Domestic Tourism Surging in China, but Foreign Tourism Numbers Stay Modest

China's domestic tourism surges, but foreign arrivals lag at 30% of pre-pandemic levels due to geopolitics, travel advisories, flight constraints, and challenges with digital payments for international visitors.

The recent Labor Day holiday in China has witnessed a sharp increase in domestic tourism with about 295 million trips taken within the country during this period. In the bar graph, the Ministry of Culture and Tourism shows that the number of tourists in 2022 has reached 28% more than 2019, which was the pre-pandemic year. 

The Transport Ministry's data also disclose this travel craze, which includes 92 million rail trips, almost 10 million air trips, and an astonishing one billion car trips. More than 25 billion highway trips are usually made during the holiday season. 

Although the Chinese economy has serious problems, the growing domestic tourism is good news, because it is the best way to enhance the growth of other businesses, such as those related to services, and create jobs. The Communist Party is very optimistic about the economic performance in 2024 and a thriving travel industry is the factor that can boost the national GDP by at least 5%. 

On the one hand, this surge in domestic traveling is a sad situation compared to the international arrivals which have been poor. The fluctuation of Chinese foreign tourist traffic is now only one-third of what it was in 2019, which makes us wonder what could be the reason behind that. 

International travelers could be turned away by the fluctuating geopolitical atmosphere, the negative attitudes towards China in Western countries, and the concerns of the uncertain legal applications and the possibility of wrongful detention, as is also stressed in the travel advisories from the United States and Australia.

In addition, the flight schedule is limited and the price is higher, which means that the air traffic between China and North America is much less than it was before the pandemic. The odd flight schedules and the expensive air tickets made it difficult for foreigners to plan their travel to China. 

Moreover, the country's futuristic but China-centered digital payment and booking systems are some source of frustration for international visitors who do not understand the local apps and language barriers.

Although the Chinese government has acknowledged the absence of foreign tourists and has implemented some measures to increase the number of foreign visitors, such as enlarging the list of visa-free countries and accepting foreign credit cards in some cities, the specialists think that the long-term growth of inbound tourism may be too optimistic.

The emphasis is laid on the fact that cultural transformation can be made with the main priority to the needs and views of foreign tourists which will help to make a smooth and welcoming experience for those who are not familiar with the Chinese systems and customs. 

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The country’s national traditional tourist attractions such as the ancient water town of Wuzhen in China have been receiving a steady flow of domestic crowds but the tourism industry hopes that the return of the international tourists will help to speed up the recovery.  The tourists’ spending power will also have a beneficial impact on the general economy of the country.