Chinese tourists return to global markets

The Chinese outbound tourism market has experienced a robust revival in 2024, signaling a dynamic comeback after the end of pandemic-induced restrictions. With travel demand surging, key destinations worldwide are once again welcoming Chinese tourists, making 2024 a pivotal year of recovery.

In 2019, the Chinese outbound tourism market was a global powerhouse, with Chinese travelers making 155 million trips abroad and spending an impressive $255 billion, according to data from the UN World Tourism Organization. This level of expenditure positioned China as the world's largest source of international tourists, fueling economies across the globe.

In the wake of the pandemic, as global economies struggle to recover, attracting tourists, particularly high-spending Chinese travelers, has become a priority for leading tourist destinations. This topic has also emerged as a key issue at this year's World Travel Market in London.

Industry reports reveal that Chinese travelers are venturing abroad in increasingly large numbers, bringing a renewed wave of economic activities to the global tourism sector.

Data from Trip.com and Fliggy showed a significant uptick during the 2024 National Day Golden Week, with Alipay reporting a 60-percent year-on-year increase in outbound transactions. Goldman Sachs projected outbound travel growth of 62 percent year-on-year, approaching 94 percent of 2019 levels, while ForwardKeys data suggested that flight demand is closing in on pre-pandemic figures.

Gary Bowerman, director at Check-in Asia, a travel consultancy specializing in China and the Asia-Pacific region, is optimistic about emerging travel trends. He highlighted the growing appeal of destinations in the Middle East and North Africa.

"Destinations like Saudi Arabia, Qatar, and the UAE are enthusiastic about attracting more Chinese visitors. In 2025, we're likely to see increased flight capacity from China into these regions, opening up access to a broader range of destinations," he said.

Bowerman also pointed to a rising interest in less traditional destinations, including Eastern Europe, Central Asia, and Latin America. This shift reflects Chinese tourists' growing desire to explore new cultures and landscapes.

Additionally, he noted emerging trends among younger travelers in Southeast Asia, such as a preference for self-driving — especially with electric vehicles, or EVs, — and rail travel, supported by improved regional rail networks. High-speed routes like the China-Laos railway, for example, are making cross-border rail travel increasingly appealing to Chinese tourists.

Bowerman emphasized that the Chinese travel market is highly diverse, encompassing everyone from budget backpackers to luxury travelers. Post-pandemic, while some segments are cautious with spending due to economic pressures and currency fluctuations, the luxury sector remains strong. In destinations like Singapore, for instance, affluent Chinese travelers continue to spend generously.

Access matters

A key driver of the market's revival is the strategic relaxation of visa policies, making travel more accessible for Chinese tourists. Vietnam's elimination of visa requirements in late 2023, for example, led to a sharp rise in Chinese arrivals. Similarly, Malaysia's extended visa policies have boosted numbers beyond 2019 levels, and Singapore has also benefited from more favorable travel arrangements.

As 2025 approaches, new and emerging destinations are capitalizing on these opportunities. Bowerman expects continued growth in regions that offer easier access and diverse experiences. However, visa policies are not a universal solution. While Thailand's visa-free offer has not yet returned Chinese arrivals to their former heights, Japan remains a top destination despite lacking such a policy. This indicates that factors like cultural appeal and strategic marketing also play a crucial role in attracting Chinese travelers.

Bowerman expects continued growth in regions that offer both easier access and diverse experiences. However, visa policies alone are not a cure-all. Thailand's visa-free policy, for example, has not yet returned Chinese arrivals to pre-pandemic numbers, while Japan remains a top destination for Chinese tourists despite having more restrictive policies. This highlights the importance of cultural appeal and effective marketing in attracting Chinese travelers, he added.

Saudi Arabia is also experiencing a surge in Chinese tourists, many of whom are drawn by immersive cultural experiences and luxury accommodation.

Alhasan Aldabbagh, president of APAC Markets at the Saudi Tourism Authority, noted that "Chinese travelers are drawn to destinations that offer authentic interactions and memorable moments, aligning with Saudi's commitment to showcase its rich heritage and hospitality".

Between 2023 and 2024, the number of Chinese travelers to Saudi Arabia has doubled. Aldabbagh sees immense potential in this market, especially after the country introduced the eVisa for Chinese visitors in 2019.

"We are setting our sights on the Chinese outbound tourism market as part of our Saudi Vision 2030 strategy, aiming to transform Saudi Arabia into a global tourism hub. By 2030, our target is to welcome 5 million Chinese visitors, representing nearly 10 percent of our total inbound tourist goal," he added.

Travel preferences

Sienna Parulis-Cook, director of marketing and communications at Dragon Trail International, also noted the steady recovery of Chinese's outbound travel market throughout 2024.

"Chinese traveler's enthusiasm for and confidence in traveling overseas is definitely back, and forces of supply and demand are working together much better in 2024 than they were in 2023, with smoother visa processes and better flight availability," she said.

While consumer confidence in China has tempered some luxury spending domestically, Parulis-Cook observed that Chinese consumers still prioritize high-value experiences, leading to strong growth in outbound travel in 2024. "We may also be witnessing a rebalancing of luxury spending post-pandemic, where overseas purchases substitute for some domestic luxury spending," she added.

"A shift toward more independent travel is also evident," Parulis-Cook explained, as more travelers now plan their own itineraries, aided by social platforms like Xiaohongshu (Little Red Book). With users sharing real-time travel experiences, the platform is influencing travel trends and inspiring others to follow suit.

Europe, however, faces challenges in attracting Chinese tourists due to limited direct flights and complex Schengen visa requirements, making short-notice travel difficult, experts say. In contrast, destinations like Turkiye and Serbia benefit from more lenient visa policies, making it easier to attract Chinese travelers. Experts say, to compete, European destinations must adopt creative and innovative strategies to appeal to the Chinese market.

Responding to the growing interest in nature-based and outdoor activities, destinations like Austria are launching initiatives tailored for Chinese tourists. Emanuel Lehner-Telic, head of markets for Asia-Pacific at Austria Tourism, points to the recently established Chinese-Austrian Friendship Trail in Sichuan province as a bridge between the two cultures, reflecting the appeal of Austria's Alpine landscapes.

"Austria offers an ideal mix of culture and nature. Chinese tourists here are exploring more outdoor destinations in the Alps and showing a growing preference for high-quality accommodations and authentic local cuisine," he said.

This trend toward deeper cultural immersion and local experiences reflects a shift toward slower, more meaningful travel.

In 2019, Austria welcomed 1 million Chinese visitors, resulting in 1.5 million overnight stays. While this number dropped to 200,000 in 2023, there has been a remarkable 225-percent increase compared to 2022. The data from Austria Tourism showed that the first half of 2024 has already seen 160,000 visitors, with overnight stays rising by 120 percent compared to the previous year.

Growth potential

In the UK, Patricia Yates, CEO of VisitBritain, reports that Chinese tourists are exploring beyond London, with cities like Manchester and Edinburgh gaining attraction, aided by expanded direct flights from China.

"Compared to other European countries experiencing visa delays, efficient visa processing strengthens the UK's appeal," Yates explained. "Chinese visitors often stay longer — up to 11 days — allowing for deeper exploration and providing substantial benefits to regional economies."

The popularity of British films and TV series is another advantage in the Chinese market, where series like Harry Potter, Sherlock Holmes, and Bridgerton have captivated audiences.

Yates emphasized that visitors are increasingly drawn to live out these on-screen experiences. Campaigns featuring walking tours of filming sites, such as Bridgerton's locations in Bath, align with a rising demand for immersive, authentic experiences.

In the near term, China is poised to play a pivotal role in driving international travel, especially in the Asia-Pacific region. While current outbound travel volumes have yet to return to pre-pandemic levels, Chinese tourism is projected to rebound by 2026, reaching 15 percent above 2019 levels, according to data from Tourism Economics.

David Goodger, managing director for Europe, the Middle East and Africa at Tourism Economics, observed a growing trend of cost-consciousness among Chinese travelers, which may result in a shift toward shorter, medium-haul trips instead of longer, more expensive journeys to Europe and North America.

Despite some challenges, Goodger noted that growth in key indicators in China remains stronger than in many developed economies. He believes there is still significant potential for growth among Chinese outbound travelers that has yet to be fully realized.

"By 2030, it's anticipated that more than 40 million new Chinese households will have the means to afford international travel, signaling a long-term surge in demand," he added.