Chinese Tourism Surge: Domestic Soar, Foreigners Lag Behind

Domestic Tourism Soars in China, But Foreigners Lag Behind

1. Last week's five-day public holiday to mark labour day saw 295 million trips made within China.
2. The Transport Ministry's figures are also staggering: 92 million rail trips; almost 10 million air trips and 1.25 billion highway journeys.
3. This comes as international arrivals continue to lag, with foreigners currently entering China at barely 30% of 2019 levels.

Why the Disparity?

1. The Communist Party has set a target of "around 5%" GDP growth for this year. Despite uncertainty and economic challenges, domestic tourism could be a lifeline.
2. Major players in the once-mighty property sector are struggling to stay afloat, local government debt continues to rise, and persistent youth unemployment has left highly qualified university graduates uncertain of their future.
3. Amid all these challenges, a more buoyant travel scene could bring broader business opportunities and greater service industry employment.

Challenges for Foreign Tourism

1. Three years of harsh Covid prevention measures drove down arrivals from other countries, but that alone can't account for the current situation.
2. Huang Songshan, the head of the Centre for Tourism Research in the School of Business and Law at Australia's Edith Cowan University, blames this weakness in part to "the shifting geopolitical landscape globally".
3. Official travel advice from some governments echo this sentiment, at times quite harshly. Washington warns potential travelers to "reconsider travel to Mainland China due to the arbitrary enforcement of local laws, including in relation to exit bans, and the risk of wrongful detentions".