The U.S. travel sector is facing a prolonged wait for the return of lucrative Chinese tourism, with experts predicting it will take at least two more years for the industry to recover to pre-pandemic levels. Despite the gradual easing of travel restrictions in China, slow growth and high costs in the Asian country are keeping tourists away from America.
According to data from the U.S. National Travel and Tourism Office, Chinese arrivals to the U.S. remain 60% below 2019 levels, with tourists opting for domestic travel or visiting nearby countries to save money. This decline in Chinese tourism has had a significant impact on U.S. hotel operators, leading to decreased revenue and profitability for the industry.
The Asian American Hotel Owners Association (AAHOA) has expressed concern over the financial strain on employees and related workers who rely on international tourism for their livelihoods. Chinese tourists spent a staggering $15 billion in the U.S. in 2019, making them the highest spending market, according to the U.S. travel association.
Commerce Secretary Gina Raimondo has highlighted the potential economic benefits of a return to 2019 tourism levels, estimating a gain of $30 billion and 50,000 jobs for the U.S. economy. However, rising geopolitical tensions and the high cost of flying between the U.S. and China continue to hinder travel between the two countries.
While China’s outbound tourism to the U.S. is expected to grow in 2024, analysts predict that it will not surpass pre-pandemic levels until 2026. Nearby countries in Southeast Asia have seen a significant increase in Chinese arrivals, with Thailand and Singapore experiencing jumps of over 1,000% in 2023. The overall number of Chinese outbound travelers is not expected to reach pre-pandemic levels until 2025, according to a report from Economist Intelligence.