Despite the lifting of the ban, outbound tourism from China remains low. In the first half of this year, Chinese tourists made about 40.4 million trips overseas, mostly to Asia, representing only 26% of pre-pandemic levels. The easing of the group ban is expected to boost tourism in countries like Japan, but challenges such as lack of staff and geopolitical tensions may hinder a full recovery.
Key takeaways:
- China has lifted a ban on group tours to several countries including the US, UK, Australia, South Korea, and Japan, potentially aiding the global tourism industry's recovery from the Covid-19 pandemic.
- Despite the easing of restrictions, a full return to pre-pandemic levels of overseas travel from China is expected to take time due to factors such as a weakening economy, a preference for domestic travel among Chinese tourists, and geopolitical tensions.
- Chinese tourists accounted for almost 20% of all international tourism spending in 2018 and 2019, but outbound tourism has been muted even after the easing of virus restrictions, with international flight capacity still about half of 2019 levels.
- Geopolitical tensions continue to affect travel, with bans on group tours to certain countries only recently lifted and concerns about how Chinese tourists will be treated abroad.