Australia Sees Dip in Chinese Visitors This Lunar New Year

Friday, February 16, 2024

During the traditionally busy season of Lunar New Year, this year’s figures indicate a slower than anticipated resurgence in tourists from China. The Australian Tourism Export Council (ATEC) has revealed a subdued outlook for the Lunar New Year, as indicated by a survey among its members. This survey highlighted a significant decrease in advance bookings and revenue, in stark contrast to the figures from 2019, although the average duration of stays has not changed.

This year’s diminished Lunar New Year activities are in line with the gradual recovery observed in the tourism sector from China, where the proportion of vacationers has dropped to approximately 26% from over 50% of the total Chinese tourists in 2019.

“The Chinese holiday travel segment, which makes a significant contribution to the Australian economy, has been slow to shake off the effects of the pandemic,” ATEC Managing Director Peter Shelley says.  

He further noted that despite a positive trend in the return of solo travelers, the group travel sector, previously a stronghold, continues to underperform. The frontline inbound tour operators (ITOs), responsible for advance bookings, are witnessing revenues that are less than half of what was recorded in 2019.

Shelley also highlighted that ATEC’s experts on China have observed significant shifts in the travel patterns of Chinese tourists, with notable growth in solo travel and a transformation in group travel dynamics.

He mentioned the ongoing evaluation of the Approved Destination Status (ADS) scheme, a regulatory framework for hosting Chinese tour groups, as a pivotal chance to create a ‘quality-centric’ approach that mirrors the evolving preferences of modern Chinese group tourists.

ATEC is advocating for the Australian Federal Government to enhance the ADS program by committing to modernize its framework towards prioritizing exceptional customer experiences, thereby strengthening Australia’s position in the international tourism market.

Shelley expressed optimism about collaborating with the government on the review’s recommendations to draw in more lucrative group tourists and is hopeful for the announcement of supportive fiscal policies in the upcoming Federal Budget.

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