China’s Travel & Tourism sector is on track to make a record-breaking contribution of ¥12.62TN to the national economy by the end of this year, according to the World Travel & Tourism Council’s latest research. Despite the impressive growth in domestic travel spend, international visitor spending is expected to lag behind due to the late reopening of China’s borders.
The report, conducted in partnership with Oxford Economics, highlights that domestic travel spend is projected to reach ¥6.79TN in 2024, contributing significantly to the overall economic impact. Employment in the Travel & Tourism sector is also expected to represent 10.6% of all jobs in the country, just 2% below 2019 levels.
However, the delayed reopening of China’s borders to international visitors in 2023 has had a notable impact on the sector’s full recovery. International visitor spending is forecasted to remain more than 25% below 2019 levels this year, despite the overall growth in GDP contribution and job numbers returning to pre-pandemic levels.
WTTC President & CEO, Julia Simpson, acknowledged the resilience of China’s Travel & Tourism sector but emphasized the importance of attracting more overseas visitors. The simplified visa application process is seen as a positive step towards boosting international travel spend in the coming years.
Looking back at 2023, China’s Travel & Tourism sector faced challenges with a 24% decline in economic contribution compared to 2019 levels. Despite the growth in domestic travel spend, international spending was significantly lower, highlighting the impact of the pandemic on the sector.
Overall, Travel & Tourism in Northeast Asia is expected to experience significant growth in 2024, with record-breaking numbers in both domestic and international spending. The sector’s resilience and potential for recovery are evident, signaling a positive outlook for the future.