China experiences a surge in domestic tourism while international visitors decline

China’s Domestic Tourism Booms While International Arrivals Lag

As the Chinese economy grapples with challenges, one sector is experiencing a significant uptick – domestic tourism. During the recent five-day public holiday, a staggering 295 million trips were made within China, marking a 28% increase from pre-pandemic levels in 2019.

The Transport Ministry reported 92 million rail trips, nearly 10 million air trips, and 1.25 billion highway journeys during the holiday period. However, international arrivals continue to lag, with foreigners entering China at only 30% of 2019 levels.

The picturesque town of Wuzhen, near Shanghai, has become a hotspot for domestic travelers. Visitors flock to the town’s historical sites, with many opting to dress in traditional hanfu clothing for photos, immersing themselves in the ancient culture.

Despite the surge in domestic tourism, challenges remain for the Chinese economy. Major players in the property sector are struggling, local government debt is rising, and youth unemployment is a pressing issue. The Communist Party has set a modest GDP growth target of around 5% for the year, prompting questions from analysts about the feasibility of achieving this goal without additional stimulus.

While the influx of local travelers is a positive sign, the disparity between domestic and international tourism remains a concern. Efforts are being made to attract more foreign visitors, including visa-free entry for citizens of certain countries and improved services for international travelers.

As China navigates the complexities of its tourism industry, the hope is that the allure of destinations like Wuzhen will eventually draw back international visitors, contributing to the country’s economic recovery.