Chinese tourism to Australia struggles to rebound post-pandemic

Monday, March 4, 2024

Despite hopes for a swift recovery in Chinese tourism to Australia post-pandemic, the industry faces ongoing challenges. Tourism operators like Mandy Ho, managing a hot air balloon company in Melbourne, have observed a significant drop in Chinese visitors.

In the vibrant period around the Lunar New Year, an occasion that usually sees a surge in tourism, numbers have halved compared to pre-pandemic levels. This downturn is particularly striking for businesses like Global Ballooning, where Chinese tourists previously comprised 50% of their clientele.

Tourism Australia data paints a stark picture of the situation, with only 102,000 Chinese holidaymakers visiting in September 2023, a sharp fall from the 688,000 recorded four years prior. Various factors contribute to this decline, including economic downturns in China and a shift in travel preferences towards destinations like Singapore, Thailand, and Malaysia, which offer visa-free entry and are closer to home. This trend is further evidenced by a reported 30% increase in Chinese tourism to Southeast Asia, according to Trip.com.

In response to these challenges, Australian tourism operators are exploring new strategies. Diversifying their market has become a priority, with efforts to attract visitors from the United States, Taiwan, and Hong Kong showing promising results. Despite the current downturn, industry leaders remain hopeful but realistic about the timeline for recovery. Peter Shelley from the Australian Tourism Export Council reflects this sentiment, noting an adjustment in expectations among members.

Australia’s appeal as a travel destination is undeniable, but high costs and reduced flight availability—currently at 86% of 2019 levels—pose additional barriers. While Tourism Australia is optimistic about a rebound, projections from Oxford Economics suggest a full recovery may not materialize until 2025-26. As the industry navigates this uncertain landscape, the focus is on adaptation and resilience, with hopes that the rich experiences offered by Australia will eventually draw Chinese tourists back in significant numbers.

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