Chinese tourists are returning.
After three years off the global radar, Chinese citizens regained their travel freedoms on Jan. 8 as the borders reopened after the pandemic. On Feb. 6, outbound group tours recommenced to 20 countries. Although the U.S. is not on the initial list, Chinese independent travelers are able to visit.
China’s travel recovery is a work in progress. Its travel, aviation and hospitality sectors were savaged by three years of isolation. Rebuilding demand and supply will take time.
The second half of 2023 should see progress as more flight routes are reinstated. Chinese tourism will grow at a slower pace than before, but travel firms could experience growth if they consider how domestic travel and consumer trends might transfer into global tourism.
The China Outbound Tourism Research Institute forecasts 179 million trips (including to Hong Kong and Macau) from China in 2025. This would surpass the 2019 total.
So, how should travel businesses prepare? China’s outbound market is vast. It spans everything from backpacking to ultra-high-end luxury, Gen Zs to seniors and business travelers to extended families.
Before 2020, the Chinese market was rapidly diversifying. Then, the constraint of domestic-only travel created new booking behaviors, trip motivations and segmentation challenges.
Travel planners should expect shifting tourist expectations, and sometimes seemingly contradictory travel patterns, as the recovery builds. Here are eight factors to consider when evaluating what the return of Chinese tourists means for the global tourism industry.
Zero-COVID-19 Avoidance
Three years of a strict zero-tolerance policy exacted an emotional toll for many Chinese. Travel will help create distance with the past and rediscover lost pleasures. Chinese society is complex, and has become more so during the strictures of COVID-19, but national pride remains intact.
Despite personal misgivings about Zero-COVID-19, Chinese tourists will not take kindly to criticism of pandemic policies. This is a subject they will not wish to discuss — even in passing — on vacation.
Despite personal misgivings about Zero-COVID-19, Chinese tourists will not take kindly to criticism of pandemic policies. This is a subject they will not wish to discuss — even in passing — on vacation.
New Frugality
Pre-pandemic, Chinese visitors were courted by destinations and retailers as high spenders. Growing uncertainty about their economic future has seen urban Chinese in their 20s and 30s rediscovering the virtues of frugality. They cut spending and save cash where they can, rattled by high youth unemployment, falling salaries and a faltering property market.
This could influence overall tourism spend. The frugal Chinese segment creates new opportunities for promoting simple and environmentally friendly forms of travel and activities, away from luxury boutiques and high-priced tours.
Urban Hedonism
Despite pandemic predictions that Chinese tourists would seek nature escapes, urban hedonism is in vogue. China’s own travel recovery is concentrated in the mega-cities of Shanghai, Beijing, Hangzhou, Chengdu and Tianjin. Hong Kong and Macau are hot again.
While overseas, Chinese tourists will want to go beyond marquee attractions to explore architectural diversity and historic backstories. The night economy is a big focus in China as tourists seek inspiring evening activities contrasting from a city’s daytime offerings.
Personal Safety
In November 2019, the novel coronavirus — later renamed COVID-19 — was identified in the Chinese city of Wuhan. Grounded Chinese tourists watched online incidents of “Asian hate,” aggression against Asian people and references to “Chinese flu” as the virus spread. Those images have not faded.
Chinese tourists will be security conscious and retain a low profile. Demand for private limousines, pre-ordered taxis and hotel in-room dining could increase.
More recently, they know anti-China sentiment is rising around trade and politics. Chinese tourists will be security conscious and retain a low profile. Demand for private limousines, pre-ordered taxis and in-room hotel dining could increase.
Hotel Experiences
China’s three-year-long Zero-COVID-19 policy had a damaging impact on the hotel industry. In response, management teams experimented with guest concepts and experiences. Bespoke afternoon tea sets were co-created with brands such as Ferrari and Chaumet.
Chinese artists were engaged to produce exclusive exhibitions and mixed-media experiences. Culturally themed kids’ activities enabled parents to relax and enjoy spa time together. These tailored experiences raised service expectations among affluent travelers.
Culinary Tourism
A generation of independent Chinese travelers identify as “foodies.” They will want to sample (and photograph) local foods, alongside Chinese breakfasts, lunches and dinners.
Surveys show fine dining is an important factor when choosing a destination. Gourmet travelers check a city’s Michelin restaurant guide for inspiration. Young foodies want to know the backstory of dishes that are new to them by visiting places where ingredients are cultivated and speaking with artisanal producers. They like to try ‘hands-on’ cooking techniques that connect them to flavors unique to the surroundings.
Adventure Chasing
China’s still-developing adventure market covers a broad spectrum, from gentle trekking to speed skating. China’s dramatic landscapes provide adventurous challenges, from skiing and snowboarding in the northern Alps to traversing more than 2,000 glass-panelled bridges stretching over river valleys.
Thrill-seeking experiences captured on video go viral very quickly on Chinese social media.
Road-trippers head for southwestern provinces such as Gansu and Sichuan to take sportscars for a spin around mountain bends. Thrill-seeking experiences captured on video go viral very quickly on Chinese social media.
Mixed Reality Marketing Engagement
Mixed-reality and metaverse campaigns are transforming the way Chinese consumers interact with brands and travel providers. Chinese tea producers, mooncake bakers, beauty brands and tourism boards are all developing mixed-reality experiences to engage new customers.
Travel brands should overcome the scepticism that exists beyond Asia about metaverses. Post-1990s consumers are in for the long haul, and China will be a crucible of travel innovation in real-world and virtual realms.
Gary Bowerman is co-author of the China Outbound Tourism Handbook 2023: 88 Practical Ways to Prepare for the New Wave of Chinese Visitors
