As the world emerges from the pandemic, international travel is on the rise again, and Chinese tourists are leading the charge. During the extended May Labour Day holiday, Chinese tourists flocked to international destinations, nearly reaching pre-pandemic levels. This resurgence is a welcome development for global destinations like Malaysia, Singapore, Japan, and Indonesia, which heavily rely on tourism from China.
Interestingly, there has been an unexpected surge in last-minute bookings, indicating a robust rebound in outbound travel from China. This sudden increase in travel demand is significantly higher than earlier projections from the start of April. Such trends suggest that despite economic challenges at home, Chinese consumers are prioritizing international travel, which is crucial for filling the revenue gaps left in the global travel industry during the pandemic.
In 2019, Chinese travelers were responsible for approximately 14% of global tourism revenue, making them a pivotal market segment for many countries. The spending by Chinese tourists abroad amounted to almost US$248 billion, underscoring their importance in the global travel economy. With travel numbers rebounding, destinations across Asia and beyond are poised to benefit significantly. Analysts now anticipate that outbound tourism from China could recover to pre-pandemic levels by 2025, much sooner than initially expected.
Destinations within Asia continue to be the primary beneficiaries of this resurgence. Traditional favorites like Hong Kong and Macau remain popular, alongside emerging hotspots such as Japan, where a weaker yen has made travel more attractive. Beyond Asia, Europe has seen an uptick in bookings, with Italy and the UK experiencing substantial increases. Additionally, the Middle East, particularly the United Arab Emirates, has emerged as a top destination, thanks in part to Beijing’s promotion of Belt and Road Initiative travel spots.
Alongside international excursions, domestic travel within China has also seen a significant rise. The first quarter of the year witnessed a 17% increase in domestic trips and a similar rise in spending. Such robust domestic activity highlights the strong travel demand among Chinese consumers, despite external economic pressures.
The sustained increase in travel activity, both domestically and internationally, indicates a strong recovery and promising future for the tourism sector in China. This rebound is not only crucial for China’s economy but also for the many global destinations that have historically depended on Chinese tourists. The ongoing recovery of Chinese outbound travel is expected to bolster international air travel, with projections suggesting it could exceed 90% of 2019 levels by the end of the year.
