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What is domestic tourism and why is it so important?

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Domestic tourism is BIG business in some countries, bringing in a significant revenue for the economy of the local area and nationwide. But what is domestic tourism?

In this article I will explain what domestic tourism is and why it is important. I will also give some examples of some of the biggest domestic tourism destinations worldwide.

What is domestic tourism?

Domestic tourism definitions, why is domestic tourism important, domestic tourism in the united kingdom, domestic tourism in the united states of america, domestic tourism in india, domestic tourism in south africa, domestic tourism in china, domestic tourism: conclusion, further reading.

As I described in my tourism glossary , domestic tourism is the act of travelling for business or leisure within one’s home country. According to the UNWTO , a person must be away from their usual place of residence (but still in their home country) for at least one night to qualify as a domestic tourist.

Popular destinations for domestic tourism include the USA, India and China . This is because they are big countries with a variety of tourist experiences to offer.

Ever seen the film ‘ Into the Wild? ‘ This is a great example of domestic tourism! It’s a story of a young guy who sold all of his belongings and hitch hiked through America to Alaska . Here is the trailer-

Travelling a few miles away from your home, you don’t expect to be classed as a ‘tourist’ right? But in fact, you often will be classed as a tourist- a domestic tourist!

In general, domestic tourists are anyone who undertakes travel activities in their own country of residence, i.e. living in London and travelling to Glasgow for the day or for an overnight stay.

Unlike other definitions in the tourism ‘vocabulary’, the term ‘domestic tourism’ has not changed in its years. In 2005, Gillian Gale, in her text book designed for BTEC National Travel and Tourism students , defined domestic tourists as;

“People who are travelling in their own country for tourism purposes”

Further to this, Arjun Kumar Bhatia, in his text on International Tourism Management states that;

“In domestic tourism, people travel outside their normal domicile to certain other areas within the country as contrasted with travelling outside the boundaries of the country as in international tourism .”

According to a recent report published by the World Travel and Tourism Council (WTTC), domestic tourism accounts for 73% of total Travel and Tourism spending globally in 2018; thus it is a key driver of the tourism sector.

Countries rely on domestic tourism as a tool to reduce poverty, improve infrastructure, generate employment and most importantly to drive economic growth.

The activities of domestic tourists create economic importance as the money spent on domestic tourism feeds back into that particular country’s economy; providing itself with a more viable and prosperous economy.

Popular domestic tourism destinations

According to the WTTC report published in 2018, there has been a slight shift in the countries’ positions in domestic visitor spending between 2008 and 2017.

Below I have listed a few examples of domestic tourism.

According to Visit Britain and its annual review, in 2017/2018, 100.6 million domestic overnight trips were taken and 1.5 billion domestic day visits were taken in England in 2017.

The UK’s domestic overnight trips reached £19 billion, whilst the 1.5 billion domestic day visits reached £50.1 billion. All of which feeds back into the UK economy.

The most popular travel attractions for domestic tourism in the UK are:

• The Tower of London
• Westminster Abbey
• Kew Gardens
• St Paul’s Cathedral
• Chester Zoo
• Windermere Boat Cruises, Bowness
• Flamingo Land Theme Park and Zoo, Yorkshire
• Drayton Manor Theme Park

As you can see from the list above, the majority of the locations are based in London, the Capital city of the UK. Most domestic tourism activities in the UK are either centred around the conservation of either natural or heritage sights or theme parks.

Despite living on the outskirts of London for most of my life, I am ashamed to say that I have only actually ever visited a few of these attractions! I guess I will add these to my bucket list and take the kids on a day trip soon…

In 2018, domestic tourists spent $933 billion dollars in the United States of America – representing 86% of total tourism expenditures. In 2018, domestic tourism supported 7.7 million jobs.

To me, it is no surprise that the domestic tourism industry in the USA is worth so much. Not only is it a HUGE country with an incredible range of diversity in tourism areas, from the snows of Alaska to the heat of Miami, but it is also true that most Americans do not have a passport !

According to the World Atlas , the most popular destinations for domestic tourism in the United States are;

• Alaskan Cruise, Alaska
• Orlando, Florida
• Las Vegas , Nevada
• Maui, Hawaii
• New York City, New York
• Honolulu, Hawaii
• Hawaiian Cruise, Hawaii
• Miami Beach, Florida
• Washington, DC
• Los Angeles, California

The table below shows you the percentage of domestic tourism which took place in each of these locations in 2018.

India is home to some of the most beautiful natural and cultural heritage sites in the world, not only making it a popular destination for international tourists, but also for domestic tourists.

According to the World Travel and Tourism Council, domestic spending in India is at 87.2%, compared to foreign spending at 12.8%. Therefore, domestic tourism in India contributes to 9.4% of its overall GDP.

According to Treebo the top 7 visited states by domestic tourists are;

• Uttar Pradesh
• Madhya Pradesh
• Andhra Pradesh
• Maharashtra

India is a beautiful country, with so much to offer! It has certainly been one of my favourite countries to travel and I hope to return with my children someday soon. It is no surprise to see that the domestic tourism industry in India is so significant, given the diversity of attractions and the sheer size of the country, not to mention that many people living in India cannot afford to travel internationally.

One of our recent travel destinations is South Africa , which is a growing destination for domestic tourism. The Minister of SA has fostered The National Tourism Sector Strategy (NTSS), which is a strategy that focuses on domestic tourism and its contribution to a sustainable tourism economy.

You can read more on The National Tourism Sector Strategy here .

According to a report by Statistics South Africa , the number of day trips increased from 39.4 million in 2016 to 48.0 million in 2017. Overnight trips also increased to 44.4 million in 2017.

Unlike the other destinations listed above, South Africa is home to abundant wildlife and nature reserves sites that attracts domestic tourism. According to the South African Tourism Board, the top destinations in South Africa are;

• The Winelands
• Garden Route
• Johannesburg
• Kruger National Park
• Durban beachfront
• Robben Island
• Blyde River Canyon Nature Reserve
•  Wild Coast

I can certainly say that we loved South Africa. You can see a taste of what the country has to offer in our video below.

According to the Chinese Ministry at a press conference, domestic tourism generated 5.13 trillion yuan ($764 billion U.S dollars) in revenue last year and this figure was climbing steeply each year prior to the pandemic, in fact the Chinese market (both domestically and internationally has been the fastest growing tourism industry in the world in recent years!). In comparison, Chinese tourists spent a total of $115.29 (U.S dollars) on outbound tourism .

According to research by the WTTC , China has been extremely successful in fostering domestic tourism, and is now one of the leading domestic tourism markets in the world.

There is a lot of hidden cultural heritage in China that is often overlooked or ignored with its commercialised industry and giant sky scrapers. Here is a video demonstrating some of China’s most popular tourist attractions.

We have all most likely been a domestic tourist in our life at one point or another, whether we realised it at the time or not! As this post has demonstrated, the domestic tourism industry is a huge economic contributor in many destinations, especially in countries that are large or where the local people do not often have the cash to travel internationally.

Do you want to learn more about the tourism industry? Take a look at my types of tourism glossary to see which areas are covered in the blog. You can also refer to some of the texts named below, which are particularly useful if you are a travel and tourism student! Oh, and why not subscribe to the blog for updates on new posts, travel discounts and deals? You can subscribe to the blog using the form below.

• BTEC National Travel and Tourism – a textbook for BTEC Level 3 Travel and Tourism students
• The Business of Tourism – an essential text for students of tourism management or travel and tourism
• Tourism: Principles and Practice – the ultimate one-stop text for any student studying Tourism
• An Introduction to Tourism – a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends

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International and domestic tourism: Interfaces and issues

• Geography of Tourism and Recreation
• Published: October 1989
• Volume 19 , pages 257–262, ( 1989 )

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• Pearce Douglas G. 1  

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This paper reviews the interfaces between international and domestic tourism and explores a number of associated issues. Within the origin the interface is between domestic tourism and the outbound component of international tourism. Questions arise relating to the different propensities for domestic and outbound travel and reasons accounting for this variation at a national scale — size, national tourist resources and levels of economic development — and at an individual level where motivations and the ability to travel play a major role. Within destinations interfaces exist between domestic tourism and inbound international tourism. Questions there relate to the size and distribution of these two types of tourist traffic, their respective impacts and the interaction between the two groups. Issues raised include those of the substitution of domestic and outbound travel and the formulation of policies whose varied aims are likely to be met by different spatial strategies. Future research needs to examine differences and interactions between domestic and international tourism more fully and explicitly so that more effective policies might be derived.

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Pearce, D.G. International and domestic tourism: Interfaces and issues. GeoJournal 19 , 257–262 (1989). https://doi.org/10.1007/BF00454569

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DOI : https://doi.org/10.1007/BF00454569

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Glossary of tourism terms

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which involve tourism expenditure.

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

Activity/activities : In tourism statistics, the term activities represent the actions and behaviors of people in preparation for and during a trip in their capacity as consumers ( IRTS 2008, 1.2 ).

Activity (principal): The principal activity of a producer unit is the activity whose value added exceeds that of any other activity carried out within the same unit ( SNA 2008, 5.8 ).

Activity (productive): The (productive) activity carried out by a statistical unit is the type of production in which it engages. It has to be understood as a process, i.e. the combination of actions that result in a certain set of products. The classification of productive activities is determined by their principal output.

Administrative data : Administrative data is the set of units and data derived from an administrative source. This is a data holding information collected and maintained for the purpose of implementing one or more administrative regulations.

Adventure tourism : Adventure tourism is a type of tourism which usually takes place in destinations with specific geographic features and landscape and tends to be associated with a physical activity, cultural exchange, interaction and engagement with nature. This experience may involve some kind of real or perceived risk and may require significant physical and/or mental effort. Adventure tourism generally includes outdoor activities such as mountaineering, trekking, bungee jumping, rock climbing, rafting, canoeing, kayaking, canyoning, mountain biking, bush walking, scuba diving. Likewise, some indoor adventure tourism activities may also be practiced.

Aggregated data : The result of transforming unit level data into quantitative measures for a set of characteristics of a population.

Aggregation : A process that transforms microdata into aggregate-level information by using an aggregation function such as count, sum average, standard deviation, etc.

Analytical unit : Entity created by statisticians, by splitting or combining observation units with the help of estimations and imputations.

Balance of payments : The balance of payments is a statistical statement that summarizes transactions between residents and non-residents during a period. It consists of the goods and services account, the primary income account, the secondary income account, the capital account, and the financial account ( BPM6, 2.12 ).

Bias : An effect which deprives a statistical result of representativeness by systematically distorting it, as distinct from a random error which may distort on any one occasion but balances out on the average.

Business and professional purpose (of a tourism trip): The business and professional purpose of a tourism trip includes the activities of the self-employed and employees, as long as they do not correspond to an implicit or explicit employer-employee relationship with a resident producer in the country or place visited, those of investors, businessmen, etc. ( IRTS 2008, 3.17.2 ).

Business tourism : Business tourism is a type of tourism activity in which visitors travel for a specific professional and/or business purpose to a place outside their workplace and residence with the aim of attending a meeting, an activity or an event. The key components of business tourism are meetings, incentives, conventions and exhibitions. The term "meetings industry" within the context of business tourism recognizes the industrial nature of such activities. Business tourism can be combined with any other tourism type during the same trip.

Business visitor : A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional category of purpose ( IRTS 2008, 3.17.2 ).

Central Product Classification : The Central Product Classification (CPC) constitutes a complete product classification covering goods and services. It is intended to serve as an international standard for assembling and tabulating all kinds of data requiring product detail, including industrial production, national accounts, service industries, domestic and foreign commodity trade, international trade in services, balance of payments, consumption and price statistics. Other basic aims are to provide a framework for international comparison and promote harmonization of various types of statistics dealing with goods and services.

Census : A census is the complete enumeration of a population or groups at a point in time with respect to well defined characteristics: for example, Population, Production, Traffic on particular roads.

Coastal, maritime and inland water tourism : Coastal tourism refers to land-based tourism activities such as swimming, surfing, sunbathing and other coastal leisure, recreation and sports activities which take place on the shore of a sea, lake or river. Proximity to the coast is also a condition for services and facilities that support coastal tourism. Maritime tourism refers to sea-based activities such as cruising, yachting, boating and nautical sports and includes their respective land-based services and infrastructure. Inland water tourism refers to tourism activities such as cruising, yachting, boating and nautical sports which take place in aquatic- influenced environments located within land boundaries and include lakes, rivers, ponds, streams, groundwater, springs, cave waters and others traditionally grouped as inland wetlands.

Coherence : Adequacy of statistics to be combined in different ways and for various uses.

Competitiveness of a tourism destination : The competitiveness of a tourism destination is the ability of the destination to use its natural, cultural, human, man-made and capital resources efficiently to develop and deliver quality, innovative, ethical and attractive tourism products and services in order to achieve a sustainable growth within its overall vision and strategic goals, increase the added value of the tourism sector, improve and diversify its market components and optimize its attractiveness and benefits both for visitors and the local community in a sustainable perspective.

Consistency : Logical and numerical coherence.

Country of reference : The country of reference refers to the country for which the measurement is done. ( IRTS 2008, 2.15 ).

Country of residence : The country of residence of a household is determined according to the centre of predominant economic interest of its members. If a person resides (or intends to reside) for more than one year in a given country and has there his/her centre of economic interest (for example, where the predominant amount of time is spent), he/she is considered as a resident of this country.

Country-specific tourism characteristic products and activities : To be determined by each country by applying the criteria of IRTS 2008, 5.10 in their own context; for these products, the activities producing them will be considered as tourism characteristic, and the industries in which the principal activity is tourism-characteristic will be called tourism industries ( IRTS 2008, 5.16 ).

Cultural tourism : Cultural tourism is a type of tourism activity in which the visitor's essential motivation is to learn, discover, experience and consume the tangible and intangible cultural attractions/products in a tourism destination. These attractions/products relate to a set of distinctive material, intellectual, spiritual and emotional features of a society that encompasses arts and architecture, historical and cultural heritage, culinary heritage, literature, music, creative industries and the living cultures with their lifestyles, value systems, beliefs and traditions.

Data checking : Activity whereby the correctness conditions of the data are verified. It also includes the specification of the type of error or of the condition not met, and the qualification of the data and their division into "error-free data" and "erroneous data".

Data collection : Systematic process of gathering data for official statistics.

Data compilation : Operations performed on data to derive new information according to a given set of rules.

Data confrontation : The process of comparing data that has generally been derived from different surveys or other sources, especially those of different frequencies, in order to assess and possibly improve their coherency, and identify the reasons for any differences.

Data processing : Data processing is the operation performed on data by the organization, institute, agency, etc., responsible for undertaking the collection, tabulation, manipulation and preparation of data and metadata output.

Data reconciliation : The process of adjusting data derived from two different sources to remove, or at least reduce, the impact of differences identified.

Destination (main destination of a trip): The main destination of a tourism trip is defined as the place visited that is central to the decision to take the trip. See also purpose of a tourism trip ( IRTS 2008, 2.31 ).

Destination management / marketing organization (DMO) : A destination management/marketing organization (DMO) is the leading organizational entity which may encompass the various authorities, stakeholders and professionals and facilitates tourism sector partnerships towards a collective destination vision. The governance structures of DMOs vary from a single public authority to a public/ private partnership model with the key role of initiating, coordinating and managing certain activities such as implementation of tourism policies, strategic planning, product development, promotion and marketing and convention bureau activities. The functions of the DMOs may vary from national to regional and local levels depending on the current and potential needs as well as on the decentralization level of public administration. Not every tourism destination has a DMO.

Documentation: Processes and procedures for imputation,  weighting,  confidentiality  and suppression rules, outlier treatment and data capture should be fully documented by the  survey provider.  Such documentation should be made available to at least  the body financing the survey.

Domestic tourism : Domestic tourism comprises the activities of a resident visitor within the country of reference, either as part of a domestic tourism trip or part of an outbound tourism trip ( IRTS 2008, 2.39 ).

Domestic tourism consumption : Domestic tourism consumption is the tourism consumption of a resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Domestic tourism expenditure : Domestic tourism expenditure is the tourism expenditure of a resident visitor within the economy of reference, (IRTS 2008, 4.15(a)).

Domestic tourism trip : A domestic tourism trip is one with a main destination within the country of residence of the visitor (IRTS 2008, 2.32).

Domestic visitor : As a visitor travels within his/her country of residence, he/she is a domestic visitor and his/her activities are part of domestic tourism.

Durable consumer goods : Durable consumer goods are goods that may be used repeatedly or continuously over a period of a year or more, assuming a normal or average rate of physical usage. When acquired by producers, these are considered to be capital goods used for production processes, as is the case of vehicles, computers, etc. When acquired by households, they are considered to be consumer durable goods ( TSA:RMF 2008, 2.39 ). This definition is identical to the definition of SNA 2008, 9.42 : A consumer durable is a goodthat may be used for purposes of consumption repeatedly or continuously over a period of a year or more.

Dwellings : Each household has a principal dwelling (sometimes also designated as main or primary home), usually defined with reference to time spent there, whose location defines the country of residence and place of usual residence of this household and of all its members. All other dwellings (owned or leased by the household) are considered secondary dwellings ( IRTS 2008, 2.26 ).

Ecotourism : Ecotourism is a type of nature-based tourism activity in which the visitor's essential motivation is to observe, learn, discover, experience and appreciate biological and cultural diversity with a responsible attitude to protect the integrity of the ecosystem and enhance the well-being of the local community. Ecotourism increases awareness towards the conservation of biodiversity, natural environment and cultural assets both among locals and the visitors and requires special management processes to minimize the negative impact on the ecosystem.

Economic analysis : Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services thatneed to be produced and provided. In the economic analysis of tourism, one may distinguish between tourism's 'economic contribution' which refers to the direct effect of tourism and is measurable by means of the TSA, and tourism's 'economic impact' which is a much broader concept encapsulating the direct, indirect and induced effects of tourism and which must be estimated by applying models. Economic impact studies aim to quantify economic benefits, that is, the net increase in the wealth of residents resulting from tourism, measured in monetary terms, over and above the levels that would prevail in its absence.

Economic territory : The term "economic territory" is a geographical reference and points to the country for which the measurement is done (country of reference) ( IRTS 2008, 2.15 ).

Economically active population : The economically active population or labour force comprises all persons of either sex who furnish the supply of labour for the production of goods and services as defined by the system of national accounts during a specified time-reference period (ILO, Thirteenth ICLS, 6.18).

Economy (of reference): "Economy" (or "economy of reference") is an economic reference defined in the same way as in the balance of payments and in the system of national accounts: it refers to the economic agents that are resident in the country of reference ( IRTS 2008, 2.15 ).

Education tourism : Education tourism covers those types of tourism which have as a primary motivation the tourist's engagement and experience in learning, self-improvement, intellectual growth and skills development. Education Tourism represents a broad range of products and services related to academic studies, skill enhancement holidays, school trips, sports training, career development courses and language courses, among others.

Employees : Employees are all those workers who hold the type of job defined as "paid employment" (ILO, Fifteenth ICLS, pp. 20-22).

Employer-employee relationship : An employer-employee relationship exists when there is an agreement, which may be formal or informal, between an entity and an individual, normally entered into voluntarily by both parties, whereby the individual works for the entity in return for remuneration in cash or in kind ( BPM6, 11.11 ).

Employers : Employers are those workers who, working on their own account with one or more partners, hold the type of job defined as a "self-employment job" and, in this capacity, on a continuous basis (including the reference period) have engaged one or more persons to work for them in their business as "employee(s)" (ILO, Fifteenth ICLS, pp. 20-22).

Employment : Persons in employment are all persons above a specified age who, during a specified brief period, either one week or one day, were in paid employment or self-employment (OECD GST, p. 170).

Employment in tourism industries : Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, or as a count of the jobs in tourism industries ( IRTS 2008, 7.9 ).

Enterprise : An enterprise is an institutional unit engaged in production of goods and/or services. It may be a corporation, a non-profit institution, or an unincorporated enterprise. Corporate enterprises and non-profit institutions are complete institutional units. An unincorporated enterprise, however, refers to an institutional unit —a household or government unit —only in its capacity as a producer of goods and services (OECD BD4, p. 232)

Establishment : An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added ( SNA 2008, 5.14 ).

Estimation : Estimation is concerned with inference about the numerical value of unknown population values from incomplete data such as a sample. If a single figure is calculated for each unknown parameter the process is called "point estimation". If an interval is calculated within which the parameter is likely, in some sense, to lie, the process is called "interval estimation".

Exports of goods and services : Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (OECD GST, p. 194)

Frame : A list, map or other specification of the units which define a population to be completely enumerated or sampled.

Forms of tourism : There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism. These can be combined in various ways to derive the following additional forms of tourism: internal tourism, national tourism and international tourism.

Gastronomy tourism :  Gastronomy tourism is a type of tourism activity which is characterized by the visitor's experience linked with food and related products and activities while travelling. Along with authentic, traditional, and/or innovative culinary experiences, Gastronomy Tourism may also involve other related activities such as visiting the local producers, participating in food festivals and attending cooking classes. Eno-tourism (wine tourism), as a sub-type of gastronomy tourism, refers to tourism whose purpose is visiting vineyards, wineries, tasting, consuming and/or purchasing wine, often at or near the source.

Goods : Goods are physical, produced objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets ( SNA 2008, p. 623 ).

Gross fixed capital formation : Gross fixed capital formation is defined as the value of institutional units' acquisitions less disposals of fixed assets. Fixed assets are produced assets (such as machinery, equipment, buildings or other structures) that are used repeatedly or continuously in production over several accounting periods (more than one year) ( SNA 2008, 1.52 ).

Gross margin : The gross margin of a provider of reservation services is the difference between the value at which the intermediated service is sold and the value accrued to the provider of reservation services for this intermediated service.

Gross value added : Gross value added is the value of output less the value of intermediate consumption ( TSA:RMF 2008, 3.32 ).

Gross value added of tourism industries : Gross value added of tourism industries (GVATI) is the total gross value added of all establishments belonging to tourism industries, regardless of whether all their output is provided to visitors and the degree of specialization of their production process ( TSA:RMF 2008, 4.86 ).

Grossing up : Activity aimed at transforming, based on statistical methodology, micro-data from samples into aggregate-level information representative of the target population.

Health tourism : Health tourism covers those types of tourism which have as a primary motivation, the contribution to physical, mental and/or spiritual health through medical and wellness-based activities which increase the capacity of individuals to satisfy their own needs and function better as individuals in their environment and society. Health tourism is the umbrella term for the subtypes wellness tourism and medical tourism.

Imputation : Procedure for entering a value for a specific data item where the response is missing or unusable.

Inbound tourism : Inbound tourism comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip ( IRTS 2008, 2.39 ).

Inbound tourism consumption : Inbound tourism consumption is the tourism consumption of a non-resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Inbound tourism expenditure : Inbound tourism expenditure is the tourism expenditure of a non-resident visitor within the economy of reference ( IRTS 2008, 4.15(b) ).

Innovation in tourism : Innovation in tourism is the introduction of a new or improved component which intends to bring tangible and intangible benefits to tourism stakeholders and the local community, improve the value of the tourism experience and the core competencies of the tourism sector and hence enhance tourism competitiveness and /or sustainability. Innovation in tourism may cover potential areas, such as tourism destinations, tourism products, technology, processes, organizations and business models, skills, architecture, services, tools and/or practices for management, marketing, communication, operation, quality assurance and pricing.

Institutional sector : An aggregation of institutional units on the basis of the type of producer and depending on their principal activity and function, which are considered to be indicative of their economic behaviour.

Institutional unit : The elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function.

Intermediate consumption : Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital ( SNA 2008, 6.213 ).

Internal tourism : Internal tourism comprises domestic tourism and inbound tourism, that is to say, the activities of resident and non-resident visitors within the country of reference as part of domestic or international tourism trips ( IRTS 2008, 2.40(a) ).

Internal tourism consumption : Internal tourism consumption is the tourism consumption of both resident and non-resident visitors within the economy of reference. It is the sum of domestic tourism consumption and inbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

Internal tourism expenditure : Internal tourism expenditure comprises all tourism expenditure of visitors, both resident and non-resident, within the economy of reference. It is the sum of domestic tourism expenditure and inbound tourism expenditure. It includes acquisition of goods and services imported into the country of reference and sold to visitors. This indicator provides the most comprehensive measurement of tourism expenditure in the economy of reference ( IRTS 2008, 4.20(a) ).

International Standard Industrial Classification of All Economic Activities : The International Standard Industrial Classification of All Economic Activities (ISIC) consists of a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules. It provides a comprehensive framework within which economic data can be collected and reported in a format that is designed for purposes of economic analysis, decision-taking and policymaking. The classification structure represents a standard format to organize detailed information about the state of an economy according to economic principles and perceptions (ISIC, Rev.4, 1).

International tourism : International tourism comprises inbound tourism and outbound tourism, that is to say, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trips ( IRTS 2008, 2.40(c) ).

International visitor : An international traveller qualifies as an international visitor with respect to the country of reference if: (a) he/she is on a tourism trip and (b) he/she is a non-resident travelling in the country of reference or a resident travelling outside of it ( IRTS 2008, 2.42 ).

Job : The agreement between an employee and the employer defines a job and each self-employed person has a job ( SNA 2008, 19.30 ).

Measurement error : Error in reading, calculating or recording numerical value.

Medical tourism : Medical tourism is a type of tourism activity which involves the use of evidence-based medical healing resources and services (both invasive and non-invasive). This may include diagnosis, treatment, cure, prevention and rehabilitation.

Meetings industry : To highlight purposes relevant to the meetings industry, if a trip's main purpose is business/professional, it can be further subdivided into "attending meetings, conferences or congresses, trade fairs and exhibitions" and "other business and professional purposes". The term meetings industry is preferred by the International Congress and Convention Association (ICCA), Meeting Professionals International (MPI) and Reed Travel over the acronym MICE (Meetings, Incentives, Conferences and Exhibitions) which does not recognize the industrial nature of such activities.

Metadata : Data that defines and describes other data and processes.

MICE : See meetings industry.

Microdata : Non-aggregated observations, or measurements of characteristics of individual units.

Mirror statistics : Mirror statistics are used to conduct bilateral comparisons of two basic measures of a trade flow and are a traditional tool for detecting the causes of asymmetries in statistics (OECD GST, p. 335).

Mountain tourism : Mountain tourism is a type of tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities.

National tourism : National tourism comprises domestic tourism and outbound tourism, that is to say, the activities of resident visitors within and outside the country of reference, either as part of domestic or outbound tourism trips ( IRTS 2008, 2.40(b) ).

National tourism consumption : National tourism consumption is the tourism consumption of resident visitors, within and outside the economy of reference. It is the sum of domestic tourism consumption and outbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

National tourism expenditure : National tourism expenditure comprises all tourism expenditure of resident visitors within and outside the economy of reference. It is the sum of domestic tourism expenditure and outbound tourism expenditure ( IRTS 2008, 4.20(b) ).

Nationality : The concept of "country of residence" of a traveller is different from that of his/her nationality or citizenship ( IRTS 2008, 2.19 ).

Non-monetary indicators : Data measured in physical or other non-monetary units should not be considered a secondary part of a satellite account. They are essential components, both for the information they provide directly and in order to analyse the monetary data adequately ( SNA 2008, 29.84 ).

Observation unit : entity on which information is received and statistics are compiled.

Outbound tourism : Outbound tourism comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip ( IRTS 2008, 2.39(c) ).

Outbound tourism consumption : Outbound tourism consumption is the tourism consumption of a resident visitor outside the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Outbound tourism expenditure : Outbound tourism expenditure is the tourism expenditure of a resident visitor outside the economy of reference ( IRTS 2008, 4.15(c) ).

Output : Output is defined as the goods and services produced by an establishment, a) excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and b) excluding the value of goods and services consumed by the same establishment except for goods and services used for capital formation (fixed capital or changes in inventories) or own final consumption ( SNA 2008, 6.89 ).

Output (main): The main output of a (productive) activity should be determined by reference to the value added of the goods sold or services rendered (ISIC rev.4, 114).

Pilot survey : The aim of a pilot survey is to test the questionnaire (pertinence of the questions, understanding of questions by those being interviewed, duration of the interview) and to check various potential sources for sampling and non-sampling errors: for instance, the place in which the surveys are carried out and the method used, the identification of any omitted answers and the reason for the omission, problems of communicating in various languages, translation, the mechanics of data collection, the organization of field work, etc.

Place of usual residence : The place of usual residence is the geographical place where the enumerated person usually resides, and is defined by the location of his/her principal dwelling (Principles and recommendations for population and housing censuses of the United Nations, 2.20 to 2.24).

Probability sample : A sample selected by a method based on the theory of probability (random process), that is, by a method involving knowledge of the likelihood of any unit being selected.

Production account : The production account records the activity of producing goods and services as defined within the SNA. Its balancing item, gross value added, is defined as the value of output less the value of intermediate consumption and is a measure of the contribution to GDP made by an individual producer, industry or sector. Gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account. Value added and GDP may also be measured net by deducting consumption of fixed capital, a figure representing the decline in value during the period of the fixed capital used in a production process ( SNA 2008, 1.17 ).

Production : Economic production may be defined as an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services ( SNA 2008, 6.24. ).

Purpose of a tourism trip (main): The main purpose of a tourism trip is defined as the purpose in the absence of which the trip would not have taken place ( IRTS 2008, 3.10. ). Classification of tourism trips according to the main purpose refers to nine categories: this typology allows the identification of different subsets of visitors (business visitors, transit visitors, etc.) See also destination of a tourism trip ( IRTS 2008, 3.14 ).

Quality of a tourism destination : Quality of a tourism destination is the result of a process which implies the satisfaction of all tourism product and service needs, requirements and expectations of the consumer at an acceptable price, in conformity with mutually accepted contractual conditions and the implicit underlying factors such as safety and security, hygiene, accessibility, communication, infrastructure and public amenities and services. It also involves aspects of ethics, transparency and respect towards the human, natural and cultural environment. Quality, as one of the key drivers of tourism competitiveness, is also a professional tool for organizational, operational and perception purposes for tourism suppliers.

Questionnaire and Questionnaire design : Questionnaire is a group or sequence of questions designed to elicit information on a subject, or sequence of subjects, from a reporting unit or from another producer of official statistics. Questionnaire design is the design (text, order, and conditions for skipping) of the questions used to obtain the data needed for the survey.

Reference period : The period of time or point in time to which the measured observation is intended to refer.

Relevance : The degree to which statistics meet current and potential users' needs.

Reliability : Closeness of the initial estimated value to the subsequent estimated value.

Reporting unit : Unit that supplies the data for a given survey instance, like a questionnaire or interview. Reporting units may, or may not, be the same as the observation unit.

Residents/non-residents : The residents of a country are individuals whose centre of predominant economic interest is located in its economic territory. For a country, the non-residents are individuals whose centre of predominant economic interest is located outside its economic territory.

Response and non-response : Response and non-response to various elements of a survey entail potential errors.

Response error : Response errors may be defined as those arising from the interviewing process. Such errors may be due to a number of circumstances, such as inadequate concepts or questions; inadequate training; interviewer failures; respondent failures.

Rural tourism : Rural tourism is a type of tourism activity in which the visitor's experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing. Rural tourism activities take place in non-urban (rural) areas with the following characteristics:

• Low population density;
• Landscape and land-use dominated by agriculture and forestry; and
• Traditional social structure and lifestyle

Same-day visitor (or excursionist): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Sample : A subset of a frame where elements are selected based on a process with a known probability of selection.

Sample survey : A survey which is carried out using a sampling method.

Sampling error : That part of the difference between a population value and an estimate thereof, derived from a random sample, which is due to the fact that only a subset of the population is enumerated.

Satellite accounts : There are two types of satellite accounts, serving two different functions. The first type, sometimes called an internal satellite, takes the full set of accounting rules and conventions of the SNA but focuses on a particular aspect of interest by moving away from the standard classifications and hierarchies. Examples are tourism, coffee production and environmental protection expenditure. The second type, called an external satellite, may add non-economic data or vary some of the accounting conventions or both. It is a particularly suitable way to explore new areas in a research context. An example may be the role of volunteer labour in the economy ( SNA 2008, 29.85 ).

SDMX, Statistical Data and Metadata Exchange : Set of technical standards and content-oriented guidelines, together with an IT architecture and tools, to be used for the efficient exchange and sharing of statistical data and metadata (SDMX).

Seasonal adjustment : Seasonal adjustment is a statistical technique to remove the effects of seasonal calendar influences on a series. Seasonal effects usually reflect the influence of the seasons themselves, either directly or through production series related to them, or social conventions. Other types of calendar variation occur as a result of influences such as number of days in the calendar period, the accounting or recording practices adopted or the incidence of moving holidays.

Self-employment job : Self-employment jobs are those jobs where remuneration is directly dependent upon the profits (or the potential of profits) derived from the goods or services produced.

Self-employed with paid employees : Self-employed with paid employees are classified as employers.

Self-employed without employees : Self-employed without employees are classified as own-account workers.

Services : Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. They cannot be traded separately from their production. By the time their production is completed, they must have been provided to the consumers ( SNA 2008, 6.17 ).

Social transfers in kind : A special case of transfers in kind is that of social transfers in kind. These consist of goods and services provided by general government and non-profit institutions serving households (NPISHs) that are delivered to individual households. Health and education services are the prime examples. Rather than provide a specified amount of money to be used to purchase medical and educational services, the services are often provided in kind to make sure that the need for the services is met. (Sometimes the recipient purchases the service and is reimbursed by the insurance or assistance scheme. Such a transaction is still treated as being in kind because the recipient is merely acting as the agent of the insurance scheme) (SNA 2008, 3.83).

Sports tourism : Sports tourism is a type of tourism activity which refers to the travel experience of the tourist who either observes as a spectator or actively participates in a sporting event generally involving commercial and non-commercial activities of a competitive nature.

Standard classification : Classifications that follow prescribed rules and are generally recommended and accepted.

Statistical error : The unknown difference between the retained value and the true value.

Statistical indicator : A data element that represents statistical data for a specified time, place, and other characteristics, and is corrected for at least one dimension (usually size) to allow for meaningful comparisons.

Statistical metadata : Data about statistical data.

Statistical unit : Entity about which information is sought and about which statistics are compiled. Statistical units may be identifiable legal or physical entities or statistical constructs.

Survey : An investigation about the characteristics of a given population by means of collecting data from a sample of that population and estimating their characteristics through the systematic use of statistical methodology.

System of National Accounts : The System of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity in accordance with strict accounting conventions based on economic principles. The recommendations are expressed in terms of a set of concepts, definitions, classifications and accounting rules that comprise the internationally agreed standard for measuring indicators of economic performance. The accounting framework of the SNA allows economic data to be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policymaking ( SNA 2008, 1.1 ).

Total tourism internal demand : Total tourism internal demand, is the sum of internal tourism consumption, tourism gross fixed capital formation and tourism collective consumption ( TSA:RMF 2008, 4.114 ). It does not include outbound tourism consumption.

Tourism : Tourism refers to the activity of visitors ( IRTS 2008, 2.9 ).

Tourism characteristic activities : Tourism characteristic activities are the activities that typically produce tourism characteristic products. As the industrial origin of a product (the ISIC industry that produces it) is not a criterion for the aggregation of products within a similar CPC category, there is no strict one-to-one relationship between products and the industries producing them as their principal outputs ( IRTS 2008, 5.11 ).

Tourism characteristic products : Tourism characteristic products are those that satisfy one or both of the following criteria: a) Tourism expenditure on the product should represent a significant share total tourism expenditure (share-of-expenditure/demand condition); b) Tourism expenditure on the product should represent a significant share of the supply of the product in the economy (share-of-supply condition). This criterion implies that the supply of a tourism characteristic product would cease to exist in meaningful quantity in the absence of visitors ( IRTS 2008, 5.10 ).

Tourism connected products : Their significance within tourism analysis for the economy of reference is recognized although their link to tourism is very limited worldwide. Consequently, lists of such products will be country-specific ( IRTS 2008, 5.12 ).

Tourism consumption : Tourism consumption has the same formal definition as tourism expenditure. Nevertheless, the concept of tourism consumption used in the Tourism Satellite Account goes beyond that of tourism expenditure. Besides the amount paid for the acquisition of consumption goods and services, as well as valuables for own use or to give away, for and during tourism trips, which corresponds to monetary transactions (the focus of tourism expenditure), it also includes services associated with vacation accommodation on own account, tourism social transfers in kind and other imputed consumption. These transactions need to be estimated using sources different from information collected directly from the visitors, such as reports on home exchanges, estimations of rents associated with vacation homes, calculations of financial intermediation services indirectly measured (FISIM), etc. ( TSA:RMF 2008, 2.25 ).

Tourism destination : A tourism destination is a physical space with or without administrative and/or analytical boundaries in which a visitor can spend an overnight. It is the cluster (co-location) of products and services, and of activities and experiences along the tourism value chain and a basic unit of analysis of tourism. A destination incorporates various stakeholders and can network to form larger destinations. It is also intangible with its image and identity which may influence its market competitiveness.

Tourism direct gross domestic product : Tourism direct gross domestic product (TDGDP) is the sum of the part of gross value added (at basic prices) generated by all industries in response to internal tourism consumption plus the amount of net taxes on products and imports included within the value of this expenditure at purchasers' prices ( TSA:RMF 2008, 4.96 ).

Tourism direct gross value added : Tourism direct gross value added (TDGVA) is the part of gross value added generated by tourism industries and other industries of the economy that directly serve visitors in response to internal tourism consumption ( TSA:RMF 2008, 4.88 ).

Tourism expenditure : Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves, as well as expenses that are paid for or reimbursed by others ( IRTS 2008, 4.2 ).

Tourism industries : The tourism industries comprise all establishments for which the principal activity is a tourism characteristic activity. Tourism industries (also referred to as tourism activities) are the activities that typically producetourism characteristic products. The term tourism industries is equivalent to tourism characteristic activities and the two terms are sometimes used synonymously in the IRTS 2008, 5.10, 5.11 and figure 5.1 .

Tourism product : A tourism product is a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle.

Tourism ratio : For each variable of supply in the Tourism Satellite Account, the tourism ratiois the ratio between the total value of tourism share and total value of the corresponding variable in the Tourism Satellite Account expressed in percentage form ( TSA:RMF 2008, 4.56 ). (See also Tourism share).

Tourism Satellite Account : The Tourism Satellite Account is the second international standard on tourism statistics (Tourism Satellite Account: Recommended Methodological Framework 2008 –TSA:RMF 2008) that has been developed in order to present economic data relative to tourism within a framework of internal and external consistency with the rest of the statistical system through its link to the System of National Accounts. It is the basic reconciliation framework of tourism statistics. As a statistical tool for the economic accounting of tourism, the TSA can be seen as a set of 10 summary tables, each with their underlying data and representing a different aspect of the economic data relative to tourism: inbound, domestic tourism and outbound tourism expenditure, internal tourism expenditure, production accounts of tourism industries, the Gross Value Added (GVA) and Gross Domestic Product (GDP) attributable to tourism demand, employment, investment, government consumption, and non-monetary indicators.

Tourism Satellite Account aggregates : The compilation of the following aggregates, which represent a set of relevant indicators of the size of tourism in an economy is recommended ( TSA:RMF 2008, 4.81 ):

• Internal tourism expenditure;
• Internal tourism consumption;
• Gross value added of tourism industries (GVATI);
• Tourism direct gross value added (TDGVA);
• Tourism direct gross domestic product (TDGDP).

Tourism sector : The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity.

Tourism share : Tourism share is the share of the corresponding fraction of internal tourism consumption in each component of supply ( TSA:RMF 2008, 4.51 ). For each industry, the tourism share of output (in value), is the sum of the tourism share corresponding to each product component of its output ( TSA:RMF 2008, 4.55 ). (See also Tourism ratio ).

Tourism single-purpose consumer durable goods : Tourism single-purpose consumer durables is a specific category of consumer durable goods that include durable goods that are used exclusively, or almost exclusively, by individuals while on tourism trips ( TSA:RMF 2008 , 2.41 and Annex 5 ).

Tourism trip : Trips taken by visitors are tourism trips ( IRTS 2008, 2.29 ).

Tourist (or overnight visitor): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Tourism value chain : The tourism value chain is the sequence of primary and support activities which are strategically fundamental for the performance of the tourism sector. Linked processes such as policy making and integrated planning, product development and packaging, promotion and marketing, distribution and sales and destination operations and services are the key primary activities of the tourism value chain. Support activities involve transport and infrastructure, human resource development, technology and systems development and other complementary goods and services which may not be related to core tourism businesses but have a high impact on the value of tourism.

Travel / traveller : Travel refers to the activity of travellers. A traveller is someone who moves between different geographic locations, for any purpose and any duration ( IRTS 2008, 2.4 ). The visitor is a particular type of traveller and consequently tourism is a subset of travel.

Travel group : A travel group is made up of individuals or travel parties travelling together: examples are people travelling on the same package tour or youngsters attending a summer camp ( IRTS 2008, 3.5 ).

Travel item (in balance of payments): Travel is an item of the goods and services account of the balance of payments: travel credits cover goods and services for own use or to give away acquired from an economy by non-residents during visits to that economy. Travel debits cover goods and services for own use or to give away acquired from other economies by residents during visits to other economies ( BPM6, 10.86 ).

Travel party : A travel party is defined as visitors travelling together on a trip and whose expenditures are pooled ( IRTS 2008, 3.2 ).

Trip : A trip refers to the travel by a person from the time of departure from his/her usual residence until he/she returns: it thus refers to a round trip. Trips taken by visitors are tourism trips.

Urban/city tourism : Urban/city tourism is a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business.

Usual environment: The usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines ( IRTS 2008, 2.21 ).

Usual residence : The place of usual residence is the geographical place where the enumerated person usually resides (Principles and recommendations for population and housing censuses of the United Nations, 2.16 to 2.18).

Vacation home : A vacation home (sometimes also designated as a holiday home) is a secondary dwelling that is visited by the members of the household mostly for purposes of recreation, vacation or any other form of leisure ( IRTS 2008, 2.27 ).

Valuables : Valuables are produced goods of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time ( SNA 2008, 10.13 ).

Visit : A trip is made up of visits to different places.The term "tourism visit" refers to a stay in a place visited during a tourism trip ( IRTS 2008, 2.7 and 2.33 ).

Visitor : A visitor is a traveller taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited ( IRTS 2008, 2.9 ). A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Wellness tourism : Wellness tourism is a type of tourism activity which aims to improve and balance all of the main domains of human life including physical, mental, emotional, occupational, intellectual and spiritual. The primary motivation for the wellness tourist is to engage in preventive, proactive, lifestyle-enhancing activities such as fitness, healthy eating, relaxation, pampering and healing treatments.

Domestic tourism soars in China but foreigners stay away

W ith the Chinese economy facing massive challenges, there have been concerns over its growth potential, at least in the immediate future.

Yet a key exception is emerging in the form of domestic tourism.

Last week's five-day public holiday to mark labour day saw 295 million trips made within China, according to figures from the Ministry of Culture and Tourism. This was 28% higher than pre-pandemic figures recorded in 2019.

The Transport Ministry's figures are also staggering: 92 million rail trips; almost 10 million air trips and 1.25 billion highway journeys.

However, this comes as international arrivals continue to lag, with foreigners currently entering China at barely 30% of 2019 levels. Why the disparity?

The beautiful historical river town of Wuzhen, a short drive from Shanghai, is considered one of China's top visitor sites for travellers of all types.

When we arrive the little pathways and old bridges which cross narrow waterways are filled with visitors.

A popular thing to do in Wuzhen is to pose for photos dressed in traditional hanfu clothing - as if you have really been transported back hundreds of years.

Two women in their 20s, friends since high school, are visiting from Jilin Province in the north east.

After arriving, they spend an hour getting their hair done in an elaborate imperial-era style - and they are full of praise for Wuzhen's classical beauty.

We ask if, following the post-Covid opening up, many of their family and other friends have been travelling much?

"Of course, after the pandemic, we're all visiting other places."

Nearby a local man who is selling ice-creams also says tourist numbers are "not that bad lately".

As good as before Covid?

"Almost the same," he replies.

Shopkeeper Wang Ying, who sells traditional snacks, echoes this sentiment with a big smile on her face.

"Business is going well, and it'll only get better."

• What China's economic problems mean for the world

All this will be seen as good news for the Chinese government. It's been saying that a push on domestic consumption can counter the significant faltering portions of the economy.

Major players in the once-mighty property sector are struggling to stay afloat, local government debt continues to rise, and persistent youth unemployment has left highly qualified university graduates uncertain of their future.

Amid all these challenges, the Communist Party has set a target of "around 5%" GDP growth for this year. Apart from the fact that analysts have long questioned the veracity of the country's official growth figures, economists are also asking how such a target can be reached, in any genuine sense, in 2024 without significant extra stimulus.

One lifeline could be a more buoyant travel scene which could bring broader business opportunities and greater service industry employment.

Schubert Lou, chief operating officer at travel agency Trip.com, told the BBC: "We've seen very strong domestic travel demand with search volumes in hotels up 67% compared to last year, and flight volumes up 80%."

Tourism industry consultant Peng Han from Travel Daily is following the investment trail to see how the business community really views the possibilities in the sector.

"With famous international hotel brands - like Intercontinental, Marriott and Hilton - you just have to look at their growth in China in 2023," he says. "Then check the performance goals for these large hotel groups in 2024 which have also been set relatively high. This shows that they are very optimistic about the growth potential of the Chinese market."

But, while the volume of local travellers might be up, Mr Peng does point to the problem of per capita consumption which remains persistently low.

He says general uncertainty about the Chinese economy is putting more emphasis on saving, so people are looking for good value options. They are going on holidays and paying for things but doing so much more frugally.

This is where an increase in big-spending foreigners could help.

But they are simply not travelling to China in the numbers they used to. In 2019, nearly 98 million international visitors came to the country. Last year it was only 35 million - including business trips, students and the like.

Mr Lou describes the domestic versus international market as "uneven".

For many in the tourism industry here specialising in services for foreign travellers, "uneven" would be an understatement.

Three years of harsh Covid prevention measures drove down arrivals from other countries, but that alone can't account for the current situation.

Huang Songshan, the head of the Centre for Tourism Research in the School of Business and Law at Australia's Edith Cowan University, blames this weakness in part to "the shifting geopolitical landscape globally".

In the peer-reviewed East Asia Forum, he pointed to a 2023 survey carried out by the Pew Research Centre, writing that, "Most individuals in Western nations hold unfavourable views towards China. The Chinese government's tightening grip on societal regulations could potentially cause discomfort for foreign travellers in China."

Official travel advice from some governments echo this sentiment, at times quite harshly.

Washington warns potential travellers to "reconsider travel to Mainland China due to the arbitrary enforcement of local laws, including in relation to exit bans, and the risk of wrongful detentions".

Australia advises "a high degree of caution" warning that "Australians may be at risk of arbitrary detention or harsh enforcement of local laws, including broadly defined National Security Laws".

The political environment has also taken a toll on flight availability and price.

This is especially the case with connections to and from North America. Last month's 332 scheduled round trips between China and the US contrasts with 1,506 in April 2019.

As a result, finding a seat on a direct flight can be extremely difficult and those that are available are very expensive.

President Xi Jinping made a speech at a dinner on the sidelines of the Asia-Pacific Economic Cooperation conference in San Francisco last November addressing this point.

"Today, President Biden and I reached important consensus," he told the crowd.

"Our two countries will roll out more measures to facilitate travels and promote people-to-people exchanges, including increasing direct passenger flights, holding a high-level dialogue on tourism, and streamlining visa application procedures. We hope that our two peoples will make more visits, contacts and exchanges and write new stories of friendship in the new era."

Washington has since increased the number of Chinese airline flights permitted to land - but only from 35 per week to 50. It is still well short of the 150 weekly trips pre-Covid.

• China Lunar New Year spending tops pre-Covid level

The Biden administration is coming under pressure from unions and US airlines to not increase this any further because, they argue, Chinese airlines have an unfair advantage over them as they have state support; don't face the same onerous Chinese regulations; and, crucially, can fly over Russian airspace, making trips shorter and cheaper.

A letter to the US government from the Chair of the House Committee on China, Mike Gallagher, and the committee's top Democrat representative, Raja Krishnamoorthi, reads: "Should the US-China passenger carrier market expand without the US government addressing these significant issues, US aviation workers, travellers and airlines will pay a hefty price tag."

Mr Lou says the frequency of international flight connections is definitely having an impact.

"What we are seeing right now, based on civil aviation data, is that inbound flight capacity won't get back to even 80% of 2019 [levels] by the end of 2024."

Then there are other potential turnoffs for those considering travelling in China, like the country's state-of-the-art phone app payment and booking systems which work very smoothly for Chinese citizens and residents, but which can be an enormous headache if you have just arrived.

There are certain sites, transport options, and purchases which can only be accessed via Chinese electronic apps which are, at times, only available in Chinese.

Professor Chen Yong at Switzerland's EHL Hospitality Business School is an authority on the economics of tourism in China. He thinks that hurdles relating to payment and booking apps can pose a real problem.

"Technologies such as social network websites, online maps, payment apps, among others, which foreigners have long been accustomed to using, are either unavailable or inaccessible when they travel to China," he says.

"On the other hand, there are Chinese alternatives to these technologies that remain inaccessible to foreigners due to language barriers and differences in user habits. We need to bridge this divide because it affects the tourist industry badly."

Back in Wuzhen, the presence of international travellers is much smaller than in years gone by, but there are still a few foreign faces in the crowd.

An Italian couple says the process of linking up to and using China's payment apps was a challenge but that it was not insurmountable, though they add, with a laugh, that it is "much, much, much easier" if you have a Chinese friend to help you.

Eliseo, from California, says he has had problems making payments to small vendors who don't accept credit cards and really no longer deal with cash. Another hurdle for him has been his bank at home which has blocked some payments, flagging them as potentially fraudulent coming from China.

Chinese officials have acknowledged that the foreign traveller numbers have been low but they are now trying to turn this around.

One way they're attempting to attract more foreign visitors is by increasing the number of countries whose citizens don't need a visa to enter.

Trip.com says this resulted in an almost immediate increase in passenger arrivals from Southeast Asia.

In 23 Chinese cities, transit passengers from more than 50 countries are also able to stay for a few days visa free if they have an onward ticket.

In Shanghai, hotels above a three-star level have been told that they should prepare to deal with international credit cards and an initial batch of 50 taxis have also started accepting them.

However, Professor Chen says "it would be too optimistic to envision a long-term growth in China's inbound tourism".

"The key is to establish a culture that puts service providers in the shoes of foreign tourists. They should imagine themselves being a foreigner who can't speak or read Chinese and who doesn't have a Chinese mobile number, payments apps and so on."

He says that the culture around this can't be changed overnight.

Yet, in places like Wuzhen - where the local travellers have already returned - the tourism companies are hoping that incredible sites like theirs will eventually be too much for foreigners to resist as well.

What Do Indian Tourists Want? We Asked 5 Hotel Brands – India Report

Bulbul Dhawan , Skift

May 8th, 2024 at 11:00 PM EDT

Due to close proximity, the nations of Nepal, Sri Lanka, and Bhutan witness significant tourism from India. With preferences of Indian travelers changing, boutique properties are reaching out with diverse offerings to attract this tourism segment.

Bulbul Dhawan

The Skift India Newsletter is your go-to platform for all news related to travel, tourism, airlines, and hospitality in India.

India is a key source market for the neighboring countries of Nepal, Bhutan, and Sri Lanka. In February, India was the biggest source market for Nepal, accounting for more than 25% of foreign tourist arrivals in the country.

For Bhutan, Indians accounted for 60% of the total international tourists in the first three months of 2024. The country is expecting 150,000 Indian tourists this year, more than double that of 2023. 

In Sri Lanka, the number of tourists from India in the island nation increased by over 100% in January.

What are they doing to keep the growth going? Skift caught up with some boutique hotel brands from these three countries that were in India for a trade event.

Here’s what we learned:

Amrit Rajaratnam, founder of Galle Fort Hotel, Sri Lanka: Indian travelers are seeking authentic, experiential, and unique experiences, Rajaratnam said.

“They seek bespoke luxury experiences and are inclined to invest in shorter, luxe getaways as opposed to longer trips. They want unique, immersive travel experiences, which are family friendly and exclusive.” Rajaratnam added that Indian travelers prefer privacy, often booking entire properties for their group travels.

Khin Omar Win , owner of Gangtey Lodge, Bhutan: “Discerning Indian travelers are more mindful, curious, and adventurous. They seek cultural immersion. The biggest trend we have experienced is the shift in interest from classic travel to developed destinations to more immersive, nature-focused travel and soft adventure,” Win said.

He added that pre-Covid, his property received very little interest from the Indian market but this has significantly increased post-pandemic. 

Nilanka Martinus, managing director of Mosvold Boutique Hotels, Sri Lanka : “Indian travelers are looking for unique boutique luxury experiences, coupled with a discerning palate for great food, particularly with a strong preference for vegetarian options. They highly value personalized attention and excellent service standards.”

The Indian market, particularly the middle and upper-middle class, is increasingly inclined to splurge on luxurious travel experiences and boutique hotels and have moved away from package tours, Martinus shared. 

Prabina KC Chhetri, sales and marketing director of Dwarika’s Group of Hotels and Resorts, Nepal: She said that apart from experiential tours, Indians are also inclined towards holistic well-being, spiritual and cultural experiences, and sustainable travel.

Hashan Cooray, managing director of Jetwing Hotels, Sri Lanka: Jetwing Hotels has been witnessing increased interest in properties that offer agricultural experiences and tea estate experiences. “Luxury wellness retreats are seeing increased demand from Indian travelers, where they look to stay for a week or more, immersing themselves in daily physical activities, health routines and treatments. Wildlife tours in Yala, Kumana as well as in the Sigiriya region are also gaining popularity,” said Cooray. 

Thailand Extends Visa Waiver for Indians Until November 11

Thailand has extended the visa-free arrival arrangement for Indian travelers till November 11. The Thai cabinet on Tuesday approved a plan to extend the visa exemption for six more months.

In November last year, Thailand decided to grant visa-free entry to Indians and Taiwanese citizens from November 10 till May this year. This visa waiver would have ended on Friday.

Travelers from the two countries would be allowed to stay without a visa in Thailand for a period not extending 30 days.

In the first four months of 2024, Thailand recorded over 12 million visitor arrivals, representing a 39% increase over the same period in 2023. More than 550,000 Indians visited Thailand during this period. Thailand expects the number of visitor arrivals from India to reach 1.7 million this year .

India is one of the most important source markets for Thailand and is also the fastest-growing. In 2023, over 1.6 million Indian travelers visited Thailand , making the country the fourth-largest source market for Thailand. These tourists spent more than THB 63 billion ($1.7 billion).

Sri Lanka has also renewed its visa-free entry for visitors from India, China, Russia, Japan, Malaysia, Thailand, and Indonesia. The visa-free entry will allow these visitors to stay in Sri Lanka for 30 days.

IHG Opens India’s First Voco Hotel

IHG Hotels and Resorts has opened India’s first voco hotel – voco Jim Corbett. The 70-key resort marks the introduction of IHG’s seventh brand in India. The hotel chain has four other voco hotels in its India pipeline – in Mumbai, Amritsar, Gurugram, and Goa. 

Last month, the company announced its plans to double its operating portfolio in India , aiming to have 100 trading hotels in the country by 2029. In 2023, the hotel chain’s occupancy rate surpassed pre-Covid levels significantly, it said in a statement. 

Post the 2023 performance, the company has ambitious expansion plans for India. IHG’s Southwest Asia managing director Sudeep Jain said, “We are on track to record another successful year, fueling our growth ambitions in the country.”

80% of Indian Travelers Prefer Domestic Destinations

Nearly 80% of the Indian travelers prefer domestic destinations as opposed to international ones, shared travel advisory firm VIDEC’s CEO Virendra Jain at the Arabian Travel Mart 2024. While speaking about India’s rapid emergence as a crucial source market for global tourism, Jain shared the characteristics and behaviors of Indian travelers. 

As many as 59% travelers in India prefer short weekend trips. “The primary motivator for these trips is the need for a break from daily life, with 33% of travelers seeking leisure escapes.”

He also asserted the need to understand the trends and behaviors among Indian travelers. “Coupled with India’s rising digital proficiency and infrastructural enhancements, these trends are shaping India into a dynamic source market for global tourism, necessitating targeted engagement strategies to capitalize on this growth,” he said.

Skift India Report

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Tags: arabian travel market , bhutan , boutique hotels , hotels , ihg , india , india outbound , india travel , international tourism , international travel , nepal , skift india report , sri lanka , thailand , tourism , tourism authority of thailand , Travel Trends , visa waiver , voco

Photo credit: Bhutan, Sri Lanka, and Nepal are focusing on India to achieve their ambitious tourism targets. Avinash Patel / Pexels