Monday, June 17, 2024 The revival of Chinese international travel post-COVID-19 is losing momentum, as rising costs and visa procurement challenges enhance the preference for local and nearby destinations. Over a year since China lifted its strict zero-COVID policies and reopened its borders, the anticipated rebound in international tourism has been lackluster. This has had a significant impact on global travel enterprises, hospitality providers, and retailers, as outbound Chinese tourists—previously the top international spenders—are now more cautious with their spending.
The economic environment in China, marked by a persistent real estate slump, higher unemployment rates, and a bleak economic forecast, has prompted Chinese consumers to adopt more economical behaviors. This shift has led to widespread price reductions across sectors, including automobiles, apparel, and lifestyle products. In the previous year, trips abroad by Chinese nationals dropped to 87 million, marking a 40% decline from the 2019 figures.
According to data from U.N. Tourism, there was a 24% reduction in spending by Chinese tourists compared to 2019, in stark contrast to a 14% increase in spending by U.
S. tourists. This downturn poses significant challenges for popular destinations such as France, Australia, and the U.
S., which were among the top choices for Chinese tourists before the pandemic. The depreciation of the Chinese yuan by over 2% against the dollar since the beginning of the year has fu.
