Trip.com CEO says visa and flight issues are hindering China’s pent-up outbound tourism demand

Visa delays and insufficient flight capacity have hindered the full recovery of China’s outbound travel post-Covid-19, Trip.com Group CEO Jane Sun revealed in a media briefing in Shanghai. Sun highlighted the two major hurdles for the industry’s revival – visa restrictions and limited flight capacity, which are preventing Chinese travelers from exploring different countries.

Despite the release of pent-up overseas travel demand following Beijing’s relaxation of its zero-Covid policy, outbound tourism remains subdued. Only 87 million Chinese traveled abroad in 2023, a significant drop from the 155 million in 2019, according to data from the China Tourism Academy.

Sun emphasized the challenges faced by Chinese citizens planning to travel abroad, with lengthy visa processing times and limited international flight options. She noted that a Chinese traveler aiming to visit Germany must wait at least four months for a visa interview, while many mainland tourists are unable to visit the US due to visa delays.

While Trip.com reported a strong revenue increase in the first quarter of this year, Sun remains cautiously optimistic due to the gloomy economic outlook. The company’s focus is now on boosting outbound travel, with Sun highlighting the potential for growth in this sector.

Despite the surge in domestic travel during the recent Labour Day holiday, with a 24% increase in passenger volume compared to 2019, budget-conscious consumers are opting for cheaper travel options, impacting big hotel chains. Stiff competition and the preference for lesser-known resorts have prevented hoteliers from raising room rates, according to property consultancy JLL.