By Alexander Ayertey Odonkor
A scenic spot holds traditional Chinese “Molten Iron Throwing” show in Lianyungang, east China’s Jiangsu Province, on the second day of the holiday of Chinese New Year, February 11, 2024. /CFP
According to the World Travel Market’s Global Travel Report from 2024 to 2033, the proportion of Chinese households with purchasing power to embark on international travel is set to “roughly double.” Attributed to rising incomes and more middle-class consumers, China’s growth is expected to add more than 60 million households to its existing population that can afford leisure travel. Interestingly, the Asian giant’s burgeoning “travelling class”, which is expected to nearly double over the period, represents only 2.3 percent of the country’s entire population, showing the Chinese market’s enormous potential for future growth.
From 2024 to 2033, Chinese outbound spending will surpass other major markets and will consequently become more important for many destinations. Over the same period, China is also forecast to grow as a tourist destination – by 2033 China could more than double its inbound tourism revenue compared with 2024.
As China grows as a destination as well as a source market, rebounding above pre-pandemic levels, its tourism sector will not only be an essential contributor to GDP growth but also become increasingly crucial for strengthening people-to-people exchanges between China and the rest of the world, particularly as geopolitical tensions rise. China, as one of the world’s oldest civilizations, boasts diverse must-see attractions including retail hotspots as well as natural and historical sites. China’s rapidly growing travel and tourism sector will serve as an avenue for cross-cultural interactions between Chinese nationals and people from other parts of the world, increasingly contributing to mutual understanding and peaceful relations.
As China celebrates the Spring Festival, which commenced on February 10, 2024, the biggest traditional festival among the Chinese, the Asian country has not only opened its doors to foreign tourists but has also been joined in the celebration by countries around the globe. Various iconic landmarks worldwide including the Empire State Building, the Tokyo Tower and the London Eye, all lit up in red and were adorned with Chinese cultural motifs to welcome the Year of the Dragon. Additionally, the 78th UN General Assembly adopted a resolution by consensus to list the Spring Festival as a UN floating holiday – clearly, all these efforts show the growing international appeal and the profound influence of Chinese culture, a major driver of growth in China’s tourism sector.
So far, China, through the Spring Festival holiday has witnessed a record boom in tourism – venues providing various services to tourists have experienced unprecedented rise in the number of visitors. To highlight a few, data from Fliggy, a leading travel platform under Alibaba Group, show that as of the third day of the Spring Festival, the booking volume of travel services had increased by almost 800 percent compared to 2019. Also, domestic medium and long-distance tour package orders increased by 150 percent, compared to 2019. Additionally, other attractions such as museums and cinemas have all recorded a significant rise in attendees – as of 11:42 am on the fifth day of China’s Spring Festival, China’s Spring Festival box office revenue had surpassed 5 billion Chinese yuan (about $703.8 million).
Prior to the start of the Spring Festival, China had also witnessed an upswing in inbound and outbound trips during the three-day New Year holiday that took place from December 30, 2023 to January 1, 2024. Data released by the Ministry of Tourism and Culture show that total revenue of China’s tourism market for the period surpassed 79.73 billion yuan (about $11.26 billion), tripling the total for the holiday last year and increasing 5.6 percent compared to the same time in 2019. Scores of foreign tourists visited China to celebrate the three-day New Year holiday. These foreign tourists visited various attractions including the Adora Magic City, China’s first domestically built large cruise ship. According to the National Immigration Administration, China recorded a total of 5.18 million inbound and outbound trips during the period, representing a 4.7 fold increase from the 2023 figure and returning to the 2019 level.
Benefitting from a thriving tourism sector, China, during the three-day holiday period and the ongoing Spring Festival holiday succeeded in creating the enabling environment to facilitate people-to-people exchanges and also get the domestic economy off to a strong start in 2024. This year, the China Tourism Academy, revealed Chinese tourists are expected to make more than 6 billion domestic trips, up from almost 4.9 billion in 2023; while the number of outbound trips by Chinese tourists is also forecast to reach 130 million, a surge from more than 87 million last year. With tourism linked with various Chinese industries, growth in the sector will ultimately create adequate conditions to stimulate growth in the domestic economy.
For this reason, the Chinese government is increasingly focused on eliminating barriers that impede growth in the tourism sector. To further eliminate barriers constraining growth in the tourism sector, the Chinese government has dedicated additional resources to the sector – in January 2022, the State Council, China’s cabinet, announced a development plan for the tourism sector during the 14th Five-Year Plan (2021-2025). The plan, which shows that by 2035 China expects to become a tourism powerhouse through developing various tourist hotspots including world-class tourist attractions, resorts, national cultural parks and clusters serving tourism and leisure. These attractions will significantly enhance the national tourism capacity.
High-quality features will play a role in tourism from promoting the adoption of smart technologies, especially for rural tourism; integrating cultural development; and coordinating barrier-free environments and services. Ultimately, the transformation will further unlock new growth opportunities in the Chinese tourism sector.
This article was first published by the China Global Television Network (CGTN)
Alexander is a global economist with keen interest in the social, environmental and economic landscape of developed countries, emerging markets and developing economies particularly in Asia-Pacific, Africa, Europe and North America.
The post China’s tourism sector set for robust growth appeared first on The Business & Financial Times.
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