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Domestic travel industry in China shines national economy

Tuesday, February 13, 2024

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China’s tourism sector is witnessing a significant rebound in domestic travel as the country emerges from the shadows of the Covid-19 pandemic. While Chinese nationals are eagerly exploring the vast landscapes within their own country, bringing domestic travel numbers back to pre-pandemic levels, the influx of international visitors remains subdued, with recovery expected to take a longer time.

Recovery of Domestic Travel

The resurgence of domestic tourism in China has been remarkable, with the China Tourism Academy (CTA) reporting that the number of in-country trips is anticipated to reach as many as 6 billion this year, mirroring the figures of 2019. Interestingly, there’s a noticeable trend of travelers opting for shorter journeys, predominantly within their own provinces, indicating a cautious yet enthusiastic return to travel.

State of International Arrivals in China

In contrast, the pace of recovery for international arrivals paints a different picture. According to the CTA, only about 50% of the international visitation levels of 2019 are expected to return next year. This slower rebound highlights the lingering effects of the pandemic on global travel dynamics and the hesitancy of international tourists towards long-distance travel.

Economic Impact in Chinese Travel Industry

The financial implications of this resurgence in domestic tourism are significant, with projected revenue from domestic travel set to increase by 23% to 6 trillion yuan (approximately US$839 billion) from 2023 to 2024. This figure not only surpasses the 5.7 trillion yuan (about US$796 billion) recorded in 2019 but also underscores the vital role of domestic tourism in China’s economic recovery post-pandemic.

Factors Influencing Recovery in China

Several factors have contributed to the speedy recovery of domestic travel, including the lifting of stringent Covid-19 restrictions and the pent-up demand for travel among the Chinese populace. However, the recovery of international arrivals is being hampered by ongoing travel restrictions in some countries, global economic uncertainties, and a general caution towards international travel among tourists.

As China’s domestic tourism thrives, reflecting a robust recovery and a positive outlook for the industry, the return of foreign visitors remains on a gradual upward trajectory. The future of China’s tourism sector looks promising, with domestic travel leading the charge towards full recovery, while international tourism awaits a more favourable global climate to bounce back fully.

Stay updated with the latest in China travel and tourism industry news, from B2B China travel insights to the newest China travel events, China trade shows, and China trade events. Discover the latest trends, challenges, and opportunities in China shaping the global tourism industry, ensuring you’re always ahead in the dynamic world of travel.

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