According to the latest report by Cirium and ForwardKeys, Chinese economy continues to weaken and Chinese people are holding onto their wallets tightly. Even without the worry of visas, Chinese tourists are still opting for trips abroad based on the principle of “good quality and affordable price.”
Countries like South Korea and Japan have seen a significant increase in Chinese tourists after the devaluation of their currencies against the Chinese yuan. On the other hand, Southeast Asian countries such as Malaysia and Thailand are attracting tourists with visa-free entry and relatively lower costs.
Amy Li from Chengdu is planning a nine-day trip to Malaysia with her husband and two children next month. She mentioned that the affordable prices were the deciding factor for choosing Malaysia as their destination, where they plan to explore Kuala Lumpur and the beaches of Kota Kinabalu.
The return of Chinese tourists to the global tourism market is being closely monitored as their numbers and spending are crucial for the recovery of the tourism industry. Predictions regarding when Chinese outbound travel will return to pre-pandemic levels vary, with some expecting a full rebound by the end of this year, while others, including Huwai Group, suggest that mainland tourists are still limiting their spending.
Due to the ongoing real estate crisis, high unemployment rates, and bleak economic prospects in China, consumers have become more frugal since the outbreak of the pandemic. Third-party data released on Wednesday estimated that sales during the “618” mid-year e-commerce shopping festival experienced the first-ever decline in history.
Last year, 87 million Chinese people traveled abroad, a 40% decrease from 2019 before the pandemic. Observers in the industry have noted a slowing pace of outbound travel since the Chinese New Year in February this year. According to UN tourism data, Chinese tourists spent 24% less in 2020 compared to 2019, while American tourists increased their spending by 14%.
Online travel agency Tongcheng Travel stated that Chinese travelers going abroad are more inclined to choose Asian countries that have implemented visa-free policies, with Thailand becoming a popular destination.
Bella Huang, a 27-year-old teacher from Jiangsu, shared with Bloomberg that she and two female friends plan to travel to Thailand in August while visa requirements are relaxed. As a loyal fan of Thai TV shows, this will be her first and only overseas trip this year. Her travel budget is around 8,000 yuan. She didn’t even consider going to Europe this year because getting a visa might be challenging.
However, according to Cirium and Ctrip’s data, the number of Chinese tourists to some European destinations is also expected to increase, though most of the business class seats have yet to recover to pre-pandemic levels.
ADP, an airport operator, reported that the number of Chinese tourists visiting France, the world’s most visited country, is only at 28.5% of the 2019 level.
Due to escalating geopolitical tensions between the US and China, air capacity on routes between the two countries remains over 80% lower compared to 2019.
Reports from Bloomberg have shown signs of geopolitical influences on anticipated destinations where Chinese tourists are expected to surpass 2019 levels. Cirium identified countries such as Turkey, Hungary, Uzbekistan, Georgia, Saudi Arabia, Kyrgyzstan, Turkmenistan, and Kazakhstan as the top countries where Chinese tourist numbers are expected to increase. All of these countries are part of China’s Belt and Road Initiative.