’s numbers.

The US, Australia and the UK were the main long-haul destinations and Hong Kong, Macau, Southeast Asia, Japan and South Korea were the most popular for short-distance trips, according to Trip.com. Middle Eastern countries including Oman, Saudi Arabia and Kuwait saw more than 300% surge in bookings, it said.

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China's tourism industry sees strong post-pandemic recovery
According to the Ministry of Culture and Tourism, the tourism revenue during the holiday reached 37.15 billion yuan (about $5.75 billion), recovering to 78.2 percent of that in 2019. China's tourism industry seems to have adapted to the current situation of regular epidemic prevention and control, with growing market demand and more innovative ...
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After the pandemic was brought under control in May last year, China's package holidays started to gradually recover, growing from 4.98 million in the first quarter at the height of the pandemic ...
China's tourism industry sees strong post-pandemic recovery
According to the Ministry of Culture and Tourism, the tourism revenue during the holiday reached 37.15 billion yuan (about $5.75 billion), recovering to 78.2 percent of that in 2019. China's ...
China Tourism in 2023: Outlook, Trends and Opportunities
After enduring the significant impacts of the COVID-19 pandemic, China's tourism sector is gearing up for a strong resurgence in 2023. Projections indicate that the total revenue from domestic tourism is expected to exceed RMB 4 trillion (approximately US$580.96 billion), marking an impressive 96 percent growth.
China's tourism industry sees strong post-pandemic recovery
Statistics show that in the first half of 2021, the number of domestic tourists in China reached 1.87 billion, rising by 100.8 percent year-on-year. The gross revenue of domestic tourism hit 1.63 ...
China tourism in 2022: Trends to watch
Outlook for China tourism in 2022: Trends to watch in uncertain times. When it comes to travel sentiment, desire for travel has spiked and dipped as COVID-19 outbreaks continue. Previous McKinsey research indicated that the resurgence of domestic travel would support China's travel industry recovery. 2 But, with recent sporadic outbreaks ...
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How is the travel and tourism industry recovering?
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China's Travel Economy Is Slowly Coming Back. Here's Where It Stands
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Introduction: The Future of Tourism After COVID-19
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Rebuilding tourism for the future: COVID-19 policy responses and ...
The outlook for the tourism sector remains highly uncertain. The coronavirus (COVID-19) pandemic continues to hit hard, with international tourism expected to decrease by around 80% in 2020. Domestic tourism is helping to soften the blow, at least partially, and governments have taken impressive immediate action to restore and re-activate the sector, while protecting jobs and businesses.
China's cultural, tourism sectors see robust recovery, expect higher
Lu told the press conference that China's performance market is also gaining steam, with the number of revenue-generating performance events in the first three quarters of 2023 surpassing the pre-pandemic level. During the period, 342,000 such performances were held nationwide, up 121 percent from the same period in 2019, said Lu.
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Chinese, US officials encourage exchanges for tourism recovery
While the global tourism industry has been hit hard by the COVID-19 pandemic, officials from China and the US call on both peoples to strengthen exchanges with each other for tourism recovery in the post-pandemic era. "Tourism, hospitality, and the cultural exchanges between China and the US are the foundation for mutual understanding and ...
China's tourism industry sees strong post-pandemic recovery
According to the Ministry of Culture and Tourism, the tourism revenue during the holiday reached 37.15 billion yuan (about 5.75 billion U.S. dollars), recovering to 78.2 percent of that in 2019 ...
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After China abandoned almost three years of stringent Covid-19 containment measures that had isolated the country and severely limited the movement of its people, the tourism industry has begun ...
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Tourism Recovery Accelerates to Reach 65% of Pre-Pandemic Levels
International tourism is on track to reach 65% of pre-pandemic levels by the end of 2022 as the sector continues to bounce back from the pandemic. An estimated 700 million tourists travelled internationally between January and September, more than double (+133%) the number recorded for the same period in 2021. This equates to 63% of 2019 levels ...
China's tourists are traveling again but they are spending less than
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Tourism in China surges during May Day holiday but travelers turn ...
Months later, in 2020, the Covid-19 pandemic would strike China and the world, largely shutting down travel. This year's Labor Day tourism revenue was 166.89 billion yuan ($23.6 billion), only ...