China’s Travel & Tourism Industry to Receive Major Economic Boost in 2024
The World Travel & Tourism Council (WTTC), in collaboration with Oxford Economics, has released its 2024 Economic Impact Report, predicting a significant financial boost for China’s Travel & Tourism industry. By the end of the year, the sector is expected to contribute an impressive ¥12.62 trillion to the national economy, a testament to its resilience and growth potential.
This economic boost is largely driven by a surge in domestic travel expenditure, which is projected to add ¥6.79 trillion to the Chinese economy in 2024. This marks a substantial increase in internal tourism revenue, indicating a growing appetite for domestic travel among Chinese consumers.
However, the report also highlights that international tourist spending is anticipated to lag by over 25% compared to 2019 figures. This is attributed to China being one of the last major nations to lift pandemic-related travel restrictions in 2023, resulting in a delayed resurgence in Travel & Tourism.
Despite this disparity, the sector is expected to account for 10.6% of total employment in China this year, nearing a full rebound to pre-pandemic figures but still trailing slightly behind 2019 by 2%. This indicates that the industry is still recovering but is poised for further growth in the coming years.
Julia Simpson, WTTC President & CEO, commented on the findings, stating that while the sector has shown signs of resilience, the delayed reopening has impacted international travel spend. She expressed optimism that the new, simplified visa application process will attract more visitors from overseas in the future.
Review of 2023 Performance
In 2023, China’s Travel & Tourism sector injected ¥9.2 trillion into the economy, still 24% below the levels seen in 2019. Employment in the sector improved by almost 16%, yet the total workforce was 4.8 million short of its previous peak, with 77.47 million employed.
Domestic travel spending grew modestly to just over ¥5 trillion, 17.2% shy of 2019 levels, while spending by international travelers was markedly lower at about ¥406 billion, nearly 58% below pre-pandemic figures.
Regional Perspective: Northeast Asia
For Northeast Asia, Travel & Tourism is poised for a 29% growth in 2024, aiming for a record-setting USD 2.3 trillion. Employment is expected to closely approach 2019 numbers, with projections of over 89.5 million jobs. This year, spending by international visitors should exceed USD 250 billion, and domestic travel spending is predicted to hit an unprecedented USD 1.2 trillion, exceeding pre-pandemic levels by nearly 10%.
