From Fortune:

Chinese authorities recently ended their mandatory quarantine measures for international arrivals, marking an exciting development after years of closed borders. However, while many had hoped for a rebound in outbound Chinese tourism, it has yet to materialize. Instead, Chinese tourists have largely decided to pivot to domestic travel rather than heading overseas as had been expected. This is having a significant impact on destinations in Southeast Asia that previously relied on Chinese tourists for growth in their tourism sectors.

Before the pandemic, China was responsible for a significant portion of tourism in Southeast Asian countries such as Thailand, where Chinese tourists accounted for roughly 27% of total arrivals and tourist income. However, in 2023, the number of Chinese tourists arriving in Thailand fell far short of previous targets, demonstrating a slow recovery for outbound travel from China. This trend has had a notable impact on the economies of the countries affected, including in Singapore, where businesses continue to feel the effects of the slow return of Chinese tourists.

Analysts have noted a range of factors contributing to the slow return of Chinese outbound travel, with some attributing this to the country’s economic struggles and the delayed revival of outbound travel brought on by limited flight connections and post-COVID visa backlogs. This was exacerbated by restrictions placed on international flights in and out of China, leading to a gradual restoration of flight capacity for both Chinese and foreign carriers.

Despite these challenges, travel analysts are optimistic about the future of Chinese outbound travel, pointing to rising consumption sentiment and declining health concerns as potential catalysts for a rebound in 2024. Promising signs are already beginning to emerge, with popular destinations such as Japan, Thailand, South Korea, and more seeing a significant increase in outbound bookings from Chinese tourists. Additionally, China’s own efforts to restore its international aviation industry are expected to boost outbound travel, with the country’s aviation regulator aiming to reach 80% of pre-pandemic flight levels by the end of 2024.



Read more: One year after China ended quarantines, analysts predict ‘out-of-the-park’ travel growth