As peak summer arrives in China, the nation experiences its first summer in four years without the harsh COVID-19 restrictions that once dominated daily life. While the country rejoices in a return to normalcy, there remains a noticeable absence of foreign tourists.
We explore the factors that limit China’s appeal to international travelers, the impact of the pandemic on outbound and inbound tourism, and the challenges faced by visitors venturing into this fascinating country.
The memory of how China handled the pandemic has left a lasting impression, dissuading potential tourists from overseas from considering a visit. The haunting images of deserted streets and barricaded buildings are hardly enticing elements for holiday brochures and tourism campaigns. Additionally, factors such as visa complexities, limited flight options, idiosyncratic payment systems, and language barriers further contribute to the hesitancy of tourists from regions like North America and Europe.
Even though there are plans to increase international flights between China and various countries, it is unlikely to result in an immediate surge in tourist numbers or bring them anywhere close to pre-pandemic levels. For instance, China and the U.S. have agreed to raise the number of round-trip flights to 24 a week by the end of October, but this is still significantly lower compared to the 340 weekly flights before the outbreak. American Airlines Group Inc. plans to add more flights between Dallas and Shanghai early next year, but the recovery is expected to be gradual.
China has recently lifted the ban on group tours to overseas destinations, including popular countries like the U.S., Australia, the UK, South Korea, and Japan. However, there is a general hesitancy among Chinese tourists to venture abroad after the economic and psychological impact of the pandemic. Concerns related to safety in other countries, the fear of an unwelcoming reception, health worries, difficulties in obtaining visas, and high costs all contribute to their reservations. In fact, a survey conducted by Dragon Tail International in April revealed that 58% of respondents either definitely wouldn’t leave mainland China in 2023 or were unsure about going abroad.
The sluggish economy and ongoing uncertainties around international travel have led Chinese tourists to explore destinations closer to home. With the ease of pandemic-related restrictions, domestic air traffic has now surpassed pre-COVID levels. Key tourist destinations like Beijing and Shanghai are witnessing an influx of visitors, but areas such as Chengdu, Kunming, Hangzhou, Xian, and Urumqi also offer unique experiences for travelers. Authorities predict that the travel market will generate an estimated 5 trillion yuan ($700 billion) in revenue this year.
Concerns Chinese tourists have about traveling overseas are mirrored by similar concerns for visitors entering China. Geopolitical tensions and a sense of distrust developed during the pandemic have made tourists more cautious. Travel advisories issued by various countries warning about arbitrary enforcement of local laws, exit bans, detention on national security grounds, and harsh enforcement of laws have contributed to a decline in enthusiasm for visiting China.
One of the major barriers faced by visitors to China is adjusting to the digital payment platforms that are unique to the country. Non-Chinese credit cards are rarely accepted, and even using cash can be challenging since many vendors only accept local payment systems such as WeChat Pay and Alipay. Improving links with foreign bank cards is being addressed, but the transition can still be frustrating for visitors. Additionally, obtaining visas can be a time-consuming and costly process, further discouraging potential travelers.
China continues to allure travelers with its rich history, vibrant culture, and natural beauty. While the memory of the pandemic has cast a shadow over international tourism, the country is gradually opening up. Overcoming challenges related to visa processes, digital payment systems, and perceptions of safety will be vital in attracting more international visitors. Chinese tourism authorities must strive to make the nation more accessible to fulfill its immense potential as a global travel destination.
Market Capital Research 