During the epidemic, the zero-COVID policy implemented by the Chinese Communist Party not only severely impacted China’s economy but also dealt a heavy blow to the country’s tourism industry. Despite efforts such as implementing visa-free schemes and easing entry restrictions, China has struggled to attract more foreign visitors for business trips or tourism since the lifting of the travel bans.
In order to attract foreign travelers to China, the Chinese government has relaxed entry restrictions for citizens from certain countries. Over the past year, citizens from 13 European countries and a few others have been allowed visa-free entry into China for up to 15 days. Tourists from dozens of countries can now stay in China for up to six days before flying to a third country.
However, these measures have not been effective in attracting foreign visitors to China, whether they are business travelers or leisure tourists.
According to a report by The Economist on October 24th, based on in-depth research by consulting firm OAG to identify which countries’ tourists have suspended visits to China. The study examined flight ticket sales to and from China and categorized them by country. The largest drop was observed in the number of American tourists, with a two-thirds decrease compared to the same period in 2019. Countries like South Korea, Japan, and Thailand, known for tourism, also experienced a significant decline in tourist numbers.
Even China’s own data shows a lack of interest from foreigners in traveling to the country post-pandemic. In the first half of 2019, Chinese travel agencies received 8.6 million tourists, and Chinese border authorities recorded 47.7 million foreigners (including non-tourists) entering and exiting the country. However, following the sharp decline during the pandemic, these figures dropped to 3.1 million tourists and 29.2 million entries and exits in the first half of this year.
The zero-COVID policy of the Chinese Communist Party during the pandemic has raised concerns globally and created a perception among foreigners that Communist China is a harsh and unwelcoming place. Many expatriates have evacuated China with their families, leading to a decrease in the willingness of foreigners to travel to China. Additionally, the crackdown on private companies and foreign due diligence firms, arbitrary arrests of foreigners, and similar actions by the Chinese government have somewhat deterred business interactions.
The reduction in the number of foreigners traveling to China is also reflected in the trend of Western airlines gradually withdrawing from the Chinese market or reducing flights to and from China. According to a report by travel news website Skift, seven major airlines have already withdrawn from China in the past four months.
OAG data reveals that during the busy summer travel season, the number of flights from Europe and North America to China dropped by over 60% compared to the peak of over 13,000 flights in 2018.
As of September, the monthly seat capacity between the US and China was only 28% compared to 2019. Last month, the three major US airlines – United Airlines, Delta Air Lines, and American Airlines – submitted applications to the US Department of Transportation to temporarily suspend most flights to China due to lack of demand. The three airlines plan to operate only one-third of the current weekly flights between China and the US this winter.
David Bach, the CEO of the Swiss International Management Development Association, stated to the South China Morning Post, “The flights operated by Western airlines to and from China largely reflect the demand for business travel, and the current sluggishness of the Chinese economy and the ongoing slowdown in foreign direct investment in China have not disappeared.”
Bach added, “The demand for business leaders to travel to China has indeed decreased.”
In the second quarter of this year, the available room revenue and average daily room rates of six international hotel chains in China with hotel properties showed a year-on-year decline. For example, Wyndham’s available room revenue decreased by 17%, while IHG Hotels & Resorts saw a 7% decline.
While the closure of Russian airspace has increased costs for Western airlines flying to Asia, especially for European carriers facing this challenge, many European airlines have seen strong performance on flights to Japan, albeit also affected by the need to avoid Russian airspace. However, many flights to Japan are fully booked.
On the other hand, foreign tourists commonly complain about many vendors in China not accepting cash or foreign credit cards. In most cases, tourists must download Chinese payment apps like WeChat or Alipay to make purchases.
Professor Chen Yong of the EHL Hospitality Business School at the Swiss EHL Hotel Management School is an authority on studying China’s tourism economy. He told the BBC in May that barriers related to payment and reservation apps could pose real problems.
“The technologies such as social media, online mapping, payment apps, etc., that foreigners are already accustomed to using are either not available or blocked when they travel to China,” he said.
Eliseo from California told the BBC that he faced issues when trying to pay vendors who did not accept credit cards since they no longer accepted cash. Another obstacle he encountered was his home country’s banks blocking some payments over concerns of potentially fraudulent payments originating from China.
Furthermore, the Chinese “Great Firewall” restricts tourists from using services like Google search, Gmail, and Facebook without a virtual private network. The Chinese government’s monitoring of public discourse through WeChat is well-known.
Arthur Herman, a senior fellow at the Hudson Institute and director of the Quantum Alliance Initiative, had published an opinion article in Forbes in 2023 (link), warning that WeChat is the Chinese government’s “Trojan horse in social media.”
Herman wrote, “Chinese users understand that the government monitors every word said and every picture posted on WeChat, and that the government will censor things it doesn’t like.”
The Economist’s report mentioned that the main concern might be the increasing negative impression many places have about (Communist) China.
A survey conducted by Ipsos on behalf of the Chicago Council on Global Affairs in June 21 to July 1 showed that Americans’ view of Communist China has worsened, with a favorability rating dropping to a new low.
Respondents were asked to rate their favorability towards (Communist) China on a scale of 0 to 100. The average rating given by Americans was only 26 points, lower than the 32 points in 2022. This is the lowest figure recorded in this opinion poll since it began in 1978.
The economic ties between the US and China are now being questioned by more people. Over half (56%) of Americans surveyed believe that trade between the two countries undermines US national security, with 79% in favor of stopping US companies from selling sensitive high-tech products to China, higher than the 71% three years ago.
The survey shows that both Republicans and Democrats hold similar negative views towards Communist China, but they have not reached a consensus on how best to formulate policies to address the threat from China (Communist).
A survey conducted by the Pew Research Center last year found that among 24 countries, 67% of adults have a negative view of (Communist) China, while only 28% have a positive view. Negative views are mainly concentrated in wealthy countries or countries most likely to send tourists to China.